Supply-Chain Squeeze

Big clients demand cost cuts--now

The ultimatum came in January: Cut your prices 30%, said Robert Giampia Sr.'s biggest customer, or the deal is off. But with margins already razor-thin, another cut was impossible. So Giampia, the owner of Circuit Techniques Inc., a Yonkers (N.Y.) maker of fuse-box components, called his attorney and banker and began to discuss his options--including bankruptcy, which he has so far rejected.

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