How have the tasks of the association changed over the last two decades?

Andreas Falke: A trade association like the FBDi is also a reflection of its members - the changes that have affected distribution over the last 20 years are reflected in the work and positioning of the FBDi. As diverse as our membership structure is, the distributors represented in the FBDi are united by the issues of regulation - 20 years ago mainly at a national level and now EU-wide - market development and both an interest in and a willingness to think beyond Europe's borders. Twenty years ago, regulation was nowhere near as pronounced as it is today, and digitalization was also much less important in distribution. As a result, FBDi's Competence Teams have to deal with increasingly complex topics in order to offer members an information advantage, legal certainty and the associated added value - as a service provider for service providers.

In your opinion, what was the most difficult time for distribution?

After the game is before the game. The most difficult times are often enough the times in which distributors have developed to a great extent. In retrospect, these were very good times - but you're right in the middle of it...

The digital transformation has created completely new business models and processes; in retail in general - think of marketplaces like Amazon - but also in distribution, a lot is shifting from offline to online business. The difference to marketplaces is: In distribution, a high level of supply security for production must be guaranteed, and in addition to this, the online service must support offline cooperation in a very individualized way.

In recent years, distribution has been transformed into a massive efficiency machine according to the motto 'more and more service for less and less margin'. It is constantly being called into question. If it were actually possible to simply replace distribution, manufacturers or customers would have already done so. But it can't, because market dynamics are constantly 'challenging' processes and meticulous planning is reduced to absurdity by chaotic realities. Pragmatists and realists are needed here who change their perspectives and sometimes represent and connect the customer, sometimes the manufacturer as a diplomat in the other camp. Distribution must also combine completely different time horizons - Moore's Law in all its forms, on the one hand with the industrial context of long-term amortization, and on the other with certified guarantees over life cycles that extend beyond decades.

All of this has refined distribution under pressure over the last 20 years - the years have certainly not been easy, but pressure also creates diamonds.

How will distribution develop over the next ten to 15 years?

Looking ahead, the biggest challenge will be to avoid being torn apart as a link between the turning point and the different speeds in regulation, industry and the world of components on a global planet that is slowly becoming more distant again between the blocks. This is particularly true for distributors and for the Association of Distributors. Distribution will continue to develop the experienced changes and processes - AI will definitely play a major role here - and further increase the efficiency requirements due to cost pressure.

The big question will be: How hot will the climate get? And here I don't mean global warming, but the political climate. Deglobalization will not work easily for electronics, because regional production of semiconductors is hardly conceivable. Beyond allocation and rollercoaster cycles, the main task of distribution will perhaps return to a focus on availability. Greater geopolitical tensions mean less security of supply, as more incalculable risks allow less precise planning.

But the Competence Teams are also facing more work because tensions are reflected in sanctions and regulations that importers will have to take into account. This is not just about environmental requirements, but also about importing goods from third countries. Today, distributors have to meet high administrative and communication requirements and also bear legal responsibility. This additional effort and the associated risks not only impact the profitability of distribution, but can also lead to critical situations in the supply chain. This is where we benefit from more intensive communication with members via specialist web conferences, which have created a much more agile association.

What technological trends do you see that are or will be important for distribution?

Well, there are already some established technologies that will influence all of our lives: AI will certainly play a major role, although not as much of a volume driver in Europe as in Asia and the USA. Nevertheless, it will support and accelerate many processes in distribution, just think of the back office and logistics. Quantum technology will increase the speed of hardware - dramatic changes are currently taking place here, which in many cases are not visible at first glance.

In Europe, we will have to deal with smaller volumes; high volumes are happening in Asia and the USA. Here, we expect distributors to grow very strongly in the area of renewable energies and smart solutions with medium-sized customers. We also expect good growth in Europe in AI infrastructure, which is not just processors and memory. Automotive could also play an even more important role for distributors in Europe in the future. It is quite conceivable that, due to the new booming markets and the associated shift in priorities, the proportionally shrinking business will in part run more via distribution.

What do you think will be the biggest challenge in the coming years?

Survival. Do you want to be more specific? Maintaining pragmatism and working out opportunities - not just for distribution, but for us all and everywhere. We are falling apart as a society, and my biggest worry is that we will give in to opinions and allow ourselves to be divided into meaningless bubbles without facts.

For me, the utopia of communication and togetherness is not yet lost, but when I hear that one in four Germans no longer believes in our democracy in a country where there are hardly any existential hardships but, conversely, a proportionately high level of panic, I shudder.

We in Europe do not play the role of the main opponents in the field of tension of geopolitics in Europe, but are rather a mass of controversy. We will always have to fight for our security of supply in the Europe of 'low volume / high mix' - and this is only possible if we master low volumes with a high number of variants in terms of logistics and planning. To do this, we need to recognize, communicate and solve upcoming challenges. We must not stop serving European SMEs as our main customers individually in order to support them in their international competitive environment. Increasing efficiency to improve competitiveness and selling real solutions and their value better will certainly be the biggest challenge in the coming years (decades) on the basis of this situational approach.

20 years of Fachverband Bauelemente Distribution FBDi e.V.

The Fachverband Bauelemente Distribution, FBDi e.V., is celebrating its 20th anniversary. Since its foundation on December 14, 2003, the association has developed into an important representative of distribution interests in Germany, Austria and Switzerland (DACH). The association accounts for around three quarters of the sales volume of the electronic component distribution companies represented in DACH. "20 years of association work in electronics distribution stands for 20 years of drastic changes among distributors, connecting market participants that could hardly be more heterogeneous. On the one hand, we have manufacturers who are constantly developing new products, and on the other hand, we have industrial customers who require long-term supply continuity for their components and are dependent on approvals and certifications, for example in aerospace & defense or medical technology," says Andreas Falke, Managing Director of the FBDi, summing up the two decades of association work. Founding member and Chairman of the Board of the FBDi, Georg Steinberger, explains the association's success: "Rarely has a relatively small association developed so much relevance and dynamism for its members and an entire industry as the FBDi has in the 20 years of its existence. From the very beginning, the FBDi has been able to make a significant contribution to addressing critical issues." In the FBDi's Competence Teams, specialists from member companies meet regularly and hold web conferences to discuss increasingly complex regulatory topics in the electronics industry, including issues such as compliance, the circular economy, substance regulations, sanctions and customs duties. "The member companies benefit from this network and contribute to it at the same time," says Steinberger. The FBDi's high level of market-oriented expertise makes it a sought-after partner for electronics manufacturers and customers, as well as politicians. "We have not only made member companies better equipped to deal with legal issues, but have also raised public awareness of our topics." Another focus of the FBDi is the informative preparation and further development of figures and statistics on the German distribution market for electronic components.