@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.
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.
@ 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.
@ 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.
@ 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.
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.
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.
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.
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.
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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