The idea that the electronics industry would close the year on a high note seemed absurd 9 months ago. But like the manufacturing sector writ large, the supply chain has bounced back from the worst of coronavirus pandemic.“In spite of serious concerns about both supply and demand impacts in the early stages of the Covid-19 pandemic, it appears sales levels for 2020 will remain fairly stable compared to 2019 with some sectors showing relatively mild declines and others actually achieving growth,” according to Dale Ford, ECIA’s chief analyst. Just days before the ECIA report was issued, the Institute for Supply Management released similar findings – supply executives were more optimistic in November than they were the prior month.U.S. manufacturing growth has softened but remains above pre-pandemic levels. The ISM’s factory index, the PMI, declined by 1.8 percent — to 57.5 — from October’s level of 59.3. ECIA’s December forecast for overall component sales registered 113.9, down from 136.9 in November.  The line between growth and contraction is, respectively, 50 and 100.

Source: Electronics Execs Optimistic as 2020 Draws to an End

The coronavirus pandemic has put chief supply chain officers (CSCOs) under pressure to adapt and prepare their networks for an uncertain future. In fact, Gartner says supply chain leaders should focus on adapting their strategies, investment and leadership styles to ensure long-term efficient growth.

Source: There’s No Such Thing as the “New Normal” for Supply Chain | Source Today

Based on still preliminary (actual plus estimated company financials) data, world electronic equipment shipments were down 1.8 percent in the third quarter versus Q3 2019, but up 15 percent in versus Q2.The recent downturn appears to have bottomed in the second quarter as growth has resumed (charts 1 & 2). The turnaround is quite obvious in the 3/12 growth curve of global electronic sales (chart 3). Comparing composite regional to company financial sales growth gives similar findings (chart 4).

Source: Could the Downturn Have Bottomed Out in Q3? | Weekly Global Update for Nov. 4, 2020 | TTI, Inc.

Third quarter financial reports are just being released by publicly-traded companies. Based on still very limited data, here is our first very preliminary estimate of world electronic equipment growth:Global electronic equipment sales declined an estimated 6.7 percent in Q3 2020 versus Q3 2019; however, they increased 6.8 percent compared to Q2 2020 (charts 1 and 2)

Source: Future Recovery Hinges on COVID Activity | Weekly Global Update for October 28, 2020 | TTI, Inc.

In 2020, we have seen a global manufacturing decline made worse by Coronavirus-driven shutdowns. Tariffs, trade and Brexit issues continue, and geopolitical concerns remain very significant. Automotive and aerospace production have been hit hard; manufacturing is recovering, but service/travel sectors remain in major recession.While the first half of 2020 was quite bad, conditions are now improving. On October 2, I presented a European Institute of Printed Circuits (EIPC) sponsored webinar, “Business Outlook for the Global Electronics Industry (with Emphasis on Europe).”

Source: After a Rough 2020, European Business Conditions are Improving | TTI, Inc.