Anaya Vardya: 2024 and Beyond
January 9, 2024 | Anaya Vardya, American Standard CircuitsEstimated reading time: 1 minute
Predicting what will happen in our industry (or any industry) is getting more difficult. There are too many moving parts and factors to make solid predictions.
Technological advancements, global market trends, and supply chain challenges are some of those factors. Many companies are optimistic about the growing demand for electronic devices, especially with the proliferation of IoT devices and 5G technology. However, there are many moving parts, such as supply chain disruptions, rising material costs, and global economic uncertainties.
I believe that the business outlook for individual companies will depend on their ability to adapt to these challenges, diversify their customer base, and innovate in response to changing market dynamics. That is certainly the way our company is looking at it. How we can manage and adapt to changing economic conditions will factor into how we perform in 2024. I suggest anyone who wants to succeed must do the same.
Here are some of the factors we are watching.
Inventory Management and Supply Chain
Inventory management and supply chain issues have become significant concerns in recent years, and those impact working capital. Tied-up capital in excess inventory or delays in receiving critical components can hinder a company's ability to invest in capital equipment or technology upgrades. Effective supply chain management and inventory optimization are essential strategies to free up capital for other investments. The better we can manage the supply chain, the better we will do.
Capital Equipment
I feel there is no choice but to keep up with the latest equipment. To maintain your company’s lead in technology, you must have the best and most advanced equipment and tools on the market today. Buying capital equipment with cash or financing depends on a company's financial health, cash flow, and growth strategy. Using cash for equipment purchases can provide flexibility and reduce long-term interest costs. However, financing allows companies to conserve cash for other essential operations or investments. The choice between cash and financing should align with the company's financial objectives and risk tolerance.
To read this entire article, which appeared in the December 2023 issue of PCB007 Magazine, click here.
Suggested Items
SEMI Applauds U.S. CHIPS Act Award for Polar Semiconductor Facility in Minnesota
05/14/2024 | SEMISEMI, the industry association serving the global semiconductor and electronics design and manufacturing supply chain, applauded the United States Department of Commerce’s announcement of a Preliminary Memorandum of Terms for an award under the CHIPS and Science Act to support the expansion and modernization of Polar Semiconductor’s fab in Minnesota.
American Made Advocacy: What About the Rest of the Technology Stack?
05/14/2024 | Travis Kelly -- Column: American Made AdvocacyThose of us who have been in the industry for any length of time know America manufactures very little of the world’s supply of microelectronics. This happened over decades and was invisible or ignored by policymakers as companies shipped both their ideas and their production to Asia—and made a good profit in the process.
OSI Systems Receives Order for $9 Million to Provide Cargo and Vehicle Inspection Systems
05/13/2024 | BUSINESS WIREOSI Systems, Inc. announced that its Security division received an order from an international customer for approximately $9 million to provide the Company’s Eagle® M60 high energy mobile cargo and vehicle inspection systems including related service and support.
Sondrel Awarded New Video Processor ASIC Design and Supply Contract
05/09/2024 | SondrelSondrel, a leading provider of ultra-complex custom chips for leading global technology brands, is pleased to announce that it has won a major ASIC design and supply contract for a next generation, video processing chip.
America Projected to Triple Semiconductor Manufacturing Capacity by 2032, the Largest Rate of Growth in the World
05/08/2024 | SIAThe Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), released a report on the global chip supply chain that projects the United States will triple its domestic semiconductor manufacturing capacity from 2022—when the CHIPS and Science Act (CHIPS) was enacted—to 2032.