SHIRLEY, New York, Feb. 12, 2018 (GLOBE NEWSWIRE) -- Electronic parts distributor, 1-Source Electronic Components, has analyzed the recent conditions in the global electronic components market and issued its industry outlook for the coming year.
It is important for manufacturers and distributors to consider the likely upcoming market conditions and plan accordingly to avoid disruptions in assembly lines and supply flow. As a 16-year veteran of the electronics market, 1-Source has a finger on its pulse day-to-day.
There are many variables that will affect what actually occurs, including such things as the economy, politics, new technological developments, and changing consumer trends. These in turn will affect what products are produced, including new products entering the market, others being discontinued, and the quantities being produced. And in turn the demand for the components used to manufacture the end products, which ones will see decreased demand, increased demand, and consequential changes in price.
In many cases the price is not the most important factor. The inavailability of components that reach a state of higher demand than supply can disrupt manufacturing. Thus not only prices, but also availability, and lead times must be considered during product design or re-design. Lead time, the time it takes to receive a product once ordered, can be days, weeks, even months. Clearly that can have a huge impact on a business.
Fueled by unprecedented strong consumer demand, electronics manufacturing in America and globally was strong in 2017, and 1-Source expects it to remain strong, even grow by a noticeable percentage, in 2018. Correspondingly electronic component distribution grew noticeably in 2017, with some segments seeing the strongest and longest-sustained growth in a-decade-and-a-half, and 1-Source expects that growth to continue into and throughout 2018.
The many manufacturers and distributors that have been adversely affected by the Great Recession, but managed to survive it, have seen these improvements as a welcome partial recovery. They will be relieved to see the trend continue in 2018. For many who had to be scrappy, downsize, or make cutbacks to survive in recent years, they may be able to do some rebuilding or invest in improvements in the coming year.
Resulting from all this growth and demand have been decreased availability, increased lead times, and increased prices of electronic components. This trend also will likely continue well into 2018. Component manufacturers have responded by increasing production or expanding production capability. However as a result of the previous downturn they are being cautious about expansion and so not likely to keep up with demand. This means manufacturers need to be in communication with distributors and carefully consider the components being designed into their products, and do what can be done to minimize availability issues.
Independent distributors such as 1-Source are a resource to manufacturers and can use their global reach in both franchised and OEM excess inventory to help avoid or minimize availability and lead time issues. When a manufacturer determines that the availability of a component in one of their products is likely to cause production delays, they may be able to use equivalent parts by other component manufacturers or even parts with different specifications if necessary. One of the reasons manufacturers come to distributors like 1-Source for parts is that they help manufacturers "spec in" equivalents when necessary.
Manufacturers also use independent distributors like 1-Source to locate hard-to-find parts and keep assembly lines moving, preventing costly production delays. Engineers and buyers can call for assistance, or perform a hard-to-find part search (http://www.1sourcecomponents.com/search) or request a price and availability quote (http://www.1sourcecomponents.com/quote) online.
Emerging technologies such as all-electric vehicles, self-driving vehicles, smart homes, and the Internet of Things (IoT), will continue to develop at breathtaking pace, and it will be interesting to see what develops in the coming year, and how much it all impacts the market for electronic components distribution.
For more information about electronic components, call 1-Source at 1-800-966-8826 in the US or 1-631-624-2479 outside the US, or visit the company’s website (http://www.1sourcecomponents.com).