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© stevanovicigor dreamstime.com Analysis | June 03, 2016

German component distribution continues to grow

According to FBDi (German Components Distribution Association), the German component distribution market has grown by 9.7% in Q1/2016. Balanced order situation.
The German components distribution market finished the first quarter of 2016 with a growth of just under 10%, which means, the positive trend of the second half of 2015 continues. The turn-over of EUR 859 million was the second highest quarterly sales since the founding of the FBDi (only Q1/CY11, the Fukushima quarter, was higher). Orders showed an increase of 7.5%, with a solid book-to-bill rate of 0.99.



The first quarter 2016 was, as the previous, marked by varying growth rates within technologies: With 10.5% semiconductors were slightly above the average, passive components (7%) marginally lower, and the electromechanical sector with nearly 1% significantly below. Overall, semiconductors achieved sales of EUR 599 million, passive components EUR 119 million and electromechanical components EUR 80 million.

In contrast, other technologies gained significantly: displays grew by 32.6%, sensors by 23.4% and power supplies by 16.1%. But, compared with semiconductors they are at a much lower sales level: semiconductors represent 69.8% of total sales, passive components 13.9%, electromechanical components 9.4%, displays 3.3%, power supplies 2.6% and sensors 0.7%.

Georg Steinberger, FBDi Chairman of the board, says: „Without the exchange rate fluctuations of the last two years, 2016 is developing surprisingly solid, at least up to now. Compared to other countries in Europe, Germany is again clearly above the average. Given the actual favourable order situation, a similar good result can be expected for Q2.”

Whether this trend will actually continue, does not only depend on industry factors, according to Steinberger: “There are many positive signals from a technical point of view (IoT, Smart Industry) as well as from a regional view (termination of the sanctions on Iran, US elections), which may have strong influence on the high-tech industry on the demand of components. However, with the erosion of the EU, not the least from a looming Brexit, we see a lasting danger for the economic development, also in Germany.”

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