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© fbdi Analysis | December 08, 2017

Growth in German component distribution continues unabated in 3Q/2017

The German component distribution market (according to FBDi e.V.) grew 17.6 percent in the third quarter, with orders up almost 24.5 percent.
The dynamic performance of the German component distribution industry shows no sign of slowing down. After 6.3 percent growth in Q1 and 12.2 percent in Q2, sales in Germany by companies registered with the Fachverband Bauelemente Distribution (FBDi e.V.) soared by 17.6 percent to EUR 937 million in the third quarter of 2017 - an all-time high. Incoming orders grew 24.5 percent to EUR 993 million, yielding a book-to-bill rate of 1.06. Total sales during the first nine months amounted to EUR 2.75 billion.

Whereas semiconductor product sales climbed 17.5 percent to EUR 659 million and passive components grew 14.3 percent to EUR 126 million, electromechanics took it to a new level, with sales jumping 30.7 percent to EUR 96.5 million. Other product areas: Power supplies grew by almost 20 percent and sensors by 8 percent, while sales of displays contracted by 10.7 percent. The breakdown of sales remained virtually unchanged: semiconductors 70 percent, passives 13 percent, electromechanics 10 percent, others (power supplies, sensors, displays, assemblies) 6 percent.

FBDi Chairman of the Board of Directors Georg Steinberger remarked: “There is nothing new to report on the shortage front. For semiconductors as well as for passives, we are seeing long lead times and higher prices, but also a cyclical increase in demand from customers across almost all industrial segments. This strength lead us to believe that Q4 will be excellent. Total sales for 2017 should finish at around 3.6 billion euros.”

How things will continue and, above all, how issues relating to distribution policy will evolve, says Steinberger, is another story altogether: “Gigantic mergers and the resulting pressure as well as the global trend for ‘exclusive’ distribution contracts may help individual companies, but not the industry and certainly not the customers whose choices are being eroded as a result.”

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December 04 2017 9:30 PM V8.9.2-2