Market waits for signs of an upturn
The UK component market is predicted to be flat for the next few months and suppliers are hoping for an upturn in the second half of the year.
Component distribution industry body ECSN has reported improved billings in June 2012 compared to the previous month but a decline on the same month a year ago.
“The consensus of ECSN’s afdec members points towards an improvement in the second half of the year,” said Adam Fletcher, chairman of the Electronic Components Supply Network (ECSN).
“But stronger demand may quickly deplete inventory, which in turn could reduce availability and precipitate an increase in lead-time,” said Fletcher.
Total monthly billings in June increased by 14% compared to previous month but declined by (20%) when compared to the same period in the previous year.
“Our members reported that Bookings slowed in June ’12, which is quite usual as we enter the summer period and the holiday season beckons”, said Adam Fletcher, chairman of the Electronic Components Supply Network (ECSN).
“They also reported increased inventory levels, suggesting that either customers are rescheduling back or they anticipate a billings increase in July, which seems unlikely,” said Fletcher.
The Book-to-Bill ratio declined by 18 points to 0.89:1, with overall Bookings declining by (3%) when compared to May ’12 and by (23%) on the same period 2011. The Sales by Month “three month moving average” for all electronic components now predicts a flat or declining period.