It’s difficult to estimate where the UK Electronics market will be in 12 months’ time; there are so many global and local factors affecting our economy.
I believe that the next 12 months will be no less painful than 2012; the Euro is stabilizing, propped up by the ECB, but with austerity measures, little or no growth is expected in exports to our European cousins, whereas emerging Eastern economies will enjoy the luxury of domestic growth.
The UK will continue to see weak demand from many sectors, including military and medical, until mid-2013, and with the reduction in bank lending, many struggling businesses/CEMs could falter as a result.
News filtering through from component OEMs suggests longer lead-times in the New Year caused by reduced global consumption and excess capacity. Long lead-times necessitate forward planning and this will have a positive effect in driving customer commitment throughout the supply chain.