Buyers expect to increase new orders

By Staff -- Purchasing, 3/22/2001

While supply conditions for electronics have loosened compared to six months ago, few buyers are reporting falling prices and shorter leadtimes, according to PURCHASING Magazine's survey of electronics buying conditions in February. Only 7% say prices are falling and 17% report leadtimes are shortening. Most say prices and leadtimes are steady, compared to the month before.

There don't seem to be widespread shortages of parts. Forty-one percent say there are some parts in short supply.

Many in the industry are wondering when the excess inventories lingering from the fourth quarter will be worked off and buyers will increase orders for parts. That may occur in the next 90 days, according to the February survey. A hefty 47% say they will increase their order volumes in the next quarter. That's up from 33% in January.

However, buyers are almost evenly divided about whether business will improve in the next 80 days. Thirty-five percent say they expect business will get better, but the same percentage says it will stay the same, and the remaining 30% say business will get worse.