Electronic component orders bounce back in May

Electronic component orders bounced back in May after a dip in April, according to the monthly index compiled by the Electronic Components Association (ECA). The 12-month average remains relatively flat.

Speakers at the recent Electronic Distribution Show (EDS) and senior management attending the Electronic Components and Technology Conference (ECTC) are unanimous in believing that the electronic components industry remains strong despite myriad economic problems facing the United States.

Bill Mitchell, chairman and CEO of Arrow Electronics, likens 2008 to another challenging year for the electronics industry: 2001. In his keynote at EDS 2008, Mitchell characterized the situation as "not great, but not bad." He said that there are some good reasons to be optimistic, including:
-- increasing electronics content that is pervading consumer's lives and commerce;
-- one trillion in spending in defense and aerospace industries;
-- a three percent growth in lighting each year through 2012, with the LED market tripling in size;
-- 86 billion being spent in life-enhancing technologies for health care; and
-- increased spending in transportation to accommodate a growing population and to produce new breeds of fuel-efficient vehicles.

"While the electronics industry is inextricably connected to the health of the overall economy, there are many more positive drivers for electronic components," says Bob Willis, ECA president. "Our industry is certainly not immune to downturns, but so far we're staying on course for around six percent growth this year."