Perhaps the industry's most frustrating aspect is its cyclical nature. Equipment manufacturers and OEMs cannot escape the desperate ups and downs. While there are natural cycles of consumption and excess, they usually are the result of consumer spending variations that thread through the supply chain and create havoc with the supplier base.rnWorst hit are equipment suppliers, whipped by the combination of end-user demand and OEM whims concerning predicted fulfillment. The chain reaction of supply makes this boom/bust scenario chaotic and excessive in terms of forecasting revenue. It is often an accumulative effect in which the tail of the chain - the equipment/manufacturing guys - gets whacked most, while distributors and EMS suppliers are left with excess or deficient inventory.
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