Industry Analysis & Industry Trends
Falling corporate profit during the recession caused the industry's customers to reduce their investment in networking equipment, which hampered industry revenue growth. However, customers are increasingly embracing new technology, which is good news for the industry. Improving economic conditions have encouraged wired telecommunications carriers and internet service providers to upgrade networks for next-generation technologies. Still, while these trends will help revenue recover, competition from imports will hamper domestic growth... purchase to read more
Industry Report - Industry Investment Chapter
The Telecommunications Networking Equipment Manufacturing industry exhibits a low level of capital intensity. Companies in this technologically intensive industry require highly sophisticated development labs with the latest equipment. However, only small quantities of this equipment are required. Industry players commonly use outsourced manufacturing strategies, which also helps limit capital requirements. While operators require highly paid and experienced computer scientists, programmers and electrical engineers to design and develop new products, these workers are relatively few in number. IBISWorld estimates for every dollar spent on wages, industry operators typically spend $0.12 in capital investment... purchase to read more