Howard Ingleson, managing director of Syfer Technology, manufacturer of multilayer ceramic capacitors, talks to Electronics Weekly about design activity in OEM customers, the impact of the downturn, and the opportunities of the current climate.
1. What impact is the downturn having on your markets?
The European automotive and general distribution is down, but mil-aerospace and speciality markets seem to be bearing up quite well. As a niche player we often do not follow the market and we have deliberately spread our business into different geographic regions and end markets to try and offer some protection from any one region or end use. As an exporter the low £ has really helped as we can be more competitive, and at the same time a lot of Japanese imports have dramatically risen in price for UK and European customers as the Yen has strengthened.
2. How is design activity in your OEM customers being affected?
So far we have not seen a drop off in design activity, possibly the reverse with companies trying to get to market as soon as possible with new products. We have seen a quick uptake of our new products and an increased demand for samples and rapid delivery of prototype quantities.
3. Can you identify any positives or opportunities in the current climate?
There are plenty of positive opportunities: China is investing huge amount of money into telecom infrastructure; competitors are cutting costs and dropping service levels; with the £ dropping we are more competitive and our customers are manufacturing more in Europe rather than Asia allowing us to seize more market share.
Customers demand is often less predictable so they order smaller quantities with a requirement of short lead time, in this environment Syfer performs very well.
4. How are you adapting to the changing economic climate?
We have deliberately kept our lead times low, aggressively gone after export business particularly in China, plan on winning fast on demand business, increased our sales and marketing activities so that we can win more customers ready for the inevitable upturn.
5. Do you see any end-markets with growth prospects?
The consumer markets will continue to struggle for some time, but Governments will bring forward telecom infrastructure, military, rail and aerospace projects and it is these markets where growth will occur.
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