Prices expected to continue downward trend as inventory surplus predicted
Lytica, the global leader in electronic component spend analytics and risk intelligence using real customer data, has released today the results of a study conducted using pricing from millions of parts sourced by global manufacturers on its platform.
The study shows that the overall prices in the electronic commodities market have been declining since their peak in April of this year. Lytica has observed a steady drop in recent customer pricing, resulting in price levels lower than the peak price level in April.
The price trend is a combination of all electronic commodities from July 2020 till September of this year.
“We have been seeing significant price reductions over the past few weeks on many components,” said Ken Bradley, founder of Lytica. “Our customers have also been re-iterating what our data is showing, and we expect the trend to continue for the time being.”
Lytica is also predicting price turbulence from an oncoming surplus in electronic components. Two factors contribute to this prediction, the first is a cooling in demand, and the second is a large number of over-committed purchases by manufacturers due to supply chain shortages.
“Along with a softening in pricing, this inventory buildup will hopefully lead to lower prices in consumer goods,” said Bradley.
Enabled by the world’s largest independent database of electronic component intelligence and real-world prices, Lytica provides the data and insights necessary to save Fortune 500 and blue chip customers millions of dollars per year.
For more information on this study and to learn how Lytica helps companies make their supply chain more cost transparent, more resilient, and more predictable, visit: https://lytica.com/contact
Lytica is an electronic component spend analytics and risk intelligence company that uses real customer data to help companies make their supply chain more cost transparent, more resilient, and more predictable. Lytica’s advanced electronic component market intelligence platform employs machine learning and AI to analyze real-world pricing data, offering true market insights to reduce costs and mitigate supply chain risk. Fortune 500 and blue chip companies around the world rely on Lytica to find better prices and better manufacturers and suppliers. To learn more, visit lytica.com