Company spending on technology goods and services is set to continue its downward slide this year and may prove to be worse than 2001’s slowdown.
Worldwide information technology spending is estimated at $3.2 trillion for 2009, down 4% from roughly $3.4 trillion in 2008, according to Stamford, Conn.-based market researcher Gartner Inc.
“IT organizations worldwide are being asked to trim budgets, and consumers are cutting back on discretionary spending,” said Richard Gordon, research vice president and head of global forecasting at Gartner.
The 4% yearly decline is worse than the 2% dip the industry saw in 2001 after the tech bubble burst, Gordon said.
Gartner projects spending on computers and related products will be off 15% this year, information technology services will be off 2% and telecommunications gear will be off 3%.
The one bright spot is spending on software,which is projected to grow slightly this year.
Creative Cost Cutting
Santa Ana’s TTM Technologies Inc., a maker of printed circuit boards, is making efforts to avoid laying off more workers.
Some 900 workers at its Chippewa Falls, Wis., plant will put in 32 hours per week instead of 40 and keep their jobs, according to an Associated Press report.
Chief Financial Officer Steven Richards said the plant already has cut about 90 temporary employees because of a lack of work.
The company’s also used temporary furloughs to avoid laying off more workers.
TTM is the largest private employer in Chippewa Falls, which has a population of around 13,000, according to the report.
It’s the third biggest contract electronics manufacturer in Orange County with some 400 workers here.
In January, TTM said it’s shuttering a plant in Redmond, Wash., and slashing roughly 500 jobs companywide due to slumping demand for electronics that use its circuit boards.
Some of the factory equipment from Redmond were sent to TTM’s other sites in California, Connecticut, Utah and Wisconsin.
The company plans to sell the Redmond site and the rest of its machinery.
The moves are expected to save $20 million to $25 million a year.
For 2008, TTM saw sales of $715 million, up 2% from 2007. It posted 2008 profits of $137 million, up 5% from 2007.
Its shares are off about 45% in the past 12 months on a recent market value of roughly $275 million.
TTM has 11 factories, most of which are in the U.S.
In Santa Ana, the company does more complex work for customers in aerospace, networking and industrial computing.
Locally made TTM circuit boards go into industrial routers and switches made by one of its biggest networking customers, Cisco Systems Inc.
BlackBerry App
Aliso Viejo’s Networks in Motion Inc., a startup maker of navigation and local search software for mobile devices, recently announced its first application aimed at CrackBerry, err, BlackBerry users.
The company launched the Gokivo Navigator, which is available for purchase via Research in Motion Ltd.’s BlackBerry App World.
BlackBerry App World is analogous to Apple Inc.’s iPhone App Store,where thousands of software programs can be purchased and uploaded to the device.
The move is a bit of a departure for Networks in Motion.
The company typically sells directly to cell phone carriers and manufacturers customized versions of its cell phone navigation services.
Customers include Verizon Wireless, a unit of New York’s Verizon Communications Inc., and Sprint Nextel Corp.
Gokivo Navigator allows customers to monitor real-time traffic conditions such as congestion levels and road delays.
It also can search current movie listings and find information about nearby concerts, sporting events and other local activities.
Other features: Finding the nearest gas station and checking local prices, weather conditions and forecasts and sharing your current location with friends and family.
The Gokivo Navigator goes for about $10.
Teridian Exec
Irvine’s Teridian Semiconductor Corp. recently tapped an executive to head its networking business unit.
Teridian hired Jay Cormier, 46, as vice president and general manager for its networking and secure access division, which makes chips for modems, smart cards and other Ethernet devices.
Cormier is set to report to Chief Executive Gerald Fitch and is in charge of product development, support, marketing and financials for the unit.
Cormier hails from Redondo Beach-based Sierra Monolithics Inc.
He’s also done stints at Newport Beach’s Mindspeed Technologies Inc. and Milpitas-based Sipex Corp.
Teridian’s chips go into utility meters, server computers, set-top boxes and other industrial gear. It has about 85 workers here.
