Walt Custer

With all major global electronic equipment OEMs having now reported their third quarter financials, we estimate that combined equipment sales increased 0.4 percent in 3Q’19 versus 3Q’18 and 2 percent sequentially from the second versus the third quarter of this year.

Reports of 2Q’19 financials from all of the major OEMs in our 213 company global sample show that their electronic equipment sales declined 1.4 percent compared to the same quarter of last year.

The electronics markets (and global economies in general) remain fragile, but there is some glimmer of hope on the horizon.

Global business conditions remain uncertain but the electronic sectors appear poised for growth in late 2019 or early 2020. Normal seasonality will fuel short-term sales increases through late autumn but real growth is still a ways off.

There is a glimmer of light at the end of the tunnel. But most electronic industry time series will likely struggle at least though autumn.

The typical winter “seasonal slowdown” is now behind us. What can we expect as the year progresses? 

The turnaround is not “around the corner” but at least we can follow its progress!

The semiconductor industry felt more of a fourth-quarter slowdown than the end markets.  Semiconductor-related products are typically much more volatile than the electronic equipment markets they serve.

Electronic EquipmentGlobal electronic equipment production is in its traditional “fall busy season” as the consumer driven end markets ramp up for the holiday season (Chart 1). Both normal seasonality and organic growth are driving this year’s upturn. September 2018 electronic equipment output was...

2Q’18 Electronic Supply Chain Growth Update Chart 1 is a preliminary estimate of global growth of the electronic supply chain by sector for 2Q’18 vs 2Q’17. Note the strong performance of semiconductors, SEMI capital equipment and passive components.  Chart 2 gives preliminary 2Q’18 world...