Electronic component orders dip in January, but outlook still bright, ECA says
Despite rising energy costs, a depressed housing market and the sub-prime lending debacle, the ECA reminded that most researchers are predicting that this year the electronic components market will grow at about the same rate or slightly better than 2007, with the markets that dictate supply and demand for electronic components continuing to look good despite economic uncertainties.
By Ann Steffora Mutschler, Senior Editor -- EDN, February 15, 2008
Following an upswing in December upswing, orders for electronic component dipped in January, according to Arlington, Va.-based Electronic Components Association (ECA)’s four-to-five week average index.
As such, the 12-month electronic component order average remained relatively flat, the association reported.
The ECA reminded that despite rising energy costs, a depressed housing market and the sub-prime lending debacle, most researchers are predicting that this year the electronic components market will grow at about the same rate or slightly better than 2007, with the markets that dictate supply and demand for electronic components continuing to look good despite economic uncertainties.
Further, the Consumer Electronics Association predicted last month that consumer electronics will grow 6.1% this year, fueled by 13% growth in TV sales, 173% growth in next-generation DVD players, and 50% growth in video game consoles. And iSuppli forecasts a 7% rise in worldwide electronics equipment revenue, driven primarily by data processing and wireless communications markets.
“Electronic components isn’t exactly a ‘teflon’ market, but it does have an uncanny ability to weather storms that damage other markets. I think a lot of credit can go to better management of supply chains based on the lessons learned from the ‘great train wreck’ of the market at the turn of the century,” concluded Bob Willis, ECA president, in a statement.
