As 2019 draws to a close, we can reflect on what a challenging year it has been. The start of the year saw long lead-times and high demand, creating a period of instability.
With lead-times reducing through the latter half of the year and becoming more manageable, the focus has shifted from managing customer demand to maintaining continuity. Stability and support are key factors as we move into 2020, as the challenge changes from allocation to growth. Inventory that was built up during the lead-time crisis is now being utilised, and so we expect to see an upturn in demand once these stocks are depleted.
We also expect to see a growth in new product development. With all capacity and resources being allocated to managing demand when production was stretched, there is now the opportunity to look to development of new products again.
2020 is also expected to see a rise in demand for capacitors. With increasing electrification of vehicles in the automotive industry, there are now around ten times as many capacitors being used in sub-systems within standard vehicles, as well as the growth of the electric vehicle market. Within the aerospace and defence sector, we are also seeing increased activity, as with the space sector, where projects are starting to come to fruition. High-reliability passives is one area where we expect to see growth from these sectors in the coming year.
As we move from a period of allocation to consolidation, Charcroft look to continue our support to our customers. Working closely with engineers from OEMs and their CEM partners, as well as investing in a customer-driven inventory, enabled Charcroft to maintain an On-Time Delivery (OTD) rate of 98% throughout the period of allocation. As we move into 2020, Charcroft can provide a positive partnership to our customers to ensure a successful new year.