The current economic climate has affected businesses large and small, but it does not have to be all about doom and gloom. I found that Christos Papakyriacou, managing director at Alpha Micro Components had some interesting comments to make on the subject.
According to Papakyriacou: "The last 18-months have been a difficult period for the electronics industry and have prompted many companies to take a step back to evaluate the product lines they offer. We have seen an increased demand in customers requiring components coupled with value-add services, rather than simply components themselves."
He believes many of these customers have been affected by the financial slow down and have been forced to reduce their head count, which also typically includes a proportion of R&D staff.
"Customers that previously bought components from us to integrate themselves are now looking for suppliers that can provide turnkey solutions in the form of a module or daughter card," says Papakyriacou.
"This value-add work has resulted in our most successful quarter in nearly two years. We are all noticing that the sales team has had to work harder to secure the sign-off on each new deal, as customers take longer to make that final decision. By keeping up the momentum, we are entering the forthcoming quarters on a very positive note, safe in the knowledge that we are bucking the trend of falling sales by sticking to our specialised field".
He then went on to point out that similar to other companies, Alpha Micro had benefitted from streamlining its business.
"We have reviewed our existing business practice by investing in bespoke CRM software and VOIP telephony, permitting our remote teams to be linked seamlessly into our systems and allowing us to monitor and improve success rates even when the team is out in the field," says Papakyriacou.
"We pride ourselves in manufacturing the majority of our goods within the UK. This is something that has put us in a good position and proved particularly important as the value of the pound has fluctuated against the US dollar.
"As the pound hit an all-time low, manufacturers were faced with increases of up to 30% on their goods built offshore, a cost that they were simply not able to accommodate during such difficult economic times. By sourcing and producing goods locally, costs can be kept consistent and surprises further down the line, avoided.
"The electronics industry should be thinking optimistically about the future. Demand for wireless technologies is on the increase as more and more companies opt for a mobile workforce in a bid to cut costs. It is, however, important to choose your customers carefully, ensuring that they are financially sound from the offset. It takes a certain amount of strength to turn away business, especially during the current financial downturn. An effective partnership, however, is vital to a positive ongoing business relationship."
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