The POS Index is a representation of a significant number of manufacturers POS activity that are mostly engaged in the electronic components industry. Products that will be included in the index are passive/electromechanical in nature, including (but not specific to) commodities such as wire & cable, switches, connectors, circuit protection, electronic hardware, resistors, capacitors, et.al. The index charts POS activity beginning with January of 2019 as its base point and then compares POS by month.
After contemplating POS Index measurements, it was decided to use January of 2019 as the base point. This gives us two plus years of distributor POS activity. The number of manufacturers included in the index has grown to around one hundred companies. Because of the large amount of manufacturers represented, the Budde Marketing POS Index is arguably one of the most complete benchmarks of POS activity at this time.
We will be using new metrics in 2022 to measure POS. Those metrics will be explained next month. We will be increasing the number of manufacturers being polled since we have added a number of manufacturers to our customer base over the past year
December of 2021 was a banner month, with POS activity up 24% when compared to the January 2019 Index number. Because the country was deep into the pandemic in December of 2020, 2021 December was actually 29% above last year’s December number. December was also 12% above November’s POS number. All in all, a great month of POS activity.
This past year saw a strong rebound from the pandemic year of 2020. POS activity was 21% ahead of 2020. Each of the past ten months showed double digit growth when compared to 2020. We also anticipate a strong first quarter for 2022 and sales activity shows no signs of letting up in the near future.
Budde Marketing’s DTAM report is available for anyone wishing to look at larger trends in the industry. If interested, please email [email protected] to purchase a copy.