Electronics buyers increase orders for components
But prices for semiconductors, other components are steady
Jim Carbone -- Purchasing, 10/29/2009 3:48:58 PM
More electronics buyers are increasing purchase orders (POs)
and building inventory levels, but are not paying more for parts, according to
purchasingdata.com’s monthly survey of business conditions in the electronics industry.
The percent of buyers reporting they are increasing purchase orders has been 47% or higher for the past three months. That’s significant because in the first quarter, 20% or fewer buyers reported POs were increasing.
At the same time, more buyers are increasing inventory levels of electronics. Twenty-three percent of buyers said they were building electronic component stockpiles.
While that may seem like a small percentage, in fact it is the highest percentage of purchasers building inventory levels since September 2007. It is an indicator that buyers expect that demand for their companies’ end equipment to grow.
While buyers are increasing orders and suppliers are seeing see greater demand for components, prices are not increasing, according to electronics buyers. Eighty-two percent say semiconductor prices are stable and only 4% report rising prices. The rest say prices are declining. It’s the same story with passives with 81% reporting steady prices, while 15% say prices are falling.
See also:Business Intelligence - Business condition; purchase orders; semiconductor prices
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