UK distributors are seeing positive signals from customers despite a small downturn in the market in August, according to afdec, the authorised distributors group within the electronic component supply network (ecsn).
Justifying a continuing positivity in the distributors’ outlook for the UK and Ireland electronic components market Adam Fletcher, ecsn chairman commented : “Our members’ best collective estimate is that the market will continue its recovery and grow slowly into next year,” but he cautions “this has yet to be backed up by growth in the longer-term order book.”
According to Fletcher component manufacturers have reduced their manufacturing capacity sharply, leading to availability of some components now moving out from ex-stock to 4 to 6 weeks: “This increase in lead-time is likely to become the overall trend as inventory in the channel is sold,” Fletcher said. “Although demand in China for the Christmas consumer goods market remains sluggish and below expectations – which should impact positively on global inventory availability into the fourth quarter – our domestic market outlook into Q4 ‘13 remains at best opaque.”
The association’s latest UK & Ireland distribution statistics show that Monthly Billings) in August 2013 declined by 7% compared to the previous month and fell by 6% when compared to the same period in 2012. The important Book to Bill ratio metric remained in positive territory.
“Although the Sales by Month “three month moving average” for all electronic components does not suggest growth in the immediate future I’m hopeful that it will maintain the historical trend, which is a slight improvement following the peak holiday period,” Fletcher concluded.