The Mil & Aero Blog
Saturday, December 15, 2007
  The weekend blog: worldwide electronics sales show serious signs of cooling off
Posted by John Keller

Market researcher IC Insights Inc. in Scottsdale, Ariz. is releasing a dismal report on worldwide shipments of electronics systems, which says sales in 2007 will represent the smallest growth since electronics manufacturers recovered from the 2001-2002 downturn in the wake of the 9-11 terrorist attacks and the telecom bust.

Also bad news for our industry, IC Insights is altering its integrated circuit forecasts and 2008 is not expected to be a big year, as believed last year. A year ago IC Insights projected the semiconductor market would grow by 7 percent in 2007 and 20 percent in 2008, but has lowered its IC forecast to 2 percent growth in 2007 in its latest report.

Growth in defense electronics spending, meanwhile, also is starting to cool off after years of growth during the Bush Administration. The 2008 Defense Department budget request contained spending cuts for procurement and research in communications, electronics, telecommunications, and intelligence (CET&I) technologies.

Industry experts also are predicting that overall defense spending has peaked for the time being, and should begin a long-term shallow decline, as the wars in Iraq and Afghanistan start winding down next year and a war-weary Democrat Congress starts looking for other ways to spend the taxpayers money.

In all this doom and gloom, however, folks in our industry should not lose sight of the promise of defense spending. Even when military spending is on the downturn, as it apparently will be for a while, it still represents a large and reliable source of income for technology companies.

Think of the huge ups and downs we've seen in commercial industries like telecommunications and Internet technologies. Military spending is steady and reliable by comparison. Sure, spending in our industry may be scaling back, but it's still a large and promising business to be in.
 
Comments: Post a Comment

Subscribe to Post Comments [Atom]



Links to this post:

Create a Link



<< Home
The MAE editorial staff uses the Military Aerospace and Electronics Blog to share ...

Archives
November 2007 / December 2007 / January 2008 / February 2008 / March 2008 / April 2008 / May 2008 / June 2008 / July 2008 / August 2008 / September 2008 / October 2008 / November 2008 / December 2008 / January 2009 / February 2009 / March 2009 / April 2009 / May 2009 / June 2009 / July 2009 / August 2009 / September 2009 / October 2009 / November 2009 / December 2009 / January 2010 / February 2010 / March 2010 / April 2010 / May 2010 / June 2010 / July 2010 / August 2010 / September 2010 / October 2010 / November 2010 / December 2010 / January 2011 / February 2011 / March 2011 / April 2011 / May 2011 / June 2011 / July 2011 / August 2011 / September 2011 / October 2011 / November 2011 / December 2011 /


Powered by Blogger

Subscribe to
Posts [Atom]