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How to Survive the Teen Years

The year 2013 has been yet another year in which the whole world has been challenged by economic uncertainty. This really isn’t news any more. For more than 10 years, many people have had to cope with financial challenges, one after another. The interesting aspect of the situation is how a steady state of austerity has evolved, with continued investment in electronics and technology by the people who “insert the coin”--you and me.

Having survived the initial boom and bust in the early 2000s, people now make decisions and prioritisations in favour of technology, and in particular, electronics, bringing with it opportunity to the industry. Creating and delivering technology-based products is a challenge, as demand is there, but price remains extremely sensitive. We are in the midst of a “teenage” market: a market with little money, but heaps of expectation. Should electronics manufacturers be cautious and just try to survive until money flows more freely, or should they reach out for tools that bring positive differentiation? Yes, 2013 was certainly a teen year, and there are a few more to come.

Historically, in difficult economic conditions, economists point people in the direction of safe stocks, such as utilities. The thought process is that no matter what, there will always be a demand for the basic elements of society. But even these investments are not safe anymore, however, as environmental issues and maintenance concerns expose risks and uncertainty. In the teen years, then, what can we rely on? Is it electronics?

I would not be surprised if we look back on 2013 as the year when the perfect storm of a new generation of technology began. Finally, electronics technology is ready to solve our challenges and create opportunities. We already can see the signs all around us. Electronics is a key part of sustainable energy, from industrial-scale operations down to domestic solar installations. Instead of incandescent bulbs, we now have started to consume LED-based bulbs made on an SMT production line. New entertainment systems focus on energy savings, including the reduction of the cumulative waste of the stand-by mode.

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Editor's Note: This column originally appeared in the December 2013 issue of SMT Magazine.