Top 50 Survey Results
ELECTRONICS DISTRIBUTORS RETAIN EARLIER GAINS
Total North American (NA) revenue for the top 50 distributors fell by $600.0million or 1.9 percent, reaching $30.6 billion in 2012, according to Electronics Sourcing North America's (ESNA) survey of the electronic components distribution industry. Themarket contraction was the result of slower demand and toomuch inventory during part of the year. Still, total NA revenue was higher than the $27.8 billion accrued by top distributors in 2010, when the industry experienced phenomenal growth, growing 31 percent. Semiconductor sales overtook computer product sales in the NA
distribution industry, partly due to a change inmarket share for the biggest distributors. The largest share of sales for the top distributors was derived fromsemiconductors at $11.9 billion, up 21 percent from$9.8 billion in 2011. Arrow and Avnet dominate with 66 percent and 43 percent, respectively, of their NA revenues from semiconductors. Computer product sales fell to $6.3 billion, down 38 percent, from
$10.2 billion in 2011. Top distributors for passives/electromechanical (EM) devices posted higher growth, reaching $5.0 billion, up 11 percent, from$4.5 billion in 2011. Interconnect sales remained flat at $1.9 billion. The top two distributors posted virtually flat growth in 2012
despite several acquisitions. Avnet's North American sales decreased 4.4 percent, compared to a 15.4 percent increase in 2011, and a 31.9 percent rise in 2010. Avnet acquired 12 companies in 2012. The leading distributor attributes part of the contraction due to the shutdown of its commercial components business in Latin America, which was part of the BellMicro acquisition a few years ago. In 2012, Arrow's sales grew less than one percent, compared to an
increase of 17.6 percent in 2011 and 29.5 percent in 2010. Arrow acquired four companies in North America, one in Europe and two in China. The top ten distributors virtually remained the same. The top five
distributors Avnet, Arrow, Future, DigiKey, and TTI maintained their rankings in 2012. Newark element14 and DAC switched positions. Newark element14 dropped fromnumber six to number seven and DAC rose to number six. Allied (rank 8),Mouser Electronics (rank 9) and Sager Electronics (rank 10)maintained their positions in 2012. Almost all catalog or highservice distributors posted negative sales
in 2012. DigiKey posted negative six percent in sales in 2012, compared to less than one percent growth in 2011, and a sales increase of 47.5 percent in 2010. Newark element14's sales fell by nearly five percent, after declining about 1 percent in 2011, and increasing 20.7 percent in 2010. Allied's sales declined by 5.4 percent in 2012, compared to a sales
28 |May/June 2013
Semiconductor sales hold biggest share (%of revenue of Top 50, 2012)
Source: ESNA
gain of 7.6 percent in 2011, and a 30.7 percent gain in
2010.Mouser Electronics grew nearly 3 percent in 2012, compared to a sales increase of 9.2 percent in 2011, and an increase of 47.4 percent in 2010. Overall, the NA distribution industry barely held onto the gains it
made in 2011. Only 24 distributors posted sales gains in 2012, compared to 40 in 2011 and 44 in 2010. Twentyone distributors posted losses in 2012, compared to only eight distributors in 2011, and one recorded flat sales. Despite inventory issues in the channel and a slowdown in 2012,
some top distributors continued tomake investments. As noted earlier, Arrowmade eight acquisitions across the Americas, EMEA and Asia Pacific, including Redemtech, TechTurn, Global Link Technology, and Asset Recovery Corp. in North America. Global acquisitions included Altimate Group, Seed International and the Wireless & Infrastructure business unit ofWaching Co. Ltd. Avnet's acquisitions in 2012 include USI Electronics, Genilogix,
Magirus Group, BrightStar Partners, BSP Software, Internix, Pepperweed Consulting, C.R.G. Electronics,Mattelli, Altron GmbH & Co. KG, Nexicore Services and Canvas Systems. The only other acquisition cited by the top distributors is Astrex's
purchase of Timco Inc. A few distributorsmade investments in new sales offices. ARCO expanded sales offices in Pa., Calif., Ill., and Canada, while Bisco increased its sales force by 12 percent and opened three new sales offices in N.Y.,Mich., and Iowa. Electro Enterprises added a rep firmand threemore inside sales people. IBS expanded globally in Hong Kong, China, Singapore,Malaysia, Philippines and India. The global economy remains the biggest challenge that distributors face in 2013, according to ESNA's survey. Other
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