The original post: /r/datacenter by /u/SIMGroupHoldings on 2024-09-13 13:46:05.

Hi all, I’m considering purchasing a small metal fab business in Ontario, Canada that currently specializes in wall and floor-mounted enclosures. As part of the acquisition, I’d be interested in exploring the potential opportunity to expand into the server & network racks/cabinets space for data centers.

I wanted to reach out to this community to see if anyone here has experience in this sector and can share some insights:

1. How difficult is it to break into the server/network rack manufacturing market?
   • Are there specific challenges or barriers to entry I should be aware of?
2. What are the pros and cons of entering this market?
   • Is this generally a good business to be in for long-term growth?
   • Are there major risks or common pitfalls?
3. How competitive is the space?
   • What kind of players dominate the market, and how tough is it to compete with them?
4. Is there potential for repeat business?
   • I’m curious if server and network racks tend to be a one-time sale or if there are opportunities for long-term, repeat clients.

Any advice, insights, or stories from those familiar with this industry would be greatly appreciated!