Vol. 1 No. 1, Spring 2007

Featured Story: A Rose-Colored Vista for Memory?


Watch for…

  • Upward trends in DDR pricing as back-to-school builds begin
  • Thinning NAND flash inventory levels as SSDs increase consumption

The big story in the electronic components open market for 2007 thus far is the decline in DRAM pricing.  In the months leading up to the release of Microsoft Windows Vista in Q1 2007, PC original equipment manufacturers (OEMs), electronics manufacturing service (EMS) providers, and their suppliers were hopeful that this new operating system would stimulate PC sales.  The increased PC sales have yet to materialize, but participants in the memory supply chain may have reason to be cautiously optimistic.

Read more: Featured Story: A Rose-Colored Vista for Memory?


Achieving the Zen of Lean


Toyota made history in April by surpassing GM in sales.  Toyota’s success is due in large part to its well-known business philosophy and strategy: the Toyota Production System (TPS).  TPS epitomizes a time-proven and successful business strategy, Lean Principles.  Interestingly, it is only in recent years that these proven business principles have been adopted in the electronics industry – and the results continue to be as promising there as they have been for Toyota.

Read more: Achieving the Zen of Lean


The Force of Change: Environmental Rules and the Component Market


Today’s global marketplace is “greening” rapidly, evidenced by myriad environmental legislative acts from the local to the regional level (i.e., legislation based at the US state level, to individual countries, to the European Union).  Each law or rule is different in its scope of electronic products covered versus exempted, timelines for partial to full enactment, review processes, and legal and monetary penalties for non-compliance.

Read more: The Force of Change: Environmental Rules and the Component Market


EMS/ODM a Mixed Market - Bullish for Players with a Core Strategy


Analysts are bullish on the electronics manufacturing services (EMS) and original design manufacturer (ODM) markets’ prospects for continued year-over-year double digit growth.  This growth is based on the forecasted increase in business opportunities due to continued outsourcing by original equipment manufacturers (OEMs).  Of course, such a positive outlook for increased opportunities doesn’t guarantee the success of all players.  Analysts look for winners in the EMS and ODM markets to possess a solid core strategy and client base that the entire company is committed to.  In the event that business strategies begin to waver and flip-flop, a company in today’s mixed market may no longer be running with bulls, but be trampled by them. 

Read more: EMS/ODM a Mixed Market - Bullish for Players with a Core Strategy


Focus on Quality: An IDEA Whose Time Has Come


Independent electronic component distributors provide essential services to electronics manufacturers.  They source hard-to-locate parts, purchase surplus inventory that can tie up manufacturers’ capital, fill shortages, and help manage inventory for production or service and repair needs.  In short, independent distributors rebalance electronic component inventories and send parts where there is demand for them. 

Read more: Focus on Quality: An IDEA Whose Time Has Come

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