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Distributors expect a rebound in business in Europe in 2021

While European distribution sales will end 2020 declining, most distributors believe business will bounce back next year as demand increases from automotive and industrial segments. The European electronics distribution business will fall about two to four per cent in 2020 due in large part to the coronavirus pandemic, but distributors expect a return to sales growth in 2021. Distribution business in Europe was down about 5 per cent in the first half of the year compared to the first half of 2019, but there were signs of improvement in the third and fourth quarters, according to Adam Fletcher, Electronic Components…

Some independent distributors see sales increases because of pandemic

Component demand from “essential” industries such as medical OEMs have boosted sales for independent distributors. Independent distributors say they have seen healthy demand and robust sales increases despite the slowdown in production at some global OEMs and electronics manufacturing services (EMS) providers because of the coronavirus pandemic. Much of the sales growth for independent distributors has been driven by “essential” industries such as medical equipment, mobile computers and networking equipment. “Electronic component demand has remained steady throughout the year and business has been brisk,” said Todd Burke, president, Americas for independent distributor Smith, based in Houston. However, demand has not…

Power supply production in China starts to get back to normal

Supply of AC-DC converters and DC-DC modules should not be a problem for buyers as production of power supplies has resumed. Buyers can expect normal lead times, ample availability and falling prices for most power supplies for the rest of the year, despite the impact that Coronavirus has had on the overall electronics supply chain including power supply manufacturers. As of early April, power supply production in China resumed and was ramping up. About 60-70 per cent of all power supplies are made in China, according to Mohan Mankikar, president of Micro-Tech Consultants, a power supply research firm based in…

Distributors grow inventory to win new business

Some distributors have increased inventory levels of new and old components as well as components that are in short supply. Some electronics distributors have been aggressive about increasing inventory levels over the last two years as a way of attracting new business and increasing business with existing OEM and electronics manufacturing services customers. In some cases, distributors are increasing their breadth of inventory by adding products from new suppliers. In other cases, distributors are stocking new part numbers from existing suppliers as well as older components that they previously listed on their websites but did not stock. Distributors are also…

Distributor sales growth declines

Uncertainty caused by the trade war with China, the UK exiting the European Union and a decline in manufacturing in the U.S. means some distributors will suffer sales declines in 2019 – By James Carbone Many distributors say component sales will end 2019 being flat to down compared to last year because of sluggish overall economic growth, excess capacity, weaker demand from some customer segments and the continuing trade war with China. Distribution executives attending the recent Electronic Components Industry Association (ECIA) annual executive conference in Rosemont, Ill., also said that there was a lot of uncertainty in the industry…