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September Component Orders Record Big Gain Over 2002, ECA Says
October 14, 2003 |Estimated reading time: 1 minute
Arlington, Va. — Electronic component orders continued to gain momentum going into the last third of 2003, according to the monthly index issued by the Electronic Components, Assemblies & Materials Association (ECA).
September orders showed the largest gain this year over 2002 orders in the same month. Manufacturers, distributors and manufacturers' reps all are indicating increased levels of activity, which is now being reflected in the ECA index. This coupled with inventories at the lowest level and available capacities slowly being used should bring some stability and maturity to the past downward pressures on component average selling prices.
Although still cautious, industry watchers are heartened by good signs. Sales for semiconductors, notebook computers and mobile phones are increasing, which usually translates into growth for electronic components. Increases in demand for electronic components usually lag semiconductor industry growth by six months or so, according to Willis, but efficiencies in the supply chain are decreasing the lag time. Seasonal demand for end products should also be an asset to electronic component suppliers.
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.