Having entered the South African market after first conducting a careful analysis of the industry from the outside in, and now, after having discussed the concerns and challenges within the industry, Future Electronics SA comments on several issues.
The first challenge facing the electronics industry is to address the alarming trend of manufacturing moving offshore to geographically-distant locations. With the vibrant and innovative design culture in South Africa it is almost unforgivable to effectively conceive technology, only to become an importer of that technology as finished goods, having surrendered the production and procurement overseas.
There is also a need to establish an independent body elected by the semiconductor industry as a whole, and to effectively lobby the government to create a more favourable environment for our manufacturers. This body must be able to represent the collective needs of the industry in an ever-increasing hostile global market place.
Our industry needs the creative fiscal incentives like that offered by the Far Eastern governments, to allow manufacturers to address the needs of developers within the country to create a thriving industry. Not only should this body address the needs of the distribution industry, but conduct a much needed survey of the often-ignored customers. This will collectively help to guide the distributors into becoming effective providers of an essential service.
The second challenge is the distribution industry's obligation to actively engage in business development and value-added service. Distributors must take heed as not to be seen as short-term commercial predators at the expense of long term gain. Qualified commercial personnel, including creative technical support, is an essential medium to invigorate the industry and in turn, kick-start revenue flow for the benefit of all parties.
The third and final key challenge is to very quickly put a halt to the trend where the industry is serviced from abroad due to various service and commercial issues. Issues that local buyers see as being so important, that business worth tens of millions of dollars is serviced from abroad. That can be no excuse to haemorrhage business to this extent.
The old chestnut of currency fluctuation is not unique to South Africa. This is an often-used excuse to describe 'downswings' or 'business drop-off'. Clear fiscal objectives carried out by distribution, which in its implementation in itself, will translate into a manageable cyclic trend that all players can identify with and plan for in the marketplace.
Future Electronics SA
Future Electronics has opened an office in South Africa. Privately-owned and one of the largest global distributors of components, Future is excited about the prospects of introducing its unique brand of distribution into the South African market. The broad-line distributor's local head office is located in Stellenbosch, the Western Cape, with a sales office in Centurion, Gauteng.
For more information contact Russell Byrne, Future Electronics SA, +27 (0)21 880 0727, [email protected]
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