Hi readers: from what the distributors say, the main reason Europe is uncertain is the debt and bail-out debate. I haven't heard that any specific vertical market is driving the trend--all manufacturers are delaying investing/spending becuase of the economic uncertainty. The one specific item I did hear about is Avnet Technology Solutions is pulling out of Italy. I believe that refers to physical sites there, as Italy will be serviced from other regions in Europe. But Italy has been a standout in all distribution companies becuase of its extended credit payment terms. It can take companies up to 160 days to collect payment within the country, which ties up capital that can be spent in others ways.
I could agree with you Dave, maybe current position about Europe is related to specific fields mentioned within Barbara's article. If the go throught the editorial, we could outline major fields which are impacting in a positive way the sector, are aerospace and defense, right now Europe is not directly involved in military actions as sounds since a long ago for US, for example.
I wouldn't expect "hockey stick" spikes in sales anytime soon, but a slower and steadier sales growth pattern as the US economy recovers.Europe is still hard to forecast at the moment.Having a more steady and predictable demand during times of economic recovery may not be such a bad thing either for suppliers, keeping inventory at proper levels.
@cryptoman: I can help you there. Arrow's record sales and earnings were bolstered by acquisition and entering into new markets such as reverse logistics. It wasn't driven by components sales alone. In fact, demand has been below the norm for 2011, but is picking up in 2012. An interesting observation by Avnet EM President, Global, Harley Feldberg, on a follow up call with EBN: China's economy depends a great deal on exports to regions such as the Americas and Europe. Exports are down becuase demand for even the products exported by China is soft. Demand is soft becuase unemployment is still high in the US and the economic situation in Europe is uncertain. So although both Arrow and Avnet executed their businesses to record levels in 2011, the demand picture is still so-so.
I wonder if that is a clear sign of a positive outlook on the economy and the job market on the whole. Surely, if Arrow is selling components, many people must be adding value by building products using those components.
I am trying to undestand the interworking between the job market, the economic outlook and the sales of large distributors like Arrow. What kind of information (related to the economy and the job market on the whole) can we glean from such increased sales figures other than the obvious fact that the distributor is making money? Is there such a linear link at all?
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.