Restructuring of Global T&M industry triggers new markets!

The Global T&M industry is going thru many unprecedented changes,particularly since the beginning of this decade.The factors causing the changes are both technical,product attribute changes and the commercial economics one too.The technological changes are happening both due to space miniaturization of components as well as the new modulation and multiplexing schemes. A good base
is framed what kind of T&M technologies are likely to dominate by mapping the Moores Law alongside these.

Instrumentation value adding started happening when automation to standalone instruments was done thru HP-IB and later other IEEE standards.Inthe late 90s the compliance and performance instrumentation and systems were evolved.Now of course in the current decade the Internet of things and newer generation 4G onwards will dictate the choice of new designs.

Accordingly the T&M software and services companies will have to closely work with hardware OEM companies and discover customized solution for these technologies.Because of so much froth
in the industry and merger and de mergers no body is certain who will survive or who will get to retain the umbrella brands.The game will be driven by the cash and market share accretive ess of these financial deals and there are limited target and acquirers in the mature T&M industry.

These developments happening since beginning of 2010 are giving continuous challenges as well as many latent opportunities to expand the size of the market overall.It really boils down to individual companies capability to restructure their product generation teams and arrange financial model to increase the T&M top line.

Let us keep a tight watch. Many interesting things will happen in this year itself.

Clearance of Defense Manufacturing will boost T&M in FY16 onwards

Finally under new Governments completion of one year is starting to show some actions on the ground.We are seeing that there is around activity on license to manufacture and assemble all kind
of equipment from aircraft to helicopters and also lot of strategic Electronics.Only today they have
cleared as many as 16 projects worth 613 cr of investment.All these startup activity will naturally
have the Capex and so T&M equipment investment of high tech variety.

Stat wise the Government seems to have cleared 73 industrial licenses compared to just 50 between 2011 to 2014 May.More importantly the technology content is lot higher and local manufacturing is emphasized.The period of licensing is bigger too and so liberal view is taken.

Foreign investment is allowed to be upto 49percent and exceptional cases to 100pct.Mostly up to 49
percent is very attractive in these tech cases.

I think the T& M companies have an opportunity to sit and discuss with the manufacturers the new range of manual and automatic equipment immediately.