Rochester Electronics’ executive VP, Colin Strother, states that despite the most prolonged downturn in our industry’s history, we must remain optimistic.
A broad market recovery was expected in 2024 and is now projected for the second half of 2025. This raises questions about the authenticity of semiconductor shortages and persistence of the belief that all demand was valid. Today, we are experiencing another cycle—one of the largest from peak to trough—with a bathtub-shaped recovery.
This industry consists of individuals making decisions influenced by data and emotions. No one accurately predicted this downturn or can definitively forecast the upturn. Despite the uncertainty, we are ultimately in a growth industry. The market has shifted from oversold to undersold.
Excess inventory is likely to clear, and interest rates are expected to decrease, fueling capital expenditures. We also hope to see the resolution of political uncertainties and geopolitical tensions. Innovations, such as AI transitioning to consumer use, signal further positive trends and provide hope for a brighter future.
As a 30-year veteran of this industry, it’s business as usual for me. At Rochester Electronics, we focus on customer success and strive to create outcome-based value, which is beneficial in any market. Our commitment to our customers remains unwavering, and we will prioritize their success.