I think the slowdown in the Chinese exports is majorly because of the reduction in global demand. As a consequence of that, as you pointed out, we shall be seeing surplus inventory on the part of manufacturers and suppliers. I think the excess supply will ultimately be leading to a reduction in prices in the upcoming quarter. However, I don't see why purchasers will have to look for alternate suppliers in Vietnam or Indonesia when Chinese products themselves will be getting cheaper.
I though his was normal behaivor before to the holiday season, there's a possiblity the weak demand is due to the conservative mind of investors looking very close to forecast and future demand for the 4th quarter?
It was only a matter of time before China was going to feel some of the effects of the global uncertainty and financial hardships. Many companies are reluctant to spend money and are cutting inventory, not because they are in trouble but because they are being cautious. Some might say too cautious. Some of the weak sales and production numbers are going to be caused by cautious financial decisions and not so much by demand. Nobody wants to get caught excess money tied up in case there is a recession, yet being over cautious could help speed up the process. China is worried because after huge growth over the last few years, they are actually slowing down. This shouldn't hurt their economy and cause companies to seek out other manufacturers.
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.