TTI Americas’ president, John Drabik, explains how design engineers are pivoting from chasing parts to the new product developments that will drive future demand
2021 and 2022 have been record-setting years for many in the electronic components industry. However, we are beginning the transitional phase to slower growth in the face of macroeconomic headwinds and inventory rebalancing 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 begin to align. Cancellations, reschedules, inflation, labor and supply chain disruptions will continue to challenge the industry throughout the first half of 2023.
Despite 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.