25 February 2008
Statistics released today show the Southern Electronics show (February 6th-7th 2008, FIVE, Farnborough) proved a resounding hit with those involved in electronics, component sourcing or electronic assembly. Nearly 4,400 industry professionals visited Farnborough over the two-day event – a significant increase over previous years. Visitor interest in areas related to production and quality rose dramatically, with increases of over 120% in some areas.
The relocation to FIVE, Farnborough, with its improved facilities and 25% increase in exhibition space, allowed more companies than ever to take part in the show. Virtually every aspect of electronics manufacture and sub-contracting was well represented, drawing an enthusiastic response from exhibitors and visitors alike.
Robert Crosby-Clarke, UK sales manager of Electrolube, said “After visiting the Southern Electronics show last year and seeing how it had expanded, we thought we would give it a go. The show was very busy and there was considerable interest in our range. We have already taken the decision to exhibit again next year.”
Detailed statistics from the show reveal significant growth in the electronics-related interests of visitors such as electronic assembly, components and adhesives. Small companies of between 1 and 20 employees remained the largest single group of visitors at around 20%, but there was also an increase in visitors from businesses of between 51 and 200 employees, to around 14%, indicating increasing interest being shown in regional events by medium sized enterprises. But the largest increase was in visitor interest in goods and services related to production and quality. The percentage of visitors interested in Assembly Systems, Automation, Industrial Computing, Inspection Systems and Manufacturing Software more than doubled on 2007 figures. The statistics provide objective evidence reflecting the upbeat mood of the event, and shows that the business sentiment for electronics SMEs is far from pessimistic.
Southern Electronics is just one of a number of regional industrial events run by European Trade & Exhibition Services around the UK and Eire. Managing director, Phil Valentine, believes that, while support for national trade exhibitions is waning, interest in regional events is stronger than ever. “The trend in society as a whole is towards the local sourcing of suppliers and services. What we are doing with our regional shows is essentially just the same: We provide a unique and cost-effective way for companies to market their goods and services right on the doorstep of their prospective customers. The growth in visitor numbers this year indicates that people are increasingly in favour of highly-focussed regional events rather than committing precious time and resources to visiting or exhibiting at national trade shows.”
The next regional exhibition in the calendar, Midlands Manufacturing Technology, opens its doors at the Ricoh Arena, Coventry, on March 18th and 19th. Many of the companies participating in the Southern shows will also be at the Midlands event, making it a great opportunity to catch-up with the very latest components, technologies and services. Entry to the show and its popular seminar programme is free, and there is plentiful parking on site. Ricoh Stadium is just 4 miles north of Coventry City centre and enjoys excellent access by road and rail, and by air via Coventry Executive and Birmingham International Airports. For more information, call 01784 880890 or visit http://www.industry.co.uk/midlands
Posted by Editor 
Posted by Editor 
Posted by Editor 
The true cost of counterfeit
January 26, 2008The problem of component counterfeiting is an increasingly serious and complex issue, and one which affects virtually every manufacturer or assembler of electronic equipment.
The commercial pressures of international competition and increasingly tough legislative environments have created a fertile environment for the unscrupulous to profit at the expense of legitimate business. Far from being a “victimless crime”, the cost – both human and commercial – of counterfeiting can be devastating. With so many companies now sourcing on the international market, counterfeiting is an issue that nobody can ignore. Companies need to be aware of the problem and the steps that can be taken to avoid falling victim.
Worldwide, it is estimated that counterfeit goods account for between 5% and 7% of all world trade, worth a colossal $450-$500 billion a year. While fake clothing, consumer durables and automotive components account for a large part of that, counterfeit electronic components are a significant and growing proportion of the total. An estimated 10% of all technology products sold worldwide now contain fake components. That equates to a staggering $100 billion annually. The cost to industry in terms of product failures, loss of reputation or litigation is potentially much more.
The origins of the majority of these forged and counterfeit components lie in South Asia and the Far East. The EU imports €10.6 billion of goods every year from China alone – mainly computers, electronic components, mobile phones & cameras. While the vast majority of trade is entirely legitimate, with such volumes even a few percent of counterfeiting represents a significant quantity of substandard components arriving into the EEA every year.
In contrast to fake designer clothing or consumer goods, counterfeit components used in electronic sub-assemblies are often very difficult to spot. Today’s counterfeiters have become very adept at producing convincing forgeries and have developed sophisticated techniques for introducing them into the legitimate supply chain. Given the difficulties of enforcing contracts and international intellectual property rights legislation in China and India, the unscrupulous agent or manufacturer has very little to lose from being caught, and everything to gain. The complex ways in which components and sub-assemblies are traded and sourced can work to the advantage of forgers, enabling them to hide their tracks behind a complex series of transactions. The international outsourcing of procurement means that components can often pass through the hands of several procurement agents before delivery; agents that in some cases actually “own” the components for a matter of minutes before selling them on.
The problem is compounded by the number of ways that components can be faked and the sophisticated ways in which unscrupulous suppliers introduce them into the market. Deliberate forgeries are perhaps the most obvious way in which companies can fall victim to the counterfeiters. Bearing a recognised makers name and trademark, an encapsulated component may look – superficially – very convincing. Often, the forged component may even perform to specification, at least initially. Internally, of course, it is a very different matter: Sub-standard materials and production techniques, and lax quality control mean components that can fail suddenly with potentially disastrous consequences.
The remarking of components is more difficult to spot. In this case, genuine components will have their markings modified to denote a component of a higher specification from the same manufacturer. For example, a faster processor or greater memory capacity. In the post RoHS world, remarking can also be one way that non-compliant components can be passed off as legitimate. The unexpected discovery of non-compliant components could easily spell disaster for an equipment manufacturer or sub-contractor, even if no actual failures occur in service. Even without re-marking, non-compliance at component level is very difficult to spot without costly and thorough analysis by specialist companies.
The passing-off of recycled components as new is also a growing trend. Low labour costs coupled with the legislative requirements for the disposal of hazardous waste means that the shipping of obsolete equipment to China and India for disposal and recycling is an increasingly profitable enterprise. In a few cases, parts salvaged in this way can sometimes find their way back into the market as new parts. Although genuine, components are stressed during the salvage process and are often at the end of their useful lives anyway resulting in short-lived and unpredictable performance.
Sourcing only from reputable suppliers is an obvious way in which companies can protect themselves from forged components. But in an increasingly competitive world, the temptation to look to the so-called grey-market for components may well prove an overwhelming one for hard-pressed businesses. But in doing so, companies expose themselves to risk.
Some manufacturers operate a scrap allowance scheme, by which they pay distributors to scrap overstocked inventory. However as this scrapping process is itself often outsourced, these components may well find their way back onto the grey market rather than being destroyed. Although genuine, as far as the manufacturer is concerned they do not exist and so will not be covered by any guarantee.
Even by dealing only with authorised suppliers does not necessarily ensure fake-free components. If an authorised supplier operates a returns policy, this may provide the means for fake components to enter the legitimate supply chain. For example, if a company sources components through both authorised and grey market sources, it is entirely possible that “fakes” from the grey market sources can end up getting mixed in, either deliberately or unwittingly, with genuine returned components. Once a batch of genuine components is contaminated in this way, the fakes become almost impossible to spot.
In combating the menace of component counterfeiting, the best defence that businesses have is to arm themselves with knowledge. For the first time, the subject of component counterfeiting will be addressed at Southern Electronics 2008 (February 6th-7th, Farnborough) as part of the free seminar programme. Hosted by Bob Willis of the SMART group, the presentation on February 6th will take a detailed look at the problem of forged and counterfeit components together with the practical measures businesses can take to ensure they do not fall victim to this pernicious trade.
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