European distribution market in decline
2 April 2008
News
The International Distribution of Electronics Association (IDEA) has released its European DTAM (distributor total available market) figures for the fourth quarter of 2007. According to Adam Fletcher, vice president of IDEA, DTAM declined further than the previous forecast of being a 'flat quarter': However, the book-to-bill ratio improved slightly in the quarter to 1,05:1, suggesting that the first quarter of 2008 is likely to return to growth.
"Q1 has historically been the leading growth quarter in Europe, however global economic forecasts suggest that overall economic activity is likely to decline, which may impact electronic component markets and restrict growth in 2008", Fletcher commented.
Total European distribution bookings (net sales orders entered) in Q4 2007 increased by 2,1% when compared to Q3 2007 but declined by 4,8% when compared to the same period in 2006. Sector specifically, compared to the previous quarter, bookings for semiconductors declined by 0,5%, increased by 3,8% for passives and increased by 5,8% for electro-mechanical and other components.
Total distribution billings (net sales invoiced less credits) in Q4 2007 declined by 5,2% when compared to Q3 2007 and declined by 7% when compared to the same period in 2006. Sector specific billings changes in Q4 2007 compared to the previous quarter were: semiconductors declined by 6%; passives declined by 4,7%; and electro-mechanical and other components declined by 2,9%.
For the 2007 year, semiconductor billings declined by 5,8%, with passives declining by 2,4%. IDEA believes that much of this decline was the result of continued average selling price (ASP) erosion whilst the number of units shipped remained stable. Electro-mechanical component billings increased by 3% over the same period.
"The ASP erosion in the semiconductor and passive component markets is mainly the result of intense competition between manufacturers who are attempting to maintain their market share in a declining market", said Adam Fletcher. "Interestingly, pricing in the electro-mechanical market is stable or increasing primarily due to the rising cost of raw materials, particularly precious metals."
Further reading:
Rooibos heads to space
News
A South African scientific initiative linking agriculture and space research has officially launched today with the Rooibos in Space programme at Parklands College’s Innovation Centre in Cape Town.
Read more...
From the editor's desk: Local can be international
Technews Publishing
Editor's Choice News
Welcome to the July 2026 issue of
Dataweek. As you can see from this introduction,
Dataweek’s regular editor, Peter Howells, is on extended leave and I am filling the void in his editor’s column – hopefully without being too boring.
Read more...
Landis+Gyr EMEA introduces new company name: EYKON
News
EYKON is the new company name of Landis+Gyr EMEA, formerly part of the Landis+Gyr Group. The company supports electricity, gas, water and thermal utilities in managing increasingly complex networks, improving operational efficiency and enabling more sustainable use of resources.
Read more...
Yamaha Robotics will show visitors to EFX
Manufacturing / Production Technology, Hardware & Services News
Yamaha Robotics will show visitors to EFX 2026, the Expo for Electronics Manufacturing, in Stuttgart from 6-8 October 2026, how advanced surface-mount automation helps companies grow their business and increase productivity.
Read more...
From the editor's desk: The art of measuring the truth
Technews Publishing
Editor's Choice News
All electronic measurements are a lie. The trick is making the lie as small as possible.
Read more...
TSE has relocated
News
The Technology Station in Electronics (TSE) has entered a new chapter with its relocation from the CSIR campus to TUT-owned building at Ditsela Place in Hatfield.
Read more...
Innovative MyLegrand app
RS South Africa
News
Legrand SA is set to launch the MyLegrand mobile application, a digital platform designed to strengthen engagement across its professional network.
Read more...
Kulani Energy acquires critical assets from Optipower
News
Kulani Energy preserves engineering, procurement, and construction capability and positions a wholly women-owned firm at the forefront of South Africa’s grid expansion.
Read more...
From Cape Town to Johannesburg
News
Würth Elektronik South Africa has taken a significant step forward with its recent relocation from Cape Town to Johannesburg, marking a new phase of growth and ambition for the company.
Read more...
Lesley Havenga: Building partnerships for Africa’s electronics future
Editor's Choice News
As Würth Electronik expands its footprint across South Africa and the broader sub-Saharan region, Havenga’s blend of manufacturing expertise, supply chain knowledge, and people-centred leadership appears well suited to the task.
Read more...
printer friendly version