Great artical, clearly explains the differing views and why. The street points to a piece of the pie that might suggest all is well but is it? It really is a bit confusing the general economy looks well enough, but there is a determination on every CEO's part to reduce capital spending in order to plug the holes in there pockets. There is a glut of fairly new factories sitting in moth balls, this excess infrastructure, will not require build up in communication, bricks and mortar, equipment, a so forth, until demand picks up substantially. So my question is what will be in demand, certainly not the above.
The answer maybe that we will not find the demand in the US, we better keep our eye on Europe because they need what we have to much of, when they start growing again so will end demand in the tech sector . I would also add that all the big out-sourcing deals have to be bought and then you shut down the unwanted plants you just bought.Sounds kinda dumb to me ,but that is just what flex is doing for the next year. mho Patroller |
