Positive book-to-bill ratios point to a good 2014 for distis
In short, 2013 has been an interesting year. Back in January it was hard to see many positives in the market but I think we have all been pleasantly surprised, writes Chris Shipway, managing director UK, Avnet Memec.
2013 has been a story of gradual improvement in both the UK electronics market and the wider economy and Avnet Memec’s business has mirrored that growth.
As a result of some energetic demand creation work by our teams out on the road our book to bill ratios have been showing positive positions for a couple of quarters now and early visibility of the next few months leads me to think this will continue. As much as rapid growth might be exhilarating, a steady growth across our target vertical markets will be much more sustainable long term.
New franchise signings this year have included Microchip, Wyless and Coilcraft, which has resulted in some interesting new opportunities from all of our vertical markets and will have a significant impact on Avnet Memec’s business in the short and long term. Microchip in particular is a door opening franchise, so as a specialist technical demand creation distributor, this has helped us to continue on our growth path and is feeding into those positive book-to-bill ratios.
So as 2014 looms large up ahead I see tentative green shoots emerging, particularly in markets such as industrial and green energy.
However, it is still very early days and it’s a brave man who says the worst is over but all the signs are good.