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Computer & Office Equipment Wholesalers
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US computer and office equipment distribution industry includes about 18,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $265 billion. Major companies include Ingram Micro, ScanSource, Tech Data, and Westcon Group, as well as divisions of diversified electronics distributors such as Arrow Electronics and Avnet. The industry is concentrated: the top 50 companies account for about 75 percent of revenue.
COMPETITIVE LANDSCAPE
Demand is strongly affected by the level of business activity. The profitability of individual companies depends on merchandising and efficient operations. Large companies have economies of scale in purchasing. Smaller companies can compete effectively by offering specialty products or superior service. The industry is capital-intensive: annual revenue per employee is about $800,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include computers, packaged software, copiers, data storage drives, and printers. Other products include a mailing and letter-handling machines and large number of peripheral computer devices and supplies, such as networking equipment, scanners, point-of-sale (POS) equipment, and ink cartridges.
Distributors buy products from equipment manufacturers or importers and resell them to retailers, systems integrators, and value-added resellers, or directly to end-users. Distributors are especially important for small manufacturers that can't directly reach end-users. Most distributors operate one or more warehouses, but in some cases merely process orders shipped directly to customers from a manufacturer. Large warehouses exceed 100,000 square feet. Orders may be taken over the phone by a product specialist with technical knowledge,...
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