Electronic component orders took a predictable downturn in January, according to the four-to-five-week index compiled by the Electronic Components, Assemblies & Materials Association (ECA). The 12-month average, which compares results to the previous year, stayed steady.
“End-user companies typically evaluate fourth-quarter results and plan their sales strategies in January,” says Bob Willis of the ECA. “Component orders then begin gaining momentum around the middle to end of the first quarter.”
Although the electronic components market is expected to continue on a course of steady growth this year, one concern is the increasing demand for commodity capacitors and resistors
“Electronic component companies throughout the supply chain need to be prepared to handle a shift in market dominance that could result from increasing reliance on commodity products,” says Willis. “This issue affects everything from raw materials to manufacturing, distribution, outsourcing, capacity and profit margins.”
The Electronic Components, Assemblies & Materials Association (ECA) represents manufacturers and producers of passive and active electronic components, component arrays and assemblies, and materials and support services. It is a sector of the Electronic Industries Alliance (EIA), representing more than 1,300 companies.
