The connector industry achieved a compound annual growth rate (CAGR) of +6.3% for the past ten years (2002-2012). This is reasonably good growth over the ten years but it has been a rocky road as the following chart shows:
Between 2002 -2007 the industry grew a whopping +11.5% CAGR. Then in October 2008 the housing market crashed, the stock market plunged and the global financial crisis was underway. In 2009, the connector industry experienced a 21.9% down turn in sales, setting a new record for a sales decline in one year. World connector sales went from $45.7 billion in 2008 to $35.7 billion in 2009. The industry lost $10.0 billion in sales in one year.
These sales were recovered the following year in 2010 when sales increased +28.5% and the industry grew to $45.9 billion.
Since 2010 world connector demand has been modest, growing +6.6% in 2011, declining -2.7% in 2012 and year to date April 2013 sales are up a modest +2.4%. Beginning in October 2011, we have experienced nineteen consecutive months of very lethargic connector demand.
The following table displays the industry’s sales performance since 2002. You will note that the industry has achieved a paltry CAGR of +1.4% in the past five years (2007-2012).
Since 2008 North America declined -1.1% and Europe declined -2.8%. Japan had modest growth (+1.8%) and China and Asia Pacific grew only +5.4% and +6.2% respectively.
Performance of Industry Leaders
Combined sales of Amphenol, Molex and TE Connectivity were slightly better than the industry average over the past ten years (2002-2012). The three companies achieved a +7.2% ten year CAGR versus the industry average of +6.3%.
The following table shows their combined sales performance.
Amphenol achieved an incredible growth rate of +16.2% since 2002 versus industry growth of +6.3%, making Amphenol clearly the industry’s best sales performer.
As the following table displays, Amphenol has grown to a $4.0 billion connector company in 2012.
Note, Amphenol sales do not include sales of cable manufactured by Times Fiber.
Molex is now a $3.6 billion connector company achieving a +7.2% ten year CAGR versus the industry of +6.3%.
TE achieved a ten year CAGR of +4.6% versus industry growth of +6.3%. While they are slightly below industry performance, TE increased annual sales by $3.0 billion from $5.1 billion in 2002 to $8.1 billion in 2012.
Note, TE sales do not include the acquisition of Deutsch.