Eighty nine percent of projected revenue growth of more than half the share of distributors and manufacturers say the downturn has little or no impact on SG & # XFC, M, Global Sources’ Survey also shows a leading manufacturer of Distributors

HONG KONG, June 16 /PRNewswire-Asia-First Call/ — Eighty-nine percent of mainland China’s electronic component distributors expect revenue to grow in 2009, forecasting an average increase of 13 percent; while 55 percent of mainland Chinese manufacturers surveyed said the economic downturn has had little or no impact on their business. The results were revealed in the ninth Annual Electronic Components Distributor Survey conducted by Global Sources, electronics management title, Electronics Supply & Manufacturing-China.

Mainland Chinese manufacturers well equipped to cope with change

    — Manufacturers order 54 percent of their components directly from        distributors.     — Seventy-eight percent of manufacturers plan to either increase their        purchases from distributors, or keep them the same, this year.     — They are selecting distributors based on availability of onsite        engineering support (48 percent), reference design (45 percent), test        service (30 percent) and development tools (28 percent).

Publisher of ESM-China, Mark A. Saunderson said: “As well as providing an insight into the distribution landscape for 2009, the Survey also points to a robust electronics industry where manufacturers are well-equipped to cope with the market challenges and feel positive about making a profit. Distributors can also take away some good pointers on what manufacturers are looking for, now and in the future. ”

Distributors are changing their tactics to grow business

Mainland Chinese entrepreneurs and shifting their strategy to grow its business. They are now increasingly focused on serving small-and medium-sized producers, rather than large outfits.

They are also looking at delivering more solutions to emerging, high- profit application markets including:

- Control, safety, testing and medical technology – computers and peripheral equipment, and – in the automotive, aerospace and military electronics.

Distributors have also implemented a number of steps to ensure the quality of their components in reaction to the demands from both the mainland China and global consumer market. These include strict supplier approval; employee training; third-party testing; purchase testing equipment and ISO certification.

Mainland China manufacturers vote for their most preferred distributors

As part of the Survey, mainland Chinese manufacturers were asked to vote for their most preferred distributors in five different categories. Winners of each category are (in alphabetical order):

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