Component supply chain players look ahead with confidence
EP&T MagazineElectronics Supply Chain components ECIA supply Chain survey Trend
Industry mood buoyed by ECIA’s electronic component sales trend survey in December
Following a year of overall index scores languishing between 72.2 and 90.6, respondents to the December Electronic Component Sales Trend (ECST) survey are suddenly and strikingly optimistic in their expectations for January 2024.
The actual sentiment index result for December came in at 77.8, 5.5 points below the already modest outlook of 83.3 for December as reported in the November survey. For the full year of 2023, none of the major component segments achieved an index score at or above 100 which would have indicated positive sales growth sentiment. Expectations for January have shot up by 27.8 points in the overall index to hit an average of 105.6 points.
“If this projected growth is actually realized in January,” commented ECIA Chief Analyst Dale Ford, “it would be the strongest month-to-month growth in the history of the index, with the exception of one month in June 2020. As always, some caution in expectations is prudent given previous disappointments in index results falling below expectations. However, even if the index achieves half of the forecast improvement in January, it will represent an extremely healthy start to the year,” Ford concluded.
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The ECST survey provides valuable and detailed visibility on industry expectations in the near-term through the monthly and quarterly surveys. This “immediate” perspective is helpful to participants up and down the electronics components supply chain. In the long-term, ECIA shares in the optimism for the future as the continued introduction and market adoption of exciting innovative technologies should motivate both corporate and consumer demand for next-generation products over the long term.
The complete ECIA Electronic Component Sales Trends (ECST) Report is delivered to all ECIA members as well as others who participate in the survey. The monthly and quarterly ECST reports present data in detailed tables and figures with multiple perspectives and covering current sales expectations, sales outlook, product cancellations, product decommits and product lead times.