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Comment from ADEC

12 February 2003 News

In retrospect, 2002 will be seen as a buoyant period for most component distributors, when, after the stagnation of 2000 and 2001, growth turnover and profitability became attainable goals.

Although customs statistics may belie this growth, it is our opinion that direct importation in components fell and local distribution grew. Companies enjoyed a favourable export market as a weak rand made local products look very attractive. Increased emphasis by customers on better service forced many to re-evaluate their own in-house methods and policies to distribution, to accommodate market demands. Due to the decrease in demand in the telecommunications industry, stock shortages stabilised and accurate delivery times ensured local distributors the successful supply of local product to their customers.

2003

With a predicted growth of at least 3% in South Africa, 2003 looks set to continue the upward trend in our industry, although a stronger rand will reduce positive export sales and lead to distribution finding itself hard put to maintain rand value sales.

On a more positive note, whilst some major manufacturers had decided to go offshore to fulfil their contract requirements, there are signs that this trend may be reversed. The global economic industry also appears to be shaking off its economic woes and signs of an upturn were evident at electronica in Munich, which attracted a large representation from South African distribution.

ADEC

On the local front, we are pleased to announce that ADEC will be holding its biannual trade show in the second half of 2003. It is proposed to run the show in parallel with the Professional Mobile Radio Exhibition, at Kyalami Racetrack. The ADEC Committee is of the opinion that this venue offers many advantages for both the exhibitors and the visitors.

For more information contact ADEC, (Association of Distributors and Manufacturers of Electronic Components), 011 795 2114, adec@icon.co.za





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