CMP Media's EE Times Study Finds That Global Opportunity for U.S. Technology Industry Is Moving Beyond Outsourcing to New Market Development

EE Times and KWR International Survey of Senior Management at Small-to-Midsized U.S. Technology Businesses Shows that Industry Is Slow to Tap New Markets

Oct 31, 2005

CMP Media's EE Times, the premier technology and business media brand serving the information needs of the creators of technology, and KWR International, today announced the release of a survey on globalization that showed the global opportunity for the U.S. technology industry is moving beyond outsourcing for cost-cutting to new market development. The study surveyed 165 senior executives, primarily at small-to-midsized ($1 billion in annual revenue or less) technology- and electronics-related businesses, about their current or future globalization plans.

"One of the key findings of the survey showed that despite the imperative to expand market share globally in order to remain competitive, America's small-to-midsized businesses are not seizing the opportunity quickly enough," said Richard Wallace, editorial director of EE Times and CMP Media Electronics Group. "As this shift continues, it will be increasingly difficult to break into these markets, and for this reason, it's important for American industry to address and overcome globalization's challenges now."

According to Keith W. Rabin, KWR International's president and the author of the report, "the uncertainty of a payoff, difficulty making contacts and operating in a foreign environment, as well as the large amount of time and resources required, makes it hard for most firms to make international expansion an immediate priority -- even though many recognize it is in their long-term interest to do so."

"As a result many are still thinking in terms of opportunistic export sales and occasional marketing trips rather than the more comprehensive planning and operating strategies that are essential to achieving real and sustainable success in these markets -- which over time will constitute an increasingly important and larger percentage of global share for most consumer, commodity and industrial products and services," Rabin added.

The survey results, along with an EE Times editorial overview, will run in a special EE Times Oct. 31 "Global Outlook" issue. The issue will also include a list of Top Ten Technology Hot Spots, a feature article on "How to Globalize," and "Global War Stories" from EE Times readers. Below are a few key highlights from the report (ratings are based on a scale of 1-10, with 10 indicating "most important"):

-- The global opportunity is now about market development, not cost-cutting -- revenue growth through new market development (rating of 8 out of 10 - 10 indicating most important) was rated the most important motivation for international expansion above cost-cutting, such as setting up overseas manufacturing (5)

-- American companies need to get moving -- most companies recognize the importance of international expansion to long-term success (8), yet significantly less consider it a short-term priority (7)

-- Challenges are great -- fewer still are happy with the results of their expansion efforts to date (6), due to cultural differences (language, work environment and lifestyle), operational differences (accounting, contracts and training) and the growing demand for overseas workers (it's no longer a given to find cheap, skilled employees)

-- New market opportunities are growing -- respondents cite China and India as the largest new market and revenue opportunities, but Japan, Korea, the EU and Canada also offer significant potential

-- Investment opportunities are also growing -- EE Times has collated a list of the 15 countries currently offering the best investment opportunities; and the results will surprise you (Ireland ranks third, behind India and China; also represented is Mexico in ninth place and Sweden comes in at twelfth place.

"Our EE Times 'Global Outlook' issue is designed to be something of a wake-up call to those being lulled into inaction, fear and uncertainty by the new realities of today's "flat" World," continued Wallace. "This study and its accompanying reporting and analysis ask and attempt to answer the question that if indeed, as Thomas Friedman observes, The World is Flat, what are our readers doing about it?"

"With more than two decades of news gathering experience throughout Japan, China, Taiwan, Singapore, Korea, India, Europe and the U.S., EE Times is management's essential guide to the business and technology trends shaping the global electronics industry," Wallace added.

"This week's ground-breaking 'Global Outlook' research study and special issue marks the beginning of a major new EE Times editorial initiative that will elevate our global business coverage to the same level as the newspaper's authoritative, world-class industry and technology coverage," according to Wallace.

For more information about the survey results, please visit the EE Times Web site at or contact Michelle Sabolich of Atomic Public Relations at 415-402-0230 or

About CMP Media's Electronics Group

The CMP Media Electronics Group is the premier technology and business media brand serving the information needs of the creators of technology worldwide through print, online and conferences.

As the most comprehensive and integrated source of electronics technology information, the CMP Media Electronics Group offers a full suite of products and services to reach electronics systems design professionals throughout the world. With its combination of media properties, the CMP Media Electronics Group focuses on delivering a targeted audience and actionable information to marketers in the electronics technology community.

Each month, CMP Media's Electronics Group delivers more than 1 million copies of its publications in five languages to subscribers in 55 countries. Online visitors from more than 100 countries view more than 7.5 million pages on its Web sites in six languages and in a year, more than 35,000 decision makers from 48 countries attend its conferences in North America, China, Taiwan and Europe.

CMP Media's Electronics Group properties include:

-- Print -- EE Times, Embedded Systems Design, Electronics Supply & Manufacturing

-- Online -- EE Times Online, DesignLines,,,,, and SupplyLines

-- Conferences -- Embedded Systems Conferences, Embedded Connect and Design Seminars

About KWR International, Inc.

KWR International, Inc., is a consulting firm specializing in the delivery of research, communications and advisory services with a particular emphasis on business, investment and technology development, public/investor relations, economic and political analysis, public affairs, cross border transactions and market entry programs. This includes engagements for a wide range of national and local government agencies, trade and industry associations, start-ups, turnarounds, venture/technology-oriented companies and multinational corporations; as well as financial institutions, investment managers, financial intermediaries and legal, accounting and other professional service firms. For more information, please visit .


CONTACT: Michelle Sabolich of Atomic Public Relations, +1-415-402-0230,
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