Whoda thought it? As the Western Europe markets hit the buffers, with the possible exception of Germany, it is to East Europe distributors are looking for a protective umbrella against the present economic deluge
Nu Horizons is getting very excited. It has just pumped up its logistics centre in Coventry, UK to handle six times more inventory, an action encouraged by burgeoning business in East Europe. The company was quick to establish operations in Poland and the Czech Republic, cosying up to the contract manufacturers for sure, and making inroads into a growing design sector in these markets.
According to DMASS (Distributors and Manufacturers Association of Semiconductor Specialists) East Europe has been posting double digit growth for the past three quarters. In the second quarter of 2008, the East Europe DTAM was $170m. Prime movers behind this advance are the Russian market which was up 23% year on year and the Baltic States which grew 25% year on year.
Farnell is well positioned too. And it has local language web sites for Poland and the Czech Republic, along with Arrow and Avnet which are also well established there.
Before the excitement gets too much, it's worth pointing out that according to DMASS figures the East Europe market is about the same size as the whole of the Italian market, and is still based on a strong contract manufacturing platform. Design activity is growing however, and distributors will want to be in situ as this activity grows.
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