Market in Flux

Mixed Signals, EV Challenges & Push for a Strong Second Half

by Tim Kilfoil

Our market snapshot this month is long on muddling mix and short on clarity toward growth. There has not been an appreciable pickup in demand despite what we have seen/heard from some channel partners who have seen increases, albeit small, in product orders that appear to be replenished. Our experience is that certain automotive customers are still struggling with program launches in the EV/PHEV space, while others are deciding to push out farther in anticipation of an improved future market-entry date. We see customers continuing to buy-as-we-need rather than scheduling the way they would do in normal environments.

Of course, customers are buying, and schedules are being filled, but the growth in volumes is not being discussed. If we are to build our way out of this and into a stronger second half, we would need to start seeing some orders begin to drift higher with an expectation that orders, after the associated lead times, would arrive in Q3 to build and ship. However, that is not happening in a large and recognizable way.

But, it is still early in the year, and things can- and do- turn in a moment. There are certainly pieces in place to support a manufacturing acceleration. Let’s hope we see it coming on by the time we meet up again.  Enjoy your spring!

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