News Idea Sept 2011

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  • 8/4/2019 News Idea Sept 2011

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    -

    Trend showing growth/d ecline % in quarterly sales of all comp onents through distribution split bycountry compared with same q uarter prior year

    -50%

    -30%

    -10%

    10 %

    30 %

    50 %

    70 %

    Q3 Q4 Q1 -09 Q2 Q3 Q4 Q1 -10 Q2 Q 3 Q4 Q1-11 Q2-11

    Al l

    France

    UK

    Italy

    Nordic

    Germany

    I

    IV - Opportunities and strategiesor deence manuacturingand strategic electronics

    VII - Risk mitigation:what did the industry learnWhich role or distribution?

    VIII - FBDi: Pictorial andMandatory Data

    IX - The more the merrier inthe electronics value chain

    X - Industry metricsthe book-to-bill ratio

    XII -A decade o upheaval

    XIII -A new service rom ECIA

    XIV - The frst Fortronic Uk,a great success!

    ADEC - Sout Arica Assciatin Distribtrs Eectrnic Cmpnents

    ARDEC - RussiaAtnms Register Distribtrs Eectrnic Cmpnents

    ASSODEL - Italy Assciazine Nazinae Frnitri Eettrnica

    CEDA - CinaChina Eectrnics Distribtr Aiance

    ECAANZ - AustraliaEectrnic Cmpnents AssciatinAstraia and New Zeaand

    ECSN - United KingdoEectrnic Cmpnents Sppy Netwrk

    ELCINA - IndiaEectrnic Indstries Assciatin India

    FBDI - GeranyFachverband der Baeemente Distribtin

    FEDELEC - TunisiaTnisian Federatin Eectricand Eectrnic Indstries

    SE - SedenThe Swedish Eectrnics Trade Assciatins

    JEpIA - JaanJapan Eectrnic Prdcts Imprters Assciatin

    NEDA - United StatesNatina Eectrnic Distribtrs Assciatin

    SpDEI - FranceSyndicat Pressinne de a Distribtinen Eectrniqe Indstriee

    Q2 2011: a growthon Q2 last yearbut clear signsof market slowing

    Seteber 2011

    MAY2011

    Tw charts ceary shw the crrent

    trend. First y, Graphic T6 bew,

    this shws the grwth/decine in

    qartery saes r each cntry cmpared

    with the same qarter ast year. Whist a

    the cntries are sti shwing a biings

    grwth beteen 8% and 12%, ceary

    the rate grwth has decined sharpy.

    Hwever, it is sti a grwth! At east r

    this qarter, as we a knw next qarter,

    Q3, is aways the wrst each year s

    it wi be interesting t see whether Q3

    remains a grwth ver ast year! Secndy,

    Graphic T5 shws that bkings r mst

    Erpe have atered when cmpared

    with ast year despite a strng Emech

    perrmance acrss mst Erpe and

    a esser degree weakening in Germany

    vera heping the trend.

    ECONOmIC BACKGROUNDEurostat shws that the er area

    seasnay-adjsted nempyment rate

    was 9.9% in Jne 2011, nchanged

    cmpared with May.

    Adam Fletcher

    Chairman of IDEA

    ASSOCIATIONS

    i i i li i l i

    INTE N TI N L

    E LE T N I S

    SU LIE S

    e lect r on ics f o r u

    l i i

    r i

    i i i r i i

    r ci i i

    r i i r

    I i l i i il i i i

    ConsorzioTecnoimpreseScarl

    PosteItaliane

    spa

    SpedizioneinAbbonamentoPostale

    D.L.353/2003(conv.InL.27/02/2004N.46)Art.1,comma1,DCBRoma

    INTERNATIoNAl DISTRIBuTIoN oF ElECTRoNICS ASSoCIATIoN

    federatIon

    Year XXII n 2 - 2011

    News IDEA

    by Gary Kibblewhite

    www.ideaelectronics.com

    Q2 2011 TOTAL COmpONENTS - Total coonents tendential index by country (Q/QY-1) Graphic T6

    Just to remind readers.If you would like to have theoriginal graphics

    used in this article just email to the IDEA [email protected]

    The IDEA statistics are taken from actualbookings and billings returns made by asubstantial percentage of the electronic componentdistributors in Europe, including all the majordistribution groups. Their sales represent Circa70% of the total European distribution market sothe trends shown are truly representative.

    www.idlctronics.com

    ci i i lF r i ri El r ic

    INTERNATIONAL

    ELECTRONICS

    SUPPLIERS

    electronics f oru

    l i i

    I r i l i ri iEl c r ic ci i

  • 8/4/2019 News Idea Sept 2011

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    News

    I E I L

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    II

    It was 10.2% in Jne 2010.

    Hwever, Erstat estimates

    that ver 22 illion men

    and wmen in the Eu were

    nempyed in Jne 2011.

    Cmpared with May 2011,

    the nmber persns

    nempyed e by 38.000.

    The atest Erpean Indstriaprdctin gres reeased by

    Erstat n the 12th Agst

    are r Jne 2011 and shw

    that, cmpared with Jne

    2011, athgh prdctin

    increased by 2.9%, it e by

    0.7% when cmpared with the

    prir mnth (May).

    As, srprisingy when ne

    cnsiders what is happening

    t d and e prices acrss

    Erpe, Erstat shws that

    the anna rate ination

    actay drpped rm 2.7%

    in Jne 2011 t 2.5% in Jy

    2011!

    ELECTRONICCOmpONENT SALESIN Q2: AN OvERvIEwGraphic T1 shws that, n a

    qartery basis, tta biings

    were 12.6% p n the sameqarter ast year bt 5% dwn

    n Q1, which is histricay

    aways the strngest qarter.

    What is greater cncern is

    that book:bill which has been

    psitive r fat since Q3 2009,

    has drpped t 0.95:1.00 in

    Q2 2011.

    Within this tta semis drpped

    t 0.93:1.00, Passives drpped

    t 0.97:1.00 and it was ny

    emech cmpnents that

    bcked the trend by remaining

    psitive at 1.02:1.00.

    Book:bill declinemust be viewed asa sign o dicult

    times ahead

    Q2 was stilla growth quarter

    . ,

    Distribution semiconductor bookings, billings & book:bill ratio for Germany, France, Italy, UK,

    Sweden, Norway, Denmark & Finland

    1.1

    2

    1.0

    8

    0.9

    8

    0.9

    50.9

    7

    0.8

    9 0.9

    5

    1.1

    3

    1.3

    1

    1.1

    9

    1.1

    7

    0.9

    3

    0

    200

    400

    600

    800

    1000

    1200

    1400

    Q3 Q4 Q1-09 Q2 Q3 Q4 Q1-10 Q2 Q3 Q4 Q 1-11 Q2-11

    k

    0.40

    0.50

    0.60

    0.70

    0.80

    0.90

    1.00

    1.10

    1.20

    1.30

    1.40

    Billing

    Booking

    B2B

    Q2 2011 SEmICONDUCTORS BOOKING, BILLING & BOOK-BILL RATIO Graphic S1EURO AREA & EU27 pRODUCTION - Total industry excluding construction

    www.idlctronics.com www.idlctronics.com

    www.idlctronics.com

    www.idlctronics.comSourc: eurostt

    ratio

    Total distribution electronic components booking, billing and Book:bill ratio for Germany, France,

    Italy, UK, Sweden, Norway, Denm ark & Finland

    0.9

    6

    0.9

    8

    0.9

    1

    0.9

    6

    1.0

    9

    1.

    24

    1.1

    6

    1.1

    5

    1.1

    1

    1.0

    8

    1.0

    0

    0.9

    5

    0

    500

    1000

    1500

    2000

    Q 3 Q4 Q 1-09 Q2 Q 3 Q 4 Q1-10 Q2 Q3 Q 4 Q1-11 Q2-11

    k

    0.40

    0.50

    0.60

    0.70

    0.80

    0.90

    1.00

    1.10

    1.20

    1.30

    Billing

    Booking

    B2B

    |

    2nd Qtr. 2011 Total Compo nents YTD Bookings Trend

    Cumulative orders for Electronic co mponents via distribution by country for current year to date

    compared with same period prior year

    8.3

    %

    -4.1

    %

    10.2%

    -3.2

    %-1.9

    %

    16.5

    %

    0.8

    %

    -8.6

    %

    5.4

    %

    -7.6

    %

    -13.4

    %

    7.2

    %

    -15%

    -10%

    -5%

    0%

    5%

    10%

    15%

    20%

    Avg F rance U K & Eire Italy No rd ic German y

    Percent

    Q1

    Q2

    Graphic T-5

    Q2 2011 TOTAL COmpONENTS BOOKING, BILLING & BOOK-BILL RATIOGraphic T1Q2 2011 TOTAL COmpONENTS YTD BOOKINGS TREND Graphic T5

    QUARTERLY SALES BYpRODUCT FAmILYEach qarter we k at bth

    bking and biing trends by

    bth prdct and by market.

    Firsty prdct.

    Breaking the prdct tta int

    the main eements, initiay the

    argest: seiconductors.

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    INTERNATIONAL

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    INTERNATIONAL

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    El c r ic ci i

    ci i i lF r i ri El r ic

    INTERNATIONAL

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    electronics foru

    l i i

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    |

    2nd Qtr 2011 Passives booking, billing & book:bill ratioPassive componentsBookings, billings & book:bill ratio for Germany, France, Italy, UK, Sweden,

    Norway, Denmark & Finland

    1.

    08

    1.0

    6

    1.0

    1

    0.9

    7

    1.

    13

    1.

    11

    1.

    14

    1.

    01

    0.

    96

    0.9

    20.9

    8

    0.9

    4

    0

    50

    100

    150

    200

    250

    Q3 Q4 Q1-09 Q2 Q3 Q4 Q1-10 Q2 Q3 Q4 Q1-11 Q2-11

    k

    0.40

    0.50

    0.60

    0.70

    0.80

    0.90

    1.00

    1.10

    1.20

    1.30

    1.40

    Billing

    Booking

    B2B

    raphic P-1

    Q2 2011 pASSIvE BOOKING, BILLING & BOOK-BILL RATIO Graphic P1

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    ,

    Emech bookings, billings & Book:bill ratio for Germany, France, Italy, UK, Sweden, Norway,

    Denmark & Finland

    1.

    09

    1.

    07

    1.

    09

    1.

    02

    1.

    06

    1.

    10

    1.

    11

    1.

    03

    1.

    01

    0.

    97

    1.

    01

    1.

    02

    1.

    01

    0

    50

    100

    150

    200

    250

    300

    350

    400

    Q3 Q4 Q1-09 Q2 Q3 Q4 Q1-10 Q2 Q3 Q4 Q1-11 Q2-11

    k

    0.40

    0.50

    0.60

    0.70

    0.80

    0.90

    1.00

    1.10

    1.20

    1.30

    1.40

    Billing

    Booking

    B2B

    2nd Qtr. 2011 Emech Booking Trend

    Graphic E-2

    Distribution sales of Electronic Componen ts by Country comparing current qtr with prior quarter (

    Q/Q1) and same quarter prior year ( Q/Q-4)

    22.6

    %

    26.0%

    20.2

    %

    17.6

    %

    26.4%

    32.2

    %

    19.9

    %

    14.7

    %

    14.9

    %

    26.4%

    11.3

    %

    20.4

    %

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    Avg France UK & E ire It aly Nordic Germany

    Percentchange

    Q/Q-1

    Q/Q-4

    News

    I E I L

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    III

    Graphic S1 shws that,

    ater six qarters psitive

    bk:bi ratis, Semis in Q1

    dipped t 0.96:1.00 and Q2

    t 0.93:1.00. This mst be

    viewed as a sign dicttimes ahead, particary in Q3.

    ony Gerany is sti shwing

    a cmative ytd grwth in

    bkings with a 5% grwth r

    2011 year t date cmpared

    with ast year.

    passie Coonents

    Graphic P1 cvering Passives,

    r the rst time since Q2

    2009, shwed a negative

    bk: bi rati 0.97:1.00

    with Germany again shwingthe ny year t date grwth

    bkings ver ast year with

    ps 7.8%.

    Electroecanical

    coonents

    Emech & ther cmpnents

    shwed a grwth in bkings

    6.8% cmpared with ast

    year. Hwever, the % grwth

    has decined r the ast veqarters drpping rm 33%

    grwth in Q2 10 t 25% in

    Q3, 16% in Q4 and 15% in

    Q1 2011. It is, hwever, sti a

    grwth!!

    QUARTERLY SALESAND ORDERS BYGEOGRAphIC REGION

    The Graphic T3 shws what

    the biings pictre was in Q1

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    2nd Qtr. 2011 Total Components Billing Trend

    Distribution sales of E lectronic Components by Country comparing current qtr with prior quarter (

    Q/Q1) and same q uarter prior year ( Q/Q-4)

    -4.5

    %

    12.9

    %

    7.9

    %8.5

    %

    5.2

    %

    18.6

    %

    -5.0

    %

    -5.2

    % -3.5

    %

    -5.2

    %

    -9.0

    %

    8.5

    %

    -15%

    -10%

    -5%

    0%

    5%

    10%

    15%

    20%

    25%

    Avg Fran ce UK & Eire Italy Nordic G erman y

    Percentchange

    Q/Q-1

    Q/Q-4

    rap c -

    |

    , : , ,

    , , , ,

    .

    Dist ribut ion orders for E lect ronic components by country comparing Q4 20 10 wi th prior quarter

    (Q/Q1)and same qu arter prior year (Q/QY-1)

    10.5

    %

    10.8

    %

    14.1

    % 16.6

    %

    8.1

    %

    -2.3

    %

    10.2

    %

    5.0

    %

    -11.8

    %

    -3.2

    %

    -2.5

    %

    16.0

    %

    -15%

    -10%

    -5%

    0%

    5%

    10 %

    15 %

    20 %

    A vg France U K & E ire Italy No r dic G erm an y

    Percentchange

    Q/Q-1

    Q/QY-1

    Q1 2011 TOTAL COmpONENTS BOOKING TREND Graphic T2

    :

    Distribution o rders for Electronic compon ents by country compa ring Q4 2010 with prior quarter

    (Q/Q1)and same qu arter prior year (Q/QY-1)

    -9.2

    %

    -5.4

    %

    -6.2

    %

    -12.0

    %

    -6.5

    %

    -13.0

    %

    0.8

    %

    -6.9

    % -7.0

    %

    -12.0

    %

    -23.0

    %

    -1.7

    %

    -25%

    -20%

    -15%

    -10%

    -5%

    0%

    5%

    A vg France U K & Eire Italy No rdic G erm any

    Percentchange Q/Q-1

    Q/QY-1

    Grap

    Q2 2011 E-mECh BOOKING, BILLING & BOOK-BILL RATIO Graphic E1 Q2 2011 TOTAL COmpONENTS BOOKING TREND Graphic T2

    ci i i l

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    ci i i l

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    INTERNATIONAL

    ELECTRONICS

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    electronics f oru

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    INTERNATIONAL

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    INTERNATIONAL

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    Q1 2011 TOTAL COmpONENTS BILLING TREND Graphic T3 Q2 2011 TOTAL COmpONENTS BILLING TREND Graphic T3

    Bookings ormost o Europehave altered when

    compared withlast year

    trends cmparing crrent

    qarter with the ast qarter

    (Q/Q-1

    ) and the same qarter

    ast year ( Q/QY-1

    ).

    The shape this graphic,

    with the crrent qarter msty

    bew the ine indicates the

    wrsening bking trends in

    each cntry.

    and the Graphic T3 bew

    shws it in Q2. The change in

    trend can ceary be seen with

    the cmparisns with the same

    qarter prir year shwing a

    wrsening trend.

    The Graphic T2 (the shws the

    pictre in Q1 and the shwing

    Q2 bew it) cver bkings

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    News

    I E I L

    ELE I

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    V

    by Rajoo Goel

    Elcina

    www.elcina.com

    In India, the deence andaerspace sectrs are grwingat an nprecedented rate and

    emerging as key participants in

    the Asia Pacic regin. united

    States and Erpean aerspacecmpanies are nw recgnizing

    India as a critica market as we

    as a ptentia manactring

    partner. India is becming ne

    the argest miitary spenders in

    the wrd and catching wrdwide

    attentin, with the third-argest

    deense prcrement bdget in

    Asia.

    The key drivers Indianaerspace and deence indstry

    are ig doestic deand,

    oset olicy, cost adantages,

    talent base and everaging

    IT coetitieness. There

    are chaenges t, sch as

    inrastrctre, cstms cearances,

    cmpex tax aws, certicatins,

    qaity assrance, setting p

    measres ike sppy chain

    management, secrity and varis

    egisatins etc. (Srce: Deitte.

    cm).

    Tday the Strategic Electronics

    sectr presents an pprtnity

    which the Indian indstry canntverk. The prdctin

    strategic eectrnics in India has

    been grwing steadiy since 2007-

    08 rm Rs 5700 Crores t Rs

    6840 Crores in 2008-09 and is

    estimated at ver Rs 7500Crores

    dring 2009-10. Sme indstry

    estimates pt this gre even

    higher at abt Rs 9000 Crres !

    This grwth is eed by the

    expanding bdgetary acatin

    r deence sectr which grew

    by 12% rm Rs.147,344 Crres

    in 2010-11 t Rs.164,415

    in 2011-12. o this, Capita

    expenditre, which msty caters

    r mdernisatin reqirements,

    accnts r Rs.69,199 crres.

    Deloitte-CII reprt says that

    Indias crrent deence expenditre

    wi rise t an estimated $42 billion

    by 2015. The capita expenditre

    n new weapns patrms wirise rm the crrent $13.04 biin

    t $19.2 biin in 2015. The tta

    deence bdget accnts r

    abt 13.29% the tta Centra

    Gvernment expenditre.

    As per the prjected estimates,

    India is ikey t spend neary uSD

    100 biin n miitary prcrement

    dring the crrent ve year pan

    (2007-12) and uSD 120 biin in

    the next pan perid (2012-17),

    the atter cinciding with the ast

    phase Indias ambitis miitary

    mdernizatin pan.This wrks

    t t a massive uS$ 22 biin

    per annm (Rs 99,000 crres per

    annm) ver the 10 year perid !

    By simpistic bt rbst gic, at

    10 jbs r every Rs 1 Crre, sch

    reqirements have the ptentia

    t create amst 1 miin jbs

    annay.

    As per reprts rm Stockol

    International peace Researc

    Institute (SIpRI), the mst

    credibe mnitr the internatina

    arms market, India cntines t

    imprt rather than bid its deence

    eqipment.

    Frm 2005-2009, Indias anna

    arms imprts dbed rm $1.04

    bn in 2005; $1.25 bn in 2006;

    $2.2 bn in 2007; $1.8 bn in 2008

    and $2.1 biin in 2009. This is

    an nrtnate sitatin as we

    have nt been abe t tiize

    the pprtnity prvided by the

    deence sectr r r wn benet.

    In cntrast, Chinas dependence

    n arms imprts has been

    decreasing and its imprts

    decined rm uS$ 3.5 Biin in

    2005 t a mere 0.6 Biin in 2009.

    India crrenty prcres

    apprximatey 70 percent it

    eqipment needs rm abrad, bt

    the Gvernments aim is t reversethis baance and manactre 70

    percent r mre its deence

    eqipment needs in India. Abt

    30% the reqirement is sppied

    Naval acquisitionswill have greater

    degree oindigenisation

    by Indian cmpanies which

    25% are cmpnents and sb-

    assembies. I the target 70%

    ca cntent is t be achieved by

    2015, the Indian indstry needs t

    dbe in size, a hge chaenge,

    bt as a hge pprtnity.

    NEw pOLICYAND pROCEDURESThe crrent Deence

    procureent policy o 2008

    (Dpp-2008) thgh ceary ays

    dwn the a Make prcedre,

    which aws the MD t acate

    and nd prjects thrgh Indian

    indstry, has been nsccess

    becase eqipment reqirements

    have never been identied in

    advance, t give Indian indstry

    the ead-time t devep them.

    A transparent and ecient

    prcedre r enabing Indian

    cmpanies t register r this

    picy wd g a ng way in its

    sccess impementatin.

    The new Deence Prcrement

    Prcedre 2011 r Capita

    Eqipment has cme inteect rm Janary 2011 and

    incrprates rther renements in

    the prcrement prcess aimed

    at expediting and simpiying

    India is likely tospend USD 100 billion

    on military procurement(rom 2007 to 2012)

    Opportunies and strategies for defence

    manufacturing and strategic electronics

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    the prchase mechanism.

    The scpe the set picy

    gideines has been expanded t

    incde civi aerspace, internasecrity and training within the

    ambit eigibe prdcts and

    services r discharging set

    bigatins. With 40 per cent

    the acatin reserved r capita

    acqisitin, this ers an immense

    grwth pprtnity r dmestic

    eectrnics manactrers serving

    deence.

    There is a reaisatin that the

    acqisitin mde biding

    weapnry in India, thrgh

    Transer o Tecnology

    (ToT), has aied t generate

    indigenizatin and has kept s

    dependent n reign cmpanies.

    once we invest in R&D and

    design r wn eqipment, this

    dependence wi be vercme.

    This shd as save s precis

    resrces and get mre r r

    mney.

    Fr the rst time in India, a

    Deence production policy has

    been annnced and the same is

    eective rm 1st Janary, 2011.

    The bjectives the Picy are t

    achieve sbstantive sel reliance

    in te design, deeloent

    and roduction o equient/

    eaon systes/ lators

    required or deence in as eary a

    time rame as pssibe. The picy

    as creates cnditins cndcive

    r the private indstry t take an

    active re in this endeavr and

    t enhance ptentia SMEs in

    indigenizatin.

    This picy is very encraging r

    dmestic indstry as it intends t

    redce dependence n reign

    weapns. The MD Secretary r

    Deence Prdctin, R K Sing,

    has td media that the cntrys

    rst-ever Deence Prdctin

    Picy mandates that weapnry

    and miitary systems wi be

    identied severa years int thetre, t aw Indian cmpanies

    the time needed t devep and

    manactre them. The identied

    systems wi be acated t

    specic Indian deence cmpanies

    as devepment prjects. The MD

    wi ay dwn cear time targets and

    prvide 80 per cent the cst

    that wi be incrred.

    This picy when impemented

    cd make a signicant impact n

    encraging ca manactringr deence sectr.

    It is as recmmended that

    India shd graday increase

    the ca cntent reqirement

    rm 30% t 40% and pssiby

    t 50% in the next ew years.

    There is as a need r a cear

    picy n Inteecta Prperty

    Rights r deence eqipment and

    techngies, i.e. hw they wd

    be transerred t the Indian entity,

    the time perid reqired, ryaties

    payabe, etc. Ideay IPRs shd

    vest with the Indian cmpany.

    mAJOR pURChASESON ThE ANvIL

    There is an pprtnity r Indias

    dmestic deence manactring

    sectr t benet rm increasing

    deence reqirements t buy

    local as we as taxatin

    arrangements that advantageca rms. It is estimated that r

    deence pbic sectr ndertakings

    (DPSus), tax advantages can be

    as high as 50 er cent. Simiar

    pprtnities exist r gba rms

    in prviding specia prdcts

    and techngies t Indian

    manactrers, which they reqire

    r deveping advanced deence

    systems.

    Crrenty there are arge deence

    eqipment prcrement and

    mdernizatin pans nder

    impementatin. These incde

    the Armys $8-biin artiery

    mdernisatin prgramme (caed

    the Fied Artiery Ratinaisatin

    Pan, r FARP) ver the next tw

    decades at a cst $4.7 Biin,

    r kinds gns: air-mbie

    traight hwitzers r mntain

    divisins, twed and wheeed155mm gns, and mre.

    There are as pans r acqisitin

    and pgrades tanks, uAVs

    The acquisitionmodel o building

    weaponry in India,through Transer

    o Technology, hasailed to generateindigenization

    Stop preSS!

    The IDEA Newsetter is ging

    t accept a singe spnsr reach isse starting 2012!

    Fr the ast 20 years the IDEANews has been spprted bythe Trade Assciatins acrssthe Wrd bt increasing cstshave ed s t ering a singespnsrship r each risses.

    The spnsr wi have their namen every page as a spnsrtgether with their cmpany g.

    They wi as have a qarterpage acated r advertising.

    In 2012 there wi ny be nespnsr per isse.Jst t remind y, the IDEANews is circated t ver4000 named individas in ver3000 eectrnics cmpanies in10 majr cntries acrss theWrd.

    Spnsrship csts r 2012 are:

    1 Isse: 1200 (1050 r $1700)2 isses: 1100 (970 r $1600)

    per isse4 isses: 1000 (880 r $1400)

    per isse

    Fr mre inrmatin [email protected]

    (unmanned Aeria Vehices) and

    300 heicpters r Army Aviatin.

    Nava acqisitins are ikey t have

    greater degree indigenisatin

    than the ther services with reign

    shipbiders having ptentia t

    mdernize Indian shipyards t

    enabe them t prdce arge,

    advanced batteships. By 2022,

    the Indian Navy pans t have

    a 160-ps ship Navy, incding

    three aircrat carriers, 60 majr

    cmbatants (incding sbmarines)and abt 400 aircrat dierent

    types.

    Indias Cast Gard t is highy

    shrt its reqirements and pans

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    t dbe its eqipment in the

    next ew years. Its crrent feet

    76 ships and 45 aircrat is ikey

    t be ramped p in ve years t217 ships and 74 aircrat. Sme

    70 these new ships wd be

    arge vesses. Crrent deas in

    the pipeine incde 7 Scrpene

    Sbmarines (uS$ 3.5 Biin), 12

    Steath Frigates (uS$ 7.6 Biin)

    and 16 Mti Re Heicpters (uS$

    1.0 Biin).

    India is strgging and needs t

    indigenise aerspace prdctin

    which has been histricay

    dependent pn Rssia and the

    IAF is king t diversiy its vendr

    base r cmbat and transprt

    aircrat. (Srce: Bsiness

    Standard)

    CIvIL & DEFENCEAvIATIONThe deense set picy has been

    nder impementatin since 2006

    and a rma civi set picy is

    as expected t w shrty.The tta spending in the next 5

    years is expected t be between

    uSD25 biin (assming nirm

    demand) r cmmercia aircrats

    and USD100 billion as deense

    expenditre. ot the deense

    expenditre, apprximatey 15-20

    percent (uSD15-20 biin) is

    expected t be spent n miitary

    aircrat.Assuing an oset o

    30 ercent or te ciil sector

    too, te total oset oortunity

    or te aerosace sector is

    alued to be at least USD10-15

    billion.As Indian manactring

    capabiities matre ver the years,

    it is expected t captre a arge

    share this pprtnity.

    The Indian aerspace indstry

    is ne the astest-grwing

    aerspace markets in the wrd

    with airines, crprates and HNIspacing rders r an increased

    nmber aircrat. The grwth

    this indstry has attracted gba

    aerspace majrs t India.

    A segments within aerspace

    are shwing tremends grwth,

    incding civi aviatin, miitary

    aviatin and Space research:

    CIvIL AvIATION - In 2007

    and 2008, India assmed the

    ninth psitin in the wrds civi

    aviatin market, an increase rm

    tweth pace in 2006. Indias air

    passenger trave has been grwing

    at amst 25% a year. Accrding t

    Gvernment estimates, grwth in

    this sectr wi tpace the gba

    average nti 2025.

    mILITARY AvIATION -

    Secndary research indicates that

    India wi spend abt uSD35

    biin n miitary aviatin ver the

    next 20 years becase mst its

    existing feet needs t be repaced.

    Deas in the pipeine incde 197

    light utiity Heicpters vaed

    at uS$ 3 Biin and 127 Mti

    Missin Re Cmbat Aircrats

    (MMRCA) vaed at uS$ 10 Biin.

    In additin there are ambitis

    pans t add Transprt Aircrat and

    Heavy lit Heicpters which are

    crrenty in the news

    SpACE - India is ne the

    six cntries in the wrd that

    ndertakes Space anches.

    The Indian Sace Researc

    Organization (ISRO) nderthe Deartent o Sace,

    Goernent o India,

    impements the Indian space

    prgramme invving the

    devepment and peratin

    sateites, anch vehices and

    grnd systems, r carrying

    t research and appicatins

    reated t cmmnicatins,

    remte sensing, metergy and

    space sciences. Indias 200809

    bdget acated a 16 percent

    increase in science spending rm

    the previs year. The 200809

    bdget as incdes an increase in

    nds r manned space missins.

    The tta science bdget is ver

    uSD6 biin, cmpared with the

    previs years bdget uSD5biin.

    The ministry o Ciil Aiation

    had annnced that the Indian

    aerspace indstry needs

    inestent o beteen USD200

    to 300 billion oer 2009-2034.

    Accrding t a stdy byAirbus

    n the gba market tk, India

    wi be the astest grwing cntry

    r air trave r the next 10 years

    with dmestic trac grwing by an

    average 12.2 per cent per year.

    Trac grwth wi as be amngst

    the wrds highest, averaging 7.3

    per cent ver the next 20 years

    cmpared t 4.7 per cent wrdaverage.The reprt states that

    between 2009 and 2028, carriers

    in India wi reqire 1,032 aircrat

    vaed at $138 billion t serve the

    We must investin R&D and design our

    own equipment

    demand r passenger air trave

    and reight and t repace ageing

    feets with new mre e-ecient

    aircrat.

    on simiar ines as Airbs, Being

    expects a demand between 900

    t 1,000 cmmercia aircrat wrth

    uSD100 biin apprximatey

    in the next 20 years. This as

    sggests that a signicant

    prtin bsiness pprtnity

    cd accre t India, de t the

    assciated sets.

    There is as a strng eeing

    amng Indian private cmpanies

    that deence picies are in

    avr DPSus, which have

    been the main beneciaries s

    ar. It is imprtant that with the

    new cs n R&D rather than

    Transer Techngy, bth

    DPSus as we as private payers

    get eqa pprtnity and can

    wrk in cperatin rather than

    in cnrntatin. This is imprtantbecase the strengths the

    riate sector can cmpement

    thse DPSus and add great

    vae r the cntry.

    Simiary, anther area which needs

    attentin is the need t address

    the capabiity and the capacity t

    meet certifcation and quality

    assurance requireents

    existing abratries. The

    prcedre r btaining the

    reqisite apprvas is nt ny

    cmbersme bt the ack

    scient capacity rests in ng

    ead times. It is we knwn that

    there is n abratry r EmC/

    EmI Testing in Nrth India and

    thse DPSus and SAmEER in

    Chennai are heaviy verbrdened.

    This cases deays and avidabe

    ss t the indstry.

    overa, the pprtnities r

    private participatin in deence

    and civi aviatin prcrements are

    immense.

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    S whats the tre rm

    here, since the npredictabe

    happened a ew time the ast 2

    years? As ead time decrease

    r stabiize, as the indstry

    atermath the Japanese

    crises is better nderstd,

    sme g back the previs

    behavir, cmprmising secrity

    r cst saving ging back t

    the previs gic and waking

    inevitaby tward the next, sme

    wd say, indstry cyce, Id say

    inevitabe disaster.

    De risking Suly Cain

    sould be te N1 abition

    o all coanies, it reqires

    cntinity in strategy and

    partnership. It needs t incde

    a actrs rm cmpnent

    manactrers t distribtrs

    and t end cstmers.

    It pts extended S&oP right in

    the center every cnversatin

    and when it incdes inventry

    hding, its nt an accident r

    a cmpensatin r inecient

    prcesses, its a rward

    thinking cnscis investment

    t spprt better fexibiity and

    respnsiveness and vera

    imprve cstmer experience.

    Hw distribtrs wi psitin

    themseves as an stinenaber and credibe partner

    t address risk management

    chaenges wi have a key

    impact n their tre.

    accnt nt ny Envirnment

    and cst aspect bt as

    cstmer service.

    Ang the way this

    extrardinary market recvery,

    natra disaster stressed rtherstretched sppy chains sending

    sme cear signas and wake p

    cas. The Iceandic Vcan with

    the nprnnceabe name nt

    ny prdced pretty pictres it

    pt n hd r ver a week air

    trac n mst Erpe.

    Many cmpanies discvered

    the ver dependency n

    expensive ast air transprt and

    the itte t n aternative they

    had with sppiers ten thsand

    mies away.

    The Japanese tsnami, beynd

    the hman tragedy, highighted

    the dependence r indstry

    ver a sma nmber actrswhere the secnd and third

    tier sppiers were taking vita

    imprtance in the sppy chain

    sstainabiity.

    tsrcing the ht ptates

    in a VMI (Vendr Managed

    Inventry) agreement.

    This time a series events

    changed the script that was

    written in advance. First the hightech indstry recvery came

    sner than expected deeated

    a prgnses biding n a W r a

    sqare rt shape.

    SUppLY ChAINBECOmES ThE FOCUSOF ATTENTIONGrwth cntined r 8

    cnsective qarters draining

    dwn manactring capacity,

    stretching ead time, chaenging

    cstmer service, making

    Sppy Chain the cs a

    attentin.

    oEM CEos were spn n the

    gri with their key cstmers

    r ng and npredictabe ead

    time, they had t take a deep

    dive in their S&oP prcess,

    raise their nderstanding risk

    mitigatin and pt the Sppy

    Chain netwrk design n thewrk bench.

    Sstainabiity has becme

    a strategic piar taking int

    over the past 2 years rindstry suly cainhad t ace mre extrardinary

    events than ver the past 30years.

    We had been sed t a ew

    years verprdctin, the s

    caed byers market, wed

    by an eqivaent perid

    sppy cnstraint the seers

    market.

    Fcs was mving rm ppv

    (prchase price variance) t

    cmpnent acatin. In the

    script between the varis

    actrs, byers and seers payed

    the re the circmstance,

    maximizing the pprtnity with

    the certitde that time wi cme

    when the tide wi trn. Sppy

    Chain bjective was mre

    tsrcing cst than biding

    resiience and sstainabiity.

    When the ecnmy and market

    crashed in 2008, oEM and EMS

    prviders went n the cycica

    cst crshing missin where

    PPV, w cst abr re.

    Sppy chain missin wast create the cnditins

    obility, stretching transprt

    time and cst whie decreasing

    inventry, r mre apprpriatey,

    by Pascal Fernandez

    Vice president SPDEI

    and VP Avnet Velocity

    www.spdei.fr

    Many companiesdiscovered theirover dependency

    on expensive

    air transport

    Over the past2 years our industry

    supply chain had toace more extraordi-

    nary events than overthe past 30 years

    Sustainabilityhas become

    a strategic pillar

    Risk mitigation:what did the electronic

    industry learn, what role for Distribution?

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    eID NewS

    TTI has annnced theappintment Jaie Furnesst the psitin generaManager r uK, Ireand andSth Arica.

    FCI, a sppier cnnectrsand intercnnect systems,has entered int an agreementwith Zaai Tecnologies,an eectrnic saes cmpany eectrmechanica cmpnentsin Israe.

    Arro Electronics reprtedfrst qarter 2011 net incme 136.5 miin dars n saes 5.22 biin dars. Gbacmpnents saes increased 21% year ver year.

    Future Electronics and ADDSeiconductor have extendedtheir agreement r distribtin

    ADDs pwerine cmmnicatinSCs t gba ranchise.

    mouser Electronics andLuinus Deices annnceda gba distribtin agreementenabing Mser t bringlminslEDs qicky t ightingdesign engineers and byersarnd the wrd.

    Anet Abacus is t spprtits sister cmpanies EBvElektronik, Silica,Anetmeec and Anet Ebeddedat the recenty-annncedDesign Strategies for ARm

    Systes seminar prgramwhich wi pay in 16 cities acrssErpe in may and in jne.

    Digi-Key annnced theavaiabiity eectrniccmpnents rm parallaxSeiconductor.

    Gennu has added LeadingLigt Tecnologies (L2Tek)

    as a design rep and distribtr

    r its cmpete ine anagand mixed signa ICs in the uK,ireand and Nrway.

    DIStrIBUtIoN

    Source: Electronics Industry Digest

    FBDi Pictorial and

    Mandatory Datacustomizedassistants to manage EU formalities

    Aprdct may ny bedistribted and peratedin the Eu i it cmpies with the

    prvisins a Eu directivesappicabe t the prdct.

    The sheer mass what

    is crrenty oer 30 EU

    directies makes keeping

    track a smewhat hard jb.

    It is specicay in this ed

    that the FBDi (Fachverband

    der Baeemente Distribtin)

    cmes int pay with new

    assistants specicay designed

    r se in the distribtinindstry - namey Pictriaand

    Mandatry Data r managing

    Erpean rmaities and

    regatins.

    pictorial prvides an verview

    prdct grps and generay

    appicabe rmaities, whie

    mandatory Data reveas any

    ther reqired dcmentatin.

    Bth sets inrmatin have

    been designed r se in

    distribtin and imit themsevest the inrmatin that is

    actay reqired. These are nt

    static dcments; rather, the

    FBDi keeps them cnstanty

    p-t-date t refect the ever-

    changing regatins. Becase

    these assistants aim t prvide

    assistance with respect t

    internatina cperatin, they

    are prvided in Engish.In rder t ensre that the

    assistants prvide as secre

    a ega basis as pssibe in

    respect the regatins, pans

    are nderway t as have

    these dcments discssed

    with the varis cmpetent

    market watchdg athrities in

    severa Erpean cntries.

    The FBDi is crrenty wrkingnder the aspices Anet

    t devep rther assistants

    With the MandatoryData, it is importantto limit the data to

    a minimum so that therequirements remainclear and realistic

    Steps required for the assessment of the conformity of products in terms of environment and CE (general overview)

    II.

    Definitionof

    producttype

    I.Definitionof

    actor'srole

    III.C

    E

    concern

    ment

    IV.

    Analysisof

    RoHS

    requirements

    V.

    Additional

    substance

    regulations

    VI.REACh

    product

    information

    requirements

    VII.Evaluationof

    waste

    obligations

    VIII.Requirements

    regarding

    identification/

    documentation

    Ib

    Who#is#

    manufacturer

    Ic

    Importer according EU 'REACh'

    Id

    Importer as per 'other substance

    regulations and CE'

    Ie

    Importer as per

    'wasteregulations'

    Definition of product type

    So8wareAuxiliary material / accessories /

    toolsBattery / accumulator Component#(+Ba>ery)

    Assembly group / assembly

    (+ battery)

    ElectricalDevice,EEE(+

    ba>ery)

    III.

    Assessment of applicability of CE directives

    IV.

    Assessment of RoHS - analysis of

    requirements

    POPGdirecHve Ba>eryGdirecHveWastedirecHve

    VI.

    REACh product#informaHon

    Restriction of substances as per

    annex XVII

    Information of SVHC 'list of

    candidates'

    VII.

    Registration as per waste regulations in member states

    WEEE (waste electrical and electronic equipment) Ba>eries & accumulators Packaging#materials

    Requirements regarding

    identification and

    documentation

    Distinct manufacturer code +

    manufacturing data

    Directive for wood

    and wooden

    products

    CustomerGspecific#

    product

    Ia

    Overview steps of

    assessment

    by Wolfgang Ziehfuss

    Chairman of FBDI

    www.fbdi.de

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    categorisation syste with

    respect t e.g. REACH, RHS,

    CE, ADR/IATA and ther

    rdinances reevance tthe prdct type. In practice,

    the assistants are sed as

    ws: the ser cnsts

    Pictria in rder t gain an

    initia verview the reqired

    prdct categrisatin and

    the rmaities that appy as a

    rest.

    In rder t determine which

    ther inrmatin and

    dcmentatin is reqired,

    the ser then has the mre

    detaied Mandatry Data at his

    dispsa. With the Mandatry

    Data, it is as imprtant t

    imit the data t a minimm s

    that the reqirements remaincear and reaistic, reaisabe

    r manactrers n ther

    cntinents.

    Shd sers need additina

    assistance in the handing

    the appicabe Eu rmaities,

    the gideines as cntain

    rther hep specicay

    taired t the distribtin

    indstry. In this way, FBDi is

    prsing the ga imprving

    the prvisin and fw

    inrmatin ang the sppy

    chain. When it cmes t the

    appicabe Eu regatins,

    these new measres enabe

    a participants in the sppy

    chain t seak te sae

    language when determining

    which data is necessary and

    reqired t meet stattry

    reqirements r each prdct -

    irrespective the rm in which

    it is transmitted.

    This is enrms assistance

    t sma and medim-sized

    cmpanies in particar.

    News

    I E I L

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    by Lena NordesSE - Swedish Electronics

    Trade Association

    www.svenskelektronik.se

    Ater a history o two separate

    organisations or the

    distributors and the manuacturers,

    there was a desire to meet on

    common ground. Last year we

    merged the two associations into

    one. The Swedish Electronics

    Trade Association now

    organises a wider spectrum o

    the value chain; constructors/

    designers, consultants,

    manuacturers, distributors o

    components, test & measurement,

    production equipment and

    embedded technology - you name

    it, weve got it.

    When we look back ater this frst

    year, we are happy to conclude

    that we made the right move.What did we do, how did we do it

    and what did we gain?

    1) How: preparation -

    democratic process

    First o all we prepared well.

    The project was discusses and

    continuously confrmed by the

    members in a process over two

    years, one step at the time.

    There was a common

    understanding on what we wantedto achieve and how we wanted

    to do it.

    2) What - add new value on top

    We made sure to keep the best

    bits o the old organisations and

    added on new value on top. The

    good bits that we wanted to

    keep, was the vertical Sections.

    The members still want to meet

    colleagues within the same

    specifc line o business, so wehave six dierent sections with

    separate meetings.

    We have added on horizontal

    working groups and task orces,

    with special ocus on e.g. EU-

    Directives and our new trade show

    Scandinavian Electronics Event

    - S.E.E.

    We also have spiced it up with

    more general meeting, seminars,

    visits and studies at dierent sites

    and companies. The view can be

    broader when more perspectives

    are included.

    3) Why: ambitions and goals

    The motives behind this

    merger were several, but in

    short: the more the merrier!

    More business- fnding

    undone business with known

    and new partners in the value

    chain, with the end consumer

    in ocus.

    More information- the more

    who share the better. More impact- representing the

    industry with a stronger voice.

    The urge o more collaboration is

    probably not specifc or Sweden

    or or the electronic industry.

    Its more o a general trend and

    business terms how to keep the

    competitive edge on a global

    market.

    Much is to be gained by embracing

    the perspective o being businesspartners in the same boat rather

    that on opposite sides o the

    table.

    FBDi is pursuingthe goal o improving

    the provision and fowo inormation alongthe supply chain

    in rder t prvide distribtin

    and the entire sppy chain

    the eectrnics indstry with a

    cmpete mdar package.

    pICTORIAL,ILLUSTRATED LISTAND pRODUCTCATEGORISATION

    The Pictria cassies prdcts

    accrding t their type int

    severa verarching categries:

    Cmpnent, Assemby/Mde,

    EEE (eectrica and eectrnic

    eqipment), Stware,

    Axiiary, Ts (nn-eectrica),

    Accessry and Battery/Accmatr.

    It is strctred as ws:

    prdcts are rst cected in

    main grps (prdct types),

    e.g. Active Cmpnents,

    Passive Cmpnents,

    ITC, lighting, Dispay,

    opteectrnics and a nmber

    thers. Each prdct grp

    has istratins typica

    prdct exampes t prvide a

    cearer perspective.

    These prdcts are then

    categrised int prdct types

    n the basis denitins

    decared in reevant Erpean

    egisatin.

    This reveas the abste

    reqired minimm

    inrmatin and dcmentatin

    reqired r the prdct

    cncerned (e.g. with respect

    t REACH, RHS, CE, WEEE).

    Pictria therere prvides

    n mre inrmatin than

    necessary (what is needed and

    reqired r which prdct?)

    in a cear ist which incdes

    an nambigs prdct type

    categrisatin.

    mANDATORY DATAMandatry Data expands pn

    the Pictria, creating a ink t

    the reqired inrmatin andqery criteria with respect

    t the reevant regatins.

    It cntains a ist necessary

    inrmatin r each roduct

    The more the merrier in electronics value chain

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    News

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    A rganisatins se awide range metrics tassist their management and

    investrs t benchmark their

    perrmance within their market

    and s gide decisin making.

    let me start by dening sme

    the mst cmmn metricterms sed and the vae

    their appicatin.

    BOOKINGS

    Bkings is the vae

    new custoer sales orders

    entered by an rganisatin in

    a dened perid, mins any

    canceatins r changes. We

    managed rganisatins wi

    have a dened picy n rder

    entry.

    Many enter the entire rder

    vae bt sme ny enter

    the vae that they beieve t

    be rm (the vae that their

    cstmer is cmmitted t takeand is nikey t cance). This

    is ten expressed as 3 r 6

    mnths rder cver rather

    than the vae the rder.

    The remaining bkings vae

    is added as a prprtin in

    each tre mnth nti it iscnsmed.

    BILLINGS

    Biings is dened as net

    sales invoiced less credits

    - the vae gds sd t

    cstmers, mins any credits

    that may have been de within

    the perid.

    oten shwn in reprts as the

    B2B, the Bk t Bi Rati

    is a rather crde bt eective

    gide t bth cstmer

    demand and the abiity

    sppying rganisatins

    t meet it. Its very easy tcacate: Simpy divide the

    Bkings gre by Biings

    gre. i.e. Bkings = 100

    Biings = 96 gives a B2B

    1.04:1.

    BACKLOG

    The nmber between nity

    and any ther vale is reerred

    t as the Backlg, which is

    said t be grwing i the B2B

    is psitive r declining when it

    is negative.

    INTERpRETING

    ThE DATA...

    In a utpian wrld the B2B

    wld always be very slightly

    psitive - between 1.03:1

    and 1.05:1 - indicating that

    the vale new rders in

    the perid is greater than the

    crrent sales revenes and

    implying strng demand and

    a grwing market where the

    vale tre sales revenes

    is assred.

    A negative B2B - a gre at

    r belw nity i.e. 0.96:1 is

    indicative a weakening

    demand and a cntracting

    market where tre sales

    revenes cld be ncertain.In the real wrld hwever the

    B2B rati tends t fctate

    with the shrt term vagaries

    spply and demand bt the

    Despite itscrudity, the B2B ratio

    is a surprisinglyaccurate guide

    by Adam Fletcher

    Chairman of IDEA and ECSN

    www.ecsn-uk.org

    Industry Metrics, the Book to Bill Ratio

    Why is the electronic industry interested in this?

    In a Utopianworld the B2B would

    always be veryslightly positive

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    metric des prvide sme very

    valable data and pltted ver

    time, prvides a signicant

    insight int the market.

    REAL wORLD

    ExAmpLES AND

    ANALYSIS...

    The lng term trend the

    adec members Book to

    Bill Ratio graph shws that

    whilst there are variatins

    between the prdct grps

    n a mnth-n-mnth

    basis, all prdct grps are

    refecting a similar trend, with

    the Cmpnents Assemblies

    grp shwing the largest

    variatin.

    The graph shws a steady

    imprvement in the B2B rmApril 2009 with an average

    B2B 1.11:1 r the secnd

    hal the year. This was

    maintained r the rst hal

    2010 sggesting that rther

    grwth cld be expected.

    Hwever in the third qarter

    2010 the ratis declined

    slightly llwed by a rther

    decline in the rth qarter

    bt verall remained jst abve

    nity.

    The se a secnd rder

    plynmial trend line (Ply.)

    t smth the data, clearly

    shws that adecs verall B2B

    peaked in March 2010.

    The rati r semicndctrs

    (Semi Ind) generally cnsidered

    t be a lead market indicatr

    drpped t 0.99:1 in octber

    10, t 0.96:1 in December

    10, 1.05:1 in Janary 11,declining t 0.98:1 in Febrary

    11 and 0.95:1 in March 11,

    which sggests a decline in

    cstmer demand int the

    News

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    A negative B2Bis indicative o a

    weakening demand

    secnd qarter 2011, an

    nwelcme pattern that that

    is likely t be mirrred by the

    ther adec prdct grps.

    FINAL ThOUGhTS...

    Despite its crdity, the B2B

    rati is a srprisingly accrate

    gide t the balance spply

    and demand bt it is nly

    an average. The really sel

    part is the ability it prvides t

    cmpare the way a bsiness

    sectr r rganisatin isdeviating rm the average.

    Its great news and happy days

    when yre tperrming

    the average bt i yre

    nderperrming and thereby

    erding Backlg it shld be

    an rgent call t actin

    Note:

    Additinal inrmatin abt

    The Electrnic CmpnentsSpply Netwrk and adec

    may be nd at the llwing

    website: www.ecsn-uk.org

    with reglar indstry pdates

    available t all n the Breaking

    News pages.

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    News

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    Through the frstsix months o 2011,

    world connector saleswere $23,403 million,

    up +10.3% over thefrst hal o 2010

    argest cnnectr cmpanies in

    the rst ha 2011.

    Note:TE is rganic grwth

    witht ADC acqisitin r the

    eect crrency fxatins.

    The Graph 1 dispays saes

    perrmance since 1Q08 r the

    cnnectr indstry and the three

    argest cnnectr cmpanies.

    Y wi nte the indstry has

    achieved grwth r seven

    cnsective qarters beginning

    in 4Q09. Hwever, the indstry

    grwth rate has decined in

    the ast ve qarters. TE and

    molex has as experienced ve

    cnsective qarters weryear ver year increases in

    saes grwth with 2Q11 p

    ny singe digits

    (TE = 5.0%; Mex = 7.8%).

    Aphenol as has

    experienced a decining saes

    grwth rate in the past three

    qarters, bt sti achieved

    dbe digit grwth in 2Q11

    (15.0%).

    Wrd cnnectr saes were

    $12,051 miin in 2Q11, p

    10.0% ver 1Q10. Thrgh the

    rst six mnths 2011, wrd

    cnnectr saes were $23,403

    miin, p +10.3% ver the rst

    ha 2010.

    The Table 1 shws cnnectr

    saes by qarter.

    Grwth +10.3% in the rst

    ha is exceent perrmance,

    especiay cnsidering theindstry jst nished its best

    year ever, grwing +28.4% in

    2010. Hwever, rders in the

    rst ha were p ny +4.3%,

    meaning we are erding rder

    backg.

    BIG ThREEpERFORmANCEThe Table 2 shws saes

    perrmance r the three

    SECOND hALFOUTLOOKA three cmpanies have

    wered expectatins in caendar

    3Q11. The Table 3 prvides

    the estimate TE, Mex and

    Amphen:

    I wrd cnnectr saes were

    fat in the secnd ha, n a

    year ver year cmparisn, we

    wd end 2Q11 with year

    A decade of Upheaval

    indstry grwth +4.9%. I we

    achieved a mdest +5.0% year

    ver year grwth in the secnd

    ha, the indstry wd achieve

    year grwth +7.5%.

    The Bishp year recast is

    r grwth in 2011 +8.5%.

    Cnsidering rders are p

    ny +4.3% in the rst ha

    2011, swing u.S. GPD,

    debt prbems in Greece and

    ther Erpean cntries, the

    prbems in Japan, and the

    cing China, r recast

    is prbaby ptimistic.

    Assming n radica change in

    wrd ecnmies, we beieve it is

    mre reasnabe t pan n

    year 2011 grwth in the +5.0%

    to +7.0% range.

    The third qarter 2011 wi

    mst ikey be fat t sightydwn, bt i we have a strng

    4Q11, saes rests r the

    year cd be better than grwth

    =5.0% t +7.0%.

    by Ron Bishop

    Bishop & Associates

    www.bishopinc.com

    Orders in thefrst hal were up

    only +4.3%, meaningwe are eroding order

    backlog

    Our orecastor 2011 o +8.5%is probably a littletoo optimistic

    CONNECTORS - BIG 3 FIRST hALF SALES (in % change year over year) Table 2

    wORLD CONNECTOR SALES (in million dollars) Table 1

    Quarter 2010 2011 % Change

    1 Q $10,264 $11,352 10.6%

    2Q $10,955 $12,051 10.0%

    First Half $21,219 $23,403 10.3%

    3Q $11,475

    4Q $11,456

    Second Half $22,931

    Total $44,150

    Company 1Q11 2Q11 First Half

    TE 7.0% 5.0% 6.0%

    Molex 15.6% 7.8% 11.5%Amphenol 22.0% 15.0% 18.3%

    Industry 10.6% 10.0% 10.3%

    CONNECTORS - Quarterly Sales performance Graphic 1

    Sourc: Bishop & ass.

    CONNECTORS - BIG 3 QUARTER OUTLOOK (in % change year over year) Table 3

    Company Low End High End

    TE 3.0% 6.0%

    Molex -2.0% 2.5%

    Amphenol 5.4% 7.0%

    CONNECTORS - Quarterly Sales performance Graphic 1

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    News

    I E I L

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    XIII

    manactrers standards r

    packaging, handing and strage.

    The benet r ed saes

    representatives is the website

    prvides a cnvenient catin

    t nd avaiabe inventry r

    a cstmer, particary when

    caing n a cstmer wh is

    ready t make a prchase.

    The cst perating andmarketing the website wi

    initiay be spprted thrgh a

    cmbinatin participant ees

    and spnsrships. Advertising

    may be an ptin dwn the

    rad, bt it wi nt aect the

    search rests. Spnsrs wi be

    eatred n the hme page and

    n website prmtina materia,

    bt spnsrship wi nt ater the

    randmness the search rests.

    I wd ike t cmmend Glenn

    Sit, Msers President, r

    chairing the assciatins task

    rce that deveped the website.

    Genns eadership and spprt

    was instrmenta in mving

    this prject rm cnceptin t

    peratin in the span jst a ew

    mnths. My thanks t the ther

    members the task rce.

    I y have qestins r are a

    distribtr member interested in

    participating, pease cntact me.

    I encrage y t check t this

    service at www.eciaathrized.

    cm

    I as encrage a manactrer

    members t pt a ink n yr

    website t this terric member

    service.

    The website prvides a nmber

    benets r ECIA members.

    Fr a members, it rthers

    the missin the assciatin

    t prmte and imprve the

    bsiness envirnment r the

    athrized sae eectrnic

    cmpnents. It is a key

    cmpnent in the indstryserts t cmbat cntereit

    parts by prviding cstmers

    with a pace t nd athrized

    prdct.

    The benets r distribtr

    members are:

    Through July 30, it is free

    t participate dring 2011.

    Beginning Jy 1, the anna

    cst participatin is $2,500; Search results are listed

    randmy, s search rests are

    nt infenced by ads r site

    spnsrship;

    The association subsidies part

    the cst n-barding

    the data;

    All selling is done through the

    distribtrs website. The site

    des nt cmpete with its

    participants by ering its wn

    inventry;

    The cost of participating is

    signicanty wer than ther

    sites since the service is

    prvided as a member service

    and nt as a prt center.

    The benets r manactrer

    members are:

    The website provides a

    cnvenient ne-stp catin t

    direct byers t nd avaiabeinventry rm the cmpanys

    athrized distribtrs;

    It ensures that customers

    can nd prdct that meets the

    The rst majr new member

    benet rm the recent rmatin

    the Electronic Coonents

    Industry Association (ECIA)

    is the creatin an inventry

    search website. Whie there

    are severa sch websites n

    the Internet, this is the rst

    website that is indstry-wnedand managed. That means that

    participant data is nt sbject

    t the ncertainties abt the

    website wners bsiness

    mdes, directin, data integrity

    and data saety. Check it t at

    .eciaautorized.co

    As a member benet, the ECIA

    inventry search website is pen

    t ECIA distribtr members ny.

    This site is imited t athrized

    inventry ny. Which means,

    cstmers king t avid the

    gray market and cntereiteectrnic cmpnents may trn

    t the ECIA search site which ny

    ists inventry that is genine and

    backed by manactrer warranty.

    A new service

    from ECIA

    The cost oparticipating

    is signicantly lowerthan other sites

    The ECIA search siteonly lists inventory

    that is genuineand backed bymanuacturerwarranty

    This is the rstwebsite thatis industry-owned

    Assdl Aad:

    2011 bs

    manufacus

    The Assodel Aard is therecgnitin thatAssodel(the Italian association of

    electronic distribution) assignsevery year t the best eectrnicmanactrers. At its ninethevent, the presentatin the2011 Awards tk pace withinthe traditina Assde Gaadinner in Mian n the 17th Jne.

    Mre than 450 eole (managingdirectrs, saes directrs andmarketing managers) have takenpart in the event that, nceagain, has been abe t gatherthe tp payers the eectrnic

    distribtin and sppier wrd.Brn in the uSA and intrdcedin Itay in 2003, the DistribtinAward has decades traditinand is a prestigis prize r theeectrnic indstry.

    The awards have been handedver by Doenico Caserta,Assde President, and SilioBaroncelli, IDEA President, tthe wing sppiers r each the eight prdct categries:

    Infneon Technologies -Semicndctrs

    Murata - Passives FCI - Eectrnics Divisin -

    Cnnectrs Panasonic Electric Works -

    Eectrmechanicas Seoul Semiconductor -

    lEDs Hitachi Displays - Dispays Power-One - Pwer NXP Semiconductors -

    RF & Wireess

    Yokogawa - Instrmentatin

    The specia career award wasgiven tAngelo Di Benedetto.

    by Robin Gray

    President and CEO

    ECIA (USA)

    [email protected]

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    News

    I E I L

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    V

    A very we rganised day

    in a sperb catin; anexceent qaity deegate;

    the agenda prvided a gd

    range tpics, presented rm

    speciaists t speciaists which

    Area sccess r therst Frtrnic uK eventspprted by IDEA!

    The uKs rst ree ne day

    Frtrnic technica rm

    was specicay dedicated t

    wireess techngy and tk

    pace n 28t June 2011 at

    the willias F1 ConerenceCentre near oxrd.

    This inagra event was

    versbscribed by bth

    spnsr and attendees, it nt

    ny attracted in ore tan

    120 designers and engineers

    rm a brad market base wh,

    by the way, were reqired t

    register and had t meet with

    a seectin criteria bt a thespnsrship sts were taken!

    A ew the cmments by the

    spnsrs te the stry!

    The frst Fortronic UK

    a great success!

    stimated a t interest r

    angiaM2M and r partners; wibe peased t spnsr rther

    Frtrnic events.

    Jhn Bwman - Marketing

    This inauguralevent was

    oversubscribed byboth sponsor and

    attendees

    In partnersip wit

    the UKs fs ne day ee

    echnical um specifcally

    dedicaed wieless

    wIreLeSSFortroNIC ForUM

    28th JUNE 2011

    oXForDWilliams F1 Conference Centre

    Directr (Semicndctrs)-

    Angia M2MExceent Day. A attendees

    shwed a keen interest in r

    prdcts. Fnd it t be a very

    prdctive day and we wi be

    interested in any tre events

    Gary Yng - Directr -MSC

    Geichmann uK ltd.

    My eedback t y is that it

    was an exceent event, there

    were many discssins in the

    rm rm engineer t engineer

    and that is what this cntry

    needs. We dne.

    Ing Dr Simn Sherratt - Senirlectrer Eectrnic Engineering -

    university Reading

    T add t the excitement dring

  • 8/4/2019 News Idea Sept 2011

    15/15

    The Fortronic Tecnical

    Foru cncept has been prvenver 5 years events in Itayand is spprted by IDEA, anInternatina assciatin ndedin 1987 with the express intentt spread gd practice withinthe gba eectrnic cmpnentindstry.

    The Frtrnic TechnicaFrms have been extendedInternatinay in 2010 t Trkey &Tnisia and in Jne 2011 the frstevent was hed in the uK.

    wy Fortronic Foru

    1. QUaLItYFrtrnic garantees theqaity the cntents thecnerences and the rganizatin the whe event.

    2. teCHnICaL dIreCtorAn expert the sectr whcrdinates the cnerences andthe speakers.

    3. SHare WItH USA prgram cperatin withthe spnsrs the event t pan,prmte, cmmnicate, veriy theprmtin the event.

    4. edUCatIonaLA training seminar t transerdesign cmpetences t theattending technicians.

    Fnic

    IDeA NewSLetter

    INTERNATIONAL DISTRIBUTION OF

    ELECTRONICS ASSOCIATION

    EDIToR IN ChIEf: Gar Kibblewite

    EDIToRS: Adam fletcer (UK);

    Rbin Gra (USA); Silvi Barncelli and

    franc Musiari (Ital); Lena Nrder (Svezia);

    Wlram Zieuss (German); Am Wang (Cina);

    PUBLIShER: Silvi Barncelli

    INTERNATIoNAL PRoMoTIoN By: CoNSoRTIUM ELETTRIMPEX

    PUBLIShED By: Tecnimprese Scarl - Via C. flamini, 19 - 20134 Milan - Ital

    PRINTED By: Servizi Tipgraci Carl Clmb - Rme

    De t the tstanding sccess

    the 2011 RF & Wireess

    Frm the next Wireess Frm

    wi take pace n Tesday

    26 Jne 2012, again at the

    Wiiams F1 Cnerence Centre.

    Spnsrs r this event are

    reserving their paces nw!.

    Tw additina Frtrnic Frms

    are taking pace at the Wiiams

    F1 Cnerence Centre next

    year; lED & lighting wi take

    pace n Tesday 17 Apri 2012

    the day everyne enjyed a

    tr the Wiiams Grand Prix

    Cectin, the argest private

    cectin Frma one carsin the wrd.

    Graphic 1 shws hw peased

    the spnsrs were and graphic

    2 shws the reactin rm the

    attendees.

    At least threeFortronic Forums will

    take place in 2012

    with Pwer Management and

    Cntr scheded r Tesday

    octber 23 2012.

    Fr rther inrmatin n

    prgramme cntent and

    spnsrship packages pease

    cntact:

    Chris osbrn Frtrnic uKDirectr +44 (0)7824444612 r

    emai [email protected]

    Frther inrmatin can be

    nd at www.fortronicuk.com