COMPONENTS – Welcome 2020, an optimistic view
Bob Evans, CPMR
Rolling Meadows, Ill.
Looking forward to 2020, I get the sense from talking to my rep colleagues and manufacturers, that people around our industry generally have a positive attitude. Of course, all of us in the business of field sales have optimism in our DNA, but there appears to be some empirical data to support our rosy outlook.
In a December 2019 article on the eBOM.com, Amy Leary, eBOM’s marketing manager, opined that there were “Five trends that will transform the electronics industry in the next decade!”
Included in her list were, robotics, 5G, autonomous driving, artificial intelligence and the environment.
Michael Knight, president of the TTI Semiconductor Group and senior vice president of Corporate Business Development at TTI Inc. has often said that the consumption of electronic components will rapidly increase in the next few years. In addition to the new technologies cited by Leary above, Knight also sees electric vehicles in general, continued cellular telephone proliferation, and the Internet of Things as contributors. He says that all of these will drive the growth of component consumption on an unprecedented scale.
Cameron Ward, Sr. VP, RS Components was quoted in the December 2019 issue of Electronics Sourcing magazine, he stated, “… We saw solid growth in design activity throughout 2019, particularly among small and medium-sized OEM’s and contract manufacturers.”
Also quoted in the December issue of Electronics Sourcing magazine, TTI Americas President, Don Akery said that “At TTI, we expect 2020 to be another growth year, beginning with continued gradual recovery, as we experienced in the second half of 2019.” It seems that Knight’s TTI colleague, Akery, and many others like him are on track with optimistic forecasts for 2020.
According to the “Global Electronic Components Market 2019 Research Report,” published in August 2019 by 360 Research Reports, the global market for electronic components is predicted to grow at a compound annual growth rate (CAGR) of about 5.6 percent from 2019 to 2024. This report points to the same driving influences espoused by Leary and Knight, also adding smart home and personal healthcare products as additional causes of growth.
At the last ERA National Conference there was talk of growing opportunity in our industry and it seems that research and the experts agree. We are all looking forward to growth and looking at how we can all benefit from it. Here’s to a great 2020 for all of us!
MATERIALS, ASSEMBLY, PRODUCTION & SUPPLY – And this is 20/20
And this is 20/20” … Remember Barbara Walters on the ABC News program with that title from 1979-2004 and again for a short stint, 2013-2014? As I look forward to 2020, the new year/new decade, it prompts me to look back and reflect on the good and bad, both personal and in business. I’m sure you have done the same. We saw a horrendous recession with business failures, mortgage foreclosures, our 401(k) plans were in the tank, yet, the fortitude of Americans saw us rebound and move into today’s economy as one of the best any of us can remember. Let us not forget the painful lessons from that experience. But history tells us that we have short memories and so many times we tend to slip right back into our old habits.
As we welcome 2020 (I’m writing this column right after Jan. 1), there are many positive signs on the horizon. The United States-Mexico-Canada Agreement (USMCA) has been signed. A Chinese delegation is coming to Washington to sign phase one of the trade deal. The UK General Election promises to get BREXIT done and hopefully stabilize the European situation so trade agreements can be put in place.
So how do these agreements affect the electronics industry? Phase one of the China agreement recognizes the protection of IP and ends China’s practice of demanding technology transfer as a condition of doing business in China. Trade between both countries is expected to double as a result of this first phase agreement.
The Office of the United States Trade Representative (USTR) projects that USMCA will add an estimated 76,000 new jobs related to high-tech electronics. We also have seen announcements of large capital investments by the auto industry in new and renovated facilities in the U.S. and electronic manufacturing ramp ups have been announced with new and expanded facilities. Right here in our area, Jabil is building a large facility.
The electronic manufacturing industry is a huge potential poised for growth with a seemingly endless stream of new technologies and expanding EMS demands around the world. Let’s hope that these positive signs stay the course and when we get to 2030, we can look back with fond memories of a great ride.