Geraint Anderson, CEO of the TT electronics group talks to Electronics Weekly about design activity in OEM customers, positive opportunities in the current climate, and end-markets with growth prospects...
1. What impact is the downturn having on your markets?
Like many companies we have experienced a general slowing down of demand in a number of our target markets, however, design activity has remained robust
When I joined TT electronics in August 2008, we initiated a comprehensive strategic review of all the group's businesses. We assessed every market sector and our positioning within them across our complete product range, drawing up a blueprint to take the company forward. One of the unexpected benefits of this exercise was that, as we began to experience the deterioration in many of our end markets during Q4, 2008, we were significantly better placed to react rapidly and decisively to softening market conditions than we would have otherwise been able to do.
Without a doubt, the single greatest shift we have seen in our markets globally has been in the automotive sector. Our review process had already highlighted that the group relied too heavily on the automotive sector and a key element of the strategy was to reduce our exposure in this market. The sector's well publicised and rapid decline has enabled us to make progress on this aspect more quickly than we had initially planned.
2. How is design activity in your OEM customers being affected?
In spite of the rapid decline in many markets, particularly during the last quarter of 2008 and the first four months of 2009, we have seen a lot of design activity from our key customers. We have continued to invest in this part of our business to make sure we are well positioned when markets begin to recover and many of these projects come to fruition.
3. Can you identify any positives or opportunities in the current climate?
We began to implement the restructuring called for in the strategy review early in 2009. There were changes required across the whole of the group and the difficult economic backdrop has allowed us to drive the programme and execute it a lot quicker than would have been possible in normal times.
Additionally, we were able to take a step back and look at where the key growth opportunities are. We were already building a presence in Asia but we have been able to allocate sales resources to focus on the domestic Chinese market.
4. How are you adapting to the changing economic climate?
The economic climate has meant we have had to move quickly over the last 12 months to realign the company and reduce the cost base: the timing of the strategy review enabled us to adapt rapidly. As a result we have introduced new leaders and believe we have a stronger, better focused, dynamic company. In particular we have put extra focus on developing and training our key account management team to enable us to better understand our end customers and their markets. To support that initiative we have also invested in a new CRM system allowing us to better track our customers projects globally.
5. Do you see any end-markets with growth prospects?
In short yes. We are seeing many new opportunities but we need to be patient. The current climate means that companies are cautiously moving new projects ahead. In particular we are giving specific focus to the medical electronics, defence and aerospace and alternative energy markets and we are beginning to see a lot more opportunities in the hybrid vehicle market. These are the markets that we feel hold the greatest potential for growth across all the TT electronics group companies.
To enable us to co-ordinate our approach to these markets and customers we have established virtual market teams with representatives from all the relevant group companies. We are now able to understand the scale of the opportunities globally, present our capabilities as a group and learn from our end customers.
See also: Q5 - Interviews with electronics industry leaders
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