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© photodynamx dreamstime.com Electronics Production | May 30, 2013

German component distribution market remains optimistic

According to FBDi e.V. German component distribution market is back to growth. Order volume is stabilizing.
The situation in the German component distribution market continued to stabilize during the first quarter of 2013. There was a double-digit growth of orders and revenues compared to the fourth quarter of 2012. The book-to-bill ratio (ratio of new orders placed to billed) in the first quarter was 0,97, however it gives hope for additional positive development in 2013.

First quarter revenues of FBDi member companies were 731 million Euros, only just under 4% below the same quarter in the previous year, but had a growth of 20% compared to the last quarter. Orders grew 3% in the first quarter compared to the same quarter in 2012, and had a sequential growth of 10%.

Revenue distribution among the components groups show slight shifts: Semiconductor share of the FBDi total in the first quarter 2013 was 68% (minus 2% compared to last year), passives 15% (plus 1%), electromechanical 11% (also plus 1%). Displays share was 3% and power supplies 2%, both remaining unchanged. Fluctuations were within cyclical norms.

FBDi Managing Director Wolfram Ziehfuss: "The first quarter has brought us a little closer to the expectations for 2013. A slight growth is realistic. The potential for German industry is by European and international comparison excellent." This optimism is clear, not in the last, in the FBDi business climate index* (based on the German school grading system), which in the previous quarter climbed to 3,16 (from 3,19) and is on the books with a long-term 2,67 (versus 2,81).

The FBDi business climate index includes orders on hand, incoming orders, revenues, and profits and is anonymously compiled on a quarterly basis.

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