‘Customer demand is high’
14 April 2011
February 2011 performance figures just released by the authorised distributor group (afdec) of the Electronic Components Supply Network (ecsn) reveal a decline in distribution billings compared to the previous month, but an increase compared to the same period last year.
However, as ecsn Chairman Adam Fletcher notes, the rate of growth continues to slow in line with the level of bookings growth achieved and seems likely to continue to do so throughout 1H ’11. “The consensus opinion of afdec members is that customer demand in the UK and Eire (and internationally) remains stronger than anticipated and difficult to accurately forecast. I do however suspect that the billings figures for Q1 ’11 will show only a very modest growth.”
According to Fletcher, the decline in distributor inventory levels by a further 1% in February 2011 reflect actual customer demand and his members’ prudent and restrained purchasing practices. “As electronic components manufacturers are now catching up with anticipated demand, overall inventory levels in the industry are bound to rise.”
Total Monthly Billings (Net Sales Invoiced less Credits) in February ’11 declined by 2% when compared to previous month but increased by 19% when compared to the same month last year.
Percentage billings increases by product group compared to February ’10 were: Semiconductor 19%, Passives 26%, Electromechs 9%, Component Assemblies 7% and Other Products 62%.
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