Next year, sales of electronic components through distribution to the industrial sector in the UK is set to decline by 9% to £1454m following a 12% drop this year, according to the annual forecast from the distribution association AFDEC.
A year ago, AFDEC predicted growth of 18%, but chairman Gary Kibblewhite admitted “we got it awfully wrong last year, but nobody got it remotely right. Even though we have been forecasting for ten years and have seen the previous downturns, we didn't see it even on the horizon.”
The group believes that the overall component market, both direct sales and through distribution, will bottom out at the end of 2002, but that the contraction in 2001 has been so severe that any recovery in 2002 will not make up the lost ground.
Market growth in 2003 is predicted to be 13% providing sales of £6.3bn.