The heat is on for component makers. Their business plans and growth forecasts must take into account currency fluctuations, Asia's economic troubles, and other global pressures. On top of that, the electronics industry is grappling with a cyclical downturn that began almost two years ago and, which some pundits say, will last at least until late 1999. Trying to stay ahead of the game without getting burned will be tough. This year's top component suppliers, chosen largely from 1997 sales estimates by leading industry analysts, have their work cut out for them.
Forecasts range from scant growth to a slight decline, depending on market sector.
The picture isn't so simple. Unit shipments of capacitors and resistors will grow this year, but price declines will likely flatten dollar sales in those sectors. Calif. He forecasts a slight decline in connector sales in this year's third and fourth quarters. But all the negative news has to be put into balance, Fleck said. Pricing pressure is as much an industrywide phenomenon as is cyclicality.