LONDON — The electronics supply chain remains pessimistic and appears to believe we have not yet seen the bottom of the recession, according to a survey of more than 230 electronics supply chain decision makers.
Respondents gave an average score of 4.2 regarding how the current economic situation is impacting their company on a scale of 1 to 10, 1 being "very negative" and 10 being "very positive."
When asked about the next 6 months, these same respondents answered with an average score of 4.6, a small, but significant increase, pointing to a belief that the business environment in the technology sector will improve. Respondents were also neutral (average score of 4.9) regarding prospects for their company's profits for the next 6 months.
Respondents that identified themselves as electronics manufacturing services (EMS) or original design manufacturing (ODM) companies were generally more optimistic at 5.4. Respondents from semiconductor, distribution and logistics, and components manufacturing firms were more pessimistic, giving average scores of 4.2, 4.0, and 3.4 respectively.
The survey was conducted by VentureOutsource.com and sponsored by electronic component distributor Digi-Key.
"VentureOutsource.com's survey is revealing and confirms what we're seeing," said Paul Singh, CEO for privately-held Suntron Corp. a North American EMS provider serving such end-markets as military/aerospace and industrial and medical electronics. "Economic conditions are impacting the industry as a whole, but quality-focused companies not burdened by a lot of debt and with good cash flow should emerge okay once economic conditions improve," added Singh.
"Our findings don't indicate a full recovery in the electronics sector is underway just yet but our survey results do provide some helpful information indicating where we are right now in this downturn," said Mark Zetter, president and founder of VentureOutsource.com.
Related links and articles:
www.ventureoutsource.com
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