The German distribution market is looking up. A strong recovery in the fourth quarter led to a break-even in the 2013 German components distribution market.
According to the German distribution association the FBDi, the turn-over in the fourth quarter 2013 grew by 6.6% to 651m Euro compared to the fourth quarter of 2012. Thanks to continuously strong bookings of 703m Euro the book-to-bill ratio was 1.08, which paves the way for a good start into 2014. As the FBDi has adjusted the figures for 2013 slightly downwards, the predicted single-digit growth ended in a balanced result. The total turn-over for 2013 was 2.75bn Euro.
The semiconductors and passive components both increased by 6.3% to 443m Euro and 96m Euro respectively. The electromechanical sector grew by 9% to 70m Euro. Power supplies soared by 20.3%. The overall revenue split did not change – semiconductors are still the strongest components group with 68%, followed by passives at 15%, electromechanical at 11%, displays at 3% and power supplies at 2%.
Georg Steinberger, FBDi Chairman of the board, said: “The market has obviously finished its repose of two years, and distributors are gathering momentum again. The optimism seems to be justified, considering the massive increase in demand. What remains is the price situation. In spite of the popularity of electronics at large, the industry still seems to work off overcapacities, with a corresponding impact on the purchasing habits (short-term).”
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