By many accounts business is picking up in the electronics industry. Suppliers report they are getting more purchase orders from large OEMs. This is reflected in some leading industry indicators such as printed circuit board book-to-bill ratio. The ratio in February was 1.0. That is the second month it was at that mark after plummeting last year as demand for end equipment dried up.

Suppliers say that high inventory levels, which plagued the industry all last year, have been worked off. Prices for some components such as DRAMs are rising. However, while the board book-to-bill is up compared to last year, year-to-date shipments of boards are down 34%, according to the IPC, which publishes the book-to-bill ratio.

While suppliers say business is picking up compared to last year, they also expect 2002 to be flat with 2001. When you consider how poor 2001 was in terms of sales, a flat year does not mean a turnaround.

If suppliers are right, purchasers can expect the buyers' market to continue through the year although prices for some components may bump up a bit as supply tightens especially in the fourth quarter.

jcarbone@cahners.com