July: Manufacturing Adjusts Growth Pace

After setting several high marks for the year to date in June, the domestic manufacturing industry adjusted its growth pace in July. A leading national manufacturing index, the Institute for Supply Management’s PMI, declined slightly from June to 52.7 percent. “The PMI was down 0.8 [percentage points] but still growing for the 31st consecutive month,”…

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Chip Mergers: For Arrow, So Far, So Good

So far, Intel Corp.’s acquisition of Altera Corp. has not affected either supplier’s relationship with global distributor Arrow Electronics Inc. Although neither company was mentioned by name, Arrow CEO Mike Long told analysts on a quarterly conference call this week that consolidation in the semiconductor market — which also includes NXP/Freescale and Avago/Broadcom — has…

Why is Distribution Outperforming Suppliers?

This past financial quarter has driven home the adage that business concentration among a few large customers has its downside.  For example, although Apple Inc. sold almost 48 billion iPhones in Q2, many of its suppliers – according to CNN and others – were “getting crushed:” Just look at Cirrus Logic (CRUS), which makes micro chips…

Semiconductor Consolidation Drives 1H15 M&A

In high-tech “disruptive” is a good thing. Disruption was the driving force behind the majority of the high-technology mergers and acquisitions in the first half of 2015, with acceleration in deal-making during Q2. Corporate technology buyers pushed 2Q15 deals to a record $127.2 billon, which is higher than any quarter since 2000 and up 65…

Managing Innovation and Innovating Management in Electronics

Managing innovation is not necessarily about product or component innovation – it is importantly also about knowing how to extend strategic models into new markets, whether geographic and/or business. Just as the semiconductor and electronics supply chain continues to diversify and penetrate more deeply into once niche markets (e.g., automotive, health and fitness, industrial automation,…

Arrow Increases Stake in Mobility Device Management

The Bring Your Own Device (BYOD) movement, which allows employees to use their personal cell phones, smartphones, tablets and laptops for business, has become a challenge for many corporations. While BYOD enables businesses to reduce the costs associated with providing hardware for their employees, securing those devices becomes expensive as companies try to find security…

Striking a Bimodal Balance in the Supply Chain

Balancing growth, innovation, and efficiencies to move into increasingly competitive markets comprises a directive that extends across executive responsibilities and into supply chain relationships. This balance is part and parcel of a set of strategic challenges not only for the semiconductor and electronics supply chain, but also across many industries. In the electronics industry, where…

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The Shortcomings of “Follow the Components”

One of the commonly held beliefs within the electronics supply chain is that traceability – tracking a component from the factory through its insertion into an end product—will go a long way toward preventing counterfeiting. If a user at any point in the supply chain can flag a suspect component, they can prevent its passage…

Manufacturing Ends 1H 2015 Better Than it Started

The U.S. manufacturing industry closed the first half of the year in better shape than it started, but it’s still facing a few headwinds. After a number of fits and starts over the past few months the Institute for Supply Management’s June PMI—a leading manufacturing business indicator—is hovering around the 53 percent mark and ticked up…