Companies in this industry distribute electronic components including semiconductors, connectors, electromechanical devices, and similar products. Major companies include Arrow Electronics and Avnet (both based in the US) and WPG Holdings (Taiwan), Future Electronics (Canada), and Premier Farnell (UK).
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 70% of industry revenue.
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.