UK, Ireland component distribution growing despite Japanese disaster

ESCN chairman, Adam Fletcher, said that competition in the global electronic components supply network and good communication between partners should enable UK and Eire customer demand to be met. "The damage to Japan's technological manufacturing capacity has thankfully not been extensive as feared and although we must expect some problems and shortages, probably in key chemicals, materials and low cost sub components (areas we least expect) they are likely to be quickly resolved." According to the new report, billings increased in March both sequentially and year on year, however the underlying rate of growth continues to slow in line with the level of bookings growth achieved, a trend the ECSN says is likely to continue throughout the year. The consensus opinion of ECSN's afdec members is that customer demand in the UK and Eire (and internationally) continues to remain stronger than anticipated but difficult to forecast accurately. Fletcher dismissed claims that the sales growth achieved in the UK / Eire in March '11 is directly related to customer's perceived concerns about component supply due to the 'Japan Effect'. "March '11 billings are much in line with our forecast", he said. "Bookings declined in March, when they would have increased in a volatile market and distributor inventory has remained flat when it could be expected to have declined." Total monthly billings (Net sales Invoiced less credits) in March '11 increased by 24% when compared to the previous month and by 14% when compared to the same period last year. Billings increases by product group compared to the same period last year were: Semiconductors: 13% increase Passives: 16% increase Electro-mechs: 6% increase Component Assemblies: 8% increase Other Products: 74% increase "The Sales by Month 'three month moving average' for all electronic components continues to trend up but I suspect this will level off even if we include a modest 'Japan Effect," Fletcher noted. "A quick unaudited review of the Q1 2011 performance suggests growth of 15% over Q4 2010 which is within the upper quartile of our members forecast guidance range."