ATLANTA – The Electronic Components Industry Association’s ongoing survey of members regarding the impact of the pandemic on the electronic components industry shows easing concerns regarding the health of the electronics components supply chain. The latest survey was conducted between Jul. 8 and 15.
Concerns about end-market demand remain high, and there is a modest increase in concern regarding electronics systems production. On the other hand, electronics component production and raw materials supply saw notable decreases in concern.
The index for the impact of Covid-19 on the supply of passive and electromechanical components continued to trend down in the latest survey, while semiconductors saw a reversal to its previous higher level of concern. There is some cognitive dissonance in the survey between the supply chain impact results and the overall trends for increased lead times due to Covid-19. The index for passive and electromechanical components measured expectations for increased lead times, while semiconductor lead times are expected to decrease.
“There is no clear trend one way or the other in the overall economy, and that is reflected in the electronics components industry,” said Dale Ford, chief analyst, ECIA. “Revenues in the first half were much more solid than originally feared, and hopes for the second half remain. However, as always, the ability to manage the pandemic is overriding all other factors as we look forward. The challenges of the pandemic remain, and concerns regarding a ‘second wave’ continue.”
ECIA began conducting surveys of member manufacturing and distributor companies at the start of February to provide visibility on the ever-evolving impact of Covid-19 on the electronics components supply chain.