The European electronic components distributor total available market (DTAM) continued to grow in Q2 2018, says Adam Fletcher, Chairman of the International Distributors of Electronics Association (IDEA).
The association’s members reported Billings growth of seven percent when compared to Q2 2017, extending the period of double digit growth going back to Q4 2015 and continuous growth spanning 19 calendar quarters.
IDEA members are upbeat about the immediate future and believe that the European electronic components market will continue to grow throughout 2018/19, albeit at a slightly lower pace.
They believe that extended lead times will continue to have an impact on availability of almost all electronic components – particularly large case size MLCC and chip resistors – until component manufacturers have increased manufacturing capacity.
Billings grew in Europe by 7.1% in Q2’18 compared to the previous quarter and by 5.4% compared to the same period in 2017. Bookings grew by 8.2% compared to the previous quarter and 7.3% when compared to the same period in 2017.
This performance is broadly in-line with historical industry trends for the second quarter of the year but average growth rates are notably higher.
The book-to-bill (B2B) ratio over the first two quarters of ’18 has remained fairly stable but IDEA predicts a decline as we move into Q3’18.
Average bookings declined 2.1% across Europe in Q2’18 when compared to the previous quarter with the French, Italian and German components markets falling at a faster rate than the European average. The UK, Nordic, Swiss and Austrian markets all showed growth.
Bookings in the UK and Germany components markets increased faster than the European average of 8.2% in the period. However, all European electronic components markets enjoyed strong Bookings growth in the quarter, averaging out at 8.2%.