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© kornwa dreamstime.com Analysis | November 19, 2013

German component distribution market grows slightly

According to FBDi e.V. the German component distribution market rose by 3.2% in Q3/2013. Order input increases by 11%.
The situation in the German component distribution market continues to stabilize. According to FBDi, the turn-over in the third quarter 2013 grew by 3.2% to 716 Mio. Euro, compared to the third quarter of 2012. The book-to-bill ratio (ratio of new orders placed to billed) was 1.01 (0.93 in the same period of the previous year). FBDi expects a slightly positive, low single-digit result for the full year.

Concerning the various components groups, particularly the semiconductor market still shows a weak turn-over growth (+1% resp. 484 Mio. Euro compared to the previous year). Incoming order, however, should stir some growth fantasies: The strong increase by 13% to 487 Mio. Euro could stand for a good 4th quarter and for a good start into 2014. In the same period the passive components increased by 10% in turn-over and by 11.1% in terms of order income. Showing 111 Mio. Euro turn-over and 110 Mio. Euro on the new order book, they are the second strongest components group, followed by electromechanical, which rose by 6.2% to 76 Mio. Euro turn-over and by 5.9% to 79 Mio. Euro of incoming orders, respectively. The overall allocation - 68% semiconductors; 15% passives; 11% electromechanical - did not change.

Georg Steinberger, FBDi Chairman of the board, said: "While the German components distribution seems to make progress, it is in contrast to the overall economic situation not the best for electronics? specialists. Compared to the rest of Europe, the German market has lost slightly, which, considering a share of over 30% is a luxury problem. Irrespective of this: Microelectronics remains the cross-sectional technology for all markets such as environment, security, transport, communication or comfort. Also, the German industry is definitely leading in Europe in terms of range and depth of applications, and it is competitive on a world-wide level."

The FBDi business climate index (based on the German school grading system), indicates an 'ok' outlook for the upcoming 12 months with 2.9, according to FBDi members. This translates into a moderate and solid growth.

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