Europe's component market starts year well

Europe’s component distributors saw an increase in sales billings during the first quarter of the year, according to figures published by the International Distribution of Electronics Association (IDEA).

Billings increased by 20%, when compared to the previous quarter and by 26% compared to the same period in the previous year. 

According to IDEA’s chairman Adam Fletcher, the growth in billings improved in all European countries with the main driver being Germany.

The figures point to strong global demand for electronic components with inventory levels across the supply network below previous industry norms.

“Initial industry concerns about global electronic components availability due to the impact of the ‘Great East Japan Earthquake’ appear to have receded” said Fletcher.

“The true impact of the disaster will not become fully apparent until the end of Q2’11, but although some components are on an extended lead-time it’s currently business as normal for the vast majority of European customers,” he added.

Total European Distribution Bookings in Q1 ‘11 increased by 11% when compared to the previous quarter and grew by 8% when compared to the same period in the previous year.

Sector specific Bookings changes in Q1 ’11 compared to the same period 2010 were: Semiconductors increased by 6%; Passives increased by 10%; and Electro-mechs and Other Components increased by 16%.
 
“The important Book to Bill ratio has now dropped back to unity suggesting that billings growth in Q2’11 and throughout 2011 will now slow,” said Fletcher.

“Q1 has historically been the strongest growth quarter in Europe but historical trends have been a poor guide over the last two years and after the robust growth in 2010 a period of consolidation was expected,” said Fletcher.