No end in sight for buyer's market
By Staff -- Purchasing, 6/18/1998
Oversupply continues to grip the electronics industry as many buyers reduce inventories and few parts are in short supply, according to Purchasing Magazine's monthly survey of buying conditions. However, 65% expect business will improve over the next three months and 64% say they expect to increase order volumes over the next 90 days.Forty-eight percent say they are reducing stockpiles, while only 19% are adding to inventories. Eighty-four percent say that there are no items in short supply. There seem to be no shortages of parts that are widely used. Parts that are hard to find seem to be obsolete parts or parts that have limited applications, according to buyers responding to May's survey.
Prices are mostly steady, according to 88% of survey respondents. Seventy-one percent also report that leadtimes are steady, 21% say they are longer, and 7% indicate leadtimes are shorter.
Recent economic reports from major semiconductor companies' market researchers indicate that the buyer's market for parts will continue through 1998 at least and likely into 1999.
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