Only Connect: Positive growth in the connector market
Unless you have been living under a rock for the past four years you will have noticed the market for interconnection products has been through a rough time. However, the time has come to start to believe that the future is bright and we can believe that things really are on the right track and here is the proof!
According to the latest Bishop & Associates Inc report the industry has seen a robust return to growth in the first part of this year.
As first reported in interconnectionworld.com since 2010, the industry has maintained excellent profitability in spite of modest growth. The reason is connector price stability (no price erosion) and declining raw material costs.
For example, The industry income statement (percentage of sales) from 2008 through the first half of 2013. I note double-digit operating income, near double-digit net income, and double-digit return on equity. I note the industry experienced zero price erosion.
You may be thinking these figures have no relevance to you as you work hard to bring in hard won orders and jump from month to month not knowing what will be coming in. Some moths incredibility busy others not so.
If this sounds familiar then don’t worry you are not alone. The important point is the figures do show that overall the market is improving and stabilising.
Confidence is the key. As we see figures like this we can have the confidence to look forward to a positive future. Remember, the manufacturing industry is vital to the UK and the people who work in it are world class!
Nick Locke, Nicab Ltd