Electronics distribution sales down – but not out

Bookings also declined by 7% compared to the previous quarter, although the book to bill ratio improved in Q2 2009 to close to unity. According to IDEA vice president Adam Fletcher, the figures are at the low end of the association's previous guidance but in line with the financial results for many sectors of the global electronic components market. Fletcher said: "The decline in both bookings and billings in the first half of '09, compared to the same period last year, is approximately 30% - reflecting the global economic slowdown and confirming that 2009 will not follow historical trends. Fletcher said that he believed it was the beginning of a period where the rate of decline falls and the industry stabilises over the second half of the year. "I suspect that we will now 'bounce along the bottom' of this recession and it is unlikely that we will see a return to stable growth until this time next year," Fletcher explained. IDEA announced that its members' confirm that the European supply network visibility remains limited, however customer confidence is now improving slightly with lead times firming up but remaining stable, with good availability. Fletcher continued: "All organisations in the electronic components market need to remain vigilant to changes in both supply and demand, which are likely to happen quickly, along with price increases caused by a combination of the escalating cost of raw materials and fluctuations in global exchange rates." IDEA, a consortium of independent trade associations, compiled the data from statistics provided by AFDEC / ECSN (UK / Nordic), Assodel (Italy), FBDi (Germany) and SPDEI (France). Details of the report are below: Bookings Total European distribution bookings (net sales orders entered) in Q2 '09 declined by 7% when compared to the previous quarter and declined by 31% compared to the same period last year. Sector specific bookings changes in Q2 '09 compared to the same period last year were as follows: Semiconductors declined by 32% Passives declined by 33% Electro-mechs / other components declined by 28% Billings Total European distribution billings (net sales invoiced less credits) in Q2 '09 declined by 13%, when compared to the previous quarter and declined by 30% compared to the same period last year. Sector specific billings changes in Q2' 09 compared to the same period last year were as follows: Semiconductors declined by 30% Passives declined by 31% Electro-mechs / other components declined by 27%