
InForum's Electronics Forecast Projects Industry Recovery Rate
Chicago, IL November 12, 2009 InForum’s annual Five Year Forecast for the Electronics Manufacturing Industry was released to members November 5th at the Silicon Valley Q4 Forum. Matt Chanoff, Chief Economist, described both TAM and electronics outsourcing to return to annualized growth of 5% in the next 12-24 months following an estimated 9% contraction for 2009.
InForum sized the total available market for the electronics manufacturing industry at $1.3T in 2008, estimates it to retract to $1.2T in 2009, and growing to $1.4T by 2013. InForum sized the EMS industry at $127B in 2008, estimates it to retract to $103B in 2009, and forecasts that the industry will grow to $127B again by 2013. The ODM industry was sized at $116B in 2008, $107B for 2009, and forecasted to grow to $135B by 2013. A major influence on this year’s forecast was the manner in which InForum treated the revenues for Foxconn, which for the first time were not all included in the EMS sector, but broken out between the EMS and ODM industries.
Mr. Chanoff identified the industry segments with the greatest outsourcing growth potential in this area to include automotive, medical and aerospace and defense. Matt described demand drivers for the overall industry and outsourced manufacturing specifically to support the current projections and the forecasting process he leads for InForum. “Forecasting isn’t a perfect science,” commented Mr. Chanoff, “but I’m proud of our track record. We also make a point of being very transparent about our approach, and we focus on giving clients a broader picture, so that they can keep an eye on important growth drivers, integrate our forecasts into their internal planning processes, and improve their own forecasting.” Many members rely on this report as a baseline to their forecast, as it provides industry segment and regional detail.Eric Miscoll, Sr. Analyst and contributing member of the InForum Forecasting team, examined the regional implication of the recession and projected recovery. According to Mr. Miscoll, “The regional footprint for electronics manufacturing continues its shift towards Asia, although somewhat less aggressively than in past years. This shift is driven by the industry’s insatiable appetite for low cost labor, the large amount of available capacity existing in Asia, and ODMs diversifying into new sectors such as automotive and medical, among other issues. Mitigating the shift to Asia is the rising cost of labor in China, OEM insourcing, and greater consideration of Total Cost of Ownership in outsourcing decisions.”
InForum President, Kathleen Geraghty commented on the projected return to growth and accuracy of InForum’s forecast. “We are encouraged by a wide range of evidence that the recovery is underway. Our forecast reflects a rigorous process to provide a meaningful set of data points the industry can use to plan their future demand. We are also proud to reveal the outstanding track record of the Five year Forecast, which is accurate within 5% and applaud the team’s conscientious effort to deliver the industry such credible and critical information for business planning.”
InForum's Electronics Industry Forecasting Record Exceeds 95%
Chicago, IL August 26, 2009 InForum’s annual Five Year Forecast for the Electronics Industry will be released to members November 5th at the Silicon Valley Q4 Forum. The track record of this forecast is unmatched, proving 95% accurate year after year, both for current year estimates and three-year forecasts.
Eric Miscoll, recently returned to InForum and the Forecasting team, has the benefit of nearly a decade of experience producing this forecast. "One of the first things we did this year was to review the historical accuracy of our forecasts," said Dr. Miscoll, "We were very pleased with the results. For each year since 2004, Inforum’s estimates of current-year market size have turned out to be accurate to within 5% (based on financial reporting published the following year). InForum’s long-range forecasts have also proved highly accurate. Three-year forecasts of EMS growth have been accurate to within an average of 4.8%. Five-year forecasts have been accurate to an average of 11%. TAM and ODM forecasts have also been quite accurate."
The rigorous forecasting process is led by InForum’s Chief Economist, Matt Chanoff. The methodology the team uses and consistency in leadership have contributed to the credibility of this annual forecast. “Forecasting isn’t a perfect science,” commented Mr. Chanoff, “but I’m proud of our track record. We also make a point of being very transparent about our approach, and we focus on giving clients a broader picture, so that they can keep an eye on important growth drivers, integrate our forecasts into their internal planning processes, and improve their own forecasting.” Many members rely on this report as a baseline to their forecast, as it provides industry segment and regional detail.
InForum President, Kathleen Geraghty congratulated the team and announced plans to provide additional forecasting insight to members at the Q4 Forum. “We are proud to reveal the outstanding track record of the Five year Forecast and applaud the team’s conscientious effort to deliver the industry such credible and critical information for business planning. We will continue to enhance member companies’ forecasting capability through partnerships with experts such as Institute of Business Forecasting and Planning (IBF) www.ibf.org Members joining the Forum in November will benefit from discussions and workshops that provide guidance on translating this information into their forecasting processes."
Chicago, IL June 10, 2009 The TFI Quarterly Forum announces a new name and innovative model to deliver research for electronics industry professionals. InForum for the Electronics Industry will serve as the full name as an expanded offering is introduced to members and the entire electronics industry.
For the first time membership to this exclusive community is complimentary to industry professionals. Individuals can now select the member benefits of greatest value to them individually, opting for a cafeteria-style approach to their membership. Global Corporate memberships remain available as the most economic package for companies that participate in multiple Forums and leverage the extensive research repository available. InForum is also innovating what a live event can mean to members by developing interactive virtual events.
InForum President, Kathleen Geraghty was quoted saying “Our mission is to provide value and our members continue to define that for us. Providing the option to select research and events that will drive their competitive advantage is a natural evolution of this model. It is also critical to respond to the members that choose to participate at a distance through virtual mediums. As we introduce InForum as our new name this a perfect time to offer a recession friendly, more customized approach to membership. We expect the member community to grow exponentially and that is to everyone’s benefit.”
Chicago, IL April 1, 2009 TFI Quarterly Forum announces return of Eric Miscoll to the management team.
TFI Quarterly Forum welcomes the return of industry veteran Eric Miscoll. He joins the leadership team for the Quarterly Forum and will have strategic input and shared responsibility to expand the member community.
Miscoll made a significant contribution to the Quarterly Forum over the last decade in his prior role as COO of Technology Forecasters Inc. More recently he served as Vice President and General Manager at TXP, adding to his experience in electronics and in particular in outsourced manufacturing.
"Eric’s return is perfectly timed as we expand on the historic value the Forum delivers to the electronics industry." - commented Kathleen Geraghty, TFI Quarterly Forum President. "Member reaction has been more than positive, a reflection of the value Eric delivered to the TFI Quarterly Forum community in its early years."
Chicago, IL March 3, 2009 TFI Quarterly Forum releases a preview of their 2nd Quarter Financial Crisis Monitor focusing on Electronic Stimulus
TFI Quarterly Forum Chief Economist, Matt Chanoff, answers Two big questions on the Stimulus Plan in the next issue of the Financial Crisis Monitor: Will it help me and my company get out of this mess? And will it help clean up the mess? Matt offers the following preview to his economic outlook for electronics industry.IT, including hardware, is one of the big beneficiaries of the plan, but big as it is, it’s too small to make up directly for the shortfall driven by the global recession. Over $65 billion of the plan goes directly into high tech spending, the top winners being:
Medical Infomatics $22.7 Billion
Green tech support $17.3 Billion
Smart Grid power grid development $11 Billion
Broadband and video conferencing $ 7.5 Billion
Automotive green tech $ 4 Billion
Approximately a third of this spending will go directly to hardware, meaning that the U.S. government will inject about $22 billion in spending over two years into an industry with $2.2 Trillion in annual worldwide revenue. In other words, the U.S. government package should directly add about 0.5% to industry revenue.
Kathleen Geraghty, TFI Quarterly Forum President is quoted saying "Success from the stimulus package requires clarity on what is available and how we can quickly leverage this injection of funds for the benefit of our industry." Geraghty describes the Financial Crisis Monitor as "an example of our commitment to members and the industry to provide relevant information that will fuel competitive advantage."
