After a very buoyant 2022 for nearly everyone in the electronics supply chain, how will 2023 perform regarding allocation, lead times, inflation, obsolescence and the US economy?
John Drabik
President, TTI Americas:
2021 and 2022 have been a record-setting years for many in the electronic components industry, but we are now beginning the transitional phase to slower growth as we face a range of macroeconomic headwinds and a rebalancing of inventory across the supply chain.
As we enter 2023, I expect demand and lead times for IP&E products to slowly decrease as supply and true demand begins to align. Cancellations, reschedules, inflation, labor and supply chain disruptions will continue to challenge the industry throughout the first half of 2023.
Despite the macroeconomic uncertainties, I expect demand from Military/Aerospace, Industrial and the Transportation Segments to remain resilient. New design activity will also increase as Design Engineers pivot from chasing parts to focus on new product development and innovation that will drive future demand for years to come. At TTI, our focus will remain consistent, we will continue to invest in people and parts.
Yes, 2023 will feel different but be assured the long-term growth fundamentals in the electronics component industry remain solid.
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