News that November was the highest billings month of the year for the UK and Ireland-based component distributors gives the industry at the start of the New Year.
According to ecsn/afdec chairman Adam Fletcher, the November results suggest that UK and Ireland customers have either increased their consumption of components or are replenishing their inventory.
So talk of extending lead times and availability of some electronic components seems to be having an effect on the market.
"It's apparent that customers are increasing order cover to reduce their exposure to a perceived risk of shortage," said Fletcher.
But no one should get too carried away by the November figures. The important thing is will the billings up-tick continue into December and the first months of 2010.
"I suspect we will only begin to see more consistent positive signs of demand led growth in 2H'10," said Fletcher.
The book-to-bill ratio in November '09 improved to 1.12 with the strong bookings growth continuing in the semiconductor and passive components products sectors and improving results across all product sectors.
The overall stock turn improved to 2.8 times with the total inventory declining by a further (3%).
"The Average Daily Sales three month moving average for all components is now trending slightly up but is likely to flatten in December, which is effectively a three week month," Fletcher concluded.
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