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Distributors grow inventory to win new business

Some distributors have increased inventory levels of new and old components as well as components that are in short supply. Some electronics distributors have been aggressive about increasing inventory levels over the last two years as a way of attracting new business and increasing business with existing OEM and electronics manufacturing services customers. In some cases, distributors are increasing their breadth of inventory by adding products from new suppliers. In other cases, distributors are stocking new part numbers from existing suppliers as well as older components that they previously listed on their websites but did not stock. Distributors are also…

Coronavirus causes sourcing headaches for buyers

The coronavirus pandemic has led to tighter supply and higher prices for some components including multilayer ceramic capacitors. Shutdowns and slowdowns in production of electronic components and other manufacturing materials in China caused by the outbreak of coronavirus has resulted in longer lead times, shortages and price increases for some electronic components. Industry analysts, distributors and buyers say they expect coronavirus will likely continue to disrupt the electronics supply chain through the first half of the year and perhaps longer, resulting in slower component and end equipment shipments and lower sales revenue for semiconductor and other component companies in 2020….

Why purchasing is the CEM’s secret weapon

From creating quotes to managing component obsolescence and end of life, ES discovers how Nemco’s purchasing team plays a vital role, adding value through effective supply chain managemen How does Nemco’s purchasing team assist new clients? As soon as we receive an enquiry, a dialogue is opened between the customer and the quotes team where we will discuss their requirements. We will set about putting that quote together and any queries or issues that arise during this process are fed back to the customer so a resolution can be reached together in line with the customer’s aims. The purchasing team…

Buyers can expect tighter supply, higher prices for MLCCs in the second half of 2020

The good news is that supply conditions will not worsen to 2018 levels when many multilayer ceramic capacitors went on allocation. Purchasers can expect supply of multiplayer ceramic capacitors (MLCCs) to be ample in the first half of the year, but supply will likely tighten and lead times could stretch in the third and fourth quarters as demand builds through the year, according to component manufacturers and distributors. Some industry analysts say supply could even tighten before the second half because higher-than-usual inventory levels are being worked off and demand from key market segments such as smart phones and automotive…

Distributors are optimistic about future growth in North American

Many electronics distributors expect to post single-digit sales growth over the next five years as more electronics are used in more systems and products. It’s no secret that over the past 15 years, many North American electronics distributors have gone global expanding operations to Europe and Asia to service customers that have migrated manufacturing outside of North America. Distributors have also expanded global operations to service European and Asian-based OEMs and electronics manufacturing services providers that they had not done business with before. As a result of global expansion, the percentage of total sales of North American distributors customers in…

Distributor sales growth declines

Uncertainty caused by the trade war with China, the UK exiting the European Union and a decline in manufacturing in the U.S. means some distributors will suffer sales declines in 2019 – By James Carbone Many distributors say component sales will end 2019 being flat to down compared to last year because of sluggish overall economic growth, excess capacity, weaker demand from some customer segments and the continuing trade war with China. Distribution executives attending the recent Electronic Components Industry Association (ECIA) annual executive conference in Rosemont, Ill., also said that there was a lot of uncertainty in the industry…