If Manchester City can do it, why not electronics?
The big question is will Q2 be better than Q1 for the electronics supply chain?
If Manchester City can turn a game of football and win the Premier League in just three minutes. The semiconductor industry can turn around the market in three months, surely.
Consider the following observations on Q2 from the last few weeks.
Texas Instruments said it is seeing “early signs of growth” as it reported Q1.
“Orders were up 13%, and backlog is growing again. Particularly encouraging is the breadth of increased orders across geographical regions and markets, including the industrial sector,” said Rich Templeton, TI’s chairman, president and CEO.
Templeton was upbeat and he expects 2012 to be a “growth year”.
“We’re poised for growth and share gains as markets rebound. Our product portfolio is strong, and our design position with customers is excellent. Our inventory is well-staged, and production in our factories is ramping,” said Templeton.
Microchip expects “3-7% sales growth in Q2″
Altera seeing “stronger demand” in Q2, expects a rebound in business in Q2″
Market analysis (Gartner) “slowly recovering” in Q2. It seems that that by the end of Q1 inventory levels in general were no longer the major concern for supplier. The big worry is still the state of the global economy.
But surely the UK is more in teh economic mire than most?
Well yes, but even here people may be starting to see glasses half full, rather than half-empty.
UK manufacturing has good month in March
According to the government’s own statistics, manufacturing output rose by 0.9% between February and March.
The strength of electrical equipment manufacturing, which rose by 12.1% in the first quarter of the year, helped manufacturing output to end two previous quarterly falls.
At the start of April, Electronics Weekly asked a group of executives in the component distribution what level of business confidence they were seeing in the market.
Almost 70% of those surveyed said they were more confident about business prospects than they were three months ago.
As many as 40% of those questioned said that new order levels were higher than they were at the start of the year.
Whilst the evidence seems to be that the first three months of the year have not been as slow as some observers were predicting at the end of last year. Any confidence that there will be some growth in the market seems to be extremely fragile.
But is a question of degree. The UK component distribution market is predicted to shrink by 5% this year to total £1.12bn.