2010 Marks The Full Recovery Of Electrics and Electronics

It would seem that on a global scale, both the Industrial Electrical and Consumer Electronics markets have weather the stormy recession years and are completely back on form. The sale of luxury electronic goods is something that is often newsworthy and is in fact what most would consider the main driving force behind recovering from the recession. But public knowledge about the state of the critical electrical components industry isn't often given the attention it deserves in the media. But the latest indicators of recovery in the sector are the fact that it would seem that manufacturers are going mad for Deutsch connectors in UK. That is, the American based brand and the unrelated German economy.

Wendel Investments, (the parent company of Deutsch) has reported an extremely sharp third quarter growth in sales. The business saw an impressive 45.8% increase on sales in the third quarter of 2009. Their customer markets have been rebuilding ever since the recession put a freeze on inventories: this means an extremely high demand for high-performance connectors in HGVs and Construction engines particularly. Demand also came from a stabilising Aerospace industry, even if it isn't specifically driving sales. The results so far this year have been so promising that a return to the pre-crisis figures of 2008 are expected.

Meanwhile, the German economy shows indicates that things are picking up on the other side of the Atlantic too. The Electrical component market in Germany is expected to increase by 24% in the coming year. This means revenues forecasted of 15 billion Euro by the year's end. Consumer electronics also saw a predictable bumper year: The World Cup was always going to drive audio visual sales, but then there was never ever any guarantee that the German national team would make it to the last four. A growth of 5.5% within the first nine months of the current year was seen.

But still fuses are being blown in some parts of the world: Electrical's production capacity fell during the recession, so even though demand sharply rose this year, the backlog of inventory wasn't enough to cover orders. It is also becoming increasingly difficult to source raw materials and deal with high energy prices.


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