The forecast released today by ecsn predicts that the UK & Ireland electronic components market will grow in the range of 3-2% in the first half of 2020. The association’s provisional guidance for the second half of 2020 suggests market growth in the range of 2-7%, concluding 2020 with revenue growth in the range of 0-4.5%.
Comparing 2019 with 2018, the UK and Ireland electronic components market are significantly below the guidance range provided by the association a year ago. The 2019 decline in growth is about 3.6% on last year.
Commenting on the 2019 outcome, ecsn / afdec chairman, Adam Fletcher, expressed his disappointment that his members 2019 forecast was not achieved, and said that the electronic components market is constrained by changes in the largest world economies such as China, the US and Germany.
“The major impact on electronic components markets has been the dramatic reduction in the average manufacturing lead time for electronic components from 18-20 weeks in mid-2018 to the current 4-6 weeks for most components,” said Fletcher. “The impact of this is that customers have to continue to reduce their in-house inventory and their order cover in line with the new lead times, which has had the effect or removing two months’ sales revenue from the market over the year.”
ecsn’s afdec members also believe that 2020 will bring consolidation.