The 2020 Mid-Year Economic Update_long

Electronics Distributors Say Demand Weak

Electronics distributors were the focus of a recent article by Reuters, which said that the companies reported no improvement in demand except in China and a few niche areas. But the article offered some relatively positive news. The supply chain is moving again "after practically grinding to a halt."
 
Still, the CEO of Ingram Micro - Greg Spierkel - told Reuters that "green-shoot messages" are premature. He went so far as to say that the industry is in the worst stages, and if it has not yet hit bottom, it will in the coming months. Avnet's CEO had similar sentiments.
 
The article did say that distributors expect to benefit from falling ...
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Electronics distributors were the focus of a recent article by Reuters, which said that the companies reported no improvement in demand except in China and a few niche areas. But the article offered some relatively positive news. The supply chain is moving again "after practically grinding to a halt."
 
Still, the CEO of Ingram Micro – Greg Spierkel – told Reuters that "green-shoot messages" are premature. He went so far as to say that the industry is in the worst stages, and if it has not yet hit bottom, it will in the coming months. Avnet’s CEO had similar sentiments.
 
The article did say that distributors expect to benefit from falling average selling prices for electronics, which should push more product to them to sell (rather than being sold direct from the suppliers). In addition, back-to-school season, coming up in a couple of months, is a high point for the year.

Read the Reuters article on demand for electronics here.

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