Soaring Q1 sales kindles ITSA optimism for 2022

Members of the UK-based connector trade body also reported a healthy book-to-bill ratio of 1.22.1.

Although revenue growth slipped compared to Q4 2021, it is clear that the market for connectors in the UK and Ireland continues to be buoyant.

A raft of end markets drove business forward. Medical, Security Data Centres and Telecoms were the major contributors. Despite the lifting of COVID restrictions home or remote working continues to power connector demand from data centre suppliers. The medical market shows no signs of slowing while the pandemic exerts its influence and defence equipment has been lifted by the invasion of Ukraine.

Encouragingly the broadcast market, which endured a slowdown when live events were prohibited, now has a fair wind at its back and connector makers are optimistic for the summer months as live events and music festivals are reinstated into the calendar.

“It is great that our members continue to enjoy excellent revenue and order growth in Q1, however, this is against a backdrop of some real challenges, not least of which is recruiting the right skills and experience to manage existing growth but to also focus on the future,” commented John Biggs, ITSA Chairman. “ITSA members are facing this head on and are implementing some key initiatives to mitigate this[JB1] ”

“We will be releasing a separate PR on this subject in the next few weeks”

ITSA members are encouraged by the positive start to 2022 and expect an outstanding year for sales. They are staying vigilant for customers placing multiple orders to mitigate lead times and stocking issues.

Connector makers are not immune to these problems. While members reported sales are now significantly ahead of 2019 pre-pandemic levels, they are grappling with the shortage of raw materials, components, and particularly cables.

Lead times are averaging 12 weeks, though one member reported an alarming three-year wait for product.

The inevitable rise on costs has meant some price increases being passed on to customers.

Market optimism is reflected by high levels of investment by ITSA members. Acquisition activity is high and new facilities are being planned and opened. These investments pick up on a trend which was in full swing before the pandemic hit.

 [JB1]Might be a bit wordy but I am sure you can include some elements of this.