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Home » Market Update » Electronic supply chains showing signs of recovery

The electronic component and semiconductor supply chains are sending mixed messages, says Design News, but recent studies show there’s room for cautious optimism.

“According to a recent survey of Electronic Components Industry Association (ECIA) members, the electronic component sales expectation jumped to nearly 113 for the month of June compared to May. Improved sales expectations were reported for every major component category including electro-mechanical/connectors, passives and semiconductors,” they report. Further, the overall average outlook for sales by major end markets recovered back to a “stable” level of 100 in the index. 

Dale Ford, ECIA Chief Analyst, cautioned in a press release that the survey was completed before the impact of the recent Black Lives Matter riots were felt businesses across the U.S. “Retail sales will likely be harmed in the near term by the current social upheaval and it is too soon to assess how far this damage will spread.  At a minimum it will likely delay some of the renewed economic activity we have started to see.” 

The strongest end market sales expectations are found in the medical equipment, telecom networks and avionics-military-space sectors.  However, even markets facing a more challenging environment are expected to improve in June, the report noted.

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