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Analysis | August 27, 2018

German components distribution remains on track

Stable growth and healthy order situation shape the German component distribution market (according to the FBDi association) in the 2nd quarter 2018. Semiconductors weak, passive components strong.
Stable but uninspired – this describes the German component distribution market during the second quarter 2018. Sales by companies registered with the Fachverband Bauelemente Distribution (FBDi e.V.) grew in the months April, May and June by 5% (compared with Q2/2017) to EUR 949 million. The order situation performed better, and with EUR 1.04 billion exceeded the billion Euro mark once again. With 1.09 the book-to-bill rate (order intake to revenue) remained on a high level.

Broken down by technology the passive components grew strongest with 14.4% (reaching EUR 137 million), followed by electromechanics (7.7% growth to EUR 100 million) and semiconductors (2.8% to EUR 654 million). Power supplies recorded 13.7% growth to EUR 27 million, and displays lost 4.3% ending at EUR 21 million. Regarding the breakdown of sales there is slight changes: semiconductors 68.9%, passive components 14.4%, electromechanics 10.6%, power supplies 2.8% and others (sensors, displays, assemblies) 3.3%.

Georg Steinberger, FBDi Chairman of the board: “The effect of postponed orders due to the poor supply situation continues during the second quarter. Since mid of 2016 the orders have grown substantially stronger than the revenue, but do not have a recognizably adverse effect on the revenue growth. All this indicates that either the backlog is growing or the cancellations have increased. This will be reflected in the overall year 2018, we expect a moderate growth in the one single-digit range at the best.”

“The trade dispute does not seem to have a significant impact on the overall German economic growth so far. Somehow the high technology market, by and large, seems to be uninfluenced of the political situation. Endogenous factors such as missing production capacities and shortage play a more important role.”

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September 21 2018 11:51 am V11.0.0-2