Industry sales increased +8.4% YOY in 3Q17 to $15,650 million. This is the highest sales quarter on record for the industry (and the second record in a row). Sales for the full-year 2017 are projected to reach $59,020 million, up +9.0% over 2016.
The following table shows industry sales by quarter for 2015, 2016 and 2017 (actual and projected). 3Q17 sales were $1,000 million better than our June forecast, up +8.4% versus +1.5%. YTD, the industry is up +9.8% to $44,385 million.
Growth by region for the quarter and YTD can be seen in the following chart.
Connector industry sales growth can be seen in the following chart by quarter. The industry has grown for six consecutive quarters. Before 1Q15, the industry experienced nine straight quarters of growth since the prior downturn.
Orders for the quarter were up +9.2% in 3Q17 and the book-to-bill (BTB) ratio was 1.03. This was a very strong quarter for orders and portends a strong backlog from which to ship for 4Q17. The table below shows the YOY results and BTB by region.
- Semiconductor sales have broken previous records two months in a row at $35 billion in August and $36 billion in September. They are poised for record sales in 2017, likely exceeding $400 billion in sales. Strong growth for semiconductors usually spells strong growth for connectors.
- Connectors have recorded record sales in the second and third quarters at $14,730 million and $15,650 million, respectively. Quarter-over-quarter, sales were up $1 billion in 3Q17. Connector are projected to surpass $59 billion in revenues for 2017, a record level of industry sales.
- Both connectors and semiconductors have the potential to beat their current forecasts.