German component distribution sees drop in orders and sales
German component distribution shrinks by 12.6% in third quarter 2019,according to the FBDi.
In line with the general components market and the German economy, sales in the German component distribution business declined significantly in the last quarter. Sales of distributors organised within the German component distributors’ association FBDi fell by 12.6% to EUR 808 million euros. Orders declined by 34% to EUR 674 million. This has taken the book-to-bill rate to a low 0.83. Significant declines in sales were recorded in semiconductors (down 13.3% to EUR 566 million) and electromechanical components (down 14.6% to EUR 87 million), while passive components fared slightly better, with sales down 8.1% to EUR 103 million. Power supplies shrank by 11.5%, displays by 13%, modules and systems by 10.9%. In contrast, sensors saw growth once again, this time by 8.7%. The market breakdown remained unchanged: semiconductors 70%, passive components 13%, electromechanical components 11%, and the rest together accounting for 6%. FBDi executive chairman Georg Steinberger comments: “The expected decline in sales in the summer quarter was unfortunately somewhat more pronounced than expected. The last comparable drop occurred during the banking crisis of 2008. As root cause, we are seeing a mix of drastically reduced inventories, over-cautious planning (driven by macroeconomic uncertainty), and economic slowdown in some our customers' target markets. So there is a possibility of a double-digit decline in our industry in 2019.” Steinberger identifies excessive “German” skepticism as major challenge: “In no other European or OECD country is the mood worse than in Germany, even though the economy is certainly not performing that badly.” From January to October, the IHS Markit Production & Manufacturing Index (PMI) fell from a good 50 points to 41.7; 50 is regarded as the threshold between downturn and upswing. Even in a crisis-ridden country like Italy, the mood is much better. And in the UK too. Steinberger adds: “One might almost think that Brexit was happening in Germany!” A further factor is that Germany is currently not being very innovative in striving towards a more climate-friendly infrastructure. “The revolution in energy supply - a potential technology driver - has not only not happened since 2011, it is also being prevented from happening. That is not helping the German high-tech sector; climate targets are being missed, and Germany risks being left behind in terms of environmental protection.” According to Steinberger, the FBDi sees rays of hope for the components industry at least: “2019 was certainly worse than expected but, in spite of all skepticism and political paralysis, we expect to see a positive trend next year, and a return to former strong performance levels in 2021. The turnaround starts in people's heads.”
Indra opens massive radar factory as it concentrates its manufacturing The new factory, located in San Fernando de Henares, will concentrate the company’s entire radar manufacturing for civil and military use.
New production lines installed at ESCATEC Penang Several new production lines are being set up at the company’s main facility in Penang, which hosts ESCATEC Electronics (EEM) and ESCATEC Medical (EDM).
Greg Grace takes the helm as MD of Incap Estonia Greg Grace has been appointed Director, Operations Estonia, and Managing Director of Incap Electronics Estonia, and member of Incap Group’s Management Team.
NA semi equipment industry posts December 2019 billings North America-based manufacturers of semiconductor equipment posted USD 2.49 billion in billings worldwide in December 2019 (three-month average basis), according to SEMI.
NOTE increases deliveries to Hövding Hövding 3, the latest version of the company’s airbag helmet, is fully ramped up at NOTE’s plant in China.
Eguana inks deal for residential energy storage systems Eguana Technologies Inc. has entered into a development contract with an unnamed renewable energy company to develop and certify proprietary residential storage systems for distribution through its sales channels across global markets.
BlueRing Stencils picks up Stone Mountain Tool BlueRing Stencils has acquired Georgia-based tooling supplier Stone Mountain Tool.
Bosch increases its stake in fuel-cell expert Ceres Power Bosch has increased its stake in Ceres Power from 3.9% to circa 18%. Bosch’s total investment in the company will be approximately 90 million euros.
Haldex Heidelberg staff urges management to reconsider the closure It was back in October of 2019 that Haldex announced that it was streamlining its production in Europe, a decision that would see the move of production from Heidelberg in Germany to Szentlörincskáta in Hungary.
Foxconn’s Gou: WI plant operational this year Foxconn Technology Group founder Terry Gou is indicating that the company’s new manufacturing facility in Mount Pleasant, Wisconsin, still currently under construction after multiple slowdowns, will generate products beginning this year.
Zentech acquires Trilogy Circuits LLC Zentech Manufacturing has acquired Texas-based Trilogy Circuits LLC, a provider of EMS services to military primes and other high-reliability industries in Texas and across the United States.
Markus Jeck to take lead of Enics Switzerland EMS provider Enics has appointed Markus Jeck as the new General Manager of Enics Switzerland.
Hanwha Precision Machinery launches tech centre in Germany Hanwha Techwin Automation Americas' – formerly Samsung C&T Automation – unit, Hanwha Precision Machinery, has launched an integrated tech centre for Europe in Germany to accelerate its global expansion.
TTM Technologies to sell four China manufacturing plants TTM Technologies is executing a definitive agreement under which the company has agreed to divest its four China manufacturing plants – which make up substantially all of the assets of its Mobility business unit.
Incap acquires AWS Electronics EMS provider Incap has signed an agreement to acquire 100% ownership of AWS Electronics Group.
Ampleon, Rochester Electronics ink deal RF power products supplier Ampleon and semiconductor manufacturer Rochester Electronics have forged a strategic partnership to extend the global supply of Ampleon’s VDMOS portfolio of high-performance RF transistors.
Trust Automation appoints new COO California-based Trust Automation Inc., a supplier of automation technology for industrial and defense applications, has welcomed Teddy Ross to the company as chief operations officer, effective immediately.
TDK Ventures invests in SLD Laser TDK Ventures Inc., a subsidiary of TDK Corporation, has invested in SLD Laser, a specialist in the use of gallium nitride (GaN) in the commercialization of visible laser light sources for multiple applications including automotive, mobility, medical, and specialty lighting.
Sono Motors hits its target - community funding works The Munich-based mobility provider Sono Motors has successfully completed the extension of its campaign to finance the company and has exceeded its target of EUR 50 million.
New group structure at Mycronic aimed securing future growth Swedish creator of production equipment, Mycronic, has grown quite a bit during the last years; both organically but also through acquisitions. And with that growth some structure is in order.
Zenuity and HP Enterprise team up to develop next-gen autonomous driving cars Hewlett Packard Enterprise (HPE) has been selected by Zenuity, a Swedish developer of software for self-driving and assisted driving cars, to provide the crucial artificial intelligence (AI) and high-performance computing (HPC) infrastructure it needs in order to develop next generation autonomous driving (AD) systems.
Honeywell, Lockheed Martin win NASA contracts Honeywell and Lockheed Martin have both announced recent contracts for the supply of key components to NASA’s Orion spacecraft fleet for the upcoming Artemis lunar missions.
Libra Industries welcomes new VP EMS provider Libra Industries has welcomed David Chavez to its leadership team as the new VP of Integrated Business Development.Load more news