2008 could be a very happy new year

The Electronicstalk Newsletter returns (almost) to normal this week with the highlights from the website since our last regular issue on 18th December 2007. And while the question of whether the industry will be hit by the crisis affecting global credit markets remains valid, in the intervening period there have been a number of encouraging signs.

This weeks financial results, for example, have been surprisingly good, with a number of companies in IT and telecomms markets reporting better than expected sales and profits. And leading the way is IBM, which has leaked news of a 10% increase in fourth-quarter revenues to an impressive US $28.9 billion in advance of its full report on Thursday.

So if the end equipment market is doing better than expected, what of the sharp end of the spectrum? What indicators can we use to suggest that the industry is gearing up for continued growth during 2008?

One very positive sign has come this week from the EDA Consortium, which has just revealed that the electronic design automation industry’s revenue for Q3 2007 grew 7.2% to US $1412.1 million, up from $1317.2 million in Q3 2006. This was matched by the EDA sector increasing its headcount by a slightly larger proportion (8.1%), with total headcount rising from 25,214 to 27,254.

The statistics make particularly good reading if you are working in Western Europe or Japan, with respective increases during the quarter of 13 and 14.2%.

While I am not about to suggest that we can draw conclusive evidence from a single set of statistics, the news that the design end of the market is experiencing a healthy level of growth certainly does give grounds for optimism about the coming 12 months. With any luck, 2008 could be a very happy new year.
This comment was originally published in the Electronicstalk Newsletter

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About the Author

Electronicstalk and this Editor's Blog are edited by Laurence Marchini

Laurence Marchini

Laurence Marchini began his career in the electronics press with the Institution of Electrical Engineers in 1980, cutting his teeth on a variety of learned and member publications, ranging from IEE Proceedings to Electronics and Power. He moved on to join the launch team of the innovative weekly Electronics Express in 1986, and became Editor just 18 months later. Sadly, Electronics Express lasted just four and a half years, wound up by the infamous Robert Maxwell. However, Laurence had already jumped ship and joined the world of electronics PR with the agency of the 1990s, Smith and Jones Communications. It seemed Laurence was lost to the world of journalism. But after 11 years we managed to lure him back as launch editor of Electronicstalk. Laurence is married to Sally and has a young son, Alexander.

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