America II

brian_ellisonBrian Ellison, President

Electronics Distribution – 2013 Market Predications

America II sees optimism from our global customers regarding Q1/Q2 2013 based on scheduled bookings for that time period.  It is not apparent that the anticipated inventory correction has taken place at this moment as raw material levels at OEM and EMS customers continue to hold at a steady level.  We believe there will continue to be industry consolidation in the independent segment and contraction in the franchise channel through the first half of 2013. Industry lead times remain stable across the board and overall market weakness continues to depress demand.  Now is the time that financially-healthy and cost-conscious companies like America II will continue to invest and be well positioned for the inevitable upturn.  Fab utilizations will work their way from the low 80’s to the higher 80 percent range, which will spur marginal growth in 2013 as supply and demand come into balance.