Electronic Component Wholesalers

Electronic Component Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry are engaged in the merchant wholesale distribution of electronic parts and equipment such as blank audio and videotapes, communications equipment, blank compact discs and digital video discs, and radar equipment, among others. Major companies include Arrow Electronics and Avnet (both based in the US), as well as Future Electronics (Canada) and WPG Holdings (Taiwan).

COMPETITIVE LANDSCAPE

Demand for electronic components is driven largely by business and consumer purchases of computers and telecommunications equipment. The profitability of individual companies depends on business volume and correct merchandising, or stocking the products buyers want. Large companies have advantages through buying in high volume at discounted prices, more-efficient inventory management, and the ability to fulfill large customer orders. Small wholesalers can compete by offering specialized products or better service. The industry is concentrated: the 50 largest US companies account for about 75% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products for the electronic component wholesalers include materials and supplies used for electronic components as well as communications equipment, which both account for about 30%, each. Other products include telephones (more than 15%), semiconductors (about 15%), and electronic parts and supplies (more than 5%).