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© ecsn afdec Components | October 10, 2018

Continued strong growth for UK distributors

UK Authorised Distributors report continuing strong revenue growth in August ’18 reflecting positive overall sentiment in the global electronic components industry
Delivering the consolidated August 2018 results returned by his authorised distributor members, Adam Fletcher chairman of the Electronic Components Supply Network (ecsn), reported continuing strong revenue growth in what is traditionally one of the quieter months in the year. At the same time, he acknowledged an unusual eight point fall in the B2B ratio: “The decline in the B2B to 0.96.1 in August is unwelcome however I believe that we’re simply returning closer to historical reporting levels. The polynomial trend line suggests the B2B ratio is likely to remain positive into Q4‘18."

Overall Bookings increased by 12% compared to the same month 2017, while Total Monthly Billings (net sales invoiced less credits) increased by 4% compared to the previous month and by 12% when compared to the same month last year.

Fletcher believes that manufacturing output is flatlining in the UK due to weaker domestic and export demand but increasing vendor delivery times and availability of raw materials continues to be a global problem, as does rising input prices: “BREXIT is causing a lot of uncertainty in the UK, while the risk of an escalation of the trade war between the US and China is doing absolutely nothing positive for international markets”, Fletcher said.

“The Sales by Month “three month moving average” for all electronic components suggests continued but slowing UK growth into Q4‘18, which is broadly in-line with historical results and forecasts”, Fletcher concluded. “There has certainly been a slight decline in customer sentiment from earlier in the year but overall the outlook for our domestic electronic components industry remains strong …”

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October 15 2018 11:56 pm V11.6.0-1