Front End | Electronic Components Supply Network
to increase, which is why ecsn members forecasted a return to growth in the later part of 2024, although by how much and when exactly is difficult to determine. Despite the slowing of demand caused by corrections in inventory levels there are many reasons for optimism about our industry’s prospects in 2024: The continuing roll-out of 5G handsets and related infrastructure, IOT, cloud computing / high performance computing and developments in the automotive sector are the likely ‘primary demand drivers’ in global applications and for obvious reasons, military and aerospace will remain strong. In the UK and indeed in most of Europe, the market for electronic components is driven by the industrial, professional equipment and increasingly by automotive but growth in areas such as electronics infrastructure and EV charging present great opportunities for the UK. Although it’s the buzzword of the moment there can be no doubt that the deployment of artificial intelligence (AI) will increase the demand for data and electronic components but probably not as quickly as the current hype suggests. In reality AI is probably two-to-three years away from
making a major impact on Edge computing and new applications outside of the data centre, where the current dramatic growth is being seen.
Concluding thoughts
The electronic component supply network is now slowing following three years of strong growth, some of which in my opinion has been predicated on spurious customer demand as systems integrators sought to secure more inventory of electronic components than they actually needed. Despite our members forecast of lower growth in 2024 I remain confident that the trajectory for UK/Ireland and global electronic components markets continues to be up and to the right and that stronger underlying ‘real’ growth will return to global electronic components markets in 2025. The electronic components supply network fortunately still operates as a ‘people-to-people business’ where great relationships, effective communication and collaboration, along with a large dose of good humour rank high amongst the key elements for success. At a time when many geopolitical and economic uncertainties threaten to impact the market, I encourage all
organisations dependent on our industry to play their part in continuing success and help mitigate future supply and demand imbalances in the market by participating and contributing to the collaboration process, both up and down their supply network. Collaboration initiatives really cost very little but the improvements they can make to an organisation’s competitive advantage promises much for them, their business partners and the UK / Ireland economy as our industry moves into 2024 and beyond.
“ For information
Adam Fletcher is chairman of the Electronic Components Supply Network (ecsn), a business association established in 1970 that today offers support to all organisations with an interest in electronic components throughout their entire lifecycle. He is also chairman of the International Distribution of Electronics Association (IDEA), an association of individual country electronic components associations whose objective is to arrive at and share best industry practice.
…Promoti ng Positi ve Collaborati on Throughout the Electronic Components Supply Network to Benefi t Members and the Economy…
”
• Custom solutions including touch panels & cover glass • LCD, OLED, TFT, & E-Paper technology • Hundreds of working display demos • UK based technical engineering support • Associated accessories such as interconnect boards
Southern Manufacturing Exhibition
sales@midasdisplays.com
www.cieonline.co.uk
+44(0)1493 602602 Components in Electronics December/January 2024 13
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