The component market in the UK is expected to decline by 8% this year and may also shrink by 5% next year, according to distribution industry body Afdec.
“In 2007 the UK electronic components market was heavily impacted by the slowing of the domestic and European economies, lack of confidence in the financial markets and a slowing in the global electronic industry cycle,” said Afdec in its market forecast for 2008.
This leads Afdec to conclude that the total market in 2007 will be shown to have declined by 8%. The value of components sold through distribution, the DTAM, declined by 6%.
Afdec forecasted that the DTAM would decline by a further 1.8% in 2008 before showing a small growth again in 2009.
“Fierce competition and the consequent price erosion together with an escalation in the trend to move production and/or sourcing out of the UK has unsettled the market and shows no signs of improving in the short-term,” said Afdec.