Business was good this year. According to Bishop & Associates’ facts and figures, it was a great year for connectors.
This year has been excellent for the electronics industry, especially so for the connector space. Consider the following:
- Connector prices have remained steady with no measurable price erosion.
- Raw material costs have fallen off their 2010 highs and have remained stable throughout 2014.
- Energy costs have declined, unemployment has improved, electronics in China is again achieving double-digit growth, and world economies have improved from 2013 levels.
These positive factors have created an excellent business environment for connectors. Sales are up +9.2% through October and industry profitability is at historical highs.
The following table displays 2014 connector sales growth by region through October 2014.
Industry Sales Performance
Year-to-Date, October 2014
Some important facts about 2014:
- The industry has achieved a 34-year CAGR (1980 – 2014) of 5.5%. The 9.2% growth in 2014 is nearly twice the industry’s historical average.
- The industry has finally achieved sales greater than $50 billion (2014 = $53.3 billion).
- All regions achieved growth in 2014, with China achieving double digits (+14.5%).
- Japan will achieve growth of 7.5% in 2014, rebounding from a -16.0% decline in connector demand in 2013.
2014 will go down as an excellent year for the connector industry. We’ll provide our outlook for 2015 in our next issue.
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