Component Index Closes a Flat Summer; Inventory Reduction Difficult as Customers Demand Newer, Smaller Products.

Business Editors/High-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--Sept. 5, 2002

The Electronic Components, Assemblies & Materials Association (ECA) reports little or no movement in its August electronic component index, which closes out the summer on a flat note.

While no bad news is good news for some, the much anticipated recovery in the second half of the year has been pushed back to the last four months, according to Bob Willis, ECA president. "The economy and electronic component sales are both waiting on optimists to outnumber the pessimists," he says, "while most linger somewhere in between."

The distribution channel continues to struggle with an inventory surplus of last year's products, according to Willis. "Manufacturers and distributors are having trouble moving these inventories as demand increases for newer and smaller components."

The Electronic Components, Assemblies & Materials Association (ECA) represents manufacturers and producers of passive and active electronic components, component arrays and assemblies, and materials and support services. It is a sector of the Electronic Industries Alliance (EIA), comprising more than 2,100 members that represent 80 percent of the $550 billion U.S. electronics industry. ECA members benefit from a dynamic link into a network of programs and activities in areas such as business and technical information, market research trends and analysis, access to industry and government leaders, technical and education training, and others. For more information, visit www.ec-central.org.