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Electronic Connectors: A Global Strategic Business Report San Jose, California (PRWEB) March 13, 2012
Follow us on LinkedIn – Deceptively simple looking, connectors represent complex electrical systems designed to ensure signal/power integrity and stability including protecting the transmission of an electrical signal. The market for electronic connectors essentially remains technology driven with trends in design, material section, fabrication and assembly, dictated by technology changes in the electronics industry. Technology developments, over the decades, have resulted in incremental performance improvements making connectors capable of operating in the harshest of working environments. Harsh environment connectors will continue to drive market opportunities in the marketplace in the upcoming years, given the fact that continuous functioning of infrastructure equipment, automobiles, aircrafts, medical equipment/devices such as life-saving defibrillators, energy generation equipment, among others, will always remain of prime importance and concern. Following the decline witnessed during the 2007-2009 recession, the electronic connectors market rebounded in the year 2010 in sync with resurgence in demand from key end-use markets. The continuing economic uncertainties in United States, Europe and Japan is nevertheless keeping the electronic components supply chain pressurized, with inventory of electronic components vacillating between being an asset and liability. In the year 2011, against the background of rebounding demand, the supply chain remained stressed with raw supply shortages stemming from Japan as a result of the tsunami earthquake and the nuclear power plant crisis, which resulted in large scale destruction of manufacturing facilities, and which also severely crippled the country’s access to infrastructure and logistics. The magnitude of the concern caused can be put into perspective by the fact that Japanese manufacturers have a dominant position in the global supply chain of several electronic component technologies. In Europe, the electronic component supply chain has had a roller coaster ride with the market hitting the steepest trough in the years 2008 and 2009 when the heat of the recession practically dried up inventory in the supply chain as manufacturers aggressively followed lean manufacturing practices to cope with the depressed demand for electronic goods in the marketplace. The year 2010 witnessed strong rebound with bullish market sentiments triggering the steepest rise in inventory levels in the distribution market. The increase in inventory holding levels was also partially triggered by fears of possible disruptions in raw material/components supply from Japan in the post tsunami and earthquake period. As a result, manufacturers of industrial equipment, automobiles expanded their inventories over-proportionally resulting in a spurt in new orders for electronic connectors, which remain a critical part of the electronic component supply chain. In the upcoming years, deceleration in inventory stocking levels will impact new orders both as a result of the market’s natural inventory correction trend and by the changing economic outlook caused by the ongoing European debt crisis. Although Europe’s debt crisis triggering yet another downturn in the global electronics cycle is currently not seen as a possibility, the threat of contagion of the Euro crisis into the US economy, however, remains compelling in the event of a possible worsening of the euro crisis within France, Italy and Germany. Currently however, market sentiments are being upheld by efforts to keep money flowing through the Europe’s financial arteries as governments plan bailout funds. Although these short-term solutions do not provide a permanent solution to the crisis and in reality indicates deferring of conclusive, corrective action, market sentiments are nevertheless encouraged. Despite the bullish outlook, the domestic European electronics industry nevertheless remains nervous over the play out of the sovereign debt crisis drama and is facing immediate hurdles, such as, credit restrictions, consumer
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