Packaging and assembly equipment orders are seen down 6.1% this year, with a further 13.5% drop next year, before a 26.2% rise in 2013.
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Replacement and repair of this equipment should provide at least a short term revenue opportunity for companies such as KLA-Tencor, Flexstar, Teradyne and Xyratex as well as a host of other component and hard disk drive assembly and test equipment companies .
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This same friend brought the three of us together in a company he had founded that was, among other things, focused on developing maintenance manuals and assembly instructions for capital equipment.
Take, for example, the semiconductor market: Here you have a market that has created employment sectors on its own merit, but has also created support markets in software, fabrication equipment, assembly, packaging, test and chemicals, etc.
After 30 days the group found that if Renault consolidated some assembly functions and reused some equipment instead, the company could slash 40% from the budget.
But it can also be as major as buying new lifting equipment or rebuilding an entire assembly line.
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While Southeast Asian factories may turn out gadgets more cheaply than southeast Tokyo can, only Ota's artisans have the skills to refine precision equipment and create the molds used in Asia's complex assembly lines.
Henry Ford's moving assembly line turned the automobile--once a toy for the rich--into an essential piece of equipment that any worker could buy.
So in case people are wondering whether or not the Recovery Act has created jobs and opportunity for businesses, talk to Chuck. (Laughter.) The new equipment he's ordered to help pave these roads will save an additional 40 jobs on an assembly line out in California.
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