Front End | Electronic Components Supply Network
these devices stands at 26+weeks, but in contrast to other macro-trends outlined in this article this current demand cycle will almost certainly slow signifi cantly by 2H’27 as new semiconductor manufacturing capacity come on-line. Customers in the rest of the components market will probably have to wait until 2028 before near normal (12-16 week) lead-times return.
In summary
Customer demand for electronic components in the UK is currently weak due to the economic and geopolitical situation and sales revenues remain fl at. Globally however, customers are reacting to advice to increase their inventory and order cover in-line with the demands of their ERP systems (based on extending lead-times) but it’s likely that all organisations across the electronic components supply network will have to tighten their cashfl ow belt due to the increased inventory and margin pressures. Inevitably there is an element of panic, and some customers may be placing multiple orders in a vain attempt to thwart the market. If this practice proliferates it will only result in the pain for our industry that comes with an increased inventory hangover and infl ated order backlogs.
“ Call to action
Collectively partners in the electronic components supply network need to re-adopt JIT manufacturing systems and source product in a global market with sensible order patterns, because this will deliver the lowest total cost of ownership and importantly, enable ‘cash’ the primary resource for all organisations to be most effectively allocated. My best advice for partners affected by an unusually wide range of destabilising macrotrends is to double down on effective process management and, as we enter 2H’26, continue collaborating with all stakeholders amicably and professionally during these difficult times.
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…
www.cieonline.co.uk
Components in Electronics July/August 2026 11
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