The global visibility of the electronics industry is critical
It should be no revelation to anyone that the electronics industry is prone to rough waters and frequent changes in tides, whether it’s tariffs, trade wars or Brexit. But there are tools that can help you navigate and better prepare for what’s on the horizon—a horizon that is definitively global.
While these things are creating short-term waves along with component shortages and the usual boom-and-bust cycles inherent in the memory business, it doesn’t change the rules of the game—this business requires a global approach to customers. That means giving them global visibility of product availability, pricing and trends because it’s the only way to fully address the problems they are facing, even if the tables have turned in some ways this quarter as compared to last year.
One thing that becomes clear to the more seasoned sailor of the electronics industry is that some storms don’t last very long and don’t have much influence on the weather over the long term. The impact of tariffs, for example, are short-lived, and their ultimate impact is on pricing that products from specific regions, countries and manufacturers become more expensive. It’s a wave that will be priced into the market, but it’s not so powerful that it will drown industry growth.
This year started off with plenty of waves, but none are surprises if you’ve been navigating the industry for a while. The first quarter is always slower than Q2 and Q3, and it allows for some breathing space so that our customers can adjust course with the data and tools at their disposal. They’re able to develop their own catalog and better manage their bill of materials by the generic data from Sourcengine and blend it with their own data to better understand pricing and lead times—whatever they need to know to chart their course—and connect it to their own enterprise resource planning system through APIs or FTP.
The sea changes affecting our customers is influencing how we do business. Not only do they want to mix our data in with theirs, they also want to mix our technology into their own systems.
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