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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (11481)	9/7/2003 5:37:51 AM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 95611

The only way this could happen is if factories had spare labor that they've kept on hand even though they weren't fully employed. I hope you are right Sarmad, there is another explanation for the high productivity numbers though. Where we once had a team of xxx american workers, we now have only a few, plus some unspecified number of offshore "consultants" from Satyam or wherever. These foreign consultants don't cost much, so on the books you are looking at any other expense. The productivity numbers think the remaining US workers are hyperproductive. I know there is at least some of this in those numbers. For this reason I think those productivity metrics (whatever they are) need to be re-evaluated, I'm not sure if it is showing what we want to show. It is true that even this can only go so far though. Offshore projects are tough to manage. The number of jobs lost was 100K in a month, that isn't small! I know personally that demand is improving very dramatically at some of the SCEs. I'm thinking we are witnessing the china/india ramp in the numbers, but not totally sure. Thousands of people are being hired in india for example and they will be given PCs with intel chips and msft software if they are working for US companies. Also bandwidth is getting scarce again. So like you I am positive on the mkts.