On our first day in Ghangzhou, China, Junior Team Canada had the opportunity to see first-hand how a Canadian entrepreneur had found success in Asia. Six years ago, Maxime Bérubé and Francis Gervais were college graduates who had little capital to start a business. Today, Komaspec is a 12,500 square-foot factory that manufactures over 800 different products annually for clients from industries around the world.
Turnkey manufacturing describes a complete manufacturing function that manages all manufacturing and supply chain services, including material acquisition, assembly, test, and aftermarket service and warranty support. Komaspec chose a turnkey model right from the start, because they recognized that the niche market of innovative gadgets would drive their business model, instead of the mass-produced simple-to-make items.
As cost of labor increase in Asia the demand for the type of goods naturally shifts as well. 10 years ago, almost all the world’s demand on Asian manufacturing was in mass-produced, low quality goods. Today, there is a shift towards higher quality and customized products. As a result, this shift creates a demand that traditional Chinese companies cannot fulfill, and an entry point for SMEs like Komaspec to succeed.
“The more complex the design, the more of a competitive advantage we have.” says Bérubé. During our tour of the factory, we witnessed the manufacturing process of a container for stem cells, a revolutionary gaming device, and an innovative snow plow developed by a Quebec company.
Bérubé stressed the importance of finding the “right” opportunity and focusing one’s efforts. Serving a niche market in contract manufacturing, Komaspec has achieved its mission of being the fastest and most competitive operation in its field and is a leading model for others to follow.
To learn more about Komaspec, visit http://www.komaspec.com/