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Lately, there have been signs that slowly but surely, the electronics industry is starting to find its footing and that gradual recovery is on the cards. Early indications from the top of the electronic food chain or semiconductor industry are that demand for its products is onceagain starting to pick up.The latest in the industry to make these comments is Europe’s largest computer chip maker STMicroelectronics. The company was reported to have seen signs of inventory re-stocking and order growth, particularly in China, Taiwan, Korea and Singapore. This follows earlier statements by Intel, saying that positive trends seen recently are a good indicator that the worst of the economic downturn may be over. If all these statements sound cautiously optimistic, that’s because they are. STMicroelectronics Chief Executive, Carlo Bozotti, warned that it is still too early to say whether the renewed demand was the start of a sustained recovery or the prelude to a “double-dip” downturn. In short, it’s going to take more time before we can confirm we are truly on the path to recovery. Similarly, there have been optimistic remarks coming from electronics manufacturing services (EMS) providers and original design manufacturers (ODMs) as well. According to research firm isuppli Corp, Jure Sola, Chairman of Sanmina-SCI, was recently quoted as saying, ‘We are cautiously optimistic maybe the worst is behind us.’ I am sure there’ll be similar quotes coming from the contract manufacturing industry as we progress through Q2 and Q3. So do we see some light at the end of the tunnel? Given the encouraging signs, I believe we are at the beginning of the turnaround which may prove to be a long and slow process. However, the more important and perhaps longer term question should be, “How do we ensure that the recovery is sustainable this time?” To do that, companies have to think outside the box or more specifically, think of what their business model may be in the future, according to In- Stat Analyst Jim McGregor in a recent interview with our sister publication, Electronic Business. This means companies may have to move out from their ‘comfort zone’ and ask themselves how they want to be aligned to their ecosystem, rather than just their direct customers. If you ask me, it all comes down to adopting a holistic way of thinking. If the current economic crisis stems from the short-sightedness of major corporations in various industries, it is now time for these corporations to take the lead and bring forward a newer and more responsible way of thinking. As Jim McGregor summed up – companies should think farther down the value chain to make sure what they are doing makes sense. Looking farther and thinking long term, being proactive rather than reactive – these are surely answers to the question of sustainability. | 
