March bounce in electronic component orders

Electronic component orders bounced back slightly in March from lows in the first 2 months of the year, according to the monthly index compiled by the Electronic Components Association (ECA). The 12-month average, comparing this year's results to last year's, continued a descent that began last summer. "I think we are seeing adjustment of inventories from manufacturers and distributors based on market slowdown," says Bob Willis, ECA president. "The industry learned a lot from the train wreck of 2000. There is more transparency in the supply chain, enabling companies to better anticipate changes in demand and adjust accordingly." Except for the military electronics market, adjustments will need to continue being made to accommodate lower market demand, according to a recent report from Henderson Ventures. Henderson anticipates that global electronic equipment production will fall by 11.9% this year, compared to a 0.2% gain in 2008. When the recovery comes, it will be modest: only a 4.6% gain is predicted for 2010. Source: Electronic Components Association, April 2009