January 2024
Dear AREI Members,
AREI Chairman’s report – AGM 2024
“Welcome to the AREI AGM 2024. As we enter the new year, there is much uncertainty as to what lies ahead for not only for us as an industry, but in fact for the world. Looking at the conflicts in Europe, Middle East, and Asia, does not in still confidence in the future. Within our own country we see chaos, crime, uncertainty. With the upcoming national elections later this year, many investors are adopting a cautious approach, opting to hold onto their capital for now. But for us, we need to do all in our power to keep going despite the difficult economic environment. How do we as individuals, businesses, associations stay positive and keep going?
“In times of great stress or adversity, it’s always best to keep busy, to plow your anger and your energy into something positive.” – Lee Iacocca
Wise words from a man credited with saving Chrysler from bankruptcy during a very difficult period in the automotive industry.
There are many strategies to stay positive and keep moving forward. A few I find valuable:
- Focus on what you can control – concentrate on factors within your control.
- Continuous learning – invest time in acquiring new skills and knowledge.
- Celebrate success – recognizing successes boosts morale and motivates us.
What can we expect from the semiconductor industry in 2024? After two very challenging years characterized by the severe component shortages, analysts are predicting growth (9%-12%) in the global semiconductor market for 2024. Much of this growth expected to be driven by artificial-intelligence business, and 5G rollout. While our local electronics industry might be quite different, we do see the same trends, so should expect to see an upturn in our local industry.
How do we gauge the performance of our local industry? A key responsibility of AREI is to support our members through the bi-annual ‘Trade Stats.’ Contributing members submit their sales figures for the various component categories to Jenny Gooding. These individual data points are then consolidated, providing contributors with a comprehensive report detailing the totals for that specific period. While these figures might not be 100% accurate, there is a high level of confidence in them, and more importantly gives contributors valuable insight into their own market share, and trends within the total market.
One important addition to the trade stats is the inclusion of total number of components placed by Contract Manufacturers. This addition further enriches the data, providing a more holistic perspective on industry performance. Only by standing together and supporting each other can we move forward. More than ever, an association like AREI is needed to represent the electronics industry. AREI’s mission statement is “Working together to uplift the South African Electronics Industry”.
To fulfill its mandate and mission AREI needs to grow its membership base, and thus we call upon all members to get involved with promoting AREI at every opportunity.
At this AGM, a new committee will be elected. We urge our members to make themselves available for nomination so we can elect a team which is committed to growing our industry, our livelihood. Fresh ideas and ways of promoting our industry, using new methods like social media to reach out to the wider industry.
Looking forward to an exciting 2024 and hoping we can achieve far more than we currently envision”.
Kind regards
Erich Nast
Chairman
