Cope, Be Flexible

The global economic outlook for 2009 does not look bright. The downturn of the global economy will affect the whole EMS industry, just as Elcoteq's business, and we have to adjust to this situation.

It seems like preparing for the upcoming challenges can be described by the famous saying of Charles Darwin "the survival of the fittest", which is the key for success for the winners of the downturn. Although Charles Darwin is often credited with this statement, such attribution is not really correct.

Darwin did write:
"In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment."

Being flexible and capable to cope with the environment will be keys for success. The global economic situation also carries opportunities. In the longer term, positive elements for the EMS industry will be observed. EMS customers will go back or rethink where they invest their capital, where they tie down their capital and how they reduce potential future capital expenditures. This might lead to more outsourcing. So why should I put my money into let's say brick and mortar, into machines, into inventory if I can buy that from an outside service provider.

Elcoteq is adapting to those needs and requirements of customers in the market. Requirements like a global footprint, long term experience with the communications technology industry and a proven track record with key industry players are given. But we at Elcoteq must constantly develop our services and capabilities. The latest acquisition put us in the comfortable position to offer final assembly for Flat Panel TVs (FTV). This shows that Elcoteq's capabilities and knowledge are rising and will probably lead us into new markets or products. Strong customer focus and customer specific requirements will be the driving factors in deciding where Elcoteq will focus its actual and future activities and investments.

But there is a key point to remember. Future business, especially with strong consumer brands, requires unyielding integrity. Ethical business behavior, which Elcoteq will continue to show, can be reviewed in Elcoteq's annual Corporate Responsibility (CR) report. This ethical and integral behavior will remain a strong cornerstone for our way of doing business.

The future is already here, and the process of adapting to the changing environment is a constant process. We at Elcoteq are prepared to provide the services that our customers need to be successful in the future. 

As Darwin said, to survive it requires not to be the strongest, but the best in adapting to the given situation.