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US Buyers Optimistic for 2012

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tirlapur
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Re: What pricing worries?
tirlapur   5/12/2012 3:32:36 AM
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I wonder, with the situation right now in Europe, how the the rest of the year will shape up.

@Bolaji, already the weakness in the europe is pushing the oil prices lower. If this trend continues oil will soon reach 80$ which will help push the transportation cost lower.

Jacob
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Re: Confidence all around
Jacob   5/1/2012 5:36:39 AM
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Waqas, for the last several years the economic and financial sectors are in a self reform state. Now it’s moving towards the growth phase and for growth it requires further investments. If investments are happens, then more job opportunities may create as a part of expansion and in turn a better return for the investment.

Jacob
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Re: What pricing worries?
Jacob   5/1/2012 5:32:31 AM
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"88 percent of members plan to make the same or higher capital investments in 2012 than in 2011. More than half (56 percent) plan to increase staffing and 72 expects their revenue to increase"

Barbara, I think this is a very positive sign for the economic system. After recession and slow down phase, now economic systems are showing the growth phase. So this type of optimistic thinking of companies and investors can further accelerate the financial positions.

WaqasAltaf
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Re: What pricing worries?
WaqasAltaf   4/30/2012 10:28:49 PM
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With costing worries in the manufacturing and purchasing circle, optimism in the economy may well mean that consumer-side buying may increase. If consumer-side buying increases, the lesser profit margins (due to higher costs) may well be covered by increased revenue. Also, efficiency improvement in process may afterall cover a lot of impact of cost increases.

WaqasAltaf
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Confidence all around
WaqasAltaf   4/30/2012 10:22:36 PM
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Investment in IT and recruitment reflect the confidence buying entities have in the economic situation. With target cost controlling as a result of increasing efficiency in processes, right kind of investment in IT and human resources may help achieve that.

TaimoorZ
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Hiring trend
TaimoorZ   4/30/2012 10:06:03 PM
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@Barbara: Great to see the positive change in the hiring trend. What do you think is the reason behind this? Are buyers looking to expand their operations and need more resources for it? Or, is because they had layoffs earlier on and now want to bring the headcount back to normal?

TaimoorZ
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Re: What pricing worries?
TaimoorZ   4/30/2012 10:02:29 PM
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@Bolaji: Because of the hike in fuel prices, I think the logistics cost will be severly impacted. I believe this is the primary reason why many companies are forecasting their raw material prices to go up.

bolaji.ojo
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Re: What pricing worries?
bolaji.ojo   4/30/2012 4:00:33 PM
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Thanks for that clarification. You are right in that so many things derived from crude oil and used in the electronics industry have been subject to crazy price swings in recent months. I am also now thinking of transportation (logistics) costs for many of these companies. Negotiating long-term agreements in this area too must be difficult for the service providers and the companies involved. I wonder, with the situation right now in Europe, how the the rest of the year will shape up.

Barbara Jorgensen
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Re: What pricing worries?
Barbara Jorgensen   4/30/2012 3:35:04 PM
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Hi Bolaji--actually, for these buyers, it is more than just components: they source things like steel (encasings); plastics (ditto); and a lot of things that are based on petroleum and oil. So, while components have been stable, there are a lot of heavy materials that have been subjected to peaks and valleys over the past few years.

bolaji.ojo
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What pricing worries?
bolaji.ojo   4/30/2012 3:26:35 PM
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Barb, This has been one of the longest-running period of generally low pricing in the history of the electronics components market. Even following the Japan earthquake last year and the Thai flooding, pricing didn't really get seriously out of hands. I can understand therefore that many in the purchasing community are more concerned about processes rather than about pricing.



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