Citation
(2013), "Still waiting for a solid upturn – Walt Custer", Soldering & Surface Mount Technology, Vol. 25 No. 4. https://doi.org/10.1108/ssmt.2013.21925daa.004
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited
Still waiting for a solid upturn – Walt Custer
Article Type: Industry news From: Soldering & Surface Mount Technology, Volume 25, Issue 4
The much awaited 2013 “global recovery” experienced some regional setbacks this Spring. Based upon May PMI leading indicator data the world is just barely in a growth mode with Japan and Europe reporting improved Purchasing Managers’ Indices, China, Taiwan and South Korea seeing weakening and the USA falling back into contraction.
On a 3/12 growth basis key components of the electronic supply chain (semiconductors, PCBs and electronic equipment) have had declining revenues with their leading indicator pointing to minimal growth (excluding seasonality) in the near term.
Global electronic equipment production suffered in early 2013 and sales results through April showed only a modest seasonal “electronics end market” recovery.
In the USA, most of the electronic supply chain has been contracting in 2013 with military electronics being especially hard hit. One encouraging sign was the April improvement in measurement and control equipment orders but overall domestic electronics demand has been weak.
In southeast Asia suppliers are being forced to adjust to diminished personal computer demand as tablets and smartphones have assumed the roles of many traditional PCs.
World semiconductor demand remained flat through April with Custer Consulting Group’s semiconductor leading indicator pointing to minimal improvement over the next few months. The recent WSTS update of its semiconductor forecast now predicts growth of world chip shipments to be only +2 per cent in 2013 (followed by +5 per cent next year).
In summary 2013 is not shaping up as the solid growth year that was hoped. We will see a normal seasonal expansion this Summer and Autumn but robust year-on-year expansion still remains elusive.