This week, EW puts five questions to Adam Fletcher, chairman of the Association of Franchised Distributors of Electronic Components. Afdec is comprised primarily of distributors whose combined sales revenue account for 84 per cent of the UK’s distributor total available market, but also includes many manufacturers of electronic components.

Could you outline Afdec’s main role in serving the distribution sector.  

Afdec was founded to develop and promote the Value Added benefits that Franchised Distributors deliver to the supply network and in particular to electronic component manufacturers, their customers and the UK Economy. Perhaps the most tangible service that Afdec provides to its members is the provision of accurate monthly statistical reports by product commodity. These reports enable early identification of trends, market share analysis and benchmarking of the individual organisations performance against the average. 

Are there any changes in the Association’s strategy going forward which you can share with us?

Adam Fletcher

The twelve members of the Afdec Council all hold executive roles in UK franchised distribution.  The Council will continue to modify its strategy, as it has over the past 30 years, to meet changing market conditions. This “evolution” rather than “revolution” policy is exemplified by the Afdec’s collaboration with Intellect in organising the RoHS Update conference in Slough on the 16th of February, and its partnership with UK trade associations and the DTI’s “Electronics Innovation and Growth Team” (EIGT).

Are there any plans to form closer links with other European industry associations?

Afdec has always had a policy of collaboration with other industry trade associations. Afdec is a founding member of the “International Distribution of Electronics Association” (IDEA) www.ideaelectronics.com , and is developing its involvement with the Association to increase the sharing of industry best practice in Europe. More locally, Afdec recently joined with other leading UK trade associations to found UK Electronics Alliance (UKEA) with the object of using the collective voice of the UK electronics industry to influence European Governmental policy.

What are your expectations for the distributor market in 2006?

AFDEC expects that the distributor total available market (DTAM) in the UK will decline by 2.4 per cent from £1.058bn to £1.032bn, due primarily to high volume manufacturing continuing to move off-shore and the migration of global electronic component market drivers from data communications to consumer products. On the upside Afdec forecasts that the UK DTAM will grow by 2.1 per cent in 2007 as the UK market re-establishes around areas of core competency in Medical, Automotive and Telecommunications sectors.

Which is the bigger challenge to the distribution sector - erosion of the manufacturing base or the introduction of the RoHS Directive in July? 

It has to be the RoHS deadline. Afdec has been encouraging its members in their preparations to meet the requirements of the directive and is confident of their ability to meet customers’ needs, whilst providing full traceability to source. Maintaining an optimum inventory balance to meet the requirements of a diverse customer base will be challenging in the short term, but open and honest dialogue between all parties in the component supply network will reduce the risk of longer term problems.

There is little that franchised distributors can do about the erosion of the UK’s manufacturing base. The only option available to Afdec is to assist its members to balance their investment in resources against a realistically achievable return.

www.afdec.org.uk