Supply-chain managers at high-tech firms have changed their tune about the prospects for growing their exports in the coming years, according to a survey commissioned by United Parcel Service Inc.
Two years ago, only 40 percent of high-tech executives believed U.S. companies could achieve President Obama‘s goal of doubling American exports by 2014.
But with newly enacted free-trade agreements, rising incomes in emerging markets and higher labor costs in developing countries, 85 percent of execs surveyed this year believe the task is either “very likely” or “somewhat likely”,Atlanta-based UPS revealed Oct. 1.
While North America is poised to remain the largest market for high-tech goods and electronics, executives expect demand in the region to slip by 7 percent in the next three to five years while other regions see significant growth, the survey showed.
Executives reported plans to increase sales to India, the Middle East and Africa by 22 percent each and to Brazil by 18 percent. South America as a whole is projected to outpace Brazil with an expected overall increase of 19 percent. Eastern Europe (15 percent), South Korea (13 percent) and China (8 percent) were also seen as hot markets.
The positive results come as economists continue to worry about the fragile global economy buffeted by lackluster growth in China and continued malaise in Europe.
Supply chain costs, lead times and responsiveness were the top three trouble spots for respondents to the Change in the (Supply) Chain survey, which was conducted by IDC Manufacturing Insights.
To see the full survey results and download a whitepaper, click here.