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Electronic Component Wholesalers
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US electronic component wholesalers industry includes about 15,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $230 billion. Major companies include Arrow Electronics and Avnet. The industry is concentrated: the 50 largest companies account for nearly 60 percent of industry revenue.
Global semiconductor sales, a significant component of worldwide electronic component distribution, generate $300 billion annually, according to the Semiconductor Industry Association. Asia/Pacific represents 54 percent of the global semiconductor market, while the Americas comprise 18 percent. Major companies include WPG Holdings (Taiwan), Future Electronics (Canada), and the Premier Farnell (UK).
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 capital-intensive: average annual revenue per worker is more than $800,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include semiconductors (computer chips); connectors; and electromechanical devices. Other products include disk and tape drives, computer subsystems, microwave and fiber optic components, transistors, diodes, power supplies, and switches.
In addition to products, wholesalers offer services like purchasing; marketing; warehousing; packing, shipping, and delivery; customized packaging, private labeling; minor repair and refurbishment; 'kitting' (simple...
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