What's Hot
James Carbone -- Purchasing, 6/17/2004 2:00:00 AM
The mood at last month's Electronics Distribution Show was upbeat and marked a change from previous shows over the past three years.
Distributors and component manufacturers attending EDS said that the industry recovery, which began in the second half of 2003, carried over to the first quarter. Most suppliers reported strong component demand in the first part of the year, which is unusual because the electronics business usually slows down in the first quarter. EDS attendees report that with healthy unit shipments, prices were firming and, in some cases, rising. Distributors and manufacturers expect component demand to build through the year, especially in the second half.
The transition of large-volume manufacturing to low-cost Asian countries is troubling for most North American-based distributors. However, most seem to be intent on developing new accounts in North America in the auto and medical equipment industries, among others.
Some distribution executives shrug off the offshore movement of high-volume manufacturing. They note that large-volume manufacturers buy direct and were never big customers for most distributors. Most distributor business is with small- and medium-sized OEMs and contract manufacturers. The executives are confident that as long as the electronics industry's business remains strong overall, electronics distribution will continue to grow.
Now Playing: 