TTI SVP, product & supplier marketing, Lew LaFornara, describes a feeling of uncertainty about 2025 and then explores differing opinions on market growth.
I feel the best way to describe the 2024 electronic component market is inconsistent. It has been inconsistent month-to-month, by customer segment/application, product type and geographic region. For the most part, the areas of growth such as defense, space and the AI ecosystem have been offset by weakness in other areas such as industrial automation, consumer products and EV.
Thus, there is a feeling of uncertainty about 2025. On a broad basis, we seem to be at the bottom of the down cycle. There are vastly differing opinions on what 2025 will look like in terms of market growth.
The consensus feedback is the Americas will see modest component growth, with semis pulling along other board-level products. At the same time, it appears the EMEA market may recover more slowly, with continued weakness in industrial, energy and passenger vehicle markets at least early in the year. Asia and China have seen modest growth in 2024, driven by increased demand in the AI ecosystem and transportation coming out of China, and that growth is expected to continue in 2025.
At TTI, the best strategy for an inconsistent market is to be consistent. That means continued broadening and enhancing
our inventory position and available- to-sell part numbers. That means investing in warehouse expansions and automation to increase productivity and overall performance levels while optimizing our cost to serve. TTI will continue to spend more time with customers and suppliers, focusing on delivering increasing value to both.