Covid-driven uncertainties make for difficult guesses

May 14, 2020 //By Julien Happich
Covid
Slow demand, combined with general economic uncertainties, built a perfect basis for a weak beginning to 2020, only to be aggravated by the global pandemic a.k.a. COVID-19.

Consequently, the European electronic components market didn’t find the spark to get ignited for growth. Nor did distribution, notes Georg Steinberger, chairman of DMASS.

Steinberger reports that sales in the European Semiconductor Distribution Market fell by 11.7% to 2.19 Billion Euro.

“Predictions are difficult, particularly about the future… while our expectation was clearly that Q1/2020 would not be a new record, we deemed it to be the end of the last down cycle. COVID-19 is not only assaulting the health of people around the world, it has created a situation where economies will suffer for some time. The shutdown in many countries and the slowdown of industrial production is affecting the electronics industry quite severely, with the biggest impact yet to come in the next quarters. What it also did was distort the visibility in the supply chain, which makes it hard to predict what the industry might need in the next few quarters”, commented Steinberger.

Country-wise, the results in Q1/20 are quite diverse. While France, UK, Nordic and Benelux show above average decline, Germany ended at average and Eastern Europe did much better. UK sales in semi distribution ended at 129 Million Euro (-19.4%), Germany at 646 Million Euro (-11.8%), France at 140 Million Euro (-17.7%), Italy at 203 Million Euro (-6.5%), Nordic at 154 Million Euro (-38%) and Eastern Europe at 389 Million Euro (-4%). Only a few countries showed positive numbers.


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