Reflections of 1H, 2023 here at Electronic Connector Company in Downers Grove, IL USA
July 27, 2023
While we enjoy the summer with travel, time off, family and friend’s gatherings, etc., I wanted to provide an update on the current business environment and reflect on the first half of 2023 overall.
During the pandemic and its recovery period, supply chain disruptions were everywhere. With labor, material, and logistics issues, many struggled to meet delivery commitments with ON TIME and IN FULL quantities. Regardless, we were still able to juggle and “problem-solve” enough to meet customer requirements as they ordered in higher amounts than usual given the supply chain frenzy that was occurring worldwide.
Today, things are much more balanced from a material availability standpoint, including price stability and logistics improvements. However, 1H 2023 still has been CHOPPY given customer volume over-purchases as well as slow, but gradual recoveries of their own. As a result, many of the largest industry players are reporting slower growth and, in many cases, negative or no growth from previous comparable periods. Several “demand drivers” have not delivered end user consumption yet. The large government infrastructure spend has not begun in earnest (despite all the road construction signs we all see this summer), and other emerging end user segments (EV, IoT, Robotics, AI) have not gotten the momentum needed to propel exponential increased use of electronic components. But confidence among industry executives for an improved 2H 2023 is optimistic with focus on execution, cost control, and customer engagement. Arrow Electronics’ CEO Sean Kerins comments,” we were encouraged by the momentum of our design engagement in several of our markets.” Other distributors have responded by increasing M&A activity (e.g., BTC, BJG, & Electro now part of FDH Aero), hiring, or investing in new automation solutions allowing for better operations in warehousing and logistics, (e.g., RS & Master).
At ECCO, our response is to focus on interconnect and electro-mechanical solutions using our product expertise, caring customer service, and entrepreneurial flexibility to win in this market. And we will continue to invest in our digital offering and product portfolio to better support our current customers & to attract new customers. Our brand promise is to find ways of “CONNECTING SOLUTIONS TOGETHER.” From crossing an obsolete part to a workable solution – to assisting an engineer with product selection – to offering a company a new supply chain approach, ECCO will strive to meet and exceed all stakeholder expectations. Onward & Upward!
Regards,« Back to Blog