ARLINGTON, VA - The monthly order index compiled by the Electronic Components, Assemblies & Materials Association (ECA) continued rising in September, closing out a strong third quarter. Through the first three quarters of 2005, the ECA order index has been the inverse of 2004. Last year, order growth boomed at the start of the year and remained fairly strong before dipping in the second half. This year started out weakly as manufacturers built up confidence in the market. Order growth fluctuated during spring and early summer, and then moved steadily upward over the last three months.
“Manufacturers still have a fair amount of apprehension, especially with rising energy prices and political uncertainty, but the overall atmosphere is optimistic,” says Bob Willis, ECA president.
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Recent outlooks for electronic component manufacturers are good. Supply-chain service provider iSuppli (El Segundo, CA) increased its forecast for global liquid-crystal-display (LCD)-TV shipments, predicting a rise to 61.2 million units in 2009, expanding at a compound annual growth rate of 47.2% from 8.9 million units in 2004. Organic light-emitting-diode (OLED) displays will rise 82% in the second half of 2005 compared with 2004, according to analyst firm DisplaySearch (Austin, TX).
After staying lean in the first half of this year, chip makers are experiencing a strong second half, with low inventories, rising utilization, and growing equipment orders, according to analysts at VLSI Research (Santa Clara, CA). Semiconductor analyst firm Advanced Forecasting (Saratoga, CA) predicts that the semiconductor market will achieve double-digit growth in 2006 compared to this year.
“We might be seeing greater transparency within the supply chain that is helping manufacturers better gauge and respond to the market,” says Willis.
