While global electronic component distributors widely differ in their core focus, these distributors are all in agreement that moving into 2024, there is cautious optimism and opportunities as inventory across the channel is increasing.
After long years of the COVID-19 pandemic that crippled parts of the semiconductor supply chain, the New Year is a potential turning point as inventory finally comes back into a state of normalcy. However, while some engineers will be able to take a breath finally, ongoing challenges regarding economic uncertainty and continuously shifting technological demands will still weigh heavily on how designers approach sourcing parts.
“From a distributor’s perspective, this actually provides an opportunity to take the lessons learned from the disruption of the past few years to lay a stronger foundation and better position companies for whatever may lay ahead,” said Rebeca Obregon-Jimenez, senior vice president of Strategic Business Engagements and Supplier Management at Avnet Inc.
Avnet said economic uncertainty still will cause engineers and vendors to scrutinize budgets and fight to get the most value out of their investments. Simultaneously, these companies should not overlook investments made in the last years to strengthen supply chains.
“It is not a time to go back to how things were before such investments were ‘needed,’ but rather an opportunity to leverage those processes and operations that were put in place to navigate disruption to ensure companies are well-equipped for whatever may lay ahead,” Obregon-Jimenez said.
Smart manufacturing
On the other hand, with inventories increasing, a degree of optimism in 2024 in the industrial automation space is also happening.
“Over the past year and a half, it wasn’t uncommon to hear lead times on drives, PLCs, HMIs and other advanced products to be well over 52 weeks,” said Eric Halvorson, partnership marketing manager for strategic program, automation and control at DigiKey.
DigiKey seeks smart, sustainable manufacturing becoming a huge trend in 2024. Manufacturers are in a difficult but unique position that comes with a huge opportunity. Consumers now more than ever demand high-quality, sustainable products manufactured through smart and sustainable practices.
Because of this, environmental stewardship is more important than ever before. OEMs have to be nimble and efficient while looking constantly to improve sustainable manufacturing.
“We see manufacturers doing this through the use of solar-powered microgrids, carbon capture projects, asset monitoring, the use of AI and cloud computing and many other technologies to meet net-zero goals,” Halvorson said.
AI everywhere
One common theme among distributors for 2024 is the growing use of artificial intelligence (AI).
Regardless of economic issues, AI in 2024 will grow as a tool for:
- Supply chain optimization
- Predictive analytics
- Enhanced customer experiences
- Next-level fraud detection
- Industrial automation
“Avnet has been working closely with customers and suppliers to determine the right approach to incorporate AI into their business, and we are looking forward to where it will take us in 2024,” Obregon-Jimenez said.
AI has already made its way into industrial automation to program PLCs, robotics, forecasts on production scheduling and more. Digital twins are being used more across factory floors that gives manufacturers the ability to view their entire floor in a simulated environment, DigiKey said.
“This allows the manufacturer to see how changes in programming would affect real world production,” Halvorson said. “[AI] also reduces design cycle time, testing and improves outcome. Adding AI can enhance the accuracy and realism of digital twins by using computer vision, machine learning and deep learning to analyze data from sensors, cameras and other sources.”
DigiKey said AI will allow realistic 3D models of physical objects and environments using generative adversarial networks (GANs) and other skills. Digital twins can run simulations and learn from their own experiences to adapt to changing conditions.
