A Japanese warship equipped with a high-tech Aegis missile detection system left for Indian Ocean on Dec 9, a controversial move some analysts say signals support for a possible U.S.-led attack on Iraq.

Japan now has four of ships, another is on order and funds have been requested for one more.

In other high tech circles, accounting software makers are trying to capitalize on a string of high profile scandals by developing computer programs that flag unusual bookkeeping and launch investigations with little human intervention.

As technology advances few components are as vital as circuitry being used and most of that technology is U. S. property. During boom and bust days of semi conductor industry, trade swung from U.S. dominance to Asian markets and back again.

China too has been getting more involved as a world player in these fast-paced shifts of economies, providing many labor intensive tasks for lower wages that manufactures have chased around world to find. In every shift of that economy, countries have been left with idle workers as competitive prices forced component manufactures to seek new sources.

While high tech economies continue to shift, American circuit manufacturing is still dominant player. According to Standard & Poor's, their investment outlook for S&P Electronic Equipment and Instruments Index is neutral overall, but they view positively electronic contract manufacturing component of Index. S&P also believes economic recovery may not occur until second half of 2003, as sub-industry group's recent 13-week decline supports their view that overall business spending will not recover that quickly.

S&P View of Electronic Contract Manufacturing Remains Positive

Industry fundamentals are improving; inventory levels have declined considerably, book-to-bill ratio for printed circuit boards is well above trough levels, and production of goods is being shifted to lower cost world regions.

A trend toward out sourced manufacturing is gaining momentum, as companies seek to reduce costs while focusing on marketing and R&D efforts.

Over long-term, technological and process innovations continue to spur demand for more advanced tools, aiding future earnings growth in industry.

For electronic contract manufacturers, there has been a significant shift by computer hardware, networking and other vendors toward out sourcing manufacturing, and this trend shows no signs of abating.

Several companies are already showing signs of this shifting market, Jabil Circuit (NYSE: JBL) shares have climbed 14% in last 30 days to close Friday at $18.30 after steadily declining from their 52 week high of $27.

A smaller player in circuit board field, Integrated Performance Systems (OTCBB: IPFS) has shown similar swings in market trading to Equipment and Instruments Index, closing up Friday 13.4% after being added to Axcess Business News "best picks" Stock Guide that morning. IPFS closed Friday at $1.10.

Although Integrated Performance had a 52 week high of $2.25, its shares faired better than JBL over that period showing similar declines but recovering on news of improved sales. The company had announced record volume of new orders on Nov 13 and announced an additional order on Nov 26, outpacing its Industry Groups overall performance.

(The above chart compares IPFS to JBL for prior 52 weeks, IPFS is shown in black and JBL is in brown)

Where is market going

Defense giants typically out source many component requirements to small companies. Axcess Business News had touched on that area in our prior Top Story, "From Smart Bombs to Smart Bags - technology is in demand."

When is best time to prepare for your success in life?

What's that you say? " I have to actually have to prepare for it? Doesn't success just happen?"

No. It doesn't. If you want to improve your life you have to take action.

An article by Jim Rohn who is a well-known motivational speaker said:

"Here's great challenge of life. You can have more than you've got because you can become more than you are.

I have found that income seldom will exceed your own personal development. Once in a while income takes a lucky jump, but unless you grow out to where it is, it will go back to where you are.

Somebody once said if you take all money in world and divided it among everyone equally, it would soon be back in same pockets.

However, you can have more because you can become more. Unless you change how you are, you will always have what you've got.

In order to have more, you have to become more."

Are You Prepared To Take A Risk? Doing things you haven't done before can be risky, however if you don't take any risks you will live a very unfulfilling life.

My Friend Mike Mike has worked 12 years for a large corporation. Very secure, lots of perks and he received a reasonable income. He had a job for life.

The only drawback, after a few years - it was boring. He was miserable. He was wasting his life away. The organisation was big enough that he could transfer to different positions within company - which he did do so. However, culture of company was same wherever he transferred to. The environment wasn't stimulating and Mike found he was not stretching himself. He was existing and not living. He was too comfortable.