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24/10/2008
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How are supply chains evolving to combat inevitable tightening budgets?
 Design engineers looking for the perfect distribution deal are used to the headache of budgetary constraints and time management issues. With the additional pressure of the credit crunch, designers and distributors need to focus on solutions to counter this global economic slowdown.
The shadow of the credit crunch casting over UK component distribution has resulted in a sector that has become overly guarded. Expenditure and cash flow issues prevailing, market analyst Future Horizons suggests this caution is the product of pessimism. The company reports that July 2008 saw worldwide growth rates in the semiconductor market, despite the mood in the chip market being one of ‘doom and gloom’.
Malcolm Penn, chairman and ceo at Future Horizons, understood the concerns, but remained optimistic. “The dreadful mess in the US financial markets and the demise of major institutions such as Bear Stearns and Lehman Bros, are clearly at the root of the ‘zero confidence’ frame of mind. This industry is clearly now sailing in uncharted troubled waters. No one has any idea how this crisis will end or what the impact on the chip market will be. In the face of adversity, there are always two options – do nothing and hope for the best – or get on with the job and keep moving forward. Time to stop chasing fashion and get back to basics. The good news being the industry basics are mercifully good as they get back.”
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Author
Chris Shaw
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