Inventory at Distribution High, but with a Warning of an Unexpected Snap Back in 2013

 IHI analysts have noted an unusually high inventory number in distribution, but fears that the comfort of easy to procure components with no or short lead times might cause manufacturers to be lax on ordering too far in the future.  The manufacturers of the components are cutting back production and, if there is any increase in market conditions, a potential shortage could bring us back to long lead times.  IHI hinted at a potential surge in the replenishment of equipment manufacturers inventory in early 2013.

AERI has noticed the increased inventory levels.  There are much fewer shortages for our customers and the independent distribution industry, as a whole, is having trouble generating their regular business.  Prices in the excess market have come down and many independent distributors will do anything to sell their product.  It’s a great time to make last time buys on obsolete components.

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