Sales Sentiment Decline in Electronic Components Extends into October with Increasing Pessimism Looking Forward
ECIA’s Electronic Component Sales Trend (ECST) October 2022 Survey Results
Dale Ford, Chief Analyst
A precipitous drop in sales sentiment for semiconductors dragged the overall component sentiment index down by 6.7 points to 75.6 in October despite modest improvements in the Electro-Mechanical and Passive Component Indices. The index for semiconductors collapsed from 96.4 in September to 69.2 in October. While memory ICs could be seen as the main driver of this drop in semiconductor sales sentiment, the fact is that every semiconductor subcategory saw double digit declines in October ranging from 14 to 28 points down. By contrast, all other component subcategories except for Capacitors saw modest improvement in October. Capacitors only saw a minor dip in sentiment. Measurements below the benchmark level of 100 indicate negative sales growth sentiment. By contrast, the November outlook points to a drop in sales sentiment for all Electro-Mechanical and Passive component subcategories while Semiconductors rebound slightly. This results in a very closely aligned outlook for all three categories around 72.2 index points in November.
Participate in the ECST Survey now:
- Monthly (Note – The monthly survey is open the first three weeks of the month.)
- Quarterly (Note – The quarterly survey is open February, May, August and November.)
Member of the Week:
We are pleased to honor NAC Semi as ECIA’s Member of the Week.
NAC Semi (NAC Group, Inc.) is a global electronic component design services & distribution company. NAC Semi bridges the gap between the catalog houses and large fulfillment distributors. Their diverse line card supports the design needs of customers in specific market segments including power, mil-aero, hi-temp, industrial, networking, electric vehicles, and traction. NAC specializes in solutions selling and demand creation distribution services, building mutually beneficial partnerships with customers and suppliers.
ECIA thanks the NAC Semi team for the 13 years of support and membership.
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Weekly Member Newsletter
November 23 - Happy Thanksgiving; PACE Update; TrustedParts.com; Webinars; Member of the Week, NAC Semi
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Industry Dashboard
Top 50 Worldwide Authorized Distributors - 2021
Global Distribution Achieves Exciting 2021 Growth
Updated Unique Research on the Top Worldwide Authorized Distributors
Dale Ford, Chief Analyst
This report is the first update to the true original “Top 50 Worldwide Authorized Distributors” research that was published for the first-time last year. According to the research presented in this article, Asia increased its share of the worldwide market of the Top 50 authorized distributors to 75% in 2021. The Americas and EMEA distribution markets see their share of the worldwide market continue to shrink as they come in at 13.6% and 11.4% respectively.
Distributors experienced a break-out year as strong demand propelled growth in the market to new heights. With Asia continuing in its primary driver role, the Top 50 Worldwide Authorized Distributors grew by an amazing 27.9% in 2021. By comparison, the Top 50 Authorized Americas Distributors grew by and impressive 21.9 % in Americas sales. However, this same group of Top 50 Americas distributors combined to outperform overall worldwide sales growth with 30.3% growth in worldwide revenues. Total worldwide revenue for the Top 50 authorized distributors in 2021 grew to $188.1 B from $147.1 B in 2020. Only four out of the top 50 distributors failed to achieve revenue growth in 2021.
Celebrating 100 Years of the Authorized Channel
With a nod to the industry’s start on Radio Row, it is the perfect time to celebrate 100 years of the Authorized Channel and its impact on the tech industry and society.
ECIA assisted with an e-book that recognizes the visionaries and founders of our industry, the companies that made a difference, technology, operational advancements, and the Association - which has helped spur the growth and value of the channel.
GIPC News
The Global Industry Practices Committee is working on a number of issues in 2022.
The Workplace Disruption work group is putting the final changes on its third document and should be publishing it by the end of August. This work group, made up of ten companies, has been working together to continue monitoring the challenges and changes in today’s workplace.
In April 2022, we kicked off the Cybersecurity and Fraud work group populated with Subject Matter Experts from various global companies. This team is working on their first deliverable centered around Risk Management and Ransomware Readiness and are currently completing multiple industry surveys.
Short term, there are teams revisiting two important topics: the first is exploring what we have learned over the past three years regarding the China Tariff process and what are the best and worst practices being used today. The second topic is NCNR (Non-cancellable, non-returnable) orders. ECIA published a guideline document in 2002 and this group will be reviewing it for updates and re-publishing.
The GIPC is also pursuing a consolidated/specific reporting process for global environmental regulations in the electronic component authorized channel. Filtering through the more than 70,000 regulations and standards in this space is a difficult and costly challenge. Plus, the Environmental Compliance SME group will continue updating and monitoring day to day changes and information.
For more information on GIPC activities, please contact Don Elario at [email protected]
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