FEAT RE FEA ATURE
D
DIISTRIIB
BUTIION O N
Positive outlook as authorised distributor s see continued growth in 2018”
ecsn/afdec reea /afd ecsn/afdec releases 2 18Forecast fo releases2018Forecast forU Forecast for UK&Irelandelect re Ireland electron compo ec roctroniccomponentsm rket refl ct onents market ke re ectingov et reflecting overal overa grow verallgrow rowthtowth
year. The association does expect that the growth will slow during the second half: “Ourmembers remain confident that there are opportunities for further growth in 2018, despite numerous factors that simply cannot be predicted with any certainly, not least the Brexit, ” Dunford said. “The global electronicsmarket is set to expand and we hope that the outcome of our Government’s negotiations with the EU will allow UK companies to participate fully in th at growth ”
BU LDING FU URE CI
manufacturers’ authorised distributor (afdec) group within the Electronic Components Supply Network (ecsn) predicts that the UK & Ireland electronic component market will grow in the range 6.5%-to-10.5% in 2018, achieving a mid-point of 8.5%. Compiled from individual returns from the association’s member companies the Forecast further revealed that the market is likely to have
T he Forecast released by the
“We are seeing a period of sustained ‘quarter-on-same-quarter-the- previous-year’ growth” observed Dunford, “something we haven’t seen since the 1990s, and the growth we’ve experienced over the last six quarters is the longest period of sustained growth since 2000”. The growth period started in early 2016 but really accelerated in the last quarter, which ecsn initally put down to the change i n market prices due to it s
grown by 17% in 2017, and Distribution's measurement of the market in UK share of the TAM (Total Available Market) in the UK will have grown to over 40%, encouraging the consensus opinion that the recovery manufacturing sector of t
he economy will in the
remain strong and is likely to outperform the macroeconomic environment. Aubrey Dunford, ecsn Market Analyst announced that the UK/Ireland electronic components market resu lts for the current year (2017) will h the higher end of the ran the association provided i
been able to fully markets and UK
pounds: “It is now clear that this is only one of a number of factors behind the upswing, among which the upturn in the global electronics markets predominates,” Dunford continued. “The seed change in electronics markets has enabled more competitive pricing of manufactured goods in export companies have
participate in th at change. ”
n December last ge of guidance ave exceeded
year. According to Dunford, the market grew strongly throughout 2017: "Every quarter of this year saw sales exceed the upper point of afdec guidance,” Dunford said. “2017 is likely to end showing annual growth of around 17% in the UK Distribution Market, which compares very favourably with the upper prediction of 4.3% we made at this time last year". The ‘Book to Bill’ ratio remained above unity throughout 2017 although in recent months it has softened a little, indicating that the rate of growth will slow as we enter 2018, but the assoc forecasting a further five growth at least.
quarters of iation is
10 10 DECEMBER JANUAR 201 ECEMBER/JANUARY 2018 | ELEC RO ELECTRONICS CS TECHNOLOG MARKE
ECHNOLOGY MARKET INFILINFILT ATION As electronic systems continue to expand into ever more areas of daily life global investment into these areas has rapidly increased: “UK companies find themselves in an ideal position to
LTRATION
capitalise on the opportunities presented, most of which a sector served by
authorised distributors,” re within the market
Dunford continued. “Global growth is causing lengthening of lead times on some product lines but manufacturers are expanding production, although perhaps with more caution than we have seen in the past,” he added.
ecsn/afdec believes that the outlook for 2018 is positive with growth continuing, especially during the first half of the
Figure 1: Figure 1:
The Annual Forecast released by the manufacturers’
he Annual Forecast released by the manufacturers’
authorised distributor afdec) group within the Electronic Components Supply Network (ecsn)
component market will grow n the range 6.5%- to-10.5% in 201
component market will grow in the range 6.5%-i to-10.5% in 2018
authorised distributor ((afdec) group within the Electronic Components Supply Network (ecsn) predicts that the UK &predicts that the UK & IIreland electronicreland electronic
BUILI DING FUTURE CITIESIES
Commenting on the 2018 Forecast ecsn/afdec chairman Adam Fletcher welcomed the continued recovery in the global economy and the return of the global electronic components industry to much stronger and more consistent growth: “The global electronic components market is currently
transitioning from consumer products (primarily mobile phones, but also PCs and home entertainment systems) towards fully autonomous transpor t and smart cities,” Fletcher said. “The vast infrastructure build out including the deployment of 5G mobile networks that will be required to support
autonomous vehicles, connected cities and their populations is a huge
opportunity. The move from internal combustion engines towards all-electric vehicles is another huge shift that will significantly reshape the electronic components marke t.” Fletcher does no t however expect these exciting developments to become pervasive quite as quickly as is currently being forecast: “It’s easy to underestimate the sheer complexity of the new
technologies and the cultural animosity to such profound change,” said Fletcher “not to mention the inevitable delay while international regulatory and legislative frameworks play catch up. However, the process is already well underway, and I believe that in revenue ardware products ster than the nt.”
“internet” deployme are going to grow fa terms “things” i.e. h
Electronic Compone
www.ecsn-uk.org T: 01763 274748
www.ecsn-uk.org nts Supply Network
/ ELECTRONICS
ELECTRONICS
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