The consolidation of sales in the German component distribution market continues. The third quarter of 2024 also fell short of expectations. With a drop of almost 43 per cent, the turnover of the FBDi reporting members decreased to 779 million euros, the lowest level since the end of 2020. Bookings also remained moderate, reinforcing the view that a turnaround is still some way off. The book-to-bill ratio rose slightly to 0.77.
FBDi chairman, Georg Steinberger, said: “The distortions caused by the deteriorating geopolitical situation in recent years can be seen very clearly in the German market. Component distributors are heavily dependent on the success of customers in leading industry segments. They, however, are currently struggling with worsening economic conditions, a lack of innovation and a toxic political culture in which a necessary consensus for the future, as outlined by former Italian Prime Minister Mario Draghi, seems difficult to achieve. Unfortunately, this is not only the case in Germany, but as the largest economy in Europe, Germany is in danger of losing its role as a driving force for other regions.”
The FBDi and its chairman are cautious about the prospects for 2025: “Unfortunately, we are not yet seeing a turnaround in incoming orders, so a return to growth before mid-2025 is rather unlikely. What is needed is the right impetus from the most important application markets in the direction of future-proof innovations. As ZVEI president, Dr Gunter Kegel, repeatedly emphasises, striving for all-electric society is a matter of reason and future competitiveness. Politicians and business need to finally agree on this and set the right course.”