June 27 Newsletter

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Many Unanswered Questions Remain Regarding Tariff Implementation

ECIA recently conducted a small survey of its distributor and manufacturer members regarding the impact of the tariffs that are scheduled to be imposed on July 6th on the importation of various electronic components made in China. The tariffs are likely to have significant and varying impacts on U.S. companies and the authorized electronic component supply chain. There is also a high degree of uncertainty about implementation of the tariffs and how importers will handle the new tax.

The survey indicates that the current consensus among distributors and manufacturers is that the tariffs will flow through the supply chain to the end customer. There is not enough information at this time to determine whether the tariff will be clearly identified on invoices as a separate line item or be passed on from manufacturers as increased resale cost.

There remain many unanswered questions about the implementation. ECIA will continue to monitor the situation and keep members informed of developments. Members are encouraged to share with ECIA (Robin Gray, rgray@ecianow.org) how the tariff on Chinese components may impact their business and what implementation challenges they are facing.

World Passive Component Trade Statistics Meeting

The 2018 World Passive Component Trade Statistics Meeting, held in Atlanta, Georgia on June 13th and 14th, brought together three regionally operated trade associations whose legacy organizations (EPCIA, JEITA, and ECIA) have been publishing global statistics for passive components for more than 30 years. The forum rotates regionally every two years, providing an on-going refresh and review of processes, practices and procedures to continuously assure legal and regulatory compliance at every step. The WPTS statistics programs are recognized worldwide for accuracy, quality of data, and industry participation.

Attendees were manufacturers of passive components and presentations covered a range of issues including a presentation from Dr. Phillip Lesner, Chief Technology Officer of KEMET, who spoke on the Impact of the AI Market and Big Data on Passive Components. Dennis Zogby, president and CEO of Paumanok Publications, Inc., a market research company located in North Carolina, presented the results of his market research on the current market conditions and the future outlook for passive components; with emphasis upon MLCC and Thick Film Chip Resistors. There were presentations from both Europe and Japan on the current and future outlook for passive components in their respective markets.

"The WPTS meetings provided great insight into the global passive component market," commented attendee James Mullane, COO of Stackpole Electronic. "It was very interesting to hear the perspective from the different regions, to understand the common problems and opportunities that we are all facing, and to learn about the unique challenges of each market."

"We are very pleased at the high level of engagement from the industry to facilitate solutions to very real issues like component shortages amid exploding demand for passive components," explained Jim Bruorton, ECIA's Vice President of Industry Statistics and Business Analytics. "ECIA's global connections bring a broader perspective for our members, enabling a quick and effective response to international challenges."

Thanks to our generous sponsors: Murata Electronics N.A., Inc., Cornell Dubilier Electronics, Inc., KEMET Electronics Corp., and Vishay Electronic GmbH

Did You Know?
ECIA Foundation Site Posts Links to Your Job Openings

The ECIA Foundation publishes links to member company sites that feature job openings and career opportunities. Do you have openings? Send us the web link and it will be added to the career page.