ECA Order Index Shows Continued Growth in March


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Arlington, Va. — The monthly order index compiled by the Electronic Components, Assemblies & Materials Association (ECA) continued its slow upward movement in March, creating hopes that profits will follow.Manufacturers are reporting some isolated supply shortages, which could spur demand and raise average selling prices (ASPs). Recently, UBS Securities reported that multi-layer chip capacitor (MLCC) supply is expected to fall short of demand in the second half of this year, which could create a 5 to 15 percent price increase. In other areas, however, even substantial growth will not ease price pressures. Market researcher IDC predicts a compound annual growth rate of 15 percent for LCD panels between 2003 and 2007, with 56 percent growth in this year alone. But IDC predicts the market will be oversaturated during that period, leading to price erosion.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.

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