ecsn releases figures for April 2019 and reveals disappointing Q1’19 results

Buntingford, Herts., 4th June 2019: Releasing the latest audited UK & Ireland authorised distributor (afdec) statistical data Adam Fletcher, Chairman of the Electronic Components Supply Network (ecsn) announced that the run of twelve consecutive periods of ‘quarter-on-same-quarter-the-previous-year’ growth’ was abruptly halted by an unexpected decline in Billings in April ‘19. Bookings increased by 4.2% in Q1’19 compared to the same period 2018 but Billings showed a (1.3%) decline. The association had been looking forward to achieving an unprecedented fifteen quarters of sustained growth by the close of 2019.

April 2019 statistics

Total Monthly Billings (Net Sales Invoiced less Credits) in April ‘19 declined by (16%) when compared to the previous month but thanks to continued growth in the semiconductor sector, remained ‘flat’ compared to the same month 2018. Overall Bookings declining by (27%) in April ‘19 compared to the previous month and also showed an (18%) decline on the same month 2018. The Book-to-Bill (B2B) ratio in April ‘19 declined by 14 points to 0.92:1, with the polynomial trend line suggesting a continuing ‘flattening’ as we progress into Q2’19. The Sales by Month “three month moving average” for all electronic components is also suggesting low growth into the second quarter of 2019, which remains broadly in-line with ecsn/afdec member forecasts. The April ‘19

“This is a disappointing result and well below the Q1 ‘19 Billings growth of 5%-to-11% forecasted by our members in December last year”, Fletcher said. He puts much of the decline down to the fact that customers have been consuming the buffer inventory they stockpiled in response to the BREXIT delay, and to tough market conditions: “For the same reason ecsn’s afdec members have also been juggling their inventory in an attempt to hold it in-line with actual customer demand”, continued Fletcher. “But as the BREXIT date remains fluid, all organisations will have to retain buffer inventory for a longer than they expected, which will add significantly to their costs, until  the extra inventory is finally consumed.”