T&M Equipment industry is undergoing lot of changes yet again!This year had been stormy and full of consolidations and realignments.Both T&M equipments and the Services sectors underwent changes which were driven by the Communications segment related.The Network equipment manufacturers (NEM) realigned with emerging players from Asia dominating the scene in several countries.
An interesting aspect was preparation of launch of 3G and also planning of LTE services in several countries.It appears that the T&M segment related to Communications will be dictated by those
players covering all the layers of the model.There are very few players who can claim the availability of Testers for all 7 layers and all phases of Network Rollout.The suppliers will like to address these applications and fill existing gaps,if any.
The Contention between Capex and Opex continues in the Telecomm companies before these purchases get finalised.The mandarins of these companies worry about EBITDA(Profit before Taxes) and Cash Flows before T&M procurements.Internal dynamics decide who will manage the budget?Usually the T&M vendors who are able to show better return on Assets,win the contracts.The T&M purchases are being bracketed alongwith other infrastructure assets,like Towers.
I expect similar things happening to Defense,Aerospace,Railways and Automotive and semiconductors Segments.The value of the T&M equipment and the services will be their ability to show Return and rate of growth of Return on these assets,and not merely the savings and Quality alone.
T&M Professionals now have to continuously worry about the innovative services they can offer along with the equipment.Reverse Logistics chains need to be tightened and its cycle time reduced.This will lead to better and better Engineering Services revenues as well.
Sunday, October 25, 2009
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