Out-performing the market
with new technology …and a new acronym?
By Graham Maggs – VP Marketing, EMEA, Mouser Electronics L
ate last year, a forecast released by the Electronic Components Sup- ply Network predicted that the UK & Ireland electronic components market will grow in the range 3.4%-to-8.5% in 2019. Compiled
from individual returns from the association’s member companies the forecast further revealed that the market is likely to have grown by 9.2% in 2018, with distribution’s share of the TAM (Total Available Market) in the UK growing to about 41%, encouraging a consensus opinion that the recovery in the high-tech manufacturing sector of the economy will remain strong and despite the many uncertainties, is likely to outperform the macro-economic environment. Mouser, as has been the case for over 10 years, significantly out-per- formed the market, achieving a growth of almost 50% in Europe, with a customer increase in excess of 18%. Of course, 2018 was exceptional, with long lead times and allocation, massive demand from new sectors such as automotive and Big Data/IoT implementations and supplier prod- uct portfolio rationalization as a cumulative result of aggressive mergers and acquisition activity over several years. Yet our figures across Europe have been fantastic: UK sales are up by 43.6% with an 11% customer increase, and in Germany, it’s a massive 51.4% sales growth with 14.2% increase in numbers of customers. France is up 43.2% and Italy up 47.2% with customer growth figures of 13.6% and 12.3% respectively. We are confident that despite international uncertainties surrounding
Brexit and further unrest in Europe, aggressive trade and tariff negotia- tions and other global conflicts, growth in 2019 will continue, both for the industry and also, especially, for Mouser. International affairs are in- disputably perplexing and complex, but trade will find a way to over- come. We operate in 220 countries or territories globally, so we are well-used to tariffs, taxes and regulations. Our great advantage is our stock position and I am confident we will rise to the challenges that 2019 will provide. Our success, we be- lieve, is due to our focus on the design engineer. Our ever-increasingly con- nected world means that the diversity of applica- tions that rely on elec- tronic components is huge. The roll out of 5G, Smart Cities and Au- tonomous Vehicles offers massive opportunities, but also requires design- ers to ensure that their particular implementation of these and many other
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technologies has a benefit over competing solutions. That requires designers to be able to access new components as early as possible in the design cycle, and to be able to use the necessary design tools and development kits. Supplying new products and the design tools re- quired to use them is the role that Mouser fulfils. To support this, we recently an- nounced a further phase in the ex- pansion of our global headquarters and distribution centre in Texas, pri- marily in order to house the in- creased stocks needed to support the expansion evident in the figures above. Construction will soon begin on the new 127,500 sq. ft. distribu- tion centre extension, which follows a previous large expansion that in- cluded more warehouse space and the addition of an employee fitness centre and medical clinic, all completed within the last two years. We also plan to add a new building on the company’s 78-acre campus to house customer service teams. My colleague, Mark Burr-Lonnon, Senior Vice President, Global Service & EMEA and APAC Business, puts it nicely: “We are starting to view the building expansion as a continual process to support the growth that we have been experiencing for a long time. Every year is a new record for us, and yet we must have freely available stock; that’s our business model. By the end of 2018 we were holding over one million parts in stock and this will continue to ramp in 2019 and beyond. Inventory requires space, so we’ll just keep adding — luckily there’s plenty of room in Texas.”
Graham Maggs
Mouser shipped approx- imately 8 billion pieces in 2018 and our year-end revenue was approximately $1.85 billion. Each day, we fulfil an average of more than 16,000 orders, with staff picking approximately 60,000 different items; our distribution centre’s auto- mated shipping system can process 14 orders per minute. Last year, we in- vested in state-of-the-art
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