Indeed, SP. That 9 percent is also a very narrow slice of the pie because Avnet measures total available market (TAM) and distribution total available market (DTAM). Avnet admits to being a little conservative in its estimates because everyone is still gun-shy from the recession. My guess is the potential is actually bigger.
These numbers are very encouraging coming from the supply side. Hopefully the semiconductor market estimated growth will translate into more consumer buying power which will continue to encourage economic growth. As I stated before, I just hope that we start to see this translate into companies investing in engineering and product development which will translate into lower unemployment numbers. I do understand that companies are proceeding with caution which is totally understandable, hopefully, they will gain some confidence back in 2011.
You mentioned that electronic manufacturers are looking to 'consolidate' and reducing their distribution to 'few key players'. While having less number of partners may mean simplicity for the company, it may also lead to a rise in the cost of final product because of the intermediary commission involved. In terms of supply chain effectiveness and from a long-term perspective, how would you compare the option of distributing through a bunch of distributors versus supplying to a large number of customers directly?
Barbara, Go back in time and tell me please the last time any of these companies sounded the alarm about the future. The electronic supply chain is chock-full of optimist until things fall apart. They press the panic button typically after they run into trouble. The electronic supply chain is not operating in isolation from the rest of the global economy. Growth is almost certain in Asia and perhaps even in Eastern Europe -- maybe even in Africa -- because high-tech equipment adoption is still going on and they can benefit from the productivity improvements.
However, a quick review of what has fueled growth in the US and in Europe over the last couple of years will indicate it has been government spending. Now, Europeans are pulling back and trying to fight their growing debt and deficit problems. The United States must soon follow. Are Avnet executives aware any debt fighting actions in the U.S. plus the pullback in government spending will hurt the general economy and by extension, their own operations?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.