Industrial electronics sales slump in 3Q
By Staff -- Industrial Distribution, 1/1/1999
Arlington, Va.--Sales of electronics equipment and components rose seven percent overall during the third quarter of 1998, but manufacturers ordered less than the previous year.According to the Electronics Industries Alliance, factory sales totaled $358 billion, spurred largely by gains in electronic components, telecommunications and computers. Sales of industrial electronics such as programmable logic controls and laser systems used in manufacturing declined by 2.6 percent.
The EIA had projected eight percent growth for industrial electronics in 1998 -- to $37 billion -- but sales began slowing during the spring. The trade group expected industrial sales to be flat for the year. By comparison, in 1997 industrial electronics sales rose seven percent.
"Clearly, when other nations are having difficulty it reflects on the industrial side," says Mark Rosenker, vice president public affairs at EIA. "What we're seeing is a postponement of ordering. In a way, there could be a silver lining. There is a need, and the need won't go away, for improved and enhanced manufacturing capability.
"If we remain competitive, we are poised to be part of that recovery," says Rosenker.
EIA president Dave McCurdy says that despite economic turmoil overseas, the industry showed its resilience and expected another record breaking year overall.
Third quarter results also include:
* A 6.1 percent increase for electronic components to nearly $112 billion.
* A nearly 17 percent increase for the computers and peripheral products sector to $72.6 billion.
* A 10.5 percent hike for telecommunications to $55.6 billion.
* A 10.3 percent hike for defense communications to $23.7 billion.
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