Recent indicators given out by several industry monitors, confirm the solid growth in automotive applications, like acceleration, pressure, shock, vibration, and other sensitive applications. iSuppli quotes 18% growth as opposing to the year 2009, and even rose above the record year of 2007. 40% will be delivered in North America, around 1/3 in Europe the rest mostly in Asia.
At the same time bottleneck situation continues in the IC area in general and also in capacitors.
As mentioned in this blog earlier, lead times continue to grow longer.
2010/07/13
Automatica 2010, the show goes on with more pep than before
This years edition of Automatica was astounding success. It may tell us a positive story we all badly need and longing to read in the Embedded Industry as well as in others. In comparing to the year 2008, this years edition was bigger and better. Visitors jumped to some 32000, not quite on the par with 2008 admitting organizers, but we expected only 30000 this year (?). However foreign visitors came in droves (34% as opposing to 26% 2 years before), Exhibitors were 708 as opposing to 868 2 years ago.
The organizers tried to prove badly that the crisis is over and we are back to business.
Not quite so sees the writer. It is plain to all who attended the press conference: Exhibitors are still reluctant to invest marketing activities, expecting (justly) fewer visitors from home markets. And they were right, fewer visitors from Germany made the foreign component larger in entire visitors account.
The so called "positive Bilanz" is still going to be waiting until 2012 the next edition of this still interesting event. That is not what organizers wanted to say.
Munich exhibitor area is an excellent facility, well connected, hotels, restaurants, etc, for several venues, however, the trend is to move out to Nuremberg (SMS/Drives) and those which stay tend to morph into a regional rather than national shows. Productronica and Electronica comes to mind, or even close like the Systems have done. I remember that sometimes at Systems there we all 12 pavilions, full of exhibitors, where now 5-6 are taken at the most. It may be some trend here but if so the crisis started way before the 2008 when Lehman Brothers bank collapsed in September.
The organizers tried to prove badly that the crisis is over and we are back to business.
Not quite so sees the writer. It is plain to all who attended the press conference: Exhibitors are still reluctant to invest marketing activities, expecting (justly) fewer visitors from home markets. And they were right, fewer visitors from Germany made the foreign component larger in entire visitors account.
The so called "positive Bilanz" is still going to be waiting until 2012 the next edition of this still interesting event. That is not what organizers wanted to say.
Munich exhibitor area is an excellent facility, well connected, hotels, restaurants, etc, for several venues, however, the trend is to move out to Nuremberg (SMS/Drives) and those which stay tend to morph into a regional rather than national shows. Productronica and Electronica comes to mind, or even close like the Systems have done. I remember that sometimes at Systems there we all 12 pavilions, full of exhibitors, where now 5-6 are taken at the most. It may be some trend here but if so the crisis started way before the 2008 when Lehman Brothers bank collapsed in September.
2010/07/12
The Economist comments on the debt economy of today
Looking for faster growth for your company? Borrow money and make an acquisition. And if the economy is in recession, let the government go into deficit to bolster spending. When the European Union countries met in May to deal with the Greek crisis, they proposed a €750 billion ($900 billion) rescue programme largely consisting of even more borrowed money.
Debt increased at every level, from consumers to companies to banks to whole countries. The effect varied from country to country, but a survey by the McKinsey Global Institute found that average total debt (private and public sector combined) in ten mature economies rose from 200% of GDP in 1995 to 300% in 2008 (see chart 1 for a breakdown by country). There were even more startling rises in Iceland and Ireland, where debt-to-GDP ratios reached 1,200% and 700% respectively. The burdens proved too much for those two countries, plunging them into financial crisis. Such turmoil is a sign that debt is not the instant solution it was made out to be. The market cheer that greeted the EU package for Greece lasted just one day before the doubts resurfaced.
From early 2007 onwards there were signs that economies were reaching the limit of their ability to absorb more borrowing. The growth-boosting potential of debt seemed to peter out. According to Leigh Skene of Lombard Street Research, each additional dollar of debt was associated with less and less growth (see chart 2).
Stopping the debt supercycle
The big question is whether this rapid build-up of debt—a phenomenon which Martin Barnes of the Bank Credit Analyst, a research group, has dubbed the “debt supercycle”—has now come to an end. Debt reduction has become a hot political issue. Rioters on the streets of Athens have been protesting against the “junta of the markets” that is imposing austerity on the Greek economy, and tea-party activists in America, angry about trillion-dollar deficits and growing government involvement in the economy, have been upsetting the calculations of both the Democratic and Republican party leaderships.
To understand why debt may have become a burden rather than a boon, it is necessary to go back to first principles. Why do people, companies and countries borrow? One obvious answer is that it is the only way they can maintain their desired level of spending. Another reason is optimism; they believe the return on the borrowed money will be greater than the cost of servicing the debt. Crucially, creditors must believe that debtors’ incomes will rise; otherwise how would they be able to pay the interest and repay the capital?
From charts you can very easily deduct that countries like Germany and Canada, but especially the BRIC countries are riping positive effects of their predicament, they are fast growing, even Germany was hailed as a export champion even in the 2010 again. Canada healthy banking system (however with limited, strongly regulated competition) is not breaking the C$ raise to a par with CHF and at 1.34 to the €.
For the whole article please log in to the latest issue of the Economist.
For Embedded Industry the growth is back, however stumbling, on Allocation, on rise in prices on BOM, lead times cause delivery problems for smaller players. Who is serving Mil markets in States, or some mil markets in EMEA the business is good if not brisk. EMEA shows increase in sophistication and complexity of some new project, simply demand on performance plays increasingly stronger role.
2010/07/02
Swiss Economic Forum 2010
After a short disruption, the Economic Forum started last in June with around 1300 guests among them Tony Blair, the star of this even. He called for closer cooperation between state and economy. Using terms like freedom, democracy, tolerance and free trade he saw way out of the crisis which in his mind was financial and state at the same time. Paul Krugman, president Obama's consultant on economy noted that economic recovery is disappointing, he wanted to note that fears of inflation are missing.
Controversial discussions concentrated about the role of banks in the Swiss and in the international economies as banks in many parts of the world are being partly or mostly nationalized.
For Swiss companies it is important that banks remain partners to small and medium companies.
Leading them of the event is continous discussion on the role Switzerland should play in the new realities of Europe and the world. Since collapse of the soviet union, reunification of large tracts of central and eastern Europe, neutral Switzerland is becoming less and less relevant. Each trades with others, with little need for a place to store funds in the private bank and to send children for education. Competition from educational institutions world wide was made schools here irrelevant, and secrecy was taken away from banks by not only USA but by French, German or Italian tax authorities. Raids on banks in Lichtenstein by the Germans, in Italy on UBS branch offices, and stealing banks information on French owners of accounts here by the French tax authorities. The French had a "chutzpach" to return disks with bank data claiming they did not copied them. Yeah!
Well this year when you visit this little country, stay in hotels, dine in restaurants, you notice fewer crowds, roomier lakeshore caffe's, more parking places. Interesting being is that with strongest swiss frank in years against € the prices have not been brought down, making already high prices still higher. In affect the Swiss have priced themselves out of the business. There is noe silver lining though, the Chinese flock here like mad, their numbers trippled from a year earlier. Jewelery shops in tourist cities like Lucerne, Zurich and Geneva have deals with travel agencies and bus loads are parked in front delivering crowds buying swiss watches. Sales clerks speak any language you can imagine. Typical discount is 10% or equivalent of the roughly 8% VAT. Still, I am buying my watches at the Stevensons store in Brooklyn, NY. Unfortunately they recently stopped to carry the Omega watches.
Controversial discussions concentrated about the role of banks in the Swiss and in the international economies as banks in many parts of the world are being partly or mostly nationalized.
For Swiss companies it is important that banks remain partners to small and medium companies.
Leading them of the event is continous discussion on the role Switzerland should play in the new realities of Europe and the world. Since collapse of the soviet union, reunification of large tracts of central and eastern Europe, neutral Switzerland is becoming less and less relevant. Each trades with others, with little need for a place to store funds in the private bank and to send children for education. Competition from educational institutions world wide was made schools here irrelevant, and secrecy was taken away from banks by not only USA but by French, German or Italian tax authorities. Raids on banks in Lichtenstein by the Germans, in Italy on UBS branch offices, and stealing banks information on French owners of accounts here by the French tax authorities. The French had a "chutzpach" to return disks with bank data claiming they did not copied them. Yeah!
Well this year when you visit this little country, stay in hotels, dine in restaurants, you notice fewer crowds, roomier lakeshore caffe's, more parking places. Interesting being is that with strongest swiss frank in years against € the prices have not been brought down, making already high prices still higher. In affect the Swiss have priced themselves out of the business. There is noe silver lining though, the Chinese flock here like mad, their numbers trippled from a year earlier. Jewelery shops in tourist cities like Lucerne, Zurich and Geneva have deals with travel agencies and bus loads are parked in front delivering crowds buying swiss watches. Sales clerks speak any language you can imagine. Typical discount is 10% or equivalent of the roughly 8% VAT. Still, I am buying my watches at the Stevensons store in Brooklyn, NY. Unfortunately they recently stopped to carry the Omega watches.
2010/06/06
Kontron expands in Military and Aerospace markets
As Ulrich Gehrmann Kontron chairman, announced in March 2010 during the annual press conference, his company has stoked funds for expansion, and now he announced the acquisition of AP Labs Group a top system integrator group based also in San Jose, CA. Kontron's long term goal was to reinforce its presence in markets by offering extended range of not only services and products but complete solutions especially with the help of its French subsidiary Thales Computers and AP Labs is in central position to offer complete one stop-shop regionally and accross that range of industries. AP Labs annual revenues bring additional $30 Mio annually.
2010/05/04
Where is Europe now with i2010- A European Information Society
i2010 - A European Information Society for growth and employment
i2010 was the EU policy framework for the information society and media. It promoted the positive contribution that information and communication technologies (ICT) can make to the economy, society and personal quality of life. The strategy is now coming to an end and is going to be followed by a new initiative – the Digital Agenda – in 2010.
Highlights:
Vice-President for the Digital Agenda Neelie Kroes welcomes Ministers' support for the European Digital Agenda, in particular the Ministerial Declaration on Digital Europe
This very ambitious Agenda has unfortunately disappointed the many supporters of progress on the continent. The Europe still lags beside the US in the number of higher educate populace, in the number and size of High Technology business, and in several aspects of a modern and fast growing society.
F
I was one of these believers in late 1980's. I sold my house and moved with family to realize the dream of a century. Europe was about to open up and reunite with the Central and Eastern economies that are now part and some like Poland quite successful within EU.
We did succeed in this and reached more. In 8 years from my arrival in Germany, our business grew by 4000% (meaning steady 500% growth annually!!!).
Europe still invest in technology but in States, so far that European investments in US exceed by 6 billion annually the US investments in Europe.
I see that not "new" agenda for the Digital Europe 2020 would not do much either.
Help me with argumentation to the contrary you all euro-enthusiasts by commenting below.
regards
Stefan
Digital Agenda for Europe is one of flagships of Europe 2020 – the Commission’s proposal on a new economic strategy
The Digital Agenda: challenges for Europe and the mobile industry - speech by Neelie Kroes, European Commissioner for Digital Agenda
Other highlights:
Europe's Digital Competitiveness Report 2009
Other highlights:
eYouGuide to your rights online
Broadband gap and economic recovery
i2010 was the EU policy framework for the information society and media. It promoted the positive contribution that information and communication technologies (ICT) can make to the economy, society and personal quality of life. The strategy is now coming to an end and is going to be followed by a new initiative – the Digital Agenda – in 2010.
Highlights:
Vice-President for the Digital Agenda Neelie Kroes welcomes Ministers' support for the European Digital Agenda, in particular the Ministerial Declaration on Digital Europe
This very ambitious Agenda has unfortunately disappointed the many supporters of progress on the continent. The Europe still lags beside the US in the number of higher educate populace, in the number and size of High Technology business, and in several aspects of a modern and fast growing society.
F
I was one of these believers in late 1980's. I sold my house and moved with family to realize the dream of a century. Europe was about to open up and reunite with the Central and Eastern economies that are now part and some like Poland quite successful within EU.
We did succeed in this and reached more. In 8 years from my arrival in Germany, our business grew by 4000% (meaning steady 500% growth annually!!!).
Europe still invest in technology but in States, so far that European investments in US exceed by 6 billion annually the US investments in Europe.
I see that not "new" agenda for the Digital Europe 2020 would not do much either.
Help me with argumentation to the contrary you all euro-enthusiasts by commenting below.
regards
Stefan
Digital Agenda for Europe is one of flagships of Europe 2020 – the Commission’s proposal on a new economic strategy
The Digital Agenda: challenges for Europe and the mobile industry - speech by Neelie Kroes, European Commissioner for Digital Agenda
Other highlights:
Europe's Digital Competitiveness Report 2009
Other highlights:
eYouGuide to your rights online
Broadband gap and economic recovery
2010/05/03
Follow the trend or create a new one? How company should act in order to be called innovative and pioneering?
Helen has given great overview, usefull for all in the business. I think.
Below you may find research-based action tips for improvement of innovation performance in your very company.
1: Conceive of innovation as a business discipline, and then manage and execute it systematically. Please make it an end-to-end uniform process, from insight development and idea generation to development and marketplace launch.
2: Craft a precise definition of innovation’s role in the overall corporate strategy based on the company’s industry, market, and competitive environment. Define specific goals. What innovations do you need to build a sustainable competitive position and what value are the innovations expected to generate? Make innovation definition broad enough to no one be let off the hook. It is perfect to end up in the situation when [innovation is about continuously finding new sources of value and therefore executives are looking at the processes they currently have in place for identifying new sources of value, setting up teams to explore and execute around those sources, managing the teams, and measuring results.]
3: Focus much more time and resources on breakthrough, long-term, game-changing innovation. Play for high stake delivering breakthrough innovations based on “big bet” initiatives and spend less time on incremental innovation that yields only short-term benefits.
4: Take more risks, reward failure, and encourage continuous improvement. Thinking big and acting big will lead you to breakthrough innovations. Cultivate such skills and make them a corporate culture. It’s vital.
5: Measure innovation performance and results as you do other business functions, such as marketing, strategy, and operations. Keep your eyes open all the time: track detailed, disciplined, and consistent metrics about innovation performance, measure past success and estimate the future market impact of new products.
6: Focus on the customer experience and less on technology. Zero in on a problem looking for a technology solution rather than a technology solution looking for a problem. Listen and hear the very voice of the customer. For this use ethnographic, best-practice observational customer understanding techniques. You can’t develop something just because a room full of engineers think it’s cool.
7: Embrace open innovation and open innovation tools. Use external sources as far as keeping all innovation activities within your company is a recipe for failure.
8: Encourage idea generation from everywhere, both inside and outside your company. Include everyone from the highest levels of the company to the lowest. Often the most innovative ideas are submitted by junior employees.
9: Consider appointing a chief innovation officer and setting up a uniformity of command for corporate innovation accountability. Designating an executive to be accountable and leading innovation execution report results in [dramatically higher satisfaction levels across all aspects of their innovation performance.]
10: Have a dedicated budget for innovation. You will need an adequate level of resources to fund the innovation infrastructure. Just appointing a chief innovation officer isn’t enough.
To sum up the above stated try to combine innovative sole and brains, thoughts and actions and you will be able to achieve growth through innovation. What do you think of this? Would you use these tips or just consider them to be high-flown words?
Welcome with your opinions.
BR,
Helen Boyarchuk
Altabel Group
www.altabel.com
By Helen Boyarchuk, Marketing Manager at Altabel Group
Below you may find research-based action tips for improvement of innovation performance in your very company.
1: Conceive of innovation as a business discipline, and then manage and execute it systematically. Please make it an end-to-end uniform process, from insight development and idea generation to development and marketplace launch.
2: Craft a precise definition of innovation’s role in the overall corporate strategy based on the company’s industry, market, and competitive environment. Define specific goals. What innovations do you need to build a sustainable competitive position and what value are the innovations expected to generate? Make innovation definition broad enough to no one be let off the hook. It is perfect to end up in the situation when [innovation is about continuously finding new sources of value and therefore executives are looking at the processes they currently have in place for identifying new sources of value, setting up teams to explore and execute around those sources, managing the teams, and measuring results.]
3: Focus much more time and resources on breakthrough, long-term, game-changing innovation. Play for high stake delivering breakthrough innovations based on “big bet” initiatives and spend less time on incremental innovation that yields only short-term benefits.
4: Take more risks, reward failure, and encourage continuous improvement. Thinking big and acting big will lead you to breakthrough innovations. Cultivate such skills and make them a corporate culture. It’s vital.
5: Measure innovation performance and results as you do other business functions, such as marketing, strategy, and operations. Keep your eyes open all the time: track detailed, disciplined, and consistent metrics about innovation performance, measure past success and estimate the future market impact of new products.
6: Focus on the customer experience and less on technology. Zero in on a problem looking for a technology solution rather than a technology solution looking for a problem. Listen and hear the very voice of the customer. For this use ethnographic, best-practice observational customer understanding techniques. You can’t develop something just because a room full of engineers think it’s cool.
7: Embrace open innovation and open innovation tools. Use external sources as far as keeping all innovation activities within your company is a recipe for failure.
8: Encourage idea generation from everywhere, both inside and outside your company. Include everyone from the highest levels of the company to the lowest. Often the most innovative ideas are submitted by junior employees.
9: Consider appointing a chief innovation officer and setting up a uniformity of command for corporate innovation accountability. Designating an executive to be accountable and leading innovation execution report results in [dramatically higher satisfaction levels across all aspects of their innovation performance.]
10: Have a dedicated budget for innovation. You will need an adequate level of resources to fund the innovation infrastructure. Just appointing a chief innovation officer isn’t enough.
To sum up the above stated try to combine innovative sole and brains, thoughts and actions and you will be able to achieve growth through innovation. What do you think of this? Would you use these tips or just consider them to be high-flown words?
Welcome with your opinions.
BR,
Helen Boyarchuk
Altabel Group
www.altabel.com
By Helen Boyarchuk, Marketing Manager at Altabel Group
Subscribe to:
Posts (Atom)