After two years, the decreasing order situation in the German component distribution results in a slight drop in turnover. Sales of distribution companies under the umbrella of the Fachverband Bauelemente-Distribution (FBDi e.V.) dropped by two per cent to 879 Million Euro. Orders further weakened to around 748 Million Euro, equating to a book-to-bill ratio of 0.85.
Regarding the major product segments, semiconductors and passive components remained at the previous year’s level (623 million Euros or 112 million Euros), electromechanics dropped by 12 per cent to 91 million Euros, power supplies dropped by seven per cent to 26 million Euros. The smaller product segments (displays, assemblies and devices) also declined: only sensors grew by 22 per cent. The market share has scarcely changed: semiconductors held a 70 per cent share, passive components at 13 per cent, electromechanics at 11 per cent, all other segments combined to six per cent.
Georg Steinberger, FBDi chairman of the board comments: “Unfortunately, it appears that the return from an overheated market back to normality turns out to be too normal. Order situation, especially in regards to semiconductors and passive components, is poorer than expected. But, concerning the turnover there is already winners and losers, i.e. memories, optoelectronic components and passives (except of capacitors). After all, the first half year closed still with a total plus of one per cent. For the second half year, we must assume a minus due to declining orders.”
The general uncertainty caused by Brexit, controversy in customs and other macroeconomic distortions will remain, according to Steinberger: “If we are very realistic and we add hard realities – like climate change, end of throwaway society – to the political confusion, this leads us to mixed prospects for the short-term market development. On a long term, I am convinced that only sustainable technology and innovation can contribute to a macrosocial solution. This is a big challenge, but offers huge potential for our industry.”
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