The UK and Ireland electronic components market is predicted to continue its negative growth trend in the first half of 2025, according to a recent forecast presented by Aubrey Dunford, a market analyst for the ECSN Leadership Group. The anticipated decline in billings, which is essentially sales revenue, is expected to range between 8.7 to 2.6 per cent, culminating in a mid-point decrease of approximately 4.6 per cent. However, the second half of 2025 is expected to see a modest recovery, with billings projected to improve by between 1 and 9 per cent, leading to a full-year outcome ranging from a decline of 4.9 to 2 per cent—essentially indicating zero growth at the mid-point compared to the previous year.
Despite these forecasts of flat growth, Adam Fletcher, chairman of the ECSN Leadership Group, expressed optimism regarding the long-term trajectory of both the UK/Ireland and global electronic components markets. He indicated that stronger underlying growth is anticipated to return to the global electronic components sector by 2026.
Speaking to Electronics Sourcing, Fletcher noted, “The electronic components supply network fortunately still operates as a people-to-people business where great relationships and effective communication and collaboration, along with a large dose of good humour rank high amongst the key elements for success.” He acknowledged the various geopolitical and economic uncertainties that could potentially influence the market conditions.
Fletcher emphasised the importance of active participation in industry collaboration as a means to alleviate supply and demand imbalances that currently exist in the market. He urged organisations to contribute positively within their supply networks, asserting that these initiatives can enhance an organisation’s competitive advantage at minimal costs, thus benefiting not only individual companies and their partners but also the broader UK/Ireland economy as the region moves into 2025 and beyond.
This outlook is likely to resonate with industry stakeholders, as understanding the anticipated trends and trends in market dynamics will be critical for strategic planning and response in the coming years. The ECSN Leadership Group remains committed to supporting the evolution of electronic components markets and enhancing collaboration across the supply chain.
Source: Noah Wire Services