comment on this article

Too much inventory?

Distribution has experienced more than its fair share of pain during the last couple of years. Business plummeted accross the board at the first signs of recession and the sector has been inching its way back since.

The latest figures from franchised distributors association afdec suggest things are picking up well. Billings in June, it says, were up 24% over the previous month and 38% up on June 2009. But hidden within these figures is a worry that some of the sales boost is down to double ordering - apparently, orders for semiconductors rose by 87% over June 2009.

Many components remain in short supply as manufacturers continue to keep a tight rein on production, which pushes companies to order more than is needed 'just in case'.

Manufacturers react to this by making more product. But if demand isn't there, that will mean oversupply and too much inventory.

Graham Pitcher

Comment on this article

This material is protected by MA Business copyright See Terms and Conditions. One-off usage is permitted but bulk copying is not. For multiple copies contact the sales team.

What you think about this article:

Add your comments


Your comments/feedback may be edited prior to publishing. Not all entries will be published.
Please view our Terms and Conditions before leaving a comment.

Related Articles

TriLite raises €8m

TriLite, a developer of projection displays, has announced that it has raised ...

A critical issue

With more cyber-attacks than ever on critical infrastructure, how can utilities ...

Changing the paradigm

Innovating in semiconductors is seen as being a critical component of the UK’s ...

Buck LED drivers

Diodes Incorporated has announced the AL8843Q and AL8862Q automotive-compliant ...

Custom MMIC design

Plextek RFI CEO Liam Devlin discusses the technical and commercial ...

Dialogue is Key

Last month TechWorks, the UK’s industry association for deep tech connected ...