What Shall We Do if It is True?

Mar 12
06:35

2011

olina lai

olina lai

  • Share this article on Facebook
  • Share this article on Twitter
  • Share this article on Linkedin

Many forecast that the electronic components markets would face a slower growth rates in 2011, if this happen, what should we do?

mediaimage

After entered into the first middle quarter of 2011,What Shall We Do if It is True? Articles many forecast that the electronic components markets would face a slower growth rates in 2011. Recently the International Distribution of Electronics Association had released a latest electronic componentsdistributor total available market which indicated that European distributors saw a decline in both bookings (net sales orders entered) and billings (sales revenue less credits) in the last quarter of 2010 compared to the previous three months. If it is true what shall we do to fight for the next three months?

Perfectly positioning them to meet their customers' demands.According to a consolidated figures released by IDEA said the billings growth in the European IC Components markets slowed in Q4 in all European countries including Germany, a country previously viewed as the 'driver' of EU growth. “As things stand in Q1 2011 distributors have strong order backlogs and a balanced inventory profile,” to face the situations above, the IDEA’s chairman Fletcher suggested, “perfectly positioning them to meet their customers' demands, which unfortunately remain vague." In fact, it was still an encouraging and significant improvement when comparing with the situations in Q4 2009. Nothing will be worse than those in 2009, therefore, take it easy.

Comfort your customers'nervous emotions.Fletcher also forecasted that in Q1 2011 billings will be sequentially 'flat' in Europe, with modest growth in the remaining three quarters. According to the IDEA, the current uncertainty in the macro-economic environment is making customers nervous and impacting confidence throughout the supply network. As a result, just tell your customers that the global demand for electronic components remains strong because according to the history, the total European distribution bookings has grown by 19% when compared to the same period in the previous year though in Q4 2010 it declined by 7% when compared to the previous quarter. In some way it would work to comfort your customers'unsteady hearts.