Q&A with Jeff Ittel, Flip Electronics EVP
Q&A with Jeff Ittel, Flip Electronics EVP
1. WHAT DO YOU EXPECT IN TERMS OF REVENUE GROWTH IN 2024?
We are seeing signs of the market stabilizing and returning to growth in 2024. The proliferation of semiconductor technology in all aspects of our lives is a strong foundation for continued growth.
2. HOW BULLISH/BEARISH ARE YOU FOR BUSINESS IN 2024, AND WHY?
While challenges are anticipated in the industry for 2024, there is an overall sense of optimism driven by positive indicators such as the emergence of new technologies and improved lead-time projections, which are expected to have a favorable impact on business outcomes.
3.WHAT ARE YOUR EXPECTATIONS FOR NORTH AMERICAN REVENUE GROWTH IN CY2024?
Expectations are optimistic for North American revenue growth in CY2024, fueled by factors like the integration of artificial intelligence in the supply chain, which is set to streamline processes and enhance efficiency, contributing to positive financial outcomes.
4.WHAT ARE YOUR EXPECTATIONS FOR ASIAN MARKET REVENUE GROWTH IN CY2024?
Positive expectations surround Asian market revenue growth in CY2024, driven by innovations like 5G, the Internet of Things (IoT), and artificial intelligence, which are poised to contribute to operational efficiency and boost the semiconductor market in the region.
5.WHAT ARE YOUR EXPECTATIONS FOR EUROPEAN MARKET REVENUE GROWTH IN CY2024?
We have seen the European market remain relatively stable when compared to the other regions in 2023. Optimistic expectations extend to European market revenue growth in CY2024, led by AI as well as the industrial, aerospace, and automotive segments.
6.WHAT IS YOUR CAPITAL INVESTMENT PRIORITY IN 2024? (E.G., INVENTORY EXPANSION, DIGITAL MARKETPLACE, NEW PRODUCT CATEGORIES, NEW END MARKETS, ETC.)
Flip will continue to invest in our business as we scale our business and enhance our customer experience. In 2023, we successfully implemented and brought up a new ERP system. In 2024, we will focus on geographic expansion in the European and Asia regions, launch our new E-Commerce platform, and continue to expand our product and service offerings with several exciting announcements coming in the next few months.
7. WHAT IS THE MOST SIGNIFICANT BUSINESS OPPORTUNITY FOR YOU IN 2024?
The combination of new technologies, such as artificial intelligence and the evolving semiconductor landscape, is anticipated to propel the industry forward and open avenues for growth. In addition, Flip is very excited to be expanding our footprint in other regions beyond the Americas.
8. WHAT IS THE MOST SIGNIFICANT RISK YOU ARE FACING IN 2024?
Obviously, we cannot ignore the Geopolitical forces that can impact all industries. We also continue to see significant risks for the supply chain as product discontinuance notices (PDNs) or end-of-life (EOL) notifications show no sign of slowing down. This poses challenges to industries with products characterized by prolonged life cycles, necessitating a focus on design for manufacturability and strong relationships within the distribution chain. Flip will continue to focus on solutions aimed at offering solutions to reduce these pain points.
9. WHICH END MARKET SEGMENTS (AUTOMOTIVE, AVIATION, COMMUNICATIONS, COMPUTING, INDUSTRIAL, MILITARY, ETC.) DO YOU THINK WILL PROVIDE THE STRONGEST GROWTH OPPORTUNITIES IN 2024 AND BEYOND?
Strong growth opportunities in 2024 and beyond are expected in the automotive and industrial end market segments, with the automotive semiconductor market forecasted to reach $114 billion by 2030, reflecting a compound annual growth rate (CAGR) of 11.8%.
10. IS FLIP ELECTRONICS PLANNING ANY MERGERS OR ACQUISITIONS IN 2024?
Flip is committed to continuously adding new partnerships to our portfolio. We are actively looking for new technologies and service offerings that lend to our ability to prolong lifecycles for our customer's products.
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