Report claims fiber will dominate copper in cabling market after 2004
HUMMESLTOWN, PA — A recent report by FTM Consulting entitled, "U.S. Building Fiber & Copper: 2003," says that fiber cable shipments for newer broadband applications, especially for Gigabit Ethernet (GbitE), will stimulate the cabling market by 2004. Double-digit growth is expected post-2003 primarily for fiber cabling. For the next several years, however, copper UTP, via Cat 5e and Cat 6 cabling, will provide the support for 1-Gbit/s horizontal cabling. Workstations will not require higher bandwidths for at least several years.
Applications such as storage-area networks (SANs), switch-to-switch, and fiber-to-the-zone, are evolving to data rates of 10 Gbit/s and beyond, which will be the initial impetus for fiber usage in horizontal cabling subsystems. In 2005, the emergence of fiber cabling for fiber-to-the-desk (FTTD) applications will provide an additional stimulus for growth, says the report's author, Frank Murawski. The report projects that the double-digit growth of copper cabling in the 1990s will be displaced by the double-digit growth of fiber cabling in the 2000s (see Fig.).
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While the cabling market is essentially flat through 2004, growth is projected from $3.8 billion in 2001, to $5.7 billion by 2007. Most of the market growth is expected to occur after 2004. Over the past two years, the market decreased by 24.9% in 2001 with a smaller decrease of 9.6% in 2002. Double-digit growths, in the 10% to 12% range, are expected for each year starting in 2004. All of this growth will be directly attributable to the growth of fiber cabling, especially new GigE applications. Newer fiber cables will not be available for GigE applications until 2004, causing the market to finally exceed its level in 2001.
Looking back further, the market peaked in 2000, at $5.1 billion. It will not be until 2007 that the market will finally exceed that level, at $5.7 billion. Therefore, on a broader scale, the market behavior between 2000 and 2006 can best be described as lackluster relative to its high ramp up of double-digit growths in the 1990s. This lackluster performance is directly attributable to market saturation as the economy is expected to revive in 2003.
In 2001 and 2002, copper cable shipments were higher than fiber cable shipments. However, starting in 2003, fiberoptic cable shipments are expected to exceed the copper cable shipments based on cable value shipments. The shift to fiber cable shipments is projected to increase its share from 41.4% in 2001 to 61.1% by 2007.
Fluke and Pearson join TIA fiberoptics LAN section
ARLINGTON, VA — Fluke Networks (Everett, WA), manufacturer of fiber test, inspection, and certification solutions, and Pearson Technologies (Acworth, GA), a fiber design and installation consulting company, have joined the Fiber Optics Local Area Networks Section (FOLS) of the Telecommunications Industry Association (TIA). The FOLS is a consortium of leading optical fiber, cable, and components manufacturers formed in 1994 to educate users about the benefits of optical fiber in customer-owned networks, as opposed to public-owned networks like that of the regional Bell operating companies (RBOCs).
The FOLS consortium has expanded beyond fiberoptic cable companies to include testing companies like Fluke Networks, as well as companies in active components, copper cabling, and systems. Other FOLS members include 3M/Volition, ADC, AMP/ Tyco Electronics, Corning, Corning Cable Systems, Leviton Voice & Data, OFS, Optek Technology, Panduit, Ortronics, Sumitomo Electric Lightwave, and Transition Networks.
"We are delighted that Fluke Networks and Pearson Technologies have joined our membership," said John Struhar, chair of the FOLS and Distinguished Member of Technical Staff at OFS (Norcross, GA). "The strength of FOLS lies in the diversity of our members and our ability to bring an informed perspective to end users and system designers. Fluke Networks, as a worldwide provider of fiber optic test equipment, contributes expertise in testing tools and installation practices. Pearson Technologies, in their role as fiberoptic trainers and consultants, will give us direct insight into the installer mindset."
Struhar added that both Fluke Networks and Pearson Technologies are already integral to several section initiatives. "We're pleased to announce that Eric Pearson is helping us update our popular fiber vs. copper cost models, which were introduced last year," said Struhar. "Jensen has assisted in research on end-user interest for a Tri-Speed optical Ethernet standard, which FOLS proposed to the TIA FO 4.2.2 committee." Based on that input, a task force is now starting work on the new standard.
– Valerie Coffey
Productronica 2003 showcases growth
CHICAGO, IL — Productronica, the world's largest trade show for electronics production, will take place Nov. 11–14, 2003, in Munich, Germany. In addition to electronics production, the trade show and supporting conferences will provide visitors a comprehensive look at the future of microsystems technology through state-of-the-art exhibits, user forums, and live demonstrations. For the first time at Productronica, production logistic and materials-flow technology will be highlighted as a separate segment on the 1.4 million-sq-ft exhibit floor. More than 47,000 international visitors and 1,700 exhibitors are expected at this year's show.
"We are very pleased with the number of leading U.S. and international exhibitors taking part at this year's Productronica, especially in key growth sectors such as microsystems technology," said Noel Hoekstra, president and chief operating officer of Munich Trade Fairs North America, the U.S. subsidiary of Munich Trade Fairs International. "The strong response from exhibitors indicates that Productronica continues to be the must-attend show for companies involved in the international electronics production market."
According to experts, microsystem technology is poised to be the leading growth sector in the future for the electronics production market. More than 120 companies will be showcasing the latest microtechnology products and trends including substrate materials, production aids, micro-assembly techniques, connections, and nanorobotics. In addition to leading exhibits, the Productronica User Forum will feature international experts in microsystems technology demonstrating the latest developments in areas such as connections and packaging, handling, test equipment, and services.
For more information about Productronica, visit www.munich tradefairs.com. Those wishing to exhibit at Productronica can contact Randi M. West at 312-377-2650.
Omnitron releases 10/100/1000 copper-to-Gigabit fiber converters
LAS VEGAS, NV — Omnitron Systems Technology (Irvine, CA), manufacturer of fiber media converters for Local and Metropolitan Area networks (LAN and MAN), has announced the addition of a new module to its iConverter managed-media converter product family. Supporting the IEEE 802.3ab and IEEE 802.3z standards, the iConverter GX/T provides 10/100/1000Base-T unshielded twisted pair (UTP) to 1000Base-X (fiber) media and speed conversion (see figure). This new iConverter extends high-speed network distances up to 80 km. Through SNMP software management, iConverter modules bridge data-rate differences between legacy and Gigabit Ethernet (GigE) networks in Enterprise LAN and Metro MAN applications.
The iConverter GX/T supports multimode, single-mode, and single-fiber options, and SC, MT-RJ, and LC connectors. The UTP port supports 10/100/1000 speeds and half- or full-duplex autonegotiation with both hardware and software manual override controls to set the desired speed and duplex mode. The GX/T features user-selectable link-propagation, link-segmenting, and remote-fault-detection modes that facilitate fault detection, isolation, and reporting.
The GX/T can be used in a managed or an unmanaged configuration. Like other iConverter modules, the GX/T can be managed in-band or out-of-band through Telnet, through Omnitron's NetOutlook network management software, or through standard SNMP software like HP OpenView. The management feature enables network administrators to remotely monitor and configure the GX/T iConverter units or diagnose technical problems while minimizing remote service calls. The management agent can also generate traps to report events such as module insertion or removal, link up or down, authentication violations, and power- or temperature-range violations. The reported traps allow the network administrator to take immediate corrective action, minimizing network down time.
Like other iConverter modules, GX/T modules are hot swappable and can be rack mounted in a 19-, 5-, 2-, or 1-module chassis. The 19-module is a 2U, 3.5-in.-high chassis that supports any combination of triple-redundant AC and 48-VDC power supplies. The 5-module chassis is a 1U, 1.75-in.-high chassis that supports any combination of dual-redundant AC and 48-VDC power supplies. Both the 19- and 5-module chassis can be mounted in 19- or 23-in. racks. The 2-module chassis supports AC or 48-VDC power set ups, and the 1-module supports an AC power configuration.
 The new SNMP-managed iConverter modules bridge speed between Legacy and Gigabit Ethernet in Enterprise LAN and Metro MAN applications. |
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The new iConverter GX/T modules join other iConverter media converters that provide copper-to-fiber and fiber-to-fiber conversion for 10, 100, 10/100, GigE, T1, E1, OC-3, and OC-12 technologies.
Molex announces layoffs in US and Europe
LISLE, IL— Global electronics manufacturer Molex has announced it intends to record a pretax charge, in its fiscal fourth quarter ending June 30 of approximately $39 million, primarily related to the restructuring of its operations for the telecom infrastructure market.
As a result of continuing weak demand in the telecom infrastructure market, the company will downsize two facilities in the U.S. and write off manufacturing assets as well as licenses and investments, all of which are dedicated to certain of its fiberoptic components, primarily for the telecom industry. In addition, the company will close two smaller facilities located in the European region that supply products for the telecom infrastructure market.
As part of these actions, the company will reduce its workforce by approximately 550 full- and part-time employees. The approximate amount of the pretax charge for all actions mentioned above is $38 million to $40 million. Of this amount, approximately $19 million relates to facility and manufacturing assets, $6 million to licenses and investments, and $14 million to staffing reductions. The amount of the net after-tax charge for all actions is estimated to be approximately $28 million to $30 million.
Joe King, vice-chairman and chief executive officer, said, "It is clear that the high-end segment of the telecom market, especially in applications using optical products, will remain at disappointing levels longer that we had anticipated. The actions announced today are a necessary step to further adjust our cost structure and manufacturing presence, and support our initiatives and help us in our overall efforts to get back to our traditional profit goal."
Interconnect manufacturing industry wins tax relief
NORTHBROOK, IL — The trade assocication, "IPC-Association Connecting Electronics Industries," hailed President Bush's signing of The Jobs and Growth Tax Relief Reconciliation Act of 2003, which increases the first-year bonus depreciation deduction from 30% to 50% for investments acquired and placed in service after May 5, 2003, and before January 1, 2005.
Passed by Congress in May, the $350 billion tax bill is designed to help spur investments in printed circuit board (PCB) manufacturing and electronics assembly equipment and aid in the recovery of the Interconnect Manufacturing Service/PCB and Electronics Manufacturing Service industries.
Recognizing that the U.S. electronics interconnection industry was at a distinct disadvantage over foreign competition, the IPC and its members began efforts nearly a decade ago to change the U.S. tax code and reduce the cost recovery period from five years to three for equipment used to manufacture PCBs and electronic assemblies. These efforts paid off with the passage of The Job Creation and Workers Assistance Act of 2002, which was signed into law on March 9, 2002. The Act contained a 30% accelerated depreciation benefit over the next three years for PCB manufacturing and assembly equipment.
"Today, the additional 20% depreciation for equipment with this new act begins to put the 'real' in realistic depreciation, and it is another victory for our members and the industry," said IPC President Denny McGuirk. "It would not have happened without the IPC Government Relations Committee and the support of the IPC membership today, as well as their efforts in laying the foundation years ago, for the critical importance of the U.S. PCB and electronics assembly industries."
This bill is one of several initiatives the IPC Government Relations Committee is championing to help improve U.S. competitiveness. "Whether it's environmental regulations that make sense or foreign exchange rates that are consistent with economic fundamentals, the IPC will continue to champion the U.S. manufacturing base," McGuirk said.
In other news, IPC released the findings from its monthly Interconnect Manufacturing Services (IMS)/PCB statistical program. The U.S. IMS/PCB industry book-to-bill ratio for April 2003 was 0.97. Sales billed (shipments) in April 2003 decreased 29.5% from April 2002 while orders booked decreased 32.6% from April 2002. Compared to 2002, bookings of PCBs are down 22.9% year-to-date, while shipments of PCBs are down 25.8% year-to-date.
The information in IPC's monthly industry statistics is based on data provided by both rigid and flexible PCB manufacturers in the U.S., representing 60% of the domestic IMS market.
– Valerie Coffey
WHAT'S NEW
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PGA CONNECTORS — The SMT design of the two-piece PGA connector system enables test boards to be produced with fewer layers. The two-piece PGA connector system eliminates the need for plated through holes, and is comprised of a molded liquid-crystal polymer (LCP) socket incorporating three-finger low-force, gold-plated beryllium copper contacts, and an FR-4 adapter incorporating screw-machined, gold-plated brass pins. ADVANCED INTERCONNECTIONS, WEST WARWICK, RI. http://www.bgasockets.com
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LGA INTERPOSERS — The land-grid array (LGA) interposer for high-performance LGA and SMT applications offers OEM designers a reliable and cost-efficient interconnect solution for microprocessors, ASICs, and other high-pin-count devices. Ideal for use in circuits for advanced computers, servers, workstations, and test instruments, the interposer features a liquid-crystal polymer matrix with up to 2,000 metal contacts with 1-mm spacing. TELEDYNE INTERCONNECT DEVICES, SAN DIEGO, CA. www.teledyneinterconnect.com
NEWS BRIEFS:
Phoenix Contact broadens alliance with Hagemeyer
Interconnect manufacturer Phoenix Contact (Harrisburg, PA) has announced the expansion of its distribution relationship with Hagemeyer North America (Charleston, SC), a value-added business-to-business distribution services group, to include most northeast and southeast U.S. locations effective April 15, 2003. Hagemeyer NA will continue to support the full Phoenix Contact product line. The alliance with Hagemeyer will enable Phoenix Contact to focus on and support key electronic and industrial customers through distribution. www.phoenixcon.com
Another agreement for Phoenix Contact...
Phoenix Contact (Harrisburg, PA) and OMNEX Control Systems (Vancouver, BC, Canada) have announced an exclusive distribution agreement to enhance worldwide availability and sales opportunities for industrial wireless radio systems. Under the agreement, Phoenix Contact will assume global marketing and distribution responsibilities for OMNEX's Trusted Wireless I/O and data radio products. The agreement follows Phoenix Contact's introduction of its version of the OMNEX wireless radio in the U.S. in the fall of 2001. Phoenix Contact provided packaging and connectivity expertise for the deal. The wireless radio transmits signals to save the time and cost of installing cable and conduit in industrial applications. http://www.phoenixcon.com
Beijing's 2008 Olympics expands telecom infrastructure
As part of the sweeping modernization projects for the 2008 Olympics, Beijing Communications, the local operating company serving China's capital city, will spend US$6.64 billion over the next five years to extend and upgrade its network. This figure is reported in a new market research report, Beijing's 2008 Olympics — Business Opportunities in Modernizing Beijing's Telecom Networks, from Communications Consulting Associates (Austin, TX). Beijing Communications will solicit bids to add capacity for an additional 3.4 million fixed network voice lines, replace linear optical network connections with rings and upgrade existing SDH rings to higher bit rates, and develop IP-based video transport networking capable of supporting HDTV. The upgrade will also introduce mobile service in competition with China Mobile and China Unicom, and extend DSL and broadband access technologies to more of Beijing's 1.7 million Internet users. www.kmicorp.com/fiberoptics_market_ studies/cca.htm
IDEA welcomes six new members
The Independent Distributors of Electronics Association (IDEA; Princeton Junction, NJ), a recently launched non-profit trade association representing the independent distributor market segment, has announced the addition of six new members. The new members include three independent electronic distributors and three associate members who service the electronic distributor industry.
The three new distributor members are SG Industries (Beverly, MA), Inland Empire Components (Lake Elsinore, CA), and Advanced MP Technology (San Clemente, CA). New associate members are The Broker Forum (Quebec, Canada), ERAI (Plymouth, MA), and netCOMPONENTS (Delray Beach, FL).
Said Daniel J.DiMase, member IDEA board of directors, "These joining members have taken the necessary step forward in promoting quality, sound business practice, and superior customer service." www.IDofEA.org.
Schurter acquires Timonta
Schurter Holding, a Swiss manufacturer of internationally recognized electronic components based in Lucerne, has acquired Timonta (Mendrisio, Switzerland), a manufacturer of EMC components, high-current filters, and chokes. Timonta has manufacturing facilities in Switzerland and Slovakia. The acquisition complements Schurter's Connector Business Unit, by enabling the company to expand its product offering to include block filters.
Schurter's line of power-entry products includes various types of AC connectors and multi-function power-entry modules with and without in-line filters. Timonta's array of stand-alone filters adds a broader range of filter performances, extended current ranges, and varying types of packaging and mounting options. Timonta's universal filter family is designed for industrial applications such as control systems, power supplies, frequency converters, UPS-systems, stepper-motor drives, power converters, and inverters. www.schurter.com
Tyco Electronics and Gennum demo long-reach standard at SuperComm 2003
Tyco Electronics (Harrisburg, PA) and Gennum Corporation (Burlington, Ontario, Canada) announced a successful feasibility demonstration of the emerging CEI 6+ long-reach standard for backplane interconnects established by the Optical Internetworking Forum (OIF). The demonstration used Gennum's GN1405 Quad 5G Backplane-Serdes to transfer 5Gbit/s of serial data over a 34-in. link on Tyco's QuadRoute HM-Zd Backplane. Transceivers and backplanes are critical components of standards-compliant OIF Common Electrical I/O interfaces, enabling the development of chip-to-chip, chip-to-optical module, and electrical backplane designs. www.tycoelectronics.com
Power tool demand to see healthy growth
World Power Tools, a new study from industrial market research firm Freedonia Group, Inc., reports that worldwide demand for power tools is projected to increase nearly 6% yearly to US$27.3 billion in 2007. Gains will exceed the 1997-2002 pace because of accelerating construction and consumer spending.
The most rapid growth in power tool demand is forecast for the developing areas of Asia/Pacific, Latin America, Eastern Europe, and Africa/Mideast. Increasing industrialization in these regions will lead to infrastructure-building projects as well as rising living standards that will increase demand. North America and Western Europe will continue to be leading providers of power tools through 2007, accounting for over two-thirds of the global total. www.freedoniagroup.com
Graybar donates hardware to BICSI program
Graybar (St. Louis, MO), a distributor of telecommunications, networking, and electrical products, has donated the cable and connectors used in the quarterly testing of its VIP program to installer training programs nationwide. BICSI, the telecommunications industry's nationally recognized training organization, will use Graybar's equipment donation to train communications contractors. The cable and connectors being delivered to BICSI are from industry-leading suppliers and have been tested by Graybar's VIP (Verified Independently for Performance) program, designed to verify product interoperability and performance. The donation will enable communications systems installers to train on the up-to-date cabling materials. www.graybar.com
NEWSMAKERS:
 Brian Hodges |
Brian Hodges, a 12-year veteran of the semiconductor industry and former executive at Intersil Corporation, has joined Anadigm (Campbell, CA, and Crewe, England) as vice president of worldwide marketing.
Liquid Control Corp. (North Canton, OH), manufacturer of meter, mix, and dispense equipment, has completed the acquisition of Liquid Control, (Wellingborough, England). The acquisition is a result of the retirement of David Valentin, Managing Director and primary owner of Liquid Control. The U.K.-based company will continue to operate in its Wellingborough location to design, assemble, test, and provide local service and support for dispensing equipment sold throughout Europe.
 Russell Shaller |
W. L. Gore & Associates (Newark, DE) has appointed Russell Shaller as division manager for Gore's Electronic Products Division. Shaller was formerly the general manager for Gore Photonics, which was sold to OCP in January. Gore also appointed Joe Gallo to global sales manager for their Electronic Products Division. Gallo was formerly the business manager for Gore's U.S. wire and cable operations.
FKI Logistex Alvey Systems (St. Louis, MO), an integrator of automated material flow solutions, announces the appointments of Tony DiNello as director of Midwest regional operations and Jeff Cortez as operations manager, Midwest region.
Corning Gilbert (Glendale, AZ) announces the addition of East Coast Microwave Distributors (Stoneham, MA) to its distribution network. The partnership is expected to enable customers to check stock availability and place orders online for microwave components and RF connectors.
 Chris Durell |
SphereOptics-Hoffman (Contoocook, NH) has announced the appointment of Chris Durell as director of sales. Durell is responsible for SphereOptics national accounts, custom components and systems, and Pacific Rim sales coordination.
ILSCO (Cincinnati, OH), manufacturer of electrical connectors, has announced the appointment of C & L Sales (Ona, WV) as the representative for the ILSCO brand of electrical connectors in West Virginia.
Geotest-Marvin Test Systems (Irvine, CA), supplier of electronic test equipment for aerospace, semiconductor, telecom, medical, industrial, and military applications, has announced the addition of Eastern Instrumentation (EI; Columbia, MD) to its domestic sales representative team. EI will provide local support for Geotest customers in Maryland, Washington, D.C., and Virginia. The Eraser Company (Syracuse, NY) announces its completion of ISO9001:2000 qualification for its wire processing equipment. This updates the company qualification from its previous ISO9001:1994 certification.
American Beryllia (Haskell, NJ), a global manufacturer and distributor of BeO ceramics, has announced the appointment of Richard LoGatto to the newly created position of vice president, sales and marketing.
