Electronic Component Wholesalers
Description
Companies in this industry are engaged in the merchant wholesale distribution of electronic parts and equipment such as blank audio and videotapes, communications equipment, blank compact discs and digital video discs, and radar equipment, among others. Major companies include Arrow Electronics and Avnet (both based in the US), as well as Future Electronics (Canada) and WPG Holdings (Taiwan).
Electronic component manufacturing is largely concentrated in the Asia/Pacific region, making the area a crucial market for wholesalers, according to Mordor Intelligence. Global component distributors are increasingly tapping into emerging economies, where electronics markets are less saturated, to uncover new sales opportunities.
The US electronic component wholesalers industry includes about 12,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $385 billion.
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 concentrated: the 50 largest US companies account for about 75% of industry revenue.
International trade in electronic components is substantial. Imports to the US in 2017 were about $1.8 trillion, mainly from China, Mexico, Canada, Japan, and Germany, among others. Domestic exports from the US were about $1.1 billion, mainly to China, Mexico, Canada, Japan, and the United Kingdom.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products for the electronic component wholesalers include materials and supplies used for electronic components as well as communications equipment, which both account for about 45%, each. Other products include telephones, semiconductors, and electronic parts and supplies.
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 assembly); and other end-user support services.
The product mix for most wholesalers is always changing, due to changing market demand. Products are generally bought from manufacturers under nonexclusive authorized distributor agreements that establish marketing relationships with manufacturers. These agreements help protect wholesalers against price changes and obsolete inventory. They typically require a manufacturer to credit the wholesaler if the manufacturer cuts list prices (which happens frequently) and to accept inventory returns for a specified percentage of product purchased.
Electronic component manufacturing is largely concentrated in the Asia/Pacific region, making the area a crucial market for wholesalers, according to Mordor Intelligence. Global component distributors are increasingly tapping into emerging economies, where electronics markets are less saturated, to uncover new sales opportunities.
The US electronic component wholesalers industry includes about 12,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $385 billion.
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 concentrated: the 50 largest US companies account for about 75% of industry revenue.
International trade in electronic components is substantial. Imports to the US in 2017 were about $1.8 trillion, mainly from China, Mexico, Canada, Japan, and Germany, among others. Domestic exports from the US were about $1.1 billion, mainly to China, Mexico, Canada, Japan, and the United Kingdom.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products for the electronic component wholesalers include materials and supplies used for electronic components as well as communications equipment, which both account for about 45%, each. Other products include telephones, semiconductors, and electronic parts and supplies.
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 assembly); and other end-user support services.
The product mix for most wholesalers is always changing, due to changing market demand. Products are generally bought from manufacturers under nonexclusive authorized distributor agreements that establish marketing relationships with manufacturers. These agreements help protect wholesalers against price changes and obsolete inventory. They typically require a manufacturer to credit the wholesaler if the manufacturer cuts list prices (which happens frequently) and to accept inventory returns for a specified percentage of product purchased.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
