The component distribution market in the UK and Ireland jumped by almost 24% in June, according to industry body, afdec.
It said there was a 23.8% increase in billings compared to the previous month and a 37.9% improvement over the same period last year.
But there are signs that the market is ‘growing’ too quickly for demand to fulfil. There was an 87% increase in semiconductor bookings and 58% growth in the passives in June.
“This exceptional level of bookings growth is unsustainable and increases my fears about double ordering by customers, especially when I compare these figures with the 27% growth achieved in the electromechanical components group, because emec products are required in the same ratio to produce the same volume of electronic systems,” said afdec chairman, Adam Fletcher.
According to Fletcher distributors in the Nordic region and elsewhere in Europe are experiencing similar growth trends but the difference between the products sectors.
“I’m sorry to be the ‘party pooper’ but the current billings growth trend exhibits all the signs of an “it’ll all end in tears” scenario,” said Fletcher.