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CHICAGO – IT, including hardware, is one of the big beneficiaries of the US economic stimulus plan, says TFI Quarterly Forum’s chief economist, Matt Chanoff. But, as big as it is, it’s too small to make up directly for the shortfall driven by the global recession, he adds.

More than $65 billion of the plan goes directly into high-tech spending. The top winners are 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), and automotive green tech ($4 billion).

Approximately one-third of this spending will go directly to hardware, meaning the US government will inject about $22 billion in spending over two years into an industry with $2.2 trillion in annual worldwide revenue, according to Chanoff. In other words, the US government package should directly add about 0.5% to industry revenue, he says.

"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,” said Kathleen Geraghty, TFI Quarterly Forum president.

SCOTTSDALE, AZ -- Smartphones are expected to double their share of the handset market to nearly 20% by 2013. Although growth will be strong globally, the US market will see the greatest increase, reports In-Stat.

TAIPEI -- Hon Hai (Foxconn) and IBM reportedly are set to sign a pact to codevelop environment-friendly products.

The Central News Agency is reporting China Parliament Speaker Wang Jin-pyng and Environmental Protection Administration Minister Shen Shu-hung will be among those present at the official signing, which is scheduled for March 4.

No financial or other terms of the deal were announced.

IBM has ventured down the environmentally friendly path before. In 2007, it committed $1 billion to fund Project Big Green, an effort toward environment-friendly, energy-efficient products and services. This is its first known deal with Foxconn, however.

TEMPE, AZ -- The US manufacturing sector contracted in February for the 13th consecutive month, according to the latest survey of the nation's executives. The PMI index was 35.8%, 20 basis points than January. A reading below 50% indicates the sector is generally contracting.

The New Orders index was 33.1%, down 10 basis points from January. An index above 48.8%, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders.

In a press release, Institute for Supply Management spokesperson Norbert J. Ore said, “Manufacturing continues to decline at a rapid rate in February. While production has slowed its rate of decline, employment continues to fall precipitously. Prices continue to decline, but price advantages are not sufficient to overcome manufacturers’ apparent loss of demand. Survey respondents appear generally pessimistic about recovery in 2009. Some express hope that the stimulus package will help their industry.”

He added that the "past relationship between the PMI and the overall economy corresponds to a 1.7% decline in real GDP on an annual basis.”

Among the industries reporting contraction in February were Appliances & Components and Computer & Electronic Products.