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German component distribution market continued to grow during the first quarter of 2018.
Time: 2018-06-13  |    |  22

Despite the poor supply situation for many electronic components, German distributors continued to report growth in the first quarter of 2018. The distribution companies organised through the German Component Distribution Association (FBDi e.V.) reported an increase in sales of 7 percent to EUR 978 million for the period from January to March 2018 (compared to Q1/2017). Order intake increased 8 percent to EUR 1.09 billion. At 1.11, the book-to-bill ratio (order intake to sales) remains 'in the green'.

 

Among the larger product segments, passive components grew by 10.6 percent (to EUR 136 million), followed by electromechanics (7.1% to EUR 105 million) and semiconductors (6.5% to EUR 676 million). Power supplies grew by 14 percent to just under EUR 30 million, and display sales fell by 5.5 percent to EUR 22 million. There were no or only marginal changes in the distribution of sales: Semiconductor 69.1 percent, Passive 13.9 percent, Electromechanics 10.7 percent, Power Supplies 3 percent, the rest adds up to 3.3% percent.

 

FBDi chairman Georg Steinberger: "The low growth rate in the first quarter of 2018 is largely due to the fact long delivery times for many components. Orders and already processed orders were postponed. A significant relaxation of delivery times, for example for a large number of passive components, is currently not in sight. In our estimation, the first quarter is a good indicator for the full year 2018." "The economic situation of the German electronics industry," continues Steinberger, "is still good, the innovative strength is high; but it can well be that the economic turmoil between the US, Europe and China proves to be a brake on growth."

 

As far as the component industry in general is concerned, market researchers such as IC Insights said investments in new production capacity would grow to more than USD 100 billion in 2018 (semiconductor only), and production of passive components would expand dramatically. "However, most market participants agree that component demand continues to rise so rapidly for some key products (smartphones) that a relief can be expected in 2019 at the earliest. 2018 will be a year in which price increases and long delivery times set the tone."

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