WASHINGTON -- Industry business leaders are calling on Congress to renew the depreciation laws tied to the Economic Stimulus Act of 2008, which allowed companies to reduce the time it take to recoup outlays for capital equipment.
Per H.R. 5140, Congress shortened the time frame under which certain businesses assets could be depreciated. The rules expired Dec. 31.
"A strong manufacturing sector is critical to a rapid economic recovery," wrote Matthew Holzmann, president of Christopher Associates, in one letter. "It would seem from the headlines that only certain industries would benefit from many of the proposals in Congress at present. Reinstatement of accelerated depreciation, especially as written in H.R. 5150, will help all industries and is a real, tangible tool for keeping America strong."
SINGAPORE -- A local union of electronics workers says 2,000 more layoffs are expected this quarter. That almost equals the sum -- 2,300 -- of the union's layoffs from all of last year.
The United Workers of Electronic and Electrical Industries unionsays many of the displaced electronics workers will be retrained to find jobs in the medical and hotel industries.
ARLINGTON, VA -- Electronic component orders fell in December for the second consecutive month, according to the monthly index compiled by the Electronic Components Association (ECA).
The 12-month average, comparing 2008 results to those from 2007, continued a descent that began this summer.
“Most manufacturers have seen declining results in November and December,” says Bob Willis, ECA president, in a press release. “There may be a modest positive bump in the first quarter of 2009 as inventories are adjusted, but there is little or no significant growth anticipated until the late third or fourth quarter.”
TAIPEI, TAIWAN – Foxconn Electronics’ unconsolidated revenues fell 9.4% for December to NT$122.15 billion (US$3.68 billion). Growth for the year was lower than predicted, despite a 20% rise in unconsolidated revenues to NT$1,470 billion (US$44.16 million) for 2008. The company’s subsidiary, Foxconn Precision Components (FPC) saw an 18.56% decline in consolidated revenues for December to NT$15.92 billion (US$479 million). Consolidated revenues for the year rose 22.39% to NT$163.34 billion (US$4.9 billion).
LAS VEGAS -- US shipments of consumer electronics will be flat at $171 billion in 2009, according to the semiannual industry forecast released by the Consumer Electronics Association.
“The CE industry is resilient but not immune from the business cycle," CEA president and CEO Gary Shapiro said. “Innovation will kick-start the economy."
Consumer electronics 2008 shipment revenues hit new high of $172 billion, up 5.4% over 2007. In 2009, CEA projects domestic shipment revenues will essentially remain flat at $171 billion, down 0.6% year-on-year.
The primary revenue driver for the industry continues to be digital TV displays, representing 15% of total shipment dollars. As the transition to digital television nears, unit shipments of DTVs will approach 35 million in 2009, an increase of nearly 6% over 2008. LCD displays remain the top choice among consumers, representing 77% of total DTV units.
With the format war now settled, Blu-ray players are expected to see major growth in 2009. With more content, new products and lower prices, Blu-Ray revenues are projected to surpass $1.2 billion. The gaming category also remains a bright spot in the CE industry and an increasing component of consumer spending.
The overall video game market should grow 11%, generating nearly $22 billion in revenue this year, a new high mark for the category. Software continues to drive the segment, making up $15 billion of the overall sales.
Smartphone revenues will continue to grow this year, increasing nearly 20% this year, to $13.6 billion. As carriers increase the speed of their networks and offer new services in addition to communication, smartphones will account for more than 60% of total handset revenues.
TAIPEI, TAIWAN – Compal Electronics reported consolidated revenues for 2008 fell 3% to NT$427.68 billion (US$12.88 billion). Despite the drop, notebook shipments climbed 11% to 25.5 million units. The company failed to realize its shipment and revenue goals in 2008. According to chairman Rock Hsu, expenses, inventory and cost were still acceptable, despite the setbacks. Goals for 2009 include improving the gross margin and establishing an innovation center in Taiwan that will generate 200 to 300 R&D jobs. Compal has also set an ambitious objective of becoming the largest notebook maker. It expects notebook shipments to reach 32 million to 35 million this year.
