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ECA Order Index for May Shows Continued Upswing
June 8, 2004 |Estimated reading time: 1 minute
Arlington, Va. — The monthly order index compiled by the Electronic Components, Assemblies & Materials Association (ECA) continued its upswing in May for the 10th consecutive month.The positive index results were echoed by top executives from electronic component and material manufacturing companies gathered at the recent ECA board and membership meeting in Washington, D.C. Some common themes in the executives' state-of-the-industry comments included the following:
- Demand for components and materials is strong across a variety of products, including digital cameras, flat panel displays, cell phones, DVDs and car cockpit electronics.
- Some business is shifting from China back to Mexico or to Eastern Europe in response to logistical supply costs, supply shortages and transportation issues.
- OEMs are in many cases taking back control of the supply chain from EMS.
- Price pressures have eased in the U.S. and Europe, but persist in Asia.
- Companies are moving toward value-added specialty products that can generate better gross margins.
- Quality is important, with buyers looking at vendors with the lowest possible defect rates.
- As companies accelerate hiring, there is a concern about the quality of the U.S. work force.
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. For more information, visit www.ec-central.org.