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Connector orders jumped 40 percent in March and supply chain support extended to Q2 !

Published :5/4/2020 12:55:08 AM

Click Count:2103

In early April, orders for parts of Q1 2020 surged despite the outbreak.In connectors, for example, some manufacturers and agents reported a 40 percent increase in March revenue compared with February.Under the premise of weak terminal demand, why are orders still soaring?

What is the reason for the order explosion in March?

With the outbreak of the epidemic in the global scope, the demand of the consumer side decreased sharply, which should have gradually damaged the sales performance of the middle and upper reaches of electronic components. However, in March, the components represented by connectors instead exploded. Why?

There are three reasons for this. 

First, Chinese factories have been returning to production since the middle of February, leading to the increasing demand in various market segments.

Second, the customer adopts the strategy of "preparing goods in advance" to ensure the safety of the supply chain.

The third is the impact of a series of government policies to "boost the economy".

In march, the rapid growth of demand for accommodation, storage and other orders can be described as "crazy".Second, the domestic market demand is released rapidly after the resumption of work in mid-february;Third, the domestic "economic revitalization" policy to promote, such as "new infrastructure" detailed rules issued;Fourth, after the outbreak of the epidemic in the world, the demand side is afraid of "broken chain" and advance stock

Although China was at the height of the outbreak in February, when almost all economic activity came to a halt, demand has exploded since march as businesses and businesses across the country have returned to work.

The gradual warming of the global epidemic has promoted the sharp rise in the demand for medical electronics. As one of the main components of medical electronic products, the demand for connectors naturally increases.In addition to the epidemic related demand, with the implementation of the "new medical reform" and the continuous improvement of the level of medical informatization, China has already become the second largest market in the global medical device market, and the demand for medical connectors has been continuously increasing.

In addition, the connector in the new energy vehicles, 5G, consumer electronics, the Internet of things, intelligent manufacturing and other fields of high usage.In communications, for example, at present, has been to 5 g construction cycle, communication connector market space is very significant, connectors used in communication and data transmission field value accounted for 22% of the whole connector market, and connectors, as an important part of communication equipment, mobile communication base stations, base station controller, mobile network exchange, joint support node will use a lot of different specifications and functions of the connector, such as rf connector, power supply, backplane connector, input/output connectors, printed circuit board connectors, etc., are all important factors to promote the growth of the connector.

In automotive applications, more advanced intelligent driving, assisted driving system and other applications need more connector implementation;In industrial applications, more reliable connectors are also needed between industrial equipment and networks.

Good situation, can it last till april-june?

Some say orders have started to fall sharply in April compared with the blowout in March, and that the weakness will continue. What measures can companies take to ensure their business continues to grow at a high speed during the outbreak?

As the epidemic spreads around the world, it can be expected that the demand for automobiles and general consumer electronic products will decline to a certain extent in the coming period. From the perspective of the whole year of 2020, the market growth is not optimistic.

"Stock up in advance, it is part of the reason of revenue growth, however, as the supply chain each link degree of awareness of the disease uncertainty continues to increase, the demand of April as strong in March, April in our orders, most of the orders from production manufacturers, traders are relatively less, so for our company, the probability of stock up small, but we will always focus on the follow-up market situation to make adjustment

In the future, the connector will gradually develop to the high-frequency high-speed connector technology, wireless transmission connector technology, small-size high-density connector technology, intelligent connector technology and other trends.In addition, the home office has become an important response to the crisis, which will greatly promote the growth of related applications in the computer industry.

Before COVID 19 became a pandemic problem, the entire electronic components market was facing new challenges due to the weak global economy and some geopolitical events.Although the uncertainty caused by these factors will continue for some time, the demand for high-quality service from distributors will continue to increase.

The current outbreaks still spread abroad, increase the uncertainty of the global supply chain, the global economy to a certain extent, affected and influence, but the evolution of the global supply chain is the result of a long-term effects by a variety of factors, through global cooperation and division of effort, and attaches great importance to many countries and enterprises and the development direction, and therefore will not be in such a short time.

Despite the current global downturn, the overall supply chain is also under great pressure, but through the rapid response, timely adjustment and flexible configuration of countries and enterprises, there is also an opportunity to reduce losses, to strive for and create new development.

Due to the uncertainty of the current business environment, we will see more urgent orders, which will put pressure on the global electronics supply chain in the short to medium term.However, we believe that with the passage of time, this situation in the electronics industry will gradually return to normal, and is expected to achieve good development in 2020!