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ALAMEDA, CA -- There is a continuing disconnect between what OEMs want and what they say they are receiving from the contract manufacturers that build their products. That's according to a new study by research firm Technology Forecasters Inc.

Based on interviews with approximately 130 managers at more than 100 OEMs, the top priority is a need for their contract manufacturers to reduce the total cost of ownership.

SAN FRANCISCO – North American CIOs predicted IT budgets would grow 6.9% over the next 12 months, down from 8.6% in March, according to a June poll by Deutsche Bank and CIO magazine. Spending projections were up in most categories but were down for data networking, storage systems and e-business applications.

TEMPE, AZ -- Economic activity in the manufacturing sector grew in June for the 37th consecutive month, while the overall economy grew for the 56th consecutive month, according to the monthly ISM survey of manufacturing executives.

The PMI indicates that the manufacturing economy grew in June for the 37th consecutive month as it registered 53.8%, a decrease of 0.6 percentage point when compared to May's reading of 54.4%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

The report was issued today by the Institute for Supply Management.

A PMI over 42%, over a period of time, generally indicates an expansion of the overall economy. The June PMI indicates that both the overall economy and the manufacturing sector are growing.

Year to date, the average PMI (55.4%) corresponds to a 4.6% increase in real GDP. The annualized June rate of 53.8% corresponds to a 4% increase in real GDP, said chairman Norbert J. Ore.

"Manufacturing growth continued in June, and although the rate of growth slowed slightly, renewed strength in June's new orders index provides encouragement for the third quarter. The sector is benefiting from the weaker dollar and business investment. While energy and raw material prices are still a concern, our members indicate that they are coping with the challenges, and generally see their businesses in a continuing growth mode."

The industries reporting growth in June included Industrial and Commercial Equipment and Computers, and Electronic Components and Equipment.

SAN JOSE – Worldwide sales of semiconductors grew 9.4% in May, the SIA reported today. Sales rose 0.7% sequentially, reaching $19.7 billion, on continued demands for new cellphones and other consumer electronics.

“Worldwide sales of semiconductors in May continued to reflect generally favorable worldwide economic conditions,” said SIA president George Scalise. “As consumer products drive an increasing proportion of microchip sales, the growth of the semiconductor industry more closely reflects overall economic growth."

MIDDLETOWN, PA -- Phoenix Contact officials from Germany and the U.S. marked 25 years of U.S. operations by breaking ground for a $12 million expansion project at U.S. headquarters in Middletown.

The company is building a new 45,000 sq. ft. distribution center and expanding its manufacturing facility from 28,000 to 90,000 sq. ft.
The distribution center is slated for completion in 2007, and the manufacturing expansion is expected to be finished by 2008.

“It was an ambitious and visionary decision of my brother Gerd Eisert, the architect of the Phoenix Contact business activities abroad, to enter the North American continent 25 years ago,” said CEO Klaus Eisert. “He was convinced that this highly developed nation would be a future market for Phoenix Contact. At that time, we were competing with a small range of European DIN-rail terminal blocks on the one hand and PCB terminal blocks on the other hand. This turned out to be a success story!

“The market chances with the product range completed by surge voltage protection, Interface modules and automation technology have not changed today. We will do our utmost to provide for more marketability and thus for more customer satisfaction.”

Over 120 employees have been hired during the past year and a half, and the company plans to add 250 more by 2010.

Last year the company became a Trans-National Corporation, and the Middletown site, along with headquarters in Germany and China, became one of three Regional Business Units (RBUs). The Americas RBU is responsible for R&D and engineering of new products for all of the Americas subsidiaries.

Clinton, NY -- Indium Corp.’s vice president of technology, Dr. Ning-Cheng Lee, has been appointed to the IEEE Components, Packaging and Manufacturing Technology (CPMT) Society Board of Governors.

Dr. Lee was named SMTA Member of Distinction in 2002, received the Soldertec Global Lead-Free Solder Award in 2003 and recently received the 2006 CPMT Exceptional Technical Achievement Award. He has also served as an SMTA board member, liaison to the Taiwan SMTA chapter, coordinator and chair of the 2005 Nepcon Shanghai technical program, and is author of two books and over 100 technical papers.

He has experience in the development of solders, fluxes, high-temperature polymers, encapsulates for microelectronics, underfills and adhesives. His current research interests cover advanced materials for interconnects, and packaging for electronics and optoelectronics applications, with emphasis on high performance and low-cost ownership.