Technology industry to outpace GDP

Avnet’s regional president, Dayna Badhorn

Avnet’s regional president, Dayna Badhorn, encourages purchasing professionals to deploy digital tools and automation to help ease the impact of rising prices

While many areas are running more smoothly compared to a year ago, we’re still preparing for a continued imbalance in component availability and pricing heading into 2023. For example, our recent Avnet Insights survey of design engineers found that over a quarter are still preparing for even longer lead times. To address this continuing challenge, we’ve worked to extend our pipelines and create a clearer allocation view that reaches a full quarter or more into the future. Helping our customers design in the latest technologies also helps with both availability and pricing pressures as a lot of CAPEX is being spent in newer technologies.

Price pressures have not totally eased and 29 per cent of engineers are still preparing for continuously increasing prices according to the latest Avnet Insights survey. They can help ease the impact of rising prices by implementing more efficient practices into their supply chain, such as deploying more digital tools and automation.

When it comes to the US economy, the balance between the tech industry and broader economic picture is shifting. While tech has grown largely in lockstep with the economy in the past decade, the predicted slowdown combined with new demand drivers such as clean technology and electric vehicles are shifting the technology economy ahead. That means we could see the technology industry grow at a greater pace than GDP, and this trend could begin to materialize in 2023.