UK demand for electronic components stronger than anticipated

11 March 2011

Copyright: ecsn
Copyright: ecsn

ECSN's figures show a rise in billings, which will give hope to the industry.

According to figures released by The Electronic Components Supply Network (ECSN) the latest Authorised Distribution (afdec) performance figures show billings (net sales invoiced less credits) grew by 19% in January 2011 compared to December 2010 and by 24% when compared to the same period last year.

ECSN chairman Adam Fletcher, states that the rate of Billings and Booking growth is firmly in line with the association’s forecast and is likely to continue to be so through the first half of 2011.

“The consensus opinion of ECSN’s afdec members is that customer demand in the UK and Eire (and internationally) is stronger than anticipated but remains difficult to forecast accurately,” said Fletcher. “Electronic component manufacturers right across the industry are beginning to revise their pricing in line with the significant increases in raw material costs, in what is a painful but necessary process.”

Fletcher believes that many customers have already budgeted for an increase in component prices in 2011 but he cautions, authorised distributors should expect a period of difficult negotiation and review.

“Given the current economic situation we must expect severe pricing pressure across the electronic components supply network. I suspect that some customers may seek to move a proportion of their business between supply partners in an attempt to mitigate the unwelcome, but in the short term at least, inevitable price increases.”

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