© bellemedia dreamstime.com Components | November 17, 2020
German component distribution market is still waiting for growth 'vaccine'
German component distribution (according to FBDi e.V.) shrinks by 11.9% in the second quarter 2020. Orders are down 8%. Slight sequential recovery, but no massive signs of improvement.
After the first wave of COVID-19 had subsided, the slight hopes of a summer recovery in the components distribution market have not quite materialised. The sales of the distribution companies organised in the Fachverband Bauelemente-Distribution (FBDi e.V.) fell by 11.9% to 708 million euros in the third quarter. Order volume continued to decline, by 8.1% to 626 million euros. The book-to-bill ratio of 0.88 indicates a further weakening of sales by the end of the year. In a 9-month comparison, the distribution market reports a red 16%. With minus 17.9% (84 million euros) in sales, passive components in particular weakened, followed by semiconductors (minus 11.9% to 482 million euros) and electromechanics (minus 3.8% to 91 million euros). Sensors, displays, assemblies and power supplies also lost sales. In the distribution of sales, semiconductors make up 68% of total sales, passive only 12%, electromechanics 13%, power supplies 4% and all other product groups together 3%. FBDi CEO Georg Steinberger: “The economic situation in our industry has improved slightly sequentially, but year-on-year sales are well below the already weak previous year. The weak order situation is unlikely to give rise to any major leaps in the coming months either, despite positive signals from China and a “soft” second lockdown that spared the manufacturing industry. There is still a lack of visibility in the short to medium-term business development. " However, the mood in the overall economy is still cautiously positive, despite COVID-19, the US election and Brexit. Steinberger: “The PMIs (Production & Manufacturing Indices) published by IHS Markit in October remained above the value 50, which suggests belief in growth. In addition, there is the hope of vaccines, which in the medium term will contribute to a normalcy of social and economic life and which should give global trade a boost. In the short term, it should remain tightly watched. The next one or two quarters will be characterised by caution and waiting, with the corresponding effects on the industrial supply chain." From the FBDi's point of view, Steinberger believes that the question of how things should go on in general remains open: “The focus of the current discussion on COVID-19 and the consequences should not obscure the equally critical future tasks in the next few years. Waiting for a solution or at least a directional decision. The great consensus on climate change and its consequences in the statements must result in appropriate decisions at a political level. This way, in the long term, the economic consequences of the current crisis - billions in debts, tax losses - can be translated into innovation leadership and key industries can develop in a growth segment with positive effects on both the environment and the economy. "
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