During the past year our industry faced many challenges, including those from a fluctuating rand and the liberalisation of international trade.
One always learns from hindsight, but what we still cannot do is to predict how the rand will perform during 2005. With this in mind, and the actual effects the strong rand has had on our industry, especially our export customers, organisations need strategies that will give them the edge in an increasingly competitive environment. As a result, many players in the industry, including ourselves, streamlined businesses. Despite this adverse trading environment Arrow Altech strategically positioned itself through continued investment in the strengthening of its sales and technical marketing teams. This ensured that the company is well-positioned to service its customers and suppliers.
In 2004 it predicted that a strong demand worldwide for products across all technologies would result in increased lead-times and higher prices. This was in fact the case, albeit a short-lived process, which lasted only a few quarters. Both lead-times and prices stabilised at least during the second half of the year. It believes that this trend will prevail at least during 2005.
The expected growth for electronic components in our domestic market is anticipated to remain at the 2004 levels. What we need is positive government intervention in the form of incentives and support, to encourage local electronics manufacturing to stimulate the growth in demand. This will also go a long way to help with job creation.
Arrow Altech are value-added suppliers of professional electronic components covering the semiconductor, passive, electromechanical, connector, frequency control, wireless and module technologies. With this broad spectrum of products it is very optimistic about its future success and it believes that certain technology sectors of the market have the potential to show growth and that it is well positioned to offer broad-based solutions to its customers.
For more information contact Rodger Warren, Arrow Altech Distribution, +27 (0)11 923 9600, [email protected]
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