What's Happening in High-Tech Supply Chains
Staff -- Purchasing, 3/18/2004 2:00:00 AM
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The semiconductor equipment market will experience "extremely robust growth" of 55% in 2004, says analyst Rosa Luis at Advanced Forecasting. "The semiconductor equipment market is coming from such a low bottom, due to reduced capital investment from 2001, that in order to keep up with escalating integrated circuit demand, equipment will have to grow very quickly," Luis says.
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Business travelers read and write an endless stream of electronic memos, letters and documents, but printing copies on the road often has been a challenge. That is changing because of new software being installed in hotels, airport business centers and rental car offices by PrinterOn Corp., Electronics for Imaging and other firms. A preassigned code allows documents to be sent to and stored in remote printers and printed on demand.
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Merrill Lynch analysts have increased the brokerage's 2004 personal computer growth forecast to 13% from 11%, "based on a decent consumer showing and an improving corporate market." Global PC shipments grew 11% in 2003, boosted by strong consumer demand and increased notebook sales.
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In the wake of declining handheld computer shipments in 2003, producers are pinning their hopes for 2004 sales on easier-to-use devices and the business market, according to research by In-Stat/MDR. PDA shipments are expected to reach 10.8 million units in 2004, and are continuing their evolution into multimedia and business data devices. Devices have gotten smaller, prices have continued to decline, and there has been greater availability of products with integrated Bluetooth and Wi-Fi.
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Growth in sales of printers and printer supplies is slowing, says Cross Research analyst Shannon Cross. Printer makers typically sell the machines at little or no profit in hopes of gaining long-term customers who will buy ink, toner and paper, which earn high profit margins. "One quarter doesn't make a trend, but recent light revenues are something we need to watch," Cross says.
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Non-automotive engine shipments will reach 36.4 million units, up 3.6% this year, suggest market researchers at business information firm Power Systems Research (PSR). "That's a pretty modest forecast, but it reflects the fact that engines for light vehicles and lawn and garden equipment have been fairly robust through the economic downturn," says the PSR report.
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