The time is now
04 October 2010
I’ve heard it said that the best thing about procrastination is that you always have something planned for tomorrow. There are times when it’s tempting to agree with this sentiment, and then there are times when we just need to get on with things.
And this certainly seems to be a time when people are indeed ‘getting on with things’.
You’ll see in this week’s newsletter that Danaher is to acquire Keithley Instruments. The acquisition has been unanimously approved by the Keithley Board of Directors and upon closing, Keithley will be part of Danaher’s Tektronix business.
Elsewhere on EMTWorldWide, you’ll find news that Teradyne has entered into a distribution agreement with Accelonix in the UK and Ireland to satisfy increasing demand for test solutions in these areas. Accelonix has represented Teradyne for almost 10 years in territories including France, Spain, Portugal and North Africa, so this move is a natural progression.
Furthermore, we have news that Toshiba is celebrating the opening of its Kashiwazaki Operations with a completion ceremony and reception. This is the company's second dedicated production facility for its safe, long-life, rapid charge SCiB rechargeable battery.
The company anticipates strong demand for SCiB, most notably for application in battery-powered electric vehicles. Kashiwazaki Operations will build on current production at Saku Operations in Nagano prefecture, and start volume production at 500,000 cells a month, starting with production of 20Ah cells for EV. The plant is expected to reach a capacity of over 1,000,000 cells a month within FY2011.
So why is now the right time for big business deals, acquisitions, and new factories? Well, it seems that there’s a positive feeling out there. In fact, according to IPC, the August findings of their monthly North American PCB Statistical Programme suggest that rigid PCB shipments were up 24.3% while bookings increased 22.1% in August 2010 from August 2009.
Year to date, rigid PCB shipments were up 20.4% and bookings have grown 33.2%. Compared to the previous month, rigid PCB shipments increased 5.4% and rigid bookings increased 1.5%.
These signs of growth are stimulating the industry and it’s growing ever stronger. And why? Well, it’s tempting to conclude that the reason is because people are ‘just getting on with it.’ But that may be a somewhat churlish, over-simplified viewpoint.
In reality, the story is a very different one. These are still times when cash-strapped companies need a financial injection. The economic rollercoaster that we’ve all been riding is a situation that typically lends itself to acquisition activity. Profits are being squeezed and the backing of a large conglomerate is undoubtedly going to support flagging corporations and instil positive feelings.
Indeed, the support of a huge company can provide the smaller ones with the credit that they are perhaps unable to obtain from banks, resulting in continued trading. With long lead times, EMS companies have found that their money is tied up in stock, and with fewer new orders coming in, things could look bleak. But we’re seeing more and more big money bailouts, and all signs are pointing to more profitable times ahead.
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