JASPER, IN – The economic decline will shakeup the OEM programs sought by EMS companies, Kimball International's top executive said.

"The financial crisis and the economic slowdown will cause those companies larger than we are to push down and to try to serve our space. It will bring more margin pressure in our markets," Kimball president and chief executive Jim Thyen said on the company's quarterly conference call with analysts.

"It will also cause us to push down and try to serve in a space that is more characterized by high-mix, low-volume production, especially in our North American plants," he added.

Thyen also predicted changes in cost structures of various regions will affect where production is performed.

"Inflation is changing the cost relationship of venues around the world. And clearly, Asia is moving more to serve Asia as the cost and the risk of transportation and logistics becomes a significant component, reducing the gap between our two countries. However, the United States will continue to be challenged by Asia and other lower cost areas, such as India, Northern Africa, Brazil and Russia."

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