Market Conditions Report

Remaining Vigilant...

"Lead times, in general, are at all-time lows, but we must remain vigilant about future developments. We are starting to see manufacturing cycle times playing a greater role in our customers’ supply chain planning.

As we’ve mentioned in previous reports, the IP&E and Lighting segments of our business have been on an upward trend for the past few quarters. Now, we are also seeing selective signs of recovery on the semiconductor side. While this does not indicate a full return to normalcy, manufacturing cycle times are becoming more aligned with actual production rather than published lead times.

Accelerated inventory depletion within the channel and at our end customers—combined with limited order visibility across the supply chain—is creating a growing risk of undersupply for some key technologies.

To ensure supply security, it is critically important that we receive accurate demand signals from our customers. We continue to offer innovative, industry-leading supply chain programs designed to mitigate future disruptions. We welcome the opportunity to discuss these solutions with you at your convenience."