We just completed interviews with top executives of connector companies. The major topics were current connector price activity in the market place and the outlook for the second half of 2012. The consensus opinion is that connector prices are currently stable and 2012 is behaving like a normal year in terms of the number of requests for price concessions. No one seemed to be concerned that prices would erode any more than in a normal year. Conversely, industry leaders noted that distributors and OEMs are becoming more conservative in their purchases by ordering smaller quantities and ordering more frequently. As a result, lead times are beginning to fall from the current six weeks lead time.

Through six months of 2012 world connector sales are down low single digits when measured on a year over year basis. The consensus opinion of executives are for a flat third quarter on a sequential basis with a modest upturn in the fourth quarter. They believe full year 2012 will result in a -3% to -4% year over year decline in world connector sales. No one believed the industry would experience a large downturn in the second half 2012.

What are you seeing in connector prices and the overall status of business conditions? Do you agree with the consensus or disagree and why? Your input would be useful to all of us in the industry.