The electronic component order index remained low throughout August, hovering around 30% of the record levels achieved in 2000, according to the latest information released by the Electronic Components, Assemblies & Materials Association (ECA). These numbers were received prior to the horrific events that seized the nation on September 11. “August numbers were about as expected, given the slowdown gripping the entire technology sector,” says Bob Willis, ECA president. “The uncertainty now facing the nation and the economy will be with us for months to come. Everything and everyone will be affected. Examining recent industry trends will become less of a factor as companies/analysts try to understand the pulse of the economy and how it will impact each sector.”
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Most companies are restructuring to meet the current business conditions. Cutbacks from the surge of activity fueled by last year’s optimism are part of this equation. Companies are also trying to position themselves to benefit from the inevitable market upturn.
“ECA will work with our members to try to gauge the industry responses to current events,” says Willis. “Leadership in all sectors of the economy will be important. Moving forward will probably be the best thing, although it might not appear to be in the short term. Those companies out in front of the market will provide the best indications of when an upturn will begin and they’ll probably be in the best position to take advantage of it.”