Asian ac drive suppliers must look beyond current crisis
Ongoing financial turmoil has shaken Asia's economies for the past seven to 10 months, and the region's ac drive business has slowed following major product reschedulings in Southeast Asia and South Korea, according to the recent AC Drive Outlook for Asia from Automation Research Corp.
Ongoing financial turmoil has shaken Asia’s economies for the past seven to 10 months, and the region’s ac drive business has slowed following major product reschedulings in Southeast Asia and South Korea, according to the recent AC Drive Outlook for Asia from Automation Research Corp. The report adds that China and India will continue to develop over the following five years, while most of Southeast Asia and South Korea will feel the effects of the financial crisis for the next few years.
Many projects in these regions have been postponed, but not cancelled, which provides an opportunity for improving forecasts after 2000. As new industrial plant projects were put off, ac drive businesses, especially in Southeast Asia, responded with slowing growth between 1996 and 1997. Consequently, nations such as China and India are now leading the growth curve in the overall Asian ac drive market. While South Korea and Southeast Asia work to regain their financial underpinnings, drive suppliers in Asia are moving their attentions to stronger markets in the region.
Recovery from the crisis will take time, but ARC’s report states that economies in the hardest hit areas have already shown signs of readjustment during 1Q98. For example, South Korea and Thailand have improved as their currencies begin to regain value in relation to leading foreign currencies. The report adds that many of the well-established ac drive suppliers in the region have experienced instability in the past and are prepared to weather the current storm.
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