Good times rolled (again) in 1995
Article Abstract:
Strong demand and product shortages caused the 1995 electronics distribution market to boom. The total revenue of the top 100 distributors in 1995 grew by 24% to $23.7 billion. A review of the top 100 distributors in 1995 also reveals that all but one experienced a growth in the year. The shortage of DRAMs caused the independent distributor to prosper in 1995 with many of them doubling in size over the course of the year. One company, Blue Fin Technologies Inc, actually tripled its revenue to $43 million during 1995 from $14 million in 1994. Six distributors reached the billion-dollar mark in 1995 compared with only three in 1994. The top 10 distributor list remained stable for the most part and the top distributor remains Arrow Electronics, which had revenue of $5.9 billion in 1995.
Publication Name: Electronic Business Today
Subject: Electronics and electrical industries
ISSN: 1085-8288
Year: 1996
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Is the party over?
Article Abstract:
The electronics distribution market is suffering from slow growth prospects in 1996, but distributors are countering with new service offerings. Estimates put the growth in 1996 at 11%, which is substantially below the 20% clip it has enjoyed over the past three years. Market saturation and the end to component shortages are the driving force behind stagnation, but companies are countering with geographic expansion, new product offerings and value-added services. Those surely expected to suffer in 1996 are the independent distributors, or brokers, who rely on the gray market; the gray market has less reason to exist when product shortages are not a concern. One trend that is not expected to stop is consolidation in the industry.
Publication Name: Electronic Business Today
Subject: Electronics and electrical industries
ISSN: 1085-8288
Year: 1996
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Looking for more than just a few good men
Article Abstract:
The distribution channel has grown too fast in the past few years to retain a high number of qualified workers. Its growth rate has been 20% annually since 1992 and the issue of qualified workers grows larger every year also. The need of value-added resellers (VAR) to hire better educated employees is the result of new value-added services these distributors must provide in a crowded market. A survey conducted by the National Electronics Distributors Assn (NEDA) reveals that 80% of new hires in the channel are the result of having to provide new, value-added services; half of new hires have engineering or manufacturing backgrounds. Besides services, the channel needs more qualified workers in the sales and marketing areas.
Publication Name: Electronic Business Today
Subject: Electronics and electrical industries
ISSN: 1085-8288
Year: 1996
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