Connector and Cable Assembly Supplier

OEMs Experience Continuing Growth

Bishop & Associates takes a closer look at OEM sales results and the business outlook.

Bishop & Associates tracks sales and profits of 13 market sectors and more than 120 companies. The objectives are to determine how selected electronic markets have performed, identify sales and profit trends for forecasting purposes, and monitor company performance within market sectors.

Due to late reporting of several OEMs after the close of 3Q17, we were not able to report 3Q17 results until now. Below is the 3Q17 results summary.

The following table provides the 2015/2016 percent change in revenues, and the first three quarters 2017 versus the first three quarters 2016 sales and percent change in sales by market sector.

Sales Performance – Percent Change

Sales performance, percent change

Of the 13 market sectors Bishop tracks, 12 had year-over-year growth in the first three quarters of 2017 versus the first three quarters of 2016. Semiconductors experienced the most significant growth at 27.8%. Transportation was the only market sector to decline in the first three quarters, decreasing 3.6%.

As a note: This database is not static. Companies are acquired or go into bankruptcy; thus, their financial data is no longer available, and they are removed from the database. These types of activities occurred frequently in 2009 and 2010, and because of this, as well as additions we have made to the database, it is not possible to directly compare current numbers to numbers referenced in past Bishop “How’s Business? OEMs.” These analyses are meant to be used as a relative measure of market sector performance.

Telecom/Datacom Equipment Sector

The telecom/datacom equipment sector recorded a sales decrease of 4.9% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 0.4% year-over-year. Net income as a percent of sales totaled 12.4% for the period, down 11.5% year-over-year.

Telecom/Datacom Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 2.4%. Year-over-year, sales increased 2.6% in the third quarter.

Automotive Equipment Sector

The automotive equipment sector recorded a sales increase of 3.1% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 3.1% year-over-year. Net income as a percent of sales totaled 5.3% for the period, up 3.4% year-over-year.

Automotive Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales decreased 0.7%. Year-over-year, sales increased 2.5% in the third quarter.

Industrial Equipment Sector

The industrial equipment sector recorded a sales decrease of 7.7% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 5.6% year-over-year. Net income as a percent of sales totaled 5.9% for the period, up 14.4% over prior year.

Industrial Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 8.5%. Year-over-year, sales increased 12.5% in the third quarter.

Military/Aerospace Equipment Sector

The military/aerospace equipment sector recorded a sales decrease of 0.5% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 2.2% year-over-year. Net income as a percent of sales totaled 9.3% for the period, up 2.3% year-over-year.

Mil/Aero Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales decreased 11.5%. Year-over-year, sales decreased 6.1% in the third quarter.

Computer Equipment Sector

The computer equipment sector recorded a sales decrease of 1.0% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 8.8% year-over-year. Net income as a percent of sales totaled 5.0% for the period, down 18.4% year-over-year.

Computer Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 5.3%. Year-over-year, sales increased 10.0% in the third quarter.

Peripheral Equipment Sector

The peripheral equipment sector recorded a sales increase of 1.6% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 12.0% year-over-year. Net income as a percent of sales totaled 6.6% for the period, up 267.7% year-over-year.

Peripheral Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 3.1%. Year-over-year, sales increased 7.8% in the third quarter.

Consumer Equipment Sector

The consumer equipment sector recorded a sales increase of 1.9% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 2.5% year-over-year. Net income as a percent of sales totaled 4.3% for the period, up 44.4% year-over-year.

Consumer Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 4.5%. Year-over-year, sales increased 7.1% in the third quarter.

Transportation Equipment Sector

The transportation equipment sector recorded a sales decrease of 5.2% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were down 3.6% year-over-year. Net income as a percent of sales totaled 6.3% for the period, up 49.1% year-over-year.

Transportation Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales decreased 2.5%. Year-over-year, sales increased 2.1% in the third quarter.

Medical Equipment Sector

The medical equipment sector recorded a sales increase of 6.3% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 1.7% year-over-year. Net income as a percent of sales totaled 12.1% for the period, up 8.0% year-over-year.

Medical Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales decreased 0.4%. Year-over-year, sales increased 0.9% in the third quarter.

Instrumentation Equipment Sector

The instrumentation equipment sector recorded a sales increase of 5.2% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 9.3% year-over-year. Net income as a percent of sales totaled 13.1% for the period, up 38.5% year-over-year.

Instrumentation Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 1.2%. Year-over-year, sales increased 11.0% in the third quarter.

Semiconductor Equipment Sector

The semiconductor equipment sector recorded a sales increase of 4.1% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 27.8% year-over-year. Net income as a percent of sales totaled 29.8% for the period, up 121.4% year-over-year.

Semiconductor Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 13.5%. Year-over-year, sales increased 28.9% in the third quarter.

Contract Electronic Manufacturers (CEM) Sector

The CEM sector recorded a sales decline of 0.9% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 7.6% year-over-year. Net income as a percent of sales totaled 2.0% for the period, up 71.2% year-over-year.

CEM Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 5.7%. Year-over-year, sales increased 11.6% in the third quarter.

Electronic Distribution Sector

The electronic distribution sector recorded a sales decrease of 8.1% in 2016. Sales for the first three quarters of 2017 versus the first three quarters of 2016 were up 9.4% year-over-year. Net income as a percent of sales totaled 1.6% for the period, down 0.7% year-over-year.

Electronic Distribution Equipment Sector – Sales and Net Income

Quarter-to-quarter (3Q17 versus 2Q17) sales increased 7.5%. Year-over-year, sales increased 12.8% in the third quarter.

Twice a year, Bishop & Associates publishes a new connector industry forecast by region and market sector. For more information the latest forecast for the electronic connector industry click here. OEM quarterly results are published in The Bishop Report.

No part of this article may be used without the permission of Bishop & Associates Inc. 

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Ron Bishop

Ron Bishop

Ronald E. Bishop founded Bishop & Associates Inc., a market research firm that specializes in the world electronic connector industry, in 1985. The firm publishes “The Bishop Report,” a monthly research newsletter and connectorsupplier.com, a twice-monthly electronic publication. A staff of 20 researchers produces reports centered on geographic regions, end-use equipment markets, connector products, and interconnect technologies. The firm also provides executive placement services, conducts multi-client studies and customer surveys, and assists in merger-and-acquisition activity. The US headquarters is located in St. Charles, Ill., a suburb of Chicago. The firm also has offices in Brussels, Belgium; Sidney, Australia; and Hong Kong.
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