Trend
Trends to look out for this year By Sarah Evans, electronics expert, Atradius UK [Image: Jonas Stolle for Unsplash]
Since the regulator Ofcom opened up competition for the rollout of a fibre network across Britain to connect homes and businesses to ultrafast broadband, there has been an explosion of independent telecommunications networks
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he electronics sector is prevalent in the technologically-advanced climate we live in, with an increasing demand for more functional systems. Atradius data reveals that the electronics sector has seen a 16% decrease in insurance claims since 2023,
primarily related to scientific instruments, telecommunications, ICT and electrical machinery. Tis is certainly a step in the right direction for the sector, highlighted by a decrease in claims made in the first three months this year.
Opportunities and challenges for the sector Now we can reveal the opportunities and challenges firms are facing this year, and how those in the electronics sector can protect themselves against the risks of insolvency and follow suit with the current decline in claims:
04 June 2024
www.electronicsworld.co.uk
We expect ICT output to contract following years of strong growth. Tis has been caused by a weaker global economy, replenished inventories, low investment, and high inflation and interest rates. However, with the lifecycle of many pandemic purchases coming to an end in 2024, including IT
hardware, there could be an opportunity for businesses to engage with their existing customer base, resulting in a resurgence for the ICT sector.
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Since the regulator Ofcom opened up competition for the rollout of a fibre network across Britain to connect homes and businesses to ultrafast broadband, there has been an explosion of independent telecommunications networks. We will see this trend ease over the next
12 months, however, with financially sustainable and robust firms benefitting. With no claims being made in January 2024 for telecoms, the sector is certainly on the right path to resurgence and benefitting telecommunication businesses.
A big trend for 2024 is a rise in cybersecurity solutions as IT hardware suppliers diversify their offerings. Te versatility of cybersecurity as a product offering, with relatively low overheads and an organic extension for both commercial and consumer products, means this is
a good option to boost profitability amid rising costs and economic turbulence, as well as protecting personal data and enhancing the productivity of businesses.
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Soſtware, cloud, data centres and managed services will remain core drivers of growth for ICT firms. Despite the rise in insolvencies for UK businesses, IT and telecom insolvencies remain low. Resilience should continue for firms that take a proactive approach to financial
planning, such as diversifying where possible and securing supply chain vulnerabilities with trade credit insurance.
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