No tech rebound yet: VentureOutsource survey

SAN JOSE, USA: VentureOutsource.com today published findings from its survey of 230+ electronics supply chain decision makers on the current business environment; volumes and expectations, and pricing trends. The survey was sponsored by leading electronics components distributor Digi-Key. Complete findings available at http://www.ventureoutsource.com/survey-results-apr09

Now, 82 percent of survey respondents said they participate in their company's decision making at some level with 45 percent as the ‘key decision maker’ for their organization.

Meanwhile, the survey data show the electronics supply chain remains pessimistic and appears to believe we have not yet seen the bottom of the recession.

Survey questions focusing on indicators of respondent satisfaction or emphasis were posed with a scoring basis of 1 to 10 (1 = very negative experience or expectations and 10 = very positive experience or expectations). Electronics OEM companies responded with an average of 4.6 when asked how they saw business conditions for their business over the next six months.

Respondents that identified themselves as electronics manufacturing services (EMS) or original design manufacturing (ODM) companies were generally more optimistic at 5.4.

“VentureOutsource.com’s survey is revealing and confirms what we’re seeing,” said Paul Singh, CEO for privately-held Suntron Corp., a North American EMS provider serving such end-markets as military/aerospace and industrial and medical electronics.

Respondents from semiconductor, distribution and logistics, and components manufacturing firms were more pessimistic, giving average scores of 4.2, 4.0, and 3.4, respectively.

“Economic conditions are impacting the industry as a whole, but quality-focused companies not burdened by a lot of debt and with good cash flow should emerge okay once economic conditions improve,” added Suntron’s Singh.

“Our findings don’t indicate a full recovery in the electronics sector is underway just yet but our survey results do provide some helpful information indicating where we are right now in this downturn,” said Mark Zetter, president and founder of VentureOutsource.com.