Connector demand will be sluggish through the rest of the year

Connector book-to-bill ratio rises in August but expert says demand will slow

By Jim Carbone -- Purchasing, 9/30/2008 2:31:00 PM

Connector demand will be soft for the rest of the year because of low consumer confidence, high energy costs and turmoil in the financial markets which is slowing consumers spending. That’s the outlook provided by Ron Bishop, president of Bishop & Associates in St. Charles, Ill. in a recent report.

Bishop says the connector industry book-to-bill ratio increased to 0.99 in August from to 0.97 in July, which means for every $100 of orders that suppliers shipped, they received only $99 in new orders. August connector shipments were up 1% from August 2007 and 3.9% from July 2008. New connector orders were up 2.7% from August 2007 and 5.9% from July 2008.

But businesses are starting to be more cautious about spending and capital expenditures will probably slow, Bishop says. Still, the global connector industry will grow to 7.3% to $45.9 billion, according to Bishop.