Component Order Index Portends Slow Start for 2003; No Movement in Electronic Component Orders for 6th Straight Month; Possibility That Semiconductor Growth Will Jumpstart Overall Market.

Business Editors/High-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--Dec. 10, 2002

Electronic component orders remained flat in November for the sixth straight month, according to the monthly index of the Electronic Components, Assemblies & Materials Association (ECA).

The lack of significant growth indicates a slow start for early 2003.

"Electronic component orders typically lead sales by three to six months in good times," says Bob Willis, ECA president. "In today's cautious environment, order lead times have shortened to two or three months. With that scenario, the current index would indicate that the first quarter of 2003 will be similar to current conditions, with unit growth up but average selling price down."

Willis does see positive signs from the semiconductor industry that could change the flat-growth trend. "If forecasts predicting up to 20 percent growth in 2003 are on target, that will jumpstart the overall electronic components industry," he says.

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.