The first signs of a slowdown in the German component distribution market are becoming apparent following two stellar years of growth says FBDi, the German component distribution association.
Well it’s not all doom and gloom. According to DMASS* European semiconductor distribution sales grew by 8.4% to 2.5bn Euro, an all-time record in the first quarter of 2019.
The UK and Ireland distribution market’s run of twelve consecutive periods of ‘quarter-on-same-quarter-the-previous-year’ growth’ has been abruptly halted by an unexpected decline in Billings in April ‘19.
UK and Ireland component distribution body afdec has slashed its market prediction for 2019 from an initial 8% to a more likely 1% to 3%. In Q1 sales drooped 1.3% compared to Q1 2018.
Unusually high sales growth of almost 10% in the last quarter of 2018 meant the German electronic component distribution market finished on a high note.
After a very positive, double-digit 2017, the European semiconductor distribution industry posted solid growth throughout 2018. In the 4th quarter of 2018, semiconductor distribution sales according to DMASS, grew by 14.2% to 2.3bn Euro.
Disregarding a potential buffeting from Brexit and tariff wars, industry association ecsn-AFDEC is forecasting the UK and Ireland distribution market will grow 5.9% to £1.47bn in 2019, representing 44% of the Components Total Available Market (TAM) of £3.28bn.
The German component distribution market reported solid but sluggish growth for the third quarter of 2018. According to the distribution companies registered with the Fachverband Bauelemente Distribution (FBDi), sales during the period July to September 2018 grew by 4.7% to reach 980m euros.
Healthy mid-single-digit growth has been the order of the day for the European semiconductor distribution industry this year. With product shortages and price increases continuing through the summer, Q3/2018 ended, according to DMASS, with 2.3bn Euro of sales, an increase of 6.3% compared to 2017. The first nine months of 2018 showed exactly the same increase of 6.3%, to 6.91bn Euro of sales.
Adam Fletcher, chairman of the Electronic Components Supply Network (ecsn), has reported continuing strong revenue growth in August 2018, traditionally one of the quieter months in the year. But at the same time he acknowledged an unusual eight point fall in the B2B (book to bill) ratio.