The COP correction factor coefficients were found using the same procedure as the capacity correction
However, the two-year decline in capital spending has resulted in a capacity correction
, bringing supply and demand into closer alignment.
Cause for optimism: This capacity correction
will reduce the burning need for players to compete in the risky credit game that destabilized our industry to begin with.
Close says that while conditions have stabilized for a few customers, many continue to experience the impact of "severe semiconductor capacity correction
Zane Close, president and chief executive officer of Cerprobe, commented: "Though industry conditions seemed to have stabilized for a few of our customers, many continue to experience the impact of a severe semiconductor capacity correction
Commented Curt Wozniak, CEO of Electroglas, "The entire semiconductor and semiconductor equipment industry continues to experience the most severe capacity correction
in the last 30 years.
We believe that the capacity correction
will continue in 1996, and possibly beyond, and that the consolidation of market share will further benefit the stable, well capitalized operator," Jarvis said.
However, interestingly, a sustained fuel price shock in 2005 could accelerate the arrival of domestic capacity corrections
by bringing about the liquidations of bankrupt US Airways and, potentially, Independence Air, a Washington-based regional jet operator now facing an urgent need for financial restructuring to preserve liquidity.