Positive developments in both economic progress and battling the pandemic have buoyed the manufacturing world, including participants in the electronics components supply chain. The latest results from the ECIA survey on the COVID-19/Coronavirus impact reveal a renewed surge in supply chain health and optimism. However, there is still cause for concern as many experts express concern about a possible pandemic resurgence as the Northern Hemisphere approaches the winter months.
“Analysis of the latest ECIA survey reveals a supply chain that has returned to its healthiest condition since early 2020,” explained ECIA Chief Analyst Dale Ford, and author of the report. “This is true in almost every measure covered in this report. It has been one month since the last ECIA survey focused on the impact of COVID-19 on the electronics components supply chain. While the August survey responses across a range of measures showed a significant jump in concerns regarding the health of the electronics components supply chain, the September survey reports a complete reversal of that surge of concern. Measurements related to on-time delivery, strength of the end-markets and order backlogs, the health of each stage of the supply chain, etc. all show highly positive results. It appears that the concentrated, collective management of the supply chain, building on a wealth of experience in managing previous crises, has enabled the electronics components industry to successfully navigate this uniquely challenging year,” he added.
Coronavirus Survey Results Synopsis – Update 11, September 18; Detailed survey results are available to ECIA Members only.
Many improving economic indicators continue to lend strength to the manufacturing sector. A recent Wall Street Journal (WSJ) report highlighted a return in global trade that is faster than expected. The WSJ article trumpets, “Global trade is rebounding much more quickly this year than it did after the 2008 financial crisis, lifting parts of the world economy and defying predictions the pandemic could send globalization into permanent retreat.” They share data from IHS Markit that shows 14 of 38 economies reporting growth in new export orders in August compared to just four in June with many others trending in the right direction. In addition, major ports in China are surpassing 2019 shipments with increasing frequency and South Korean exports were only 0.2% below the same period in the prior year for the first 10 days of September. As the electronics industry benefits from global trade, this report is a highly encouraging indicator.
About ECIA
The Electronic Components Industry Association (ECIA) is made up of the leading electronic component manufacturers, their manufacturer representatives and authorized distributors. ECIA members share a common goal of promoting and improving the business environment for the authorized sale of electronic components. Comprised of a broad array of leaders and professionals representing all phases of the electronics components supply chain, ECIA is where business optimization, product authentication and industry advocacy come together. ECIA members develop industry guidelines and technical standards, as well as generate critical business intelligence. For more information, visit www.ecianow.org or call 678-393-9990.
