Protean

Protean’s Productronica Diary; Part IV

Well, here we are in the closing stages of Productronica 2009. Already, much has been said about the show, with many citing optimism as one of the strongest industry indicators to come out of it.

We’ve got our own thoughts on the issue so, for the final time, Dear Diary…

Clearly, there are strong signals that we’re rising from the downturn. However it’s no coincidence that those who innovated with their business model and who didn’t stick their head in the sand this year, are more optimistic about 2010 than others. They thought long-term, rather than quarter to quarter. They kept their eye on the ball, not on the scoreboard. And they’re seeing the first business improvements.

The general consensus at the show and beyond is that 2010 will be better than 2009. But since we’re coming out of a very deep hole, many suggest we won’t return to 2007 levels before 2010. In the automotive industry, some say it will be 2014 before it gets back to 2007. However, there’s a theory that suggests these forecasts could be misguided.

Think back to the 2000 meltdown. The internet bubble burst and many predicted that until the telecoms business picked up, there would be no electronics recovery. Considering the hundreds of phone companies that existed in the US alone at that time, it was a long wait for them to write down industry losses, get their balance sheets back in order and consolidate through acquisitions and the like.

In reality, the digitalisation of the consumer electronics industry drove the resurgence of electronics assembly way before telecoms picked up. To put it simply, help came from unexpected quarters as this evolving industry fuelled recovery for electronics assembly businesses - driven by a whole new scope of consumer electronics.

So, perhaps, there is an equivalent new company that will improve the pace of return to 2007 market volumes. Did we see it at Productronica? Who can say? But, we did see a number of companies with the same kind of attitude that propelled growth previously. So, don’t rest on your laurels; keep thinking strategically, market strategically and your business may live to see a brighter day sooner than you think!

 

 

Protean’s Productronica Diary; Part III

Time is flying by here in Munich! Our clients’ extensive press schedule has kept us pretty busy. However, we’ve managed to catch a few minutes to gauge the feeling in the halls and think about some of the more contentious issues that have come up so far in the press.

So, for the penultimate time, Dear Diary…

First up, there seems to be a lot of talk about numbers here – as you might expect. Everyone we’ve spoken to seems to have had an extremely successful show, which, as you might expect, is backed up by a Productronica representative we spoke to: “The atmosphere is good and what we hear so far from exhibitors is that their expectations are fulfilled or excelled.”

From our point of view, anyone who is disappointed with the show has something wrong with their business or business model. As we mentioned before, it’s unlikely the industry will be back to 2007/8 levels before 2012. It took us around 20 months to reach the bottom, and it will take us longer than 20 months to get back again. But, we must remember that the trend is now upwards – which is why businesses should be getting positive results here at Productronica.

It’s all about good planning – before and after the show. For example, all our clients’ customers and prospects knew where they were at the show and what they could expect to see from them. What’s more, all the post-show activity is in place to maximise on opportunities gained. In this climate, we’ve seen that the opportunities are well and truly there – but you have to take them.

Another talking point about the show is its place as a global forum. Productronica is a regional show – and there’s absolutely nothing wrong with that. Let’s get it straight – volume manufacturing did not leave Europe. It may have left Western Europe in part which is obviously painful for Germany. But, it’s good for the Czech Republic, Hungary, Tunisia… Customers are still nearby to the venue and Productronica still serves an extremely useful purpose for businesses internationally.

We’ll see how it unfolds during the final few days but at the moment, the show is certainly earning its keep! Check back again tomorrow for our final diary entry and as usual, we’ll be updating twitter and facebook with all the latest from the show in the meantime.

 

 

Protean’s Productronica Diary; Part II

Phew. Day 1 of the show is down – and what a day it was! After all the anticipation, hype and indeed, concerns, we’re pleased to report that the show is delivering some great results for our clients. But it’s still freezing here in Munich!

Once again, Dear Diary…

We’ve spent the majority of our time on press tours and are very pleased that we’ve managed to get all the major journals over to our clients’ stands. So, you could say our schedule’s been pretty jam-packed. But we wouldn’t have it any other way!

The clients we have exhibiting at the show came here with sensible expectations given the current climate. However, extremely crowded booths saw these clients leave day one of the show very pleased with the level of activity they saw. From our viewpoint, it’s clear that 2010 will be better than 2009. Granted, it may be a few years before the industry returns to 2008 levels, but we’re on the up and certainly, well past the bottom.

As longstanding Productronica-ites, we can report that one of the main shifts this year is away from products solely targeting capacity, towards those focusing more on performance improvements. Value is without question what everyone’s looking for so, aptly, productivity is the name of the game here.

We’ve seen this in the product launches taking place at the show which have been particularly well received. There’s DEK’s flagship Sentinel ‘productivity-safeguarding technology’ and Marantz’ new solder paste inspection machine for example. OK International has seen significant success with its ‘Super Producer’ campaign, also picking up a Global SMT Award for its new MRS-1000 Modular Rework System.  

Totech has taken a number of orders already on the stand – again, the recognition of moisture sensitive device handling capabilities signalling a renewed focus on productivity. The Rehm stand was also very busy – thanks in part to continued innovation in terms of the technologies on offer. National Electronics Week is also thriving at the show, taking a number of bookings for both NEW UK and NEW SA 2010.

We ended the day on an interview with PCB007’s Steve Gold who spoke to Protean Director Rich Heimsch about everything from the state of the industry, through to the rise of social media marketing.

We’ll update the diary again tomorrow but we’ll also be updating twitter and facebook with all the latest from the show in the meantime. And, if you want to see how our clients are doing, check out @OKInternational, @new_expo, @new_sa_expo and @SuperDryTotech on Twitter.

 

 

Protean’s Productronica Diary; Part I

As those of you in the electronics industry will know, we have the small matter of one of the world’s most important trade shows for electronics production on our hands right now. Traditionally a Mecca for electronics professionals everywhere, we’re previously surmised in ProBlog that it could act as an important stimulus for industry turnaround – coming as it does in the wake of the recent downturn.  

Well, now it’s here. And we’ll be updating our Productronica diary throughout the show.

So, here goes: dear Productronica diary…

First up, brrrrrrrrrr. It’s cold here in Munich. But once inside the New Munich Trade Fair Centre, we were soon warmed by the buzz of activity surrounding exhibitor set-up as clients, colleagues and industry representatives from all over the world prepared for a busy four days at the show.

As Monday evening approached, we reached a frenzy of booth tidy-ups and last minute walk-throughs. Darkness and cold signalled the end of set-up and the onset of anticipation.

There is, without question, much trepidation after 18 months of terrible market conditions. But, as they say, hope springs eternal. This is true for all of the exhibitors here – you need no more evidence than the sheer volume of equipment they've decided to showcase on their stands!

We’re now looking forward to what Tuesday brings. Whatever happens, we’ll report back in the diary! We’ll also be updating twitter and facebook with all the latest from the show.

Trading on up; the tide is turning for exhibitionists

Here at Protean, we’re obviously extremely keen observers of marketing trends. Inevitably, we’ve recently witnessed a shift in the marketing consciousness as businesses grapple with competing financial demands in a downturn. The most successful have refused to neglect their brand - a sure-fire nail in the corporate coffin. So, while the humble trade show has suffered along with everyone else in the wake of an economic downturn, we’re now seeing signs of resurgence and a new industry mindset that bodes well for its future.

When all is said and done, people buy from people. That’s why, with a renewed appreciation for value-for-money, firms still turn to trade shows with hope. Making the most of your marketing budget is crucial, so a good show can be worth its weight in gold. But, pre and post-show PR and marketing efforts will determine what you actually get out of it – and savvy post-downturn businesses are cottoning on.

Productronica is just around the corner – and it’s coming at the right time. Arguably one of the world’s most important trade shows for electronics production, it’s a Mecca for electronics professionals everywhere and could act as an important stimulus for the turnaround. While the exhibition has suffered along with everyone else (down to 7 halls from 10 in 2007), we’re still seeing our clients and colleagues investing in a presence at the show. They’re recognising and aiming to maximise its potential for their brand – as opposed to the show-up-and-hope mentality many businesses could afford back in the industry’s glory days.

Next year also marks the return of National Electronics Week – the UK electronics exhibition which weathered tough economic conditions to make a comeback fit to put it at the top of its game. Event organisers are also launching a new show in South Africa in March, a show which has seen its floorplan fill up with unprecedented speed. All this goes to prove that trade shows are still an important vehicle to connect with the marketplace. However, it’s also a vehicle that cannot and should not be used in isolation. As ever, integrated marketing is the key to success in today’s climate.   

We saw this first hand recently at EU PVSEC, the 24th European Photovoltaic Solar Energy Conference and Exhibition. As the largest trade show in the photovoltaic industry, the exhibition attracted over 40,000 visitors – proving to be particularly lucrative for some of our clients. Solar is booming; there’s no doubt about it. But the burgeoning industry needs a platform for growth – and, you guessed it, the trade show delivers just that. Naturally, the explosion of new trade shows happening in this sector means that some will win and some will lose. Those that win will help people connect with people – which is what it’s all about after all.

The turning tide for trade shows is surely a sign of renewed industry optimism. What is your experience of this? Are you attending Productronica or any of the shows coming up next year? Let us know your thoughts…

 

‘e’ is more than a prefix!

Put an ‘e’ in front of most words and you’ll appear vaguely switched on to the possibilities of the information age. But ‘marketing’ is one word where the ‘e’ prefix does more than make you look good. It makes your business more effective and your brand more powerful. And it’s cost-effective, too…

Tough times are no excuse for neglecting your brand; they just mean you need to be more creative. Here at Protean, we believe that e-marketing is one of the most creative CRM and prospecting tools at your disposal, enabling you to deliver powerful brand messages rapidly and for high ROI.

And the best bit? When you know what you’re doing it’ll save time, money and trees. That’s why we’ve put together a practical guide to e-marketing for you to download. For free, naturally. Because we’re nice like that…

Our new download highlights e-marketing’s status as an important business tool in the current economic climate, separating the area into two distinct types; electronic Direct Marketing (eDM) and electronic Retention Marketing (eRM). From single message email shots calling a targeted and segmented recipient base to action, through to e-newsletters aimed at developing a long-term relationship with readers, our guide outlines the benefits and features that should be an indispensable part of your marketing programme.

The ‘e’ in marketing is now more relevant than ever – not least because of its value for money in tricky economic circumstances. But also, because the advent of social media has rendered customers and prospects increasingly receptive to personalised, relevant and interactive engagement. So, in a world where ‘e’ prefixes many words, don’t forget that it also represents e-xtraordinarily good marketing practice…

Download our new e-marketing guide here. Let us know what you think!

Best news we've seen...

From our perspective, the first genuinely encouraging news about this ugly cycle tangibly improving came from Semi this past week.  Most of Protean's partners in the electronics business are capital equipment providers...a real lagging indicator in this electronics food chain.  And mostly PCBA capital, not semiconductor fab.  In other words, lagging even further. But the patterns are proven, and what seems to be happening now is significant...and perhaps most importantly, not politcally motivated interpretation.

So what's so exciting? Semi this week published clearly bright news about the market, and not just 3 months of chip sales that have been both positive and above average.  Even more to the point for us is that capital equipment spending is up throughout the months since May for the first time in well over a year.  2009 now looks to be triple that of 2008, with another 30% rise in 2010.

For perspective, 2009 is still 43% below 2008 and 60% below its peak of $60 billion in 2007. But next year's spending could be the beginning of the next positive cycle everyone's been looking for, with semi capital spending growing by another third to $31 billion. It's anticipated that the biggest growth in spending will be in Asian companies, as in 40% of all capital spending next year (which is more than all U.S. companies). But certainly no surprise to anyone who has watched the geographic migration that's occurred, especially since the 2001 bust.

The value of new fab activiy in 2009 triples that of last year and five or more billion+ dollar fabs are forecast to be underway by next summer. Intel, Samsung and Global Foundries are among those contributing to the predictions that by the second half of 2010, more than $25 billion worth of new fabs are expected to begin volume production.

Compare that to less than $375 million in the first half of this year and you can actually begin to get optimistic for the first time in a long while.

Is your business anti-social?

Fear not, I’m not accusing you of having a penchant for spray-painting public buildings or even, of drunken brawling in the streets. But, if your business isn’t making the most of the opportunities presented by social media, I am saying that you could be missing out. This is why we’ve just launched a handy free download – a practical guide to social media for brands.

Times are tough and you’re looking for more bang for your buck – aren’t we all? But that doesn’t mean you should neglect your brand. It simply means getting more creative with the tools you have at your disposal. And, social media is a powerful prospecting and CRM tool that’s free, easy-to-use and, at your disposal.

But what’s the catch? Well, time for one thing. Although there’s no media buy-in involved with social media, there is a serious time commitment. Also, some people are put off by social media conventions and terminology. But, as far as obstacles go, we’re not talking about major obstruction. And it’s certainly nothing that can’t be easily fixed.

Here at Protean, we’re seeing more and more technology brands switching on to the potential of this new media. Plus, we’re helping several of our clients take advantage of the opportunities it presents. We know that social media is not about tools; it’s about using an evolving media in a way that’s right for your business, its customers and objectives. So, we’ve launched A Practical Guide to Social Media for Brands. It’s another tool at your disposal; download it here http://bit.ly/smdownload.

Entrepreneurs and Innovation

Magus Business (www.magus-uk.co.uk) invited Protean to attend their Dorset area launch event last night in Bournemouth. They're a business group designed specifically for SME owner-managers to provide them a platform from which to share experiences and ideas within the context of improving and strengthening their businesses. Magus delivers an environment consciously and decidedly different from the typical sit-and-listen business improvement class and fills a real void for entrepreneurs trying to strengthen and grow their businesses.

The guest speaker at their launch event was a serial entrepreneur, global executive and business psychologist by the name of Dr Dave Richards.  Currently transplanted from North America, Richards is also a senior lecturer at The Business School, Bournemouth University and he offered some interesting opinions about the critical importance of innovation for the survival of (any) business and the changing faces of entrepreneurism past, present and future.

While there was arguably little new or particularly original about the concept that a business can either innovate or die, I especially liked his premise that significant innovation in the future will occur less in traditional, cloistered, lab-like environments and more in widely open, unusually different collaborative situations. How to create, nurture and sustain innovative environments has long been a favorite topic of mine and I’ve always best liked the concept of “controlled chaos.”  Richards’ focus upon entirely new forms of collaboration being the key to successfully innovating/competing/surviving in the future was both compelling and readily raised informed and animated discussion among the 70 or so business leaders in attendance on a variety of topics.

Including the impact of ever heightened communications…and a generation of future entrepreneurs (and their employees) raised on open architectures and social media.

Kudos and good luck to Magus. 
  

Recession woes? Stop selling...products...

The concept is hardly new but it’s nonetheless more pertinent than ever.  And regardless of how many times resource or solution selling is taught, re-taught, discussed and presented…the first words out of our sales people’s mouths is still inevitably about products.

We spoke last month to 5 engineering and purchasing VPs about the changing roles of their vendors in the context of maturing technologies and a highly stressed global economy.  The conversations repeatedly returned to similar pleas:  “Be someone that I can call on as a resource.  Understand my business and my customers.”  Too many sales people still called or visited with only the most superficial knowledge of their prospect’s company.  Or with out of date information.

It became clear in these conversations that in spite of the increased difficulty that the economic cycle has arguably brought to the task of developing customer-vendor relationships, solid pre-sale relations are nonetheless significant to their purchasing decisions.  One suggested that to him, "It’s a leading indicator of what a vendor’s post sale value will be to me.” 

Box-to-box selling virtually always accelerates the downward spiral of prices.  That’s a reality in most every situation but increasingly the case in maturing technology markets.  And today’s technology buyers know there are multiple sources for most products and how and where to find them.   Long selling cycles and multiple contact points complicate B2B marketing.  Marketing is not a department, it is integral to the sales process.   Your business needs its message to be available at the correct time and in the correct format.  If you're like the average company too often that's not the case. But most of all, the message and those materials need to relevant.  Relevant to them…not to us.