Monday, April 21, 2008
Last year was a good year for electronic component distribution companies according to the latest Europartners Consultants Distribution Report which is based of market figures for 2006. After 2005 when the European market had shown no growth, and with low growth in the American market, 2006 was a year of strong growth in all regions of the world.
"Although in 2006 the level of merger and acquisition activity decreased, the effects of the major changes that happened in 2005 were making themselves apparent. Many European distributors picking up the business that had been held by Eurodis and with many changes in the semiconductor franchises " 2006 was the first opportunity to see the real results," said, Aubrey Dunford who masterminds the team of over 20 that compile the information.
The report is organized into geographical groupings of countries (the basic level at which information is gathered) and summarized into a world level. Each country report is written by locals who have detailed knowledge of the electronic component distribution industry. These reports analyze the market split into semiconductors, passives and electromechanical components and component assemblies.
"Major distributors and manufacturers are increasingly developing world wide franchise partnerships and the biggest are getting bigger and taking an increased amount of the market," said Dunford. This is most noticeable in Europe where their share of the total market available to distributors (DTAM) has grown from 43 percent in 2004 to 45 percent to 2006 and the share of the top ten has grown from 58.7 to 61.3 in the same time frame. At the same time the distribution share of the total market has also risen and thus the share of the top ten distributors in Europe of the total available market (TAM) has risen from 14.1 percent to 15.8 percent emphasizing the growing importance of distribution in the whole supply chain.
By: DocMemory
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