AFDEC members’ billings up 13.5% on October
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Total monthly billings (net sales invoiced less credits) by members of afdec in November 2009 increased by 13.5% over those in October and by 11.1% when compared to the same period last year.
According to afdec chairman Adam Fletcher (pictured), the results suggest that UK and Ireland customers have either increased their consumption of components or are replenishing their inventory, possibly due to concerns about extending lead times and availability of some electronic components.
Fletcher noted: "I suspect that customers will continue to make use of inventory minimising measures, but it is apparent that they are increasing order cover to reduce their exposure to a perceived risk of shortage."
Consumption of semiconductors grew by 5.2% over October, while passives business was 35.9% up. While electromechanical components saw a 24% growth in orders, component assembly orders were 9.6% down.
But Fletcher continues to counsel caution. "A recovery in customer backlogs to healthier levels is good news, but we wait to see if the increased billings continue into our December and Q1 2010 results.
There is little evidence of an underlying real increase in overall demand for electronic components in the UK and Ireland market. I suspect we will only begin to see more consistent positive signs of demand led growth in the second half of 2010."
