Current Terminal market demand Outlook is a little uncertain, this uncertainty stems from the global market uncertainties, the current market situation changes very fast. Despite this uncertainty, we continue to see TE in the new product technology and there are a lot of opportunities in fast-growing markets. Judging from the Chinese market, first half of 2013 remains our focus, we have product superiority and characteristics of traditional markets, such as data communication, industrial, automotive, consumer electronics and home appliances market. In these traditional markets, we found to be very suitable for TE products of emerging technology trends and features, we are also providing intelligent solutions to your customers.
Last quarter of 2012 Terminal Electronics Show overall demand is weak in the market. Now, we see a tightening of the supply chain, but the inventory level remains at medium. Of course, we expect market demand in 2013 to be flipped. TE is working closely with channel partners build strategic stocks, so that the 2013 business activity accelerating growth to better serve our customers and meet their needs.
With rising raw material and labor costs,
Terminal block product prices are also rising, even if we see a sharp decrease in raw material costs to get, I believe that we cannot see in the near future, even terminal costs will decline, because the Terminal industry many of the raw materials needed are based on long-term supply contracts. Therefore, Terminal price pressures will likely maintain upward trend at least in the near future, but until the end of 2013, price pressures may tend to be gentle.
In terms of deliveries, owing to the terminal type is very rich, more than 100 manufacturing plants, so delivery time reduced to 1 cent of significance are not significant. However, I want to say is that the product delivery time is the continuous improvement of the overall trend, because the factory of the world and China in particular plant we are increasing capacity.
Worthy of special mention here is the renewable energy market. Renewable energy is now a very mature market, there are many manufacturers and suppliers involved in the future development of the market will gradually become TE Centre of gravity, because we believe that the demand is very strong for a long time, been weak recently because of poor global economic conditions. Overall, the TE of the future development of the center of gravity is in urgent need to increase efficiency and provide customers with new products to reduce costs.