Crude oil prices jumped in the last several months as the dollar weakened, but prices have started weakening again. This may be good news for motorists
@Anna, weakening oil prices is very good news for developing nations like India. Compared to other countries India is one of the biggest importers of Oil. Weakening oil prices means this will push down the inflation which is good news from industry point of view.
Anna, I think crude oil pricing is only one of the factors for global slowdown, there are other ‘n’ numbers of factors and among them the weaker trade value of US currency is important. Adding to the fuel, recent happenings in Libya, tsunami in Japan are also key factors.
As you mentioned Economic slow down is slowing down the sales and affecting the complete forecasts. Already companies are rephrasing their sales target to the present situation.
It definitely looks like end of year sales are going to lag behind most companies and investors forecasts. The main issue is going to make sure these companies lower their expectations and try not to pump up volume of their inventory in anticipation of larger sales. In this current economy these companies will be better off coming up a little short in inventory and not meeting demand rather than having a stock pile of merchandise just sitting in warehouses losing money.
With 59% of the poll responses predicting fair to weak forecast, and 12% unsure, certainly the poll results don't bode well. Even if end of year fares better than expected, I'm sure everyone will be monitoring demand and inventories very carefully.
Yes, new marketing strategies will be needed to lift up the mood of the holiday season and help the elctronic supply chain ride the this global wave of uncertainty.
This is always a tough call for manufacturers. Forecasts seem to have gone up and down again. If manufacturers prepare for a slower than expected season, and the things start looking up, they may miss a good opportunity to boast annual sales. If they decide to boast inventory, and sales are weak then they are left with product on the shelves. I would be in the camp of fair sales, I do agree that marketing will be crucial to move the product and try to make the best out of the situation.
@ Saranyatil, thank you for your contribution. As you may have noted also- EBN ongoing electronics sales poll reflects a fair to weak sales is expected in the second half of 2011. This is an indication for electronics companies to brace themselves for a dismal end of year production target. I agree, it is expedient for companies to rephrase their sales target to the current global financial decline.
@ Ms. Daisy, I'm just pondering, what will the marketing strategy entail? Are we going to see further reduction in sale prices? Although it will be beneficial for consumers if there's a further slash in electronics sale prices. How will this pan out for electronic' supply chain?
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.
Archived Dialogues
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.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
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.
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