Chris McAneny director of strategic business development at Future Electronics (EMEA) tells Electronics Weekly there is a real danger that the electronics industry is creating a self-fulfilling prophecy of market contraction
What is the biggest opportunity in terms of technology and/or markets in 2011?
Chris McAneny: We see enormous opportunity in both solid-state lighting and energy/renewables. There are so many forces driving both markets that explosive growth seems inevitable. These forces include the fast-rising cost of energy, the introduction of stringent energy-efficiency regulations, and the development of disruptive technology.
But both of these markets have special characteristics which distinguish them from other sectors of the industry. In particular, we are seeing the adoption of semiconductors and other electronics technology into end products that were traditionally electrical or electro-mechanical. You see this transition to electronics both in lighting and in products such as smart utility meters.
What challenges in global markets are keeping you busy at the moment?
Chris McAneny: The biggest challenge in the next six months will be uncertainty. This makes it difficult to plan, make demand forecasts and manage inventory levels. The most damaging cause of the uncertainty is the lack of political leadership. It is causing great volatility in exchange rates and commodity prices, and this feeds through into the electronics components market, making it more difficult to manage a profitable distribution business.
There is a real danger that we are creating a self-fulfilling prophecy of market contraction. Although electronics is certainly linked to overall economic growth, there are also many reasons for optimism: silicon is a central part of many exciting new products, as well as being a disruptive technology that will upset mature markets – lighting is a great example of the opportunity for electronics manufacturers. It does not take long to compile a list of hit products – smartphones, tablets, netbooks – which had not even been invented ten years ago.
If you had to name one design technology with the largest commercial potential this year, what would it be?
Chris McAneny: The introduction of semiconductor technology into lighting presents big new opportunities for suppliers of LEDs, drivers, optics and thermal management devices. But I am also excited about the potential in energy, and particularly the use of wireless technology, including GSM modules and ZigBee. The megatrend of mobility is driving wireless across so many market sectors, and in energy the potential for wireless communications in power generation, metering and so on is massive.
What does Europe need to do to ensure it retains a leading position in the global market?
Chris McAneny: Embrace the global opportunity and not see it as a threat. The balance of economic power is swinging towards the three-quarters of the world’s population in developing economies.
Let’s exploit our wonderful European skills in entrepreneurship, design, innovation, quality and software to develop winning products that are market-leading. It’s great that the UK still has many wonderful companies that are market leaders even though in some cases the manufacture has now been outsourced to eastern Europe or Asia. Government needs to reduce red tape and create an environment for people with vision and drive to create new businesses.