We interrupt this regularly scheduled program…

Just over two months ago, we were reading forecasts of 4% to 7% compound annual growth rate (CAGR) in Electronics design and manufacturing markets. We anticipated increased optimism due to the acceleration of the electric vehicle markets and modernization and digitalization of infrastructure, homes, and factories. In a McKinsey and Company research on the Automotive software and electronics markets, they forecasted “Autonomous driving (AD), connected vehicles, electrification of the powertrain, and shared mobility (ACES) …will expect 7% CAGR in the automotive software (SW) and electrical and electronic components (E/E) market” alone. In early 2020, organizations were coming to grips with the new paradigm of trade discussions and tariffs, working through adjusted volumes and price-adjusted inventories, finding alternative suppliers, and implementing various other risk mitigating and efficiency optimization programs. …

Enter the COVID-19 pandemic to interrupt. This was not the start of 2020 that anyone expected! All existing plans, projects, and programs, now interrupted. A survey the ECIA conducted on Feb. 7 found a majority of component manufacturers (OCMs) didn’t know how the virus would impact their ability to supply customers. By Feb. 21, respondents said the impact would be “minimal to medium.” The reality, due to the closures in China, and the halting at major markets in Europe, will be much worse.