-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueComing to Terms With AI
In this issue, we examine the profound effect artificial intelligence and machine learning are having on manufacturing and business processes. We follow technology, innovation, and money as automation becomes the new key indicator of growth in our industry.
Box Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Outlook Dreary for 2009
December 31, 1969 |Estimated reading time: 1 minute
The outlook for the global electronic equipment industry is dreary, with most of the risk on the downside. The global financial system remains fragile, and is subject to further debilitating shocks. Based on Henderson Ventures' economic forecast, world electronic equipment production is forecast to fall by 2.2% during 2009 after an anemic 1.2% gain in 2008. Moreover, the recovery predicted for 2010 will be less than effervescent. Only a 6.7% increase is now forecast for that year.
The 2009 outlook is populated with regional growth rates that are uniformly negative with the exception of China, as shown on the right. That is, whereas China will achieve a modest 2.3% gain next year, the other equipment-producing regions will suffer declining outputs in the 4 to 6 percent range. Naturally, most of the damage will be caused by contracting demand. However, cost cutting, partially facilitated by huge drops in commodity prices, will enable some equipment manufacturers to maintain a modicum of profitability.
Mobile markets will suffer next year, Henderson predicts. Liquidity concerns will put a damper on wireless infrastructure spending in 2009. Falling investments will create cutbacks in previously-planned third-generation (3G) rollouts. That, in turn, will reduce the appeal of 3G handsets. In short, handset shipments are predicted to fall by 3.2% next year after a 6.2% gain in 2008. A much improved economic environment, along with a postponed replacement cycle, will result in a 10.3% burst in 2010, however.
For more information, visit www.hendersonventures.com.