Electronics market steady in first half of 2020
Revenues in the electronic components market for the first half of 2020 are better than expected in spite of the COVID-19 pandemic, but there are supply chain concerns.
Electronics component revenues in the first half of 2020 were much more solid than originally feared and solid expectations for the second half remain according to the ECIA’s latest survey. However, the ability to manage the pandemic continues to be an ever-present factor for supply chain managers as they look forward.
Survey responses across a range of measures show a significant jump in concerns regarding the health of the electronics components supply chain. While concerns about end-market demand remain high, the index of concern regarding raw materials disruption, shipping and logistics disruption and electronics components production jumped from their lowest levels measured in July back to the peak levels last seen in April and May. Concerns regarding electronics systems manufacturing continued to increase from the lows seen at the end of May.
In contrast to concerns reported about the supply chain, the index for the impact of COVID-19 on the ability to supply passive components and semiconductors on time saw a significant reduction and electro-mechanical components only increased slightly since the latest survey. “There continues to be some cognitive dissonance in the survey results between the impact on ‘on-time’ delivery and the overall trends for increased lead times due to COVID-19,” said ECIA chief analyst Dale Ford in a press release. “The index for all three major component categories registered a notable jump in expectations for increased lead times.”
ECIA began conducting surveys of member manufacturing and distributor companies at the start of February to provide visibility on the ever-evolving impact of COVID-19 on the electronics components supply chain. It has been one month since the last ECIA survey focused on the impact of COVID-19 on the electronics components supply chain. This most recent survey was conducted between Monday, August 10th and Monday, August 17th.
– Edited from an ECIA press release by CFE Media.