October 13, 2003 – After a sluggish August, electronic component orders in September recorded the best year-to-year growth so far in 2003, according to the Electronic Components, Assemblies, & Materials Association (ECA).
“Manufacturers, distributors, and manufacturers’ reps are all indicating increased levels of activity,” said Glyndwr Smith, immediate past chair of the ECA’s board of directors. Smith, also Vishay Intertechnology’s executive VP for marketing intelligence, pointed to low inventory levels and a gradual using up of available capacity as the main factors countering downward pressures on component ASPs.
While increases in demand for electronic components usually lag chip industry growth by six months, better supply chain efficiencies are closing this gap, according to ECA president Bob Willis. “Most manufacturers are seeing a continued increase in sales activity,” he said. “If pricing pressures continue to ease, profits will again be part of the electronic component suppliers’ lexicon.”