Main Highlights
As the final quarter of the year gets underway, supply chains remain stable, allocation is far and few between, and transit routes appear relatively free-flowing. Inventory levels are reducing, and the focus on sustainability is ever growing...
The growth in market share is still predominantly in the AI and IoT markets globally. Automotive markets are forecast to be revised downwards for the end of 2024 in the UK despite a push for EV sales with enticing discounts to meet Government targets.
The UK PMI fell in September to 52.4 from 53.7 in August, yet is forecast to grow again in December while still crucially remaining above 50 point growth marker.
Lunar New Year falls on 29th January 2025, welcoming the year of the Snake.
The US Presidential election will take place on 5th November, which should bring new stability to the economy moving into Q2 of 2025.
ESCATEC have appointed Christoph Antener as new Chief Procurement Officer, working to enhance global procurement and supply chain capabilities.
Capacity and lead-time issues
- Lead-times are generally stable; pockets of sporadic extensions are still seen, but this is on in demand memory products and items going EOL
- Forecasting 2025 supply chain is key, as stocks are depleted and stock turns through Tier 1 and Tier 2 EMS partners expected to increase throughout 2025
- 100uf tantalum and electrolytic capacitors have reported extending lead-times
- Micron DDR and LPDDR memory capacity is tight, with quarterly forecasts and the placement of firm orders critical to continuity of supply
- AI is driving application specific sensor allocation and constrained supply
Manufacturer Mergers/Acquisitions
- Polyrack have acquired Verotec, a German based enclosure supplier to better serve the UK market and advance manufacturing and operational capacity
- Solid State have acquired Gateway Electronics on a £1.4M deal
PCB Technology
- Lunar New Year will see two-week factory closures in the Far East, with up to one week disruption to production either side of the holiday period
- All orders for January 2025 need securing no later than end of November, and orders need to ship from the Far East by mid-January to ensure available product prior to the seasonal holiday
Global Economy
- Oil pricing fell 11% in the last three months, now $73.06/barrel at time of writing
- Gold has held its value, rising another 12% this quarter, currently £2,097.18 per ounce, an all-time high
- Silver is up 14%, just slightly below a 3-month high at £26.02 per ounce, still some way off 2011’s peak
- Steel rebar is still stable, despite rising form the last review of 3 month contracts, listed at $598 per tonne when writing.
- Bitcoin has continued to remain steady, now $67,210.87
- Copper pricing has fallen, currently $9,063 per tonne for 3-month contracts
