Editorial
Editorial Offices
Trevor Galbraith
Europe Editor-in-Chief
Global SMT & Packaging
Trafalgar Publications Ltd
8 Talbot Hill Road
Bournemouth
Dorset BH9 2JT
United Kingdom
Tel: +44 (1202) 388997
E-mail: news@globalsmt.net
Website: www.globalsmt.net
United States
Global SMT & Packaging Strategies for the
PO Box 7579
Naples, FL 34112
USA
Tel: (239) 567-9736
E-mail: news@globalsmt.net
economic downturn
China
Global SMT & Packaging
Electronics Second
There was little festive cheer around in inventory problems we experienced during
Research Institute
this year’s holiday season. The recession is 2000 – 2001. The current recession was
No.159, Hepin South Road now moving through the economy with a sparked by the sub-prime mortgage market,
Taiyuan City, PO Box 115, Shanxi,
destructive force greater than any weather which revealed the level to which all banks
Province 030024, China
Tel: +86 (351) 652 3813
system. Many people battened down the were interlinked. Consequently, after the
Fax: +86 (351) 652 0409 hatches for a lean Christmas holiday, and collapse of Lehmann Brothers, govern-
for those in the frozen north of the United ments discovered that they could not allow
Editor-in-Chief
Trevor Galbraith
States, the extraordinary weather only banks to go into Chapter 11 or bankruptcy
Tel: +44 (0)20 8123 6704 (Europe) added to the misery. because of the knock-on effect to other
Tel: +1 239 567 9736 (US)
For business owners and those who are banks, states and economies around the
E-mail: editor@globalsmt.net
responsible for guiding their companies world. Therefore, the age-old mechanism
Managing Editor
through this period, it is a time for tighten- for rebalancing the books has, in part, been
Heather Lackey
ing cash-flows, strategic ingenuity and lost. The government bailouts of banks
Tel: +1 (828) 231 9434
E-mail: hglackey@globalsmt.net
strong hearts. Of course, the first reaction around the world were essential, but it is
is to scrutinize all discretionary expenditure also critical that lending practices are more
China Regional Editor
and decide where you can trim costs in tightly regulated in future to make banks
Lu Shuzhen
Tel: +86 (351) 652 3813
order to maintain a steady ship. responsible for their loans during the
E-mail: lsz6401@163.com
The problem is, these costs should have lifetime of these loans. Unfortunately, this
been trimmed earlier in the cycle, provid- correction will, if implemented, slow down
China Regional Editor -
Website & Newsletters
ing the headroom to negotiate the difficult the money supply and hence the recovery.
Christine Zhang
times without cutting into essential budgets Recessions, like expansions, have their
Tel:+86 13311021565 needed to guide the company through the winners and losers. A critical part of any
E-mail: czhang@globalsmt.net
other side of the recession. “Hindsight is company’s strategy during a recession is
Hungary Regional Editor
a great thing,” I hear you say, but it is no to balance budget cutbacks with the best
Miklós Lambert secret that many larger corporations closely interests of the business. Those companies
Tel: +36 (30) 3 113 123
monitor key metrics that determine future who simplistically slash their marketing
E-mail: lambert.jr@elektro-net.hu
sales in each industry segment. There is no and R&D budgets to avoid lay-offs will suf-
India Regional Editor shortage of data available. Even suppliers fer when the market returns. On the other
Debasish Choudhury
of equipment and materials can refer to the hand, those companies who maintain
Tel: +91 120 6453260
E-mail: dchoudhury@globalsmt.net
semiconductor sales charts, which generally their brand awareness in the market will
act as an early warning system. be the first to benefit from the impending
Japan Regional Editor
Historically, recessions in the 20th upturn. When will that be? The United
Yoshinobu Anbe
Tel: +81 (0) 45-937-6023
Century have lasted an average of 11 States has been in the current recession
E-mail: anbe@anbesmt.co.jp
months and are unlikely to exceed 18 since December 2007, according to various
Korea Regional Editor
months. The only real exception to this economists. If the historical data holds true
Amy Kim
Tel: +82 (505) 374 2526
was the Great Depression, which lasted and the recession does not develop into a
E-mail: akim@globalsmt.net
43 months
1
. However, every recession has depression, then the United States should
its own characteristics. In the electronics be starting to emerge from the recession in
UK/Ireland Regional Editor
industry, the recession of 2000 – 2001 was Q3 2009, and Europe should be around
Jade Po Kellard
Tel: +44 (0) 1202 388997
characterized by massive excess inventories one quarter behind.
E-mail: jkellard@globalsmt.net in the supply chain and, in parallel, a shift Another strategy for increasing sales is
of high-volume manufacturing to low-cost to expand your markets. Some market seg-
Circulation and Subscriptions
Tel: +1 (239) 567 9736
countries, particularly China. The current ments are performing stronger than others.
E-mail: subscriptions@globalsmt.net recession is very different. Better house- Military, medical and industrial automation
keeping and more sophisticated software
have largely worked out many of the excess Continued on page 6
2 – Global SMT & Packaging – January 2009 www.globalsmt.net
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