Bolaji--Asia is definitely the region US and Europe-based distributors are targeting. The market there continues to be highly frangemnted and frankly, suppliers are happy to see their channel scaled down through M&A. TI talked about it in a recent interview. That said, US-based WESCO just bought US-bsaed RS Components. My guess is this is a strategic buy and the timing was right.
Barbara, I wonder what you see happening in the distribution market in 2012. Companies like Arrow and Avnet continue to surprise with M&A moves in the U.S. and Western Europe each time I start thinking they've done all there's to do in these two regions. Is Asia next or do you see more in the West?
mfb: That's an observation I haven't seen in awhile. One of the things that has been taken for granted in high-tech is the quality of its products. Are these shortcuts companies are taking, or is there really a decline in QC?
It is a fascinating perspective Barbara, in effect corporations still alive, have demonstrated to be very strong, even during current quite long financial recession, started at least one year and half ago. Despite that demonstration, in my opinion several concerns on quality will raise quite soon: corporations, including major players, have reduced investments and cut costs, as consequence, sooner or later, that behaviour will bring impact on production's quality.
I would agree with many readers that see this trend as counter-intuitive. Since valuations are so low, it seems like the best time to buy. There is one thing that could expalin why this is a sellers market: companies that are still in business after the Great Recession are stronger than they have ever been. They can bide their time, waiting for a better offer.
I mean the competition becomes less and hence reducing the options for customers.
@Jacob, Although options for customers reduces but its been seen that M&A eventually leads to more custmoer satisfaction. Moreever M&A is necessary for Innovation and best-in-breed technology which will in the end benefits customers.
I think companies are more interested in M&A activities because they can have a better hold of their share of market presents. In most of the cases, its ends up with a monopolistic and unique way of running the business. I mean the competition becomes less and hence reducing the options for customers. From industrial point of view, it is good because they can have a large market share, but for customers they are losing the selection among the providers.
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.