The component distribution market will continue to show significant sales growth in the first half of next year, according to UK industry body Afdec/ECSN.
“Following the spectacular upswing of 2010, order books remain strong and indicate a continuing growth in the first half of 2011,” said Aubrey Dunford, market analyst at the ECSN.
However, Dunford said the second half of next year remains very difficult for companies to forecast.
The industry body is predicting that the UK component distribution market will grow by between 4% and 5% next year.
Semiconductor sales are predicted to grow at a slightly higher rate of 5.6%.
According to ECSN, the UK component distribution market will grow by just over 24% this year to reach a value of £1.15bn. This follows an 11%contraction in the market in the 2009 downturn.
A growth figure of 4.3% next year will lift the market to £1.2bn.
“If achieved this will restore the distribution market to the 2004 level,” said Dunford.
If global markets remain strong then Dunford expects the UK demand to remain at steady levels of growth in the second half of next year.
“However, growth measured against the strong quarters of 2010 may go slightly negative in the last quarter of 2011,” said Dunford.
“Supply network will be restocked and many product supply issues may be resolved during the first half of the year,” added Dunford.