Ariella, I don't disagree with your sentiment but I detect a hint from it that companies should do more to help push the economy up. That's a fine idea and perhaps they should but they will get pulverized on Wall Street. Companies have no further obligations than boosting value for shareholders. It's not a jointly shared future. Capitalism dictates everyone for himself except when the commune is as a whole under threat -- say, in a situation of war -- and even then many companies still focus on making money rather than on helping "the war effort." Haliburton did it while soldiers were dying in Iraq and it even billed the government excessively.
In order for the economy to revive strongly enough to boost the "optimism" level of everyone, we would all have to watch out for numero uno (you) and in doing so watch out for the economy together. It's a sad reality but that's how evolution formed us. Right? I would love to hear your take on this because that's how high-tech companies too are operating. See the nasty competition developing in the tablet market, for instance. So many to choose from it's clear the weakest will drop off eventually and only the strongest will survive.
Parser, Wall Street rewards both the daring -- when they pull it off -- and the cautious -- when they don't lose out on opportunities. Finding the right balance is what management at high-tech companies must do. It's not always easy, however, hence the inclination to wait until for further evidence of the recovery.
Anna, I believe companies are loosening their purse strings slowly and hesitantly. Part of the reason for this is the same uncertainty you mentioned. They want to be more certain of the strength of the ongoing recovery before raising payroll. Some companies are more daring, more assured or more forward-thinking than others but generally most companies are adopting a wait-to-see attitude. Let's hope they are not too slow out of the starting gate.
Everybody including the seller, buyer and producer got suffered very much during the recession period. Now this is the post recession period and everybody is trying to play in much safer way. Big brands had started further investment and expansion in a smaller way, while the medium and small scale industries are keeping away from the scene and playing the role of a market watcher. That means everybody learned lessons from the past. good!!
But one thing is dam sure, requirements are hot in market and whoever plays their card in safer way can capture the market. That is the requirement for products and supply is not at par with the pre recession period, so surly there are green rooms for more demand and supply. This internal will help the smooth flow of economy. During the recession period, we had seen that, much of the economy is concentrated to certain hands and again the reverse flow has to happen in order to strengthen the economy. Since everybody is playing their cards in the safest way, it may take time to reflect this growth in market.
Little bit of optimism is needed to plan for the future. To many variables but one thing is for sure the economy is slowly marching up. Investors have to break their fear and start investing. Yes, there will be some fallout, but where are high risks there are possible higher earnings. Playing safe is what Wall Street is doing being burned a few years ago. There is somewhere here a threshold to be crossed and suddenly every investor will be on the market making a large boom. The threshold is set by global economy and the biggest player is China then US, Germany and others.
I was recently following the BBC news when I noted on its ticker information that President Obama had forecasted that the American economy will be strong in 2011. While I welcome this news however I was still concerned about the high US and UK's unemployment.
I agree with eemon that the corporation themselves are the key to a visible certainty in the markets or economy as a whole. Here in the UK, small businesses are already crying foul over the banks failure to assist with loans to help stabilise their business and reduce the need for staff redundancies. Yet these banks have been busy increasing their profit margins.
Consumer spending comes in the form of employment and increased payroll but right now I see uncertainty as corporations will rather hoard cash through reduction in staff levels, a norm we all know as restructuring.
I agree with your point of view, DennisQ. I've heard many declare that the recession is over, or that we've turned a corner, or that the job situation is looking up. Yet unemployment remains high and the salaries on offer are low. Many jobs are labeled "entry level" to justify that level of salary when the skill level demanded would, more accurately, be termed mid to senior level. So I am also not completely optimistic about the future.
Very good question. While there was news that economy is getting strong and recession seems to be over but in reality there are lesser jobs in high tech market, recruitment is very slow and pay hike is almost nothing. Sometpimes I feel investing in precious metals like gold or buying estates of rubber or peper is a good idea but then the fact of being an engineer provokes to get back in regular project deliveries. But yes the uncertainty is really high what will happen in future?
Unfortunately the efficiency and general manufacturing of the USA has little to do with it, ultimately Americas future will be dictated by their deficit.
Once China starts to loose interest in handling American Dept and becomes more interested in their own currency performance on the international market they will start to 'dump' the US debt they are currently supporting. Europe is in no state to be taking up that slack. Overall the future is looking bleak on a number of fronts.
As a point of interest what exactly is a 'maximum' tax rate, because as costs for government continue to rise and the Gravy train continues to get longer, taxes must be forced to increase (consider Europe where tax is now edging up towards 80% , that's a minimum of 50%+20%vat), and i guess that VAT will soon be at 25% or 30% because it is the only way they can all support the massive expenditure of the European Union.
The same in the USA, it is a path of continual increase as Governments get larger and become more inefficient at running themselves, at some point in the future we will be back to serfdom and enforced bondage at birth it is the only logical conclusion.
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.