Connector demand slowing in second half

Connector book-to-bill ratio shows orders were strong in the first half, but demand is now slowing

By Jim Carbone -- Purchasing, 8/28/2008 7:08:00 AM

The connector industry book-to-bill ratio fell to 0.97 in July from 0.99 in June, according to researcher Bishop & Associates, indicating a slight dip in demand for the electronic components. That means for every $100 of connector orders that suppliers shipped, they received only $97 in new orders.

In July new connector orders were down 6.7% from June and billings were down 5.4%. However, billings in July were up 9.1% from July 2007 and bookings were up 0.1% in July compared to July 2007.

“We believe that the second half of 2008 will be challenging,” says Ron Bishop, president of Bishop and Associates, based in St. Charles, Ill. “Considering the slowdown in the U.S., Europe and Japan, it is hard to imagine connector sales growing 12.3% as they did in the first half.”

For the year, Bishop says global connector revenue will grow 7.3% to $45.9 billion.