Key Metrics and Supply Alert
Staff -- Purchasing, 3/18/2004 2:00:00 AM
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The Semiconductor Industry Association wants the Chinese government to withdraw its proprietary standard for national wireless local-area network (LAN), set to become effective June 1. The requirement would prohibit the use of non-Chinese chips, wireless cards, computers, printers, scanners and other international technology products for wireless LAN capability.
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Forget Intel Inside. Think Intel Everywhere. Under CEO Craig Barrett's plan, Intel's powerful lineup of microchips would be the guts of nearly every type of digital device on the planet—from cellular phones to flat-panel televisions, from portable video players to wireless home networking. Even medical diagnostic gear is a target arena. All told, the company is targeting 10 new product areas for its chips.
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Half of companies use spend management analysis only sometimes and 14% use it infrequently or not at all, according to a survey by Capital Consulting & Management of 400 purchasing managers. The survey finds most purchasing organizations don't even know their key suppliers. To learn how leading companies do sophisticated spend analysis, see story starting on page 28 of this issue.
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Soaring prices for steel threaten the solvency of key contractors, says Ken Simonson, chief economist of the Associated General Contractors of America. "Steel price increases have been sudden, steep, and devastating," Simonson says. "The cost of steel for one bridge project has risen by $15 million since the contract was signed. Few construction companies can afford to absorb cost jumps of that size. I worry that these price spikes are going to cause bankruptcies."
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Software is the engine that makes the information technology industry run, so developers need to adapt in coming years as the world of computer science changes, says Bill Gates, chief software architect at Microsoft Corp. In a recent speech to students at the Massachusetts Institute of Technology, Gates said the U.S. must expand investment in computer hardware and software research to maintain a leadership position in the future global economy.
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Expect reinvigorated antitrust enforcement in the telecommunications sector, where companies may need referees to maintain competition and innovation. Increasingly, traditional telephone companies are competing with cable, wireless and satellite companies to deliver a broad array of communications services. The challenge for government will be to get regulators out of the way of this fast-moving business sector while ensuring competition remains vibrant.
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