German component distribution market; source: FBDi [click for enlarged view] Segments; source: FBDi [clcik for enlarged view]

The German Association for Component Distribution (FBDi) has announced for the third quarter 2006 a consolidated component turnover of its members of 590 m Euro. This result is slightly above that of the second quarter 2006 and 20.4% above that of the comparable period of the previous year. The increase in orders weakened somewhat so that the Book-to-Bill ration slid to just under 1 (0.97). In comparison to the previous year the order development with 15.8 was still clearly in the plus.

The development of the segments

The rise was primarily due to the semiconductors with a growth of approximately 21%. Also electro-mechanicals increased above average with 24% and the passive components with 13%, although they increased their growth above the second quarter, were still substantially below the average. In concrete numbers the distribution market for semiconductors in the third quarters was around 415 m Euro, that for passive components almost 95 m Euro and for electro-mechanicals a good 68 m Euro. The turnover relationships between these component areas were 71% for semiconductors, 16% for passive and 12% for electro-mechanical components. The turnover for power supplies has almost doubled above that of the previous year, although still at a very low level. In the meanwhile the FBDi reports a slight weakening of the orders received. In the semiconductors the growth in the orders received in the time period from July to September was still at 13.8%. In the passive sector the orders grew by 9.5% and in electro-mechanicals by 30.8%. Consolidated for the first nine months, the orders were still 22% above the previous year which results in a Book-to-Bill ration for this time period of 1.04%.

The backgrounds

FBDi Chairman Georg Steinberger (Avnet) commented on the present development: "One can already now say that 2006 will be an extremely successful year for German component distribution with a growth considerably above the 15 percent mark. In European comparison, the strength of the German market is growing dramatically because, for example, the German semiconductor distribution turns over just as much as the comparable distribution in the UK, France and Italy combined." On the further development, Steinberger commented as follows: “The outlook for 2007 is difficult. Because of the usual short cycles one can hardly count on two good years one after the other. And then 2007 will be measured by the very high level of 2006. It will be interesting to observe whether external factors such as the market in Asia or the often quoted goods stock position especially in the job production can influence the distribution also in Europe and especially in Germany."

The FBDI has been in existence since 2004 and comprises 24 component distributors as members. The main object of its activities is the further development of the statistics of the distribution market.