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Buyers increase order volumes, but prices are staying put

By James Carbone -- Purchasing, 2/12/1998

Although prices remain mostly steady, there are indications that supply is becoming more in line with demand, according to Purchasing Magazine's monthly survey of electronic buying conditions. More buyers report they are increasing their order volumes; a higher percentage report longer leadtimes for components; and, an increasing percentage are reporting some items in short supply.

The survey for January found that 70% of buyers say prices are stable, down from 77% in December. Fifty-seven percent say they will increase their order volumes over the next 90 days. That's up from 48% from the previous month. And 28% report longer leadtimes, up from 23% in December.

Meanwhile, for the second straight month, buyers report shortages of some items. Thirty-seven percent report some items in short supply, the same percentage as the previous month. For most of 1997, only 20%-25% of buyers said that there were component shortages. Among components reported in short supply in January were aluminum electrolytic capacitors, discrete semiconductors, and some sensors.

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