Connector industry recovers as demand grows
Jim Carbone -- Purchasing, 11/20/2003 2:00:00 AM
The global market for connectors will increase 10% in 2003 because of growing demand for computers, cell phones, consumer electronics equipment and military electronics, according to industry researcher Bishop and Associates.
Through September the worldwide connector market increased 10% over the same period in 2002. That growth will continue through the year and the connector industry will finish the year with sales growth of 10.2%. Total revenue will be $25.5 billion, according to Ron Bishop, president of Bishop and Associates.
In September, the industry's book-to-bill ratio was 1.04. That's down from August's 1.08 ratio, but September was the third straight month the ratio was above 1.00. A book-to- bill ratio of 1.04 means that for every $100 of connectors that manufacturers shipped, they received $104 of new orders.
Most of the growth in connector revenue is occurring in China where sales will increase 21.1% for the year. Connector revenue in Europe will grow 16.7% and in Japan, 13.2%. In the U.S., connector sales will grow only 0.8% for the year.
Bishop says connector market growth will continue for the next five years. Next year, the industry will increase revenue 6.4% to $27.1 billion. By 2007, the connector market will reach $34.5 billion.
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