Increase in Demand for Leading Technologies
The exception to this lean supply chain trend is the development of enhanced products. Core product line extensions such as technologies that feature a smaller footprint, are lighter weight, provide optimized sealing capability, withstand harsher environments or handle more power have considerable market growth opportunity. With demand steadily increasing for these enhanced products, suppliers are likely to continue expanding their capacity this year. Ongoing connector innovations are also focused on increased speed and signal integrity and these requirements are expanding well beyond the traditional communications applications. A key factor driving this growth is the ever-increasing convergence and integration of communications and entertainment connectors into industrial and automotive applications.
Telecom, Aviation and Transportation Lead Vertical Markets
From a vertical standpoint, most industries are in a deflated – or at least soft – state. The state of the downhole industry has impacted the alternative energy markets, as well as many other peripheral market segments. Telecom, communications, and industrial markets also remain soft. The bright sides of the market include commercial aviation and transportation. The increased electronics content in the light vehicle sector make it a strong market for component parts.
Managing Total Cost of Fulfillment
While managing the ongoing pricing dynamics will continue to be a priority, a focus on value-added services and reducing the “total cost of fulfillment” are now critical requirements for distributors. Component buyers are seeking partners who can help them keep their supply chain lean while providing expertise and responsiveness to changing demands. As the specialist in IP&E and discrete semiconductor products, TTI serves a vital role in navigating changes in the market and helping buyers reduce risk.
A version of this article appeared in the April issue of Electronics Sourcing North America.