IDEA releases consolidated Q3‘10 DTAM

05 November 2010

Total electronics components billings trend
Total electronics components billings trend

The latest electronic components DTAM (Distributor Total Available Market) figures released by IDEA (International Distribution of Electronics Association) indicate that European Distributors are seeing significant sequential growth in bookings (net sales orders entered) and billings (sales revenue less credits).

In announcing the consolidated figures for Q3 ’10, IDEA’s Vice President Adam Fletcher noted that the Billings growth in the European electronic components markets continued in ‘Q3, with the German market powering ahead. Growth in other European countries is apparently beginning to flatten out.

“The current quarter-on-quarter bookings are ‘flat’ suggesting that billings growth is also likely to slow in Q4,” said Fletcher. “When distributor inventory begins to rise it’s usually because component manufacturers are catching up with demand, or customers are beginning to schedule back. In the current market it’s probably a little of both.”

However, Asian system integrators ramp up their manufacturing volumes in Q4 each year as they service the Christmas and New Year demand for consumer goods, so Fletcher is confident that the global demand for electronic components is likely to remain strong for the rest of 2010 before declining in Q1 2011. “Product availability in the European electronic components markets will remain tight into 2H ’11 so we must continue to manage our inventory effectively. The key is for every organisation in the supply network to effectively communicate its real needs with its upstream and downstream partners,” concluded Fletcher.

Total European distribution bookings (net sales orders entered) in Q3 ‘10 were flat when compared to the previous quarter, but show a 50% increase when compared to the same period in the previous year. Sector specific bookings changes in Q3 ’10 compared to the same period ’09 were:
• Semiconductors increased by 55%
• Passives increased by 50%
• Electro-mechs and other components increased by 29%

Total European distribution billings (net sales invoiced less credits) in Q3 ‘10 improved by 2.3%, when compared to the previous quarter, and by 46% compared to the same period in the previous year.

Sector specific billings changes in Q2 ’10 compared to the same period ’09 were:
• Semiconductors increased by 54%
• Passives increased by 40%
• Electro-mechs and other components increased by 24%

At 1.13:1 the Q3 ’10 overall Book-to-Bill ratio showed a slight decline of three points from the previous quarters.

The International Distribution of Electronics Association (IDEA) is a consortium of independent Trade Associations operating in the global electronic component distribution market. The data included in the European DTAM report was complied from statistics provided by afdec / ecsn (UK/Nordic), Assodel (Italy), FBDi (Germany) and SPDEI (France).

Statistics are gathered quarterly from over 100 authorised distributors of electronic components operating in Denmark, France, Finland, Italy, Germany, Norway and the UK. Members of the various trade bodies in IDEA represent 73% of the Distributor Total Available Market (DTAM) in the countries in which they operate and the Association is therefore confident that the consolidated figures included in its report provide a reliable perspective of trends in the European Electronic Component market.


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