Look to the Ever-Nimble Tech Sector to Forecast Economic Recovery

All too familiar with the ravages of the late-90s tech bubble, tech companies are not playing the fool this time around.


Though they are by no means seeing stellar profits--in fact sales were down ten percent in March--the tech sector is looking significantly better than other areas for one key reason:

When the economy went south in the fourth quarter many retailers halted new orders from Asia immediately fearing they would be left with excess inventory collecting dust on their storerooms. This was the case in 2001 when Cisco had to write off $2.5 billion in unsold stock.

An ability to stop the supply chain at the drop of the hat is one of the sector's great advantages over others, and they are equally nimble to restart orders when the climate improves. Also, real-time order tracking only improves tech's ability to gauge precisely when and where a certain volume of products will hit the market.

Giving an update on his company, Intel CEO Paul Otellini told Wired that "the worst is now behind us from an inventory correction and demand level adjustment perspective." Unless they have to make many further inventory corrections, it all looks good for tech being at the front of the line when a recovery finally kicks in.

Big Think Edge
  • The meaning of the word 'confidence' seems obvious. But it's not the same as self-esteem.
  • Confidence isn't just a feeling on your inside. It comes from taking action in the world.
  • Join Big Think Edge today and learn how to achieve more confidence when and where it really matters.
Sponsored by the Institute for Humane Studies
  • There are 2 different approaches to governing free speech on college campuses.
  • One is a morality/order approach. The other is a bottom-up approach.
  • Emily Chamlee-Wright says there are many benefits to having no one central authority on what is appropriate speech.

USA ranked 27th in the world in education and healthcare—down from 6th in 1990

America continues to tread water in healthcare and education while other countries have enacted reforms to great effect.

Joe Raedle/Getty Images
Politics & Current Affairs
  • The American healthcare and education systems are known to need some work, but a new study suggests we've fallen far in comparison to the rest of the world.
  • The findings show what progress, if any, 195 countries have made over the last twenty years
  • The study suggests that economic growth is tied to human capital, which gives a dire view of America's economic prospects.
Keep reading Show less
Big Think Edge
  • Economist Sylvia Ann Hewlett breaks down what qualities will inspire others to believe in you.
  • Here's how 300 leaders and 4,000 mid-level managers described someone with executive presence.
  • Get more deep insights like these to power your career forward. Join Big Think Edge.