Germans show strength in components
09 November 2010
It’s time to look at all things German this week, as indicators show a resurgent electronics industry there and it also opens the door on the main global event, electronica.
I won’t linger on the delights of electronica in this week’s blog – partly because I have written about it several time just recently (we have a full preview here), and also because if you were interested in being there you would be, as I currently am, pounding the aisles of those vast Germanic halls right now (assuming you are reading this blog on the 9 November 2010 when it was first posted) instead of sitting in front of your computer reading this. If I see anything of great interest you can be sure I will report back in the following weeks.
So the other area of German interest is the latest release by the International Distribution of Electronics Association (IDEA) showing European sales figures by distributors. Component sales figures have usually been the best barometer for current manufacturing activity and what the manufacturers are forecasting for the immediate future. So for this week’s blog I am shamelessly pulling on information issued by IDEA this week.
Announcing the consolidated figures for Q3 ’10, IDEA’s Vice President Adam Fletcher noted that the Billings growth in the European electronic components markets continued in Q3, with the German market powering ahead, whilst growth in other European countries is beginning to flatten out. “The current quarter-on-quarter Bookings are ‘flat’ suggesting that Billings growth is also likely to slow in Q4,” said Fletcher. “When Distributor inventory begins to rise it’s usually because component manufacturers are catching up with demand or customers are beginning to schedule back. In the current market it’s probably a little of both.”
Asian system integrators ramp up their manufacturing volumes in Q4 each year as they service the Christmas and New Year demand for consumer goods, so Fletcher is confident that the global demand for electronic components is likely to remain strong for the rest of 2010 before declining in Q1 2011.
“Product availability in the European electronic components markets will remain tight into 2H ’11 so we must continue to manage our inventory effectively. The key is for every organisation in the supply network to effectively communicate its real needs with its upstream and downstream partners,” Fletcher concluded.
Total European Distribution Bookings (net sales orders entered) in Q3 ’10 were flat when compared to the previous quarter but show a 50% increase when compared to the same period in the previous year. Sector specific Bookings changes in Q3 ’10 compared to the same period ’09 were: Semiconductors increased by 55%; Passives increased by 50%; and Electro-mechs and Other Components increased by 29%.
Total European Distribution Billings (net sales invoiced less credits) in Q3 ’10 improved by 2.3%, when compared to the previous quarter and by 46% compared to the same period in the previous year. Sector specific Billings changes in Q2 ’10 compared to the same period ’09 were: Semiconductors increased by 54%; Passives increased by 40%; Electro-mechs and Other Components increased by 24%.
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