Econ

Even though we are hearing of improved sales and signs of an improving economy, the future of chip companies remain uncertain at best. Larson will likely have to follow some of the lessons being learned by companies such as Intel. Larson will remain optimistic about the silicon resurgence, but understands it may take two or three years to come to fruition. Recently, the only bump to the industry came in the launching of Windows 7 and how chips best served that particular program; in short buying the computes with the program and inadvertently purchasing the newest and most modern microprocessors. If Larson had better relations with Dell, Toshiba, and other computer manufacturers, this could have been a huge surge in the sales of their chips. The surge that accompanied the sales of computers in late 2009 could easily be deceptive and only reflective of inventories that had not been refurbished instantly in the previous months. It is likely that that even though there was a slight surge, Larson will not see improvements until 2011 through 2013. In reality, the big question that Larson ad many other companies will be dealing with is this – “what will the demand be”. All the semiconductor/chip producing companies are trying to figure out when consumer spending will see a true resurgence that will continue through the years to come. Larson is aware of their employment obligations to their community. With the current recession being a brutal factor in countless layoffs, Larson truly cannot account for how many jobs their operation indirectly effects within their community or supporting industries. Employment is likely down for Larson at the moment, but as the recession lightens its grip, Larson will increase its workforce to meet the anticipated demand. In the end, Larson will be prepared to hire when the industry bounces back. Some of the current uncertainty being faced by the chip and semiconductor industry is due to the way computer producers and like companies rapidly drew down their inventory as the recession continued to tighten its grip; a tactic that could be attributed to the tech crash of 2001 when huge stockpiles of chips slowed the recovery of the tech companies. This lends to the current difficulty in identifying if there is actually a current increase for chips, or if distribution of the chips was merely reduced so excessively, that the companies are merely refitting their inventories in hopes that purchases do pick up and are maintained at a post recession level. If Larson remains aggressive in its business to business sales for large platform sales, includes sales to small and medium companies to assist in current and future repair/small purchase trends, and consolidates their manufacturing to one location, this is a company that should be able to withstand the current recession – even if it were to take us through 2015.