Design Con 2015

Will Global Economic Problems Hurt Electronics?

NO RATINGS
View comments: threaded view | newest first | oldest first
Hawk
User Rank
Supply Network Guru
What to do?
Hawk   10/3/2011 10:27:23 PM
NO RATINGS

I hear you loud and clear Anna but how do you prepare for this unknown? The debris of the financial meltdown that we thought we had cleared away is coming back and demand uncertainty is here again. The industry is being careful but the challenge of the electronics supply chain is finding a way to match your forecast to actual sales. If you overshoot, you end up with too much inventory and, if you didn't produce enough, you lose sales to rivals. How clear, though, is your Crystal ball?

mfbertozzi
User Rank
Supply Network Guru
Re: What to do?
mfbertozzi   10/4/2011 3:13:05 AM
NO RATINGS

Good point Hawk, unclear crystal ball seems the real problems. For example, if we focus on some important players very experienced in business, as HP, RIM and Nokia, it appears lack of strategy and clear path to follow report as consequence reduction of profit and revenues, then jobs cut then financial crisis in our society. It is a real chain.

Ariella
User Rank
Supply Network Guru
Re: What to do?
Ariella   10/4/2011 9:05:27 AM
NO RATINGS

Ah, if only we did have a crystal bowl, Hawk. It seems to me that Anne's argument is that, as we do not have a crystal clear view of the future, businesses should err on the side of caution -- going for the lower estimate of production in order to minimize the risk of unsold inventory.

elctrnx_lyf
User Rank
Supply Network Guru
Re: What to do?
elctrnx_lyf   10/4/2011 1:46:51 PM
NO RATINGS

these are very difficult times to any company. This is purely result of wrong demand estimations. There is too many companies too many products but too few people who really want to buy them. I would suggest the companies should keep investing if they believe in their products and technology. Only then the ball keeps rolling otherwise its only an end.

Anna young
User Rank
Blogger
Re: What to do?
Anna young   10/5/2011 9:07:07 AM
NO RATINGS

@ Elctrnx_Iyf, You're absolutely correct - it is a very difficult period for businesses. It is a matter of balancing the demand and supply.

Anna young
User Rank
Blogger
Re: What to do?
Anna young   10/5/2011 8:10:31 AM
NO RATINGS

@ Ariella, thanks for the clarifications. That is exactly my point. Industry need to pay closer attention to the forecasts, track actual consumption to minimize  overproduction.

Anna young
User Rank
Blogger
Re: What to do?
Anna young   10/5/2011 8:59:54 AM
NO RATINGS

@ Hawk, I wish there was a crystal ball to predict and direct the path to follow in this instance(Lol). The data speaks loud and clear. JP Morgan Global Manufacturing PMI clearly stated, "The global manufacturing environment is worsening" It suggests to me that the industry needs to exercise caution when projecting forecasts and actual production.There is no clear cut route to resolving the current situation.

Kunmi
User Rank
Blogger
Re: What to do?
Kunmi   10/5/2011 10:26:58 PM
NO RATINGS

Companies are really fighting the unknowns. The global economy is already down the hill and everything is being affected. This will hurt electronics and its supplies because consumers will be placing their priorities and eliminate what they consider non-essential at a particular time. I do not think any crystal ball can reflect any sudden recovery. Coming down the hill his more faster than climbing up the hill. The recovery process will be slow but it will surely come.

Adeniji Kayode
User Rank
Production Synthesizer
Re: What to do?
Adeniji Kayode   10/6/2011 8:03:10 AM
NO RATINGS

@Kunmi, I quite agree with you that in a time like this, electronics really show itself as a seroius liability, sp people start to set their priorities right. They suddenly become an econimist and start to economise their limited resources, then the list start from food and run down to the least important which would have been a more priority if not for the recession.

Jay_Bond
User Rank
Supply Network Guru
re:
Jay_Bond   10/4/2011 7:20:27 AM
NO RATINGS

I think the bigger picture is not will global economics hurt the electronics industry, but how bad will it affect all key elements of the major economies. With all the uncertainty of the Euro crisis, compounded with an Asian slowdown and a fluttering U.S. economy, it would seem like we are very close to a tipping point. The price of oil is a very good indication that there is a global slowdown. This can be good for consumers who feel less pain at the pump and might be able to spend a little more money buying "want items", but this may also be sending a signal to companies that were looking to expand hiring, to actually cut workers. Overall we could still be seeing higher unemployment rates globally.

Anna young
User Rank
Blogger
re:
Anna young   10/5/2011 9:27:15 AM
NO RATINGS

@ Jay_Bond, I agree there might be further global unempolyment situation in 2012. The world political leaders are worried about the gobal impact of this overwhelming financial crisis. Banks, industries and busnesses are worried. The forecast is that Europe will move into recession early next year. It is indeed a worrying time overall.



More Blogs from Anna Young
The new government rules and regulations may prove to be a double-edged sword: achieving some positive goals but costing organizations a great amount of money and work and, perhaps, lost sales as well.
Global spending on technology products is forecast to keep rising this year. Then there are the cannibals.
The smart meter promises accuracy, early conflict resolution, and cost savings. Aren't these the same goals we want in the manufacturing supply chain?
Tablet shipments are surging while PC sales are falling. For vendors, the battle for survival and dominance has only just started.
Semiconductor inventories rose strongly in the third quarter of 2012, and further increases could trigger a write-down by suppliers in 2013.

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Archived Dialogues
Live Chat 11/12: Examining the Cyberthreat to Supply Chains
The number of cyberattacks is on the rise and hackers are targeting the supply chain. Drew Smith, founder and CEO of InfoArmor, will be on hand to discuss the reality of today's threat landscape and what to do about it.
Live Chat 11/06: Enterprise Risks, Intellectual Property & Supply Chains
Enterprise risk management (ERM) frameworks can be useful to identify, assess, and manage intellectual property (IP) risks that arise in supply chain compliance. We'll look at real-world examples and strategies for mitigating those risks.
Latest Poll
EBN Newswire
BANNOCKBURN, IL & WASHINGTON   12/11/2014
2014 DSW Rule Fails to Incentivize Recycling Sufficien...
Twitter Feed
EBN Online Twitter Feed