Buying conditions still favor purchasers
By Staff -- Purchasing, 5/20/1999
Electronics industry market researchers say that by the end of 1999 supply conditions will tighten, prices will rise, leadtimes will stretch, and shortages will start to pop up. That may come to fruition, but buying conditions in the second quarter still favor buyers as prices are steady and there are few shortages.A hefty 78% of electronics buyers responding to Purchasing Magazine's survey of electronics buying conditions in April report prices are steady and 11% say they are falling. Leadtimes are also steady, according to 80% of buyers.
Fifty-five percent of buyers say they are maintaining their current inventory levels, while 34% say they are reducing them. Maintaining and reducing inventory levels is an indication of why there are few shortages. Eighty-five percent say there are no electronic components in short supply.
Over the next 90 days, 55% of buyers say they will increase order volumes. Forty-four percent say they are optimistic that business conditions will get better and the same percentage say conditions will stay the same.
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