Chris Page, General Manager, Electronics, RS Components
Review 2009 for us. As awful as it looked or not as bad as painted
The high service distribution industry has faced an extremely difficult year of decline but at RS we have a history of holding strong throughout turbulent market conditions and this one has been particularly challenging. Short-term cost cutting measures are a quick fix but this approach does not make the recovery any easier. At RS we bucked the trend and invested heavily in our electronics offer in terms of product portfolio, systems, personnel and planning which puts us in the more comfortable position of being well poised for recovery. We are seeing comparatively large year on year growth in a number of areas within our IC business indicating that the market is accepting and welcoming of the investment we have made.
How do you view prospects for 2010? Do you foresee any hurdles to the potential growth next year e.g. a double dip recession, lengthening lead times…
The outlook for 2010 is relatively positive looking at overall business trends in the industry. There is optimism that economies are through the worst and the rate of recovery will continue to grow. This alone should lead to more accurate forecasting for manufacturers which will in turn allow for more stable lead times.
We will also see increased activity in alternative sales channels including on-line and mobile which will continue to gain globally on paper-based catalogues. The range and sophistication of products and service levels customers demand will grow in complexity and vary significantly from country to country. Tomorrow’s high service distribution leaders will be the ones that prove most adaptable to change and in tune with their customers local requirements
What would make life easier in 2010?
The best situation will be growth returns to the Economies around the world.With the depth of inventory, New product introductions launched in our Electronics offer in the last 12 months and the new online initiatives to be launched in 2010 , we expect to continue to outpace the market in sales growth. Obviously we would also prefer less volatility in the foreign exchange markets too !
What will make 2010 exciting for your company?
For RS our increasing investment in electronics will make a compelling proposition for our customers as we continue to build on this. We will be announcing some world-class initiatives for the electronics community and will be moving fast to align our offer with the ever changing requirements of the market. We anticipate that we will be able to provide a refreshing and unrivalled suite of solutions, support and services to our customers.
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