2011 Off to A Reasonably Good Start (With Some Concerns)

摘要

Our annual post-Christmas seasonal downturn appears to be subdued this year (especially compared to 2008). Inventories are in control, the stock market has rebounded, business and consumer confidence are up, unemployment is beginning to edge downwards, the auto industry is showing signs of life, and new products, such as tablet PCs and smart-phones, are creating new electronics demand.However, there are also concerns. The military market (a U.S. driver) is weak due to DOD budget cuts (Chart 1), significant cost increases for metals (Chart 2), glass yarn & petrochemicals are causing pricing and margin headaches, the inverter PCB market (a key European driver) has weakened due to Germany's reduction of solar/photovoltaic installation subsidies, key components are in short supply and global economics and politics remain volatile.