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Asian ac-drive business down, but not out

By Staff -- Design News, August 3, 1998
 

Dedham, MA--Due to revised major project scheduling throughout Southeast Asia and Korea, ac drive business is down, but not out. Financial turmoil in the major Asian economies over the past six to nine months has taken its toll on ac drive business growth. Automation Research Corp.'s (ARC) new AC Drive Outlook for Asia reports that China and India will continue to develop over the next five years, while most of the region will feel the effects for the next few years.



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Despite the monetary crisis, projects such as the Three Gorges Dam in China are moving forward at full speed. While Southeast Asia and Korea struggle to regain their financial underpinnings, drive suppliers in Asia focus on the stronger markets in the region.

With the debt crisis still unresolved, economies of Southeast Asia remain fragile. While the hardest-hit countries include Korea, Indonesia, and Thailand, both Asia and the rest of the world feel the impact. Economic recovery takes time, but in the first quarter of 1998 hard-hit regions showed signs of readjustment. Korea and Thailand improve as their currency regains some value in exchange with foreign currencies.

Many projects throughout these regions have been postponed, but not canceled, providing an opportunity for increasing forecasts after the year 2000. ARC expects the Asian region to begin to regain its growth after the start of the new decade. Many well-established ac drive suppliers to the region have experienced instability in the past and are prepared to weather the storm of the current conditions.

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