Modest Growth for Electronics Distributors
North American (NA) revenue for the top 50 distributors in 2014 has turned upward after two years of flat growth. NA revenue increased $1.4 billion or five percent, reaching $31.7 billion in 2014, up from $30.3 billion in 2013, according to the Electronics Purchasing Strategies (EPS) survey of the electronic components distribution industry. In 2012, NA revenue dropped by $600.0 million or 1.9 percent due to slower demand, falling profit margins, and economic uncertainty.
Semiconductor sales continue to hold the lion’s share of the NA distribution industry, but lost share to computer products. Semiconductor sales for the top distributors in 2014 dropped slightly to $11.2 billion, down five percent from $12.3 billion in 2013. Avnet still dominates the sector with 31 percent of its total revenues from semiconductors.
Computer product sales rose to $7.0 billion in 2014, up from $6.0 billion in 2013. Sales of passives/ electromechanical (EM) devices decreased by two percent, dropping to $4.2 billion in 2014 from $4.7 billion. Interconnect sales remained relatively flat, reaching $2.3 billion in 2014, up from $2.2 billion in 2013. Component sales are based on responses from 42 distributors.
A few of the largest distributors are still struggling with growth in North America after their growth spikes in 2011. Avnet Inc., the top ranked distributor in NA, post 1.2 percent growth in 2014, compared to flat growth in 2013, a 4.4 percent drop in 2012, and a 15.4 percent increase in 2011.
Arrow Electronics, ranked at No. 2, increased its NA revenues by 2.8 percent in 2014, down from 3.4 percent in 2013, an increase of less than 1 percent in 2012, and a 17.6 percent increase in 2011. Arrow acquired five companies in 2014.