German components distribution sees fall approaching
Bookings for German components distribution have fallen by 20% with a book to bill ratio of book-to-bill ratio of 0.86, highlighting a significant fall in 2023 as customers are building inventory.
“The allocation that still exists in various cases has ensured that many customers have already covered their requirements for 2023 ahead of time to be on the safe side, which we can also see in the weakening orders,” said Georg Steinberger, chairman of the FBDI industry group.
The industry saw sales in the fourth quarter of 2022 at almost the same sales level as the record quarter Q3, with sales of distributors reporting through the FBDi rising by almost 38% to €1.36 billion. The full year ended with record sales of €5.14 billion euros, representing year-on-year growth of around 43%, the highest since 2010.
- Sales of semiconductors in Q4 rose by almost 50% to €942m, with the full year at €3.4bn.
- Passive components increased by 10.5% to €161m (full year €708m).
- Electromechanical component sales were up 15% to €157m (full year €670m).
- Power supplies grew by 32% and reached sales of €46m (full year €178m).
“For components distribution, this was another special quarter in terms of sales,“ said Steinberger. „Semiconductors recorded the largest growth in over 12 years. The full year ended at a record level, even higher than expected just a few months ago. Several factors helped here, such as inflation, price increases by manufacturers, but also a significantly increased delivery of volume to customers.
In addition, distributors have been able to noticeably increase their share of the overall market, which has grown significantly less. This is a strong signal that no distribution customers are being disadvantaged.”
Expectations for 2023 are rather subdued. “Distribution in Germany has increased its delivery volume – in units – in two years by 50%, despite allocation. This growth does not correspond to the typical growth in demand, so consolidation is more than likely in 2023. And that’s regardless of the multitude of geopolitical challenges that exist,” he said.
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