In its Q1 report for 2023, ITSA members have seen a 12 per cent overall growth in sales, despite a decline in both the communications and mass transport markets. Distribution remains a major contributor to growth, performing well above pre-pandemic levels.
Significantly, revenues have grown to 13 per cent above pre-pandemic levels, while the book- to-bill for the quarter was flat at 1:1. As mentioned, some key markets are showing continued decline with communications (-34 per cent) and mass transport (-15 per cent). However most markets have bounced back, including data processing (53 per cent), utilities (14 per cent) and test/measurement (30 per cent). Distribution was up 12 per cent, matching overall growth.
Overall, 2023 appears to have started positively for ITSA members, but with orders dropping we may see a flattening out in Q3 and Q4. Also, although there are conflicting market reports, with questions remaining about whether or not the UK is in recession, ITSA members and the industry remain resilient.