ALPHARETTA, GA – A new ECIA survey finds that while overall concern regarding Covid’s impact on the electronics supply chain has moderated significantly, the expectation for the duration of the impact has lengthened and anticipated lead times have extended.

The number of state and local governments that have started to ease quarantine orders has expanded, according to ECIA’s most recent survey, conducted May 18 to 26. The easing of orders has occurred since ECIA’s last survey on May 5.

However, deep divisions concerning economic philosophy and management of the pandemic have grown across the country, the firm says. A sense of urgency to reopen the economy continues to build. However, major states that drive large segments of the economy continue to maintain strict quarantine orders with little visibility on when changes will come.

The recent survey reflects a mixed trend since the last survey results. While companies have tempered their concern regarding the supply chain impact, they expect the impact will last longer than previously thought, and anticipated lead times have extended. The number of companies reporting strong confidence in order backlogs evaporated in the most recent survey, as large majorities reported “average” confidence. End-market demand continues to be the greatest concern regarding supply-chain health, while electronics systems production disruption declined sharply in reported concerns.

The automotive and industrial electronics markets continue to represent the segments of greatest concern, with expectations of a decline in automotive electronics remaining roughly the same at 71% and industrial electronics decline outlook deteriorating significantly to 68%. Despite expectations for weak end-market demand, the confidence in order backlog remains solid in every product segment but not as robust as in the prior survey.

The bright spot in this survey comes from a new question asking about implementation of “infection control best practices for Covid-19.” A status of “well established” or “advanced” was reported by 78% of respondents. Everybody reports they have progressed beyond the phase of “planning and preparation.”

Expectations for industrial electronics slumped again after a brief rebound in the previous survey. The industrial electronics index sits below 29, its lowest level since the start of the survey. Consumer electronics and telecom infrastructure saw notable improvement in their outlook. The overall end-market demand index continues to decline very slightly. “Systems manufacturing” and “shipping and logistics” disruption concerns fell substantially in the latest survey.

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