Report: Component Stocks Leanest Since 2003 PDF Print E-mail
Written by Chelsey Drysdale   
Wednesday, 06 January 2010 13:00

EL SEGUNDO – Component inventories are at their leanest point in a decade, says iSuppli Corp. In fact, they are too lean, the research firm says.

Shrinking demand in the first half of 2009 prompted firms to slash production, capacity and utilization, and inventory; however, many firms cut too much and end the third quarter with stocks too low, according to the firm.

iSuppli makes its comparisons based on days of inventory.

As the year progressed, higher-than-expected revenue growth permitted manufacturers to increase utilization and stabilize ASPs.

In the fourth quarter, iSuppli does not see any indications of an inventory snapback; firms are planning a modest restocking of a few percentage points toward equilibrium.

 

 

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