Industry Analysis & Industry Trends
Increasing offshoring practices among downstream electronic goods manufacturers will continue to hurt producers of electronic components. The next five years will be marked by flat revenue, as many of the industry's key markets take advantage of foreign countries' lower production costs. There are a few bright spots remaining, however, including the ever-increasing penetration of computers into American households and the growing use of electronic devices in automobiles... purchase to read more
Industry Report - Starting a New Business Chapter
Overall, there are medium barriers to entry into this industry, with the principal barriers being intellectual capital barriers; the presence of scale economies; the development of relationships with customers and suppliers; and, in some segments, the dominance of major players.
Having access to the latest electronic technology is essential, given that technological changes occur frequently in this industry. Access to skilled labor can be important, particularly for research and development and new-product initiatives.
Large firms may have the benefit of producing at reduced unit costs. Scale can also increase negotiating power in purchasing raw materials... purchase to read more