The good times for electronics buyers keep rolling along.

Supply is plentiful and prices are soft to falling. The supply scenario of 2001 has carried over into 2002 to no one's surprise.

The good news for buyers is that supply conditions will stay loose for much of the year although there could be some tightening of supply in the fourth quarter (see story on p. 35).

The survey of electronics buying conditions in January shows that OEMs are still reducing inventories. Fifty-nine percent report they are still whittling stockpiles, indicating the inventory glut of 2001 has not yet been worked off.

While inventories are still being cut, few purchasers are increasing their orders. Only 28% of buyers say they will be increasing their order volumes over the next 30 days, while 36% expect to be reducing their POs.

With few buyers increasing orders and inventory cutting still occurring, it's no surprise there are few parts in short supply. Only 9% of buyers surveyed say there are parts shortages. Any shortages are likely to be short-term caused by temporary upticks in demand.

Prices also remain low and about 60% of buyers say prices are still declining.