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.”
Nordson's CFO to retire in 2020 after 30 years with the company Nordson's Executive Vice President and Chief Financial Officer, Gregory A. Thaxton, plans to retire in 2020 after thirty successful years with the company, with the last 12 years as CFO.
KUKA restructures subdivision due to economic uncertainty KUKA is restructuring a subdivision in the Robotics segment that is responsible for automated manufacturing solutions such as cells and special machines.
PCB industry recovers slightly in Q3 PCB manufacturers in the D/A/CH region were able to increase sales sequentially in the third quarter of 2019 by 1.1%. However, sales figures are 11% lower than those recorded for the third quarter of 2018, reports the industry association ZVEI PCB and Electronic Systems.
Garz & Fricke moves into new HQ in Hamburg-Harburg Garz & Fricke GmbH continues to expand. As of late October, the business operations of the HMI and Panel PC specialist will be transferring to the new headquarters in in Hamburg-Harburg.
TF Massif Technologies taps new CEO British Columbia-based TF Massif Technologies has announced the appointment of Tom Peregoodoff as the company’s new chief executive officer.
DoJ: Google, Fitbit deal under review The U.S. Justice Department is looking into anti-trust issues concerning Google's bid to buy Fitbit Inc.
L3Harris Tech secures U.S. Marine Corps order L3Harris Technologies received a USD 50 million follow-on delivery order for Falcon III AN/PRC-160 HF radios and related equipment from the U.S. Marine Corps .
Metair completes Romanian lithium-Ion battery cell factory South African energy storage company, Metair Investments, says that its Romanian units Prime Batteries and Rombat have completed the installation of the group's first Lithium-Ion battery cell manufacturing and assembly facility in Bucharest, Romania.
£5m award marks ‘topping out’ of Cardiff research powerhouse An GBP 80 million Cardiff University powerhouse for Welsh scientific research has been ‘topped out’ by Bouygues UK – backed by over GBP5 million support from Welsh Government and industrial partners.
Advanced Energy expands with new lab near Frankfurt Advanced Energy Industries, Inc. has opened its Advanced Materials Processing (AMP) Showcase Lab near Frankfurt, Germany.
TTM Technologies unveils NY engineering center On the heels of its acquisition of manufacturing and IP assets from i3 Electronics Inc., TTM Technologies has announced the opening of a new engineering center in Binghamton, NY.
EU Commission to support pan-European battery development Seven member states will provide, in the coming years, up to EUR 3.2 billion in funding to support research and innovation in the common European priority area of batteries.
The pulse of the electronics industry Growth is slowing worldwide and the industry’s outlook is less optimistic than in previous quarters, although it is still generally positive, according to the results of IPC’s fourth-quarter 2019 Pulse of the Electronics Industry survey.
Teradyne delivers J750 semiconductor test system to Ardentec Teradyne has hit a milestone with the 6,000th shipment of the J750 family of semiconductor testers.
Season Group names new SvP for global business development Season Group has appointed Stephen Tsao as the company's new Senior Vice President, Global Business Development.
Zestron appoints new sales director Europe Mr. Adam Meinert recently joined ZESTRON as the Sales Director of Europe.
Sypris Electronics tapped for NASA project Sypris Electronics LLC has been awarded a contract from Collins Aerospace in association with NASA’s Orion Spacecraft project.
NexLogic eyes implantable med-electronics NexLogic Technologies Inc. has announced its entry into assembly and manufacturing of implantable medical devices, a rapidly growing segment in the medical electronics market.
International Wire Group buys Owl Wire and Cable International Wire Group (IWG) has acquired New York-based Owl Wire and Cable from Marmon Holdings Inc.
ZF to set up third research and development centre in China ZF Friedrichshafen AG is establishing a third Chinese R&D centre in Guangzhou southern China. Representatives of ZF and the local authorities have signed an agreement and ZF plans to invest approximately EUR 90 million in the new development center.
Semiconductor market suffers another plunge in Q3 With revenue plunging by a gut-wrenching 14.7% in the third quarter, the global semiconductor market appears destined for a year of double-digit decline, despite some signs of growth in the critical memory segment, says IHS Markit.
Ericsson to pay $1B to resolve US corruption investigations Swedish telecom company Ericsson has reached a resolution on U.S. FCPA investigations by the the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).
Bel acquires CUI Inc. power assets Bel Fuse Inc. has closed on its previously-announced deal with CUI Global for the majority of the power business of its subsidiary, CUI Inc.
Accel Robotics more than quadruples initial funding San Diego-based start-up Accel Robotics has announced a USD 30 million Series A funding round led by SoftBank Group Co.Load more news