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Get off the sidelines

December 20, 2011

sideline_bench1.jpgProgress: It’s what engineers do. They advance, they grow, they move forward. And, as such, there is nothing more defeating than standing still or, worse, taking a step back.
Yet for many engineers, that’s what 2011 was, a year of maintenance or recovery following a layoff or budget cuts. Read the Voices question-and-answer column in our most recent issue and it’s easy to see why. For that Voices, Bill McClean, president of market-research company IC Insights, spoke to EDN about 2011’s less-than-expected semiconductor-industry growth, estimates for 2012, and why the always-complex semiconductor market cannot be judged on just one of its aspects. He graciously gave EDN 30 minutes of his time for the interview and in that half hour he made several wise points based on his more than 30 years of experience tracking the IC industry.
Here’s one that really hit home for me while conducting the interview:

We’ve always said that uncertainty is the worst thing in the marketplace. It’s actually worse than bad news. If you know something is going to be bad, you can plan around it. But uncertainty creates total fear and total apprehension, and it makes people freeze. They don’t do anything; they just sit on the sidelines. 2011 saw a tremendous amount of uncertainty, and that [feeling] showed up in the semiconductor market.

Look below the surface of the cheerful toasts from execs at the company holiday party this week and the fear that remains in this industry is conspicuous. It’s understandable. After all, 2011 was supposed to be our year of double-digit growth, the return to gains, the “normalizing” after years of disorder. Instead what we saw were some supply chains, lives, and purchasing habits disrupted by tsunamis, floods, and earthquakes. Add in the high unemployment rate in the US, Europe’s economic confusion, the passing of some of the industry’s greatest engineers, and the reemergence — or continuation — of R&D tightening, and 2011 is not a year to be remembered fondly for many.
But it’s time to move past that. No one can say for sure that 2012 will be clear of problems. Here’s what can be stated, however: It’s no longer 2008. It’s not 2009, it’s not 2010, and we’ve closed 2011. It’s time to get off the sidelines and charge forward. Leave the last three years of turmoil behind and move forward, away from the fear.
There are plenty of things we as individuals have no direct control over - natural disasters, death, the worldwide GDP - but there are things that we (or perhaps our managers) can do to get off the sidelines and progress. Number one on that list should be hiring the best people available. Companies don’t grow without talented people and they don’t grow by overworking the talented people already on staff. Number two, take some risks again. Invest time and resources in smart ideas that have potential, not just established product lines. Number three, be prepared to get knocked down. It’s going to happen. No matter how well you innovate and plan, you will at some point be tackled unexpectedly if you get off the sidelines and get in the game. You can bet the guys heading to Indianapolis in a few weeks got hit a lot on their way to the Super Bowl. So keep you helmet handy and proceed aggressively, but defensively.
We start a new year very soon. As the hangover of 2011 subsides, plan your 2012 with progress in mind. Make it - not maintenance - a priority. Get off the sidelines and back into the game.

Posted by Suzanne Deffree on December 20, 2011 | Comments (4)

December 20, 2011
In response to: Get off the sidelines
Meredith Poor commented:

As long as you can factor in Fukushima type disasters, your predictions will be accurate. Estimates are off. Duh! ...................................
There isn't any point in waiting around for Wall Street types and politicians. These are the last people I would count on for anything. Start your own business, make your own money, and blow off the corporates if they dump you. ........................................
I visit with a group of entrepreneural wannabes once every two weeks, and I hear the following: "I'm creating the next killer cross between Facebook and Twitter". Really?! Another gentleman had had a 12 month salary following his discharge from a major chip company and he wanted to start a business. "What are you going to do?" "I don't know". What it sounds like is that he wants to live in a mansion and drive fancy cars. Customers? What on earth are you talking about?


December 20, 2011
In response to: Get off the sidelines
Andy T commented:

All of what you preach is in the control of BEAN COUNTERS and Wall St, not engineers "getting off the sidelines".
That's what has ailed the country for over a decade, IMO, and will likely continue to do so as long as the MBAs and Wall St run the show - on behalf of their greedy SELVES.
Meanwhile, there's no greater uncertainty to me than that provided by people like McClean - a middleman whose main purpose in life appears to me to be to move markets (via panicked and insecure execs) in a direction his masters, Wall St, want.
Do you really think companies do not have visibility to orders at least six months down the road? I think the SEC should ban these alchemists for what they do to US industries by manipulating insecure execs and jobs every year, and for grabbing insider exec and channel information in a non-public venue which I believe is a no-no (I'd call it all: "growth fixing").
For the record, most credible "analysts'" crystal ball got it right a year ago, about 3-6% with a few execs calling it at 4.5%, though McClean now apparently has to cover his butt with 30 minutes of excuses for being WRONG, since he forecast 2011 as 10% www.eetimes.com/electronics-blogs/semi-conscious/4211463/What-s-your-forecast-for-the-2011-semiconductor-market- and it looks like it may actually come in at 3-5% www.electroiq.com/articles/sst/2011/12/survey-chip-execs-sour-on-2012-industry-growth.html If you ignore the Chicken Littles at Gartner, and if you pay attention to this Xmas season's sales, being forecast as up 3.8% YoY and with 2010 being up 5.2% from 2009.
Let's have some investigative journalism and cite his predictions from last year before you give 30 minutes to a Wall St shill, Suzanne - one that was WAY OFF last year, so has nothing credible, IMO, to say to me this year - that's the way ENGINEERS on the sidelines think.


December 20, 2011
In response to: Get off the sidelines
RobS commented:

Whip Inflation Now!!


December 20, 2011
In response to: Get off the sidelines
CW commented:

Amen sister!

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