Graham Munson: “The component market will stabilize by the end of 2023”
25 June, 2023
VP of EMEA Customer Service at Mouser: “European sales increased by 30% in 2022. We are currently obzerving improvements in the global supply chain, but the impact is mainly in Asia and less in Europe and Israel”
photo above: Graham Munson, Vice President of EMEA Customer Service at Mouser Electronics. Credit: Techtime
Over the past couple of years, the electronics components market has been impacted by a variety of factors, creating a new reality characterized by growing fluctuations in demands of products and consumer requirements which have challenges for generating long-term forecasts. Graham Munson, Vice President of EMEA Customer Service at Mouser Electronics, explains to Techtime: “Over the last two years, Europe, along with Israel, has emerged as the world’s most rapidly expanding region for procuring components.
“In 2022, Mouser’s European sales increased by approximately 30%. Currently, we are observing improvements in the global supply chain, resulting in shorte lead times. This impact is most evident in Asia, where the market is focused mainly on consumer goods. We are also witnessing global inflation and higher interest rates which usually lead to less consumer spendings.
“Today the majority of components available to order from Mouser have very short lead times, except for select products such as large FPGAs or some microcontrollers. Following a boost in sales during 2021-2022, we experienced stability in Q1 2023, and forecast a slower market in Q2 and Q3 2023, as a result of the growing inventories of our costumers. We expect a renewed growth in Q4 2023, or at the latest in Q1 2024. ”
“Israel is a people’s market”
According to Munson, the current market is very dynamic and thus “more difficult to provide long-term forecasts”. Even though the Israeli market falls under Mouser’s European region and contributes 9% to the overall European sales, it possesses distinctive features: “This market has an extremely high technological specialty and is constantly growing. Israel is a people’s market, and interpersonal relations are essential for Israelis.”
Mouser does not hold local offices in Israel. Instead, local activities are conducted through MI Catalog (Mouser Israel), a local Israeli company located in Ra’anana and owned by Moshe Elbas. MI Catalog provides engineering support for Israeli costumers and take care of order processing; costums release and local deliveries to customers.
Do you feel the impact of the war in Ukraine?
Munson: “We observe considerable impacts. Energy costs have doubled, and it affects the whole business world. Our customers are currently analyzing their expenses and searching for methods to decrease them.”
What are the main developments at Mouser?
“In the last 18 months, we doubled our inventories. Our new warehouse in Dallas-Fort Worth, Texas, is currently in the advanced construction phase and is expected to be fully operational by the beginning of 2024. The new building will feature a triple-mezzanine floorplan, advanced automation, and a skybridge connecting it to the existing distribution center building.
“Upon completion of the new construction, Mouser’s 78-acre global headquarters and massive distribution center will consist of almost 1.5 million square feet to accommodate Mouser’s vast inventory of 1 million unique SKUs for products and technologies.
“Once the warehouse is complete, we will fill it with components. It is highly important for us to provide the market with new products, as customers would rather have a single point of purchase. On Mouser.com, our customers can search for more than 6.8 million products from over 1,200 manufacturer brands as well as have access to customer-focused online tools and resources to simplify and optimize the component selection and purchasing process.
“With Mouser, design engineers can get what they want, when they need it.”
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