Top Independent Distributors
independent channel Based on 12 responses
Source: ESNA
ICs dominate
However, these numbers may be skewed since three of the top five independent distributors did not respond to this question.
Some of the growth can be attributed to geographic expansions
in 2010. For example, AdvancedMP Technology expanded in France, Germany, China (Shenzhen), Brazil andMexico. Fusion Trade alsomade significant investments, doubling the size of its European office, tripling the size of its Hong Kong warehouse/quality hub and establishing an on-site presence in Guadalajara,Mexico.
Classic Components expanded in India and Asia, while Rand
Technology expanded in Europe, Asia as well as North and South America.
was derived fromsemiconductors at $1.1 billion, or 61 percent of total revenues. Sales of the top distributors for interconnects, passives and electromechanical (IP&E) reached $504.6million, or 28 percent of all sales. Top distributors posted computer product sales of $159.8million, or nine percent of total sales. Other component areas represented the remainder of revenues.
(Annual, global revenue $billion)
$0.0 $0.5 $1.0 $1.5 $2.0
2010 Source: ESNA
The survey also shows that the majority of the top independent
distributors derive less than 10 percent of their sales from value- added services including product and supply-chain services. Only one derives 50 percent of its sales from value-added work and two say 20 percent to 49 percent of their sales come from value-added services. Services range from cable assemblies, programming and kitting to counterfeit testing, excess inventory management and repair parts management.
The top independent distributors cite new markets, new
product lines and value-added services as the leading growth drivers for 2011. They also identified energy-efficient lighting as the emerging market that offers the greatest potential for growth in 2011. Solar, wind and the smart grid also are expected to drive sales.
The survey also finds that the top independent distributors
earned most of their revenues from North America (40%), followed by Asia (31%), EMEA (24%) and South America (5%).
$0.0 $0.3 $0.6 $0.9 $1.2 $1.5
In terms of customer channels, 56 percent of the top
independent distributors' business is derived from original equipment manufacturers (OEMs), and the remaining 44 percent from electronics manufacturing service (EMS) providers.
Based on nine responses, the top independent distributors garnered the majority of their sales from the communications and
($ billions)
2010
Source: ESNA
or $1.5 billion in revenues in 2010
computer/peripheral sectors. Nearly 29% of their sales came from communications customers, followed by computers/peripherals (25%), industrial (14%) and medical (8%).
Interestingly, they are placing their bets on the medical and
military/aerospace sectors to help drive growth this year, which accounted for 8 percent and 6 percent of their sales, respectively, in 2010.
In comparison, the top 50 franchised distributors derived the
majority of its sales last year from industrial customers (24%), communications (20%), military/aerospace (16%) and medical (8%). They expect energy, medical and industrial sectors to drive growth in 2011.
Independent distributors cite several challenges in 2011
including product availability, extended lead times, and rising raw materials costs. However, the biggest issue, cited by many of the top distributors, is keeping counterfeit components out of the supply chain.
September 2011 | 35
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