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TEMPE, AZ – Economic activity in the manufacturing sector failed to grow in November for the fourth consecutive month, and the overall economy contracted for the second consecutive month, says the Institute for Supply Management.
The November PMI registered 36.2%, down 2.7 points. New orders fell 4.3 percentage points to 27.9%. Production was 31.5%, down from 34.1%, while inventories dropped 5.2 points to 39.1%. Customer inventories remained at 55%, and the backlog of orders fell 2.5 points to 27%. A reading above 50% generally indicates growth.
"When comparing November to October, the PMI indicates a continuing rapid rate of contraction in manufacturing. New orders have contracted for 12 consecutive months, and are at the lowest level since June 1980 when the index registered 24.2%. Order backlogs have fallen to the lowest level since ISM began tracking the backlog of orders index in January 1993. The prices index at 25.5% indicates commodity prices continue to decline at a rapid rate. This is the lowest reading for the index since May 1949 when it registered 20.1%," said ISM spokesperson Norbert J. Ore.
The November PMI registered 36.2%, down 2.7 points. New orders fell 4.3 percentage points to 27.9%. Production was 31.5%, down from 34.1%, while inventories dropped 5.2 points to 39.1%. Customer inventories remained at 55%, and the backlog of orders fell 2.5 points to 27%. A reading above 50% generally indicates growth.
"When comparing November to October, the PMI indicates a continuing rapid rate of contraction in manufacturing. New orders have contracted for 12 consecutive months, and are at the lowest level since June 1980 when the index registered 24.2%. Order backlogs have fallen to the lowest level since ISM began tracking the backlog of orders index in January 1993. The prices index at 25.5% indicates commodity prices continue to decline at a rapid rate. This is the lowest reading for the index since May 1949 when it registered 20.1%," said ISM spokesperson Norbert J. Ore.
SAN JOSE, CA – Worldwide sales of semiconductors declined 2.4% in October to $22.5 billion compared to the same month last year, says the Semiconductor Industry Association. October sales were down 2.1% sequentially.
TOKYO – AOI OEM Saki Corp. has signed a sale and purchase agreement with Schmidt Electronics Group to acquire a certain percentage stake in MacroScience Technology. No financial terms were disclosed.
BUDAPEST – Foxconn plans to lay off 1,500 workers in Hungary, more than half its workforce there, as a result of slipping orders, according to published reports.
After layoffs in Komarom and Debrecen, the firm will employ about 1,150 people near Budapest, Reuters said.
The economy in Hungary is expected to hit a recession in 2009 on dropping export demand and domestic consumption; the government predicts contraction for up to a year-and-a-half, according to reports.
Analysts say the country's 7.7% unemployment rate from August to October could reach more than 10% by the middle of 2009.
After layoffs in Komarom and Debrecen, the firm will employ about 1,150 people near Budapest, Reuters said.
The economy in Hungary is expected to hit a recession in 2009 on dropping export demand and domestic consumption; the government predicts contraction for up to a year-and-a-half, according to reports.
Analysts say the country's 7.7% unemployment rate from August to October could reach more than 10% by the middle of 2009.
ST. PETERSBURG, FL -- The enforcement division of the Securities and Exchange Commission has notified Jabil Circuit it recommends no action on Jabil's historical stock option grant practices.
Following a roughly six-month investigation, the SEC Division of Enforcement issued a letter to Jabil advising the SEC not to take any enforcement action.
Following a roughly six-month investigation, the SEC Division of Enforcement issued a letter to Jabil advising the SEC not to take any enforcement action.
YOUNGSVILLE, OH -- SMT Resource Group, a seller of refurbished equipment, this week filed for Chapter 11
bankruptcy protection.
The company had recently moved from Texas to a former Flextronics site in Youngsville, where it leases 60,000 sq. ft.
The company had recently moved from Texas to a former Flextronics site in Youngsville, where it leases 60,000 sq. ft.
TORONTO -- Research in Motion is considering outsourcing production to companies in the Pacific Rim, according to published reports.
DigiTimes is reporting RIM vice president for Asia-Pacific Norm Lo as saying RIM's leading position in the fast-growing smartphone market is behind the company's continued outsourcing.
RIM currently outsources some product build to Elcoteq, and according to DigiTimes sources also contracts with Huizho, China-based TCL, a $5.8 billion ODM that is also a business partner of Alcatel, Toshiba, Thomson and Philips Electronics.
TAIPEI -- Rumors are once again abounding that Foxconn Electronics is in talks to acquire Pegatron Technologies, the manufacturing arm of Asustek.
According to the reports, any deal would call for Foxconn to cede its retail and channel business in order to acquire Pegatron, the $9 billion contract assembly arm of Asustek.
There is tremendous overlap between Foxconn and Pegatron, from the respective company's manufacturing locations (Shenzhen; Shanghai; Taipei, Juarez, Mexico; and Czech Republic) to their top customers (HP).
SHANGHAI -- Nepcon China will relocate to the Shanghai World Expo Venue in 2011, the show producer announced today.
The WEV offers state-of-the-art infrastructure, meeting facilities, accessibility and hotel support, Reed Exhibitions asserted in a press release. The current site, the Everbright Convention and Exhibition Center, has been criticized for its electrical and dimensional liabilities and a lack of nearby hotels.
The show remains one of the largest for electronics manufacturing in the world, with an estimated 16,000 attendees.
The WEV offers state-of-the-art infrastructure, meeting facilities, accessibility and hotel support, Reed Exhibitions asserted in a press release. The current site, the Everbright Convention and Exhibition Center, has been criticized for its electrical and dimensional liabilities and a lack of nearby hotels.
The show remains one of the largest for electronics manufacturing in the world, with an estimated 16,000 attendees.
EL SEGUNDO, CA – iSuppli Corp. has trimmed its global LCD-TV shipment forecast to 93.4 million units in 2008, down nearly 6% from its previous prediction of 99 million.
iSuppli also reduced its previous forecast of 124 million units for 2009 to 112.6 million units for the year.
Despite this more subdued outlook, worldwide LCD-TV shipments still will rise 18.9% in 2008 and 20.5% in 2009.
“The economic downturn in the United States and Europe has had a knock-on effect on global economies, spurring a slowdown in gross domestic product growth, an increase in inflation and a deceleration in consumer spending around the world,” said Riddhi Patel, principal analyst, television systems, for iSuppli.
“The current crisis is impacting spending in all markets, including LCD TVs. The continued impact of the recession and credit crunch in the United States and Europe, and rising inflation in many emerging markets, will slow down sales growth for LCD TVs in 2009 as well.”
However, this slowdown won’t be sufficient to cause an annual decrease in unit shipments in 2008 or 2009.
“LCD-TV shipments will continue to rise due to strong consumer interest and declining average selling prices for sets,” Patel noted. “Furthermore, iSuppli expects major brands' marketing and promotional efforts will fuel demand.”
iSuppli anticipates the fourth quarter of 2008 will be weak for LCD-TV sales compared to previous expectations.
While OEM shipments to the sales and distribution channels will continue to be robust, consumer purchases will be weak, the firm says. This implies that in early 2009 the channels will be holding more than nine weeks of inventory, a level that could vary by region. To clear out the existing inventories, the channels will be forced to reinstate aggressive prices normally seen only during the peak holiday season between Thanksgiving and Christmas, according to iSuppli.
The first half of 2009 is expected to bring a slowdown as well because most regions will continue to struggle because of the current financial environment. Conditions are expected to improve in the second half of 2009 because the mature regions will begin to show first signs of a recovery during the third quarter.
The recovery and low pricing for LCD TVs – such as $400 for a 32" set or $600 to $700 for a 40/42" LCD TV – will fuel consumer demand. By the third quarter of 2009, the availability of panels at aggressive prices, rock-bottom retail ASPs and the economic turnaround will combine to fuel a resurgence in demand for LCD TVs, says iSuppli.
“Before the recession hit, 2009 was expected to be a year when the TV market would grow substantially because of the large number of replacement purchases in the mature regions, as well as in economically emerging nations,” Patel said. “Moreover, the downturn had been expected to last only a few quarters, and was not believed to be as severe as it now appears.”
iSuppli's updated forecast for LCD-TV shipments in 2009 has been reduced by 10%, given the economic recovery will take longer than expected. Starting in 2010, the market will bounce back and the demand for LCD TVs will pick up.”
The factors leading to this rebound include continued declines in prices; new panel production capacity; brand and retailer commitments to sell more LCD TVs, and increased consumer demand.
BUCKS, UK – SMART Group has redesigned www.smartgroup.org to support engineers globally.
The site includes new features to assist in solving technical problems, design help, searching for suppliers or keeping up-to-date with industry trends.
The firm’s future events are included on the site, with reports on recent seminar and workshop presentations.
Newsletters are archived to January 2004, and visitors can participate and see results of SMART Group’s surveys.
Most frequently asked questions and responses from the smart-e-link forum are now available. Featured defects, technology downloads, a library of technical papers and assembly defect video clips are also on the site.
MARLOW, ENGLAND – Aegis Software, developer of manufacturing operations system software, has opened its new European headquarters near Marlow, England.
Aegis Europe occupies an entire building with facilities for customer support, training, a customer lounge, and sales and administrative offices. Training is available to educate customers on the firm’s MOS software.
The location has an expanded sales and support staff and technology conferences to update local customers on new product developments, and to provide first-hand feedback.
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