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Survey Reveals Caution in Tech Supply Chain
April 21, 2010 |Estimated reading time: 2 minutes
SAN JOSE, CA — VentureOutsource.com released findings from a survey of 586 electronics supply chain decision makers across North America, Europe, and Asia on the current business environment; volumes and expectations, and pricing trends. The survey was sponsored by electronics components distributing company Digi-Key (www.digikey.com).
Complete survey findings are available at http://www.ventureoutsource.com/contract-manufacturing/trends-observations/2010-q1-electronics-supply-chain-survey-reveals-guarded-optimism
Roughly 85% of respondents were either key decision makers and/or participate in their company’s decision making process.
Many respondents indicated the worst of the recession is behind us but Venture Outsource cautions this does not mean the horizon ahead is calm.
The Q1 2010 survey revealed technology OEMs have the lowest Current Index (average respondent's scores for their current outlook regarding economic situation; employment, inventory levels, business volume, pricing) while electronics equipment manufacturers and distribution/logistics providers have the highest Current Index mean score of 5.9 on a scale of 1 to 10.
OEMs typically lag one or two quarters behind component suppliers in feeling the impact of demand improvements.
The survey’s Future Index allows industry to look over the horizon to help industry anticipate the future economic situation; employment, business volume, and profits. “Our Future Index reveals a mean of 5.6 for this most recent survey, up from 5.1 from our August 2009 survey,” said Mark Zetter, president and founder of VentureOutsource.com. “Although this increase can be considered welcome news, it’s only slight and still represents a level of caution in decision makers’ attitudes.”
The overall state of the supply chain is also measured with an Overall Index. “Our Overall Index saw an increase mean score to 5.5 which is 13% greater than our last survey. Computing/PC and semiconductors were the only stand outs with mean scores of 4.8 and 6.1, respectively. The lower PC segment score may reflect the seasonal low following the surge in demand in the fall,” added Zetter.
The semiconductors sector recorded a higher score in the Overall Index believed to be due to both supply shortages in specific markets, such as analog components, and their place on the leading edge of the supply chain time horizon.
EMS and ODM companies can request more information by sending an email to insight@ventureoutsource.com; or visit http://www.ventureoutsource.com/contract-manufacturing/trends-observations/2010-q1-electronics-supply-chain-survey-reveals-guarded-optimism
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