IT Distribution Industry Downturn Levels Off in U.S.
13 5월 2009 - 5:00AM
Marketwired
The "worst" may be over in relation to the sharp downward IT
industry sales that occurred over the past year, according to the
industry association that represents the world's leading IT
distributors. The Global Technology Distribution Council (GTDC),
whose members generate more than $100 billion in global revenue,
cited recent trends revealed by The NPD Group's Distributor Track�,
which captures GTDC members' actual U.S. sales. Today's
announcement is the first in a series of quarterly business trend
reports that the GTDC is releasing to help industry analysts and
observers better understand U.S. IT market conditions.
"The recession that has hurt industries across the world is
still a challenging reality, but it appears that the downturn has
leveled off in the U.S. market for IT distributors," commented Tim
Curran, the GTDC's chief executive officer, who shared the news
with investors attending the organization's annual Investor
Relations Conference today at the Millennium Broadway Hotel in New
York City. "Our members are encouraged and look forward to driving
growth again as market conditions further improve."
NPD's Distributor Track, which has been available by
subscription since 2002, aggregates GTDC member sales by product
and industry segment in addition to corresponding reseller channel
and pricing trends. Strong growth categories this year include
netbooks, wireless products and "network attached storage"
solutions, which small and midsize businesses are increasingly
using to manage, share and store their data.
THE NEW 'ATTITUDE' TOWARD IT DISTRIBUTORS
A growing number of IT manufacturers and software publishers are
relying on distributors to continually improve efficiency and
market reach, Curran said, pointing out that over the past two
years more than 100 additional vendors began doing business with
GTDC members in the U.S. Even some of the world's largest
manufacturers that have never sold their products through
distributors have embraced the "two-tier" indirect model in which
distributors deliver products and services to multiple reseller and
retail channels.
"We've seen a significant change in attitude toward distributors
in recent years," Curran explained. "During the last industry
downturn, certain vendors started to rethink their supply-chain
strategies in favor of more direct sales. Over time, however, they
realized that it makes far better sense to leverage distributors to
cost-effectively sell their products through diverse reseller
channels with specialized needs that are very difficult to directly
address."
Distributors provide the distinct advantage of fast access to
multivendor solutions and a full range of related services while
being able to more quickly adjust their operations as business
conditions change and reseller channel requirements evolve. Market
research also shows that IT distributors have the highest
productivity levels and best inventory management performance
compared to all other wholesale industries. IT distributors provide
their services with very low selling, general and administrative
(SG&A) costs as a percentage of sales -- with stable industry
SG&A averages of below 6% in each of the past three years.
ABOUT THE GLOBAL TECHNOLOGY DISTRIBUTION COUNCIL
The Global Technology Distribution Council (GTDC) is a worldwide
industry association dedicated to defining and promoting the role
of wholesale distribution in a successful and healthy information
technology channel. The Council is comprised of the computer
industry's top wholesale distributors dedicated to serving "the
channel," a network of skilled value-added resellers and retail
stores focused on providing hardware, software, and services to
businesses and consumers around the globe. GTDC members include
GTDC members include ABC Data, Actebis, Arrow Electronics (NYSE:
ARW), Avnet (NYSE: AVT), Bell Micro (PINKSHEETS: BELM), DCC SerCom,
D&H, Esprinet, Ingram Micro (NYSE: IM), Intcomex, Magirus AG,
Redington, ScanSource (NASDAQ: SCSC), Synnex (NYSE: SNX), Tech Data
(NASDAQ: TECD), Westcoast LTD and Westcon. Visit the GTDC at
www.gtdc.org.
ABOUT THE NPD GROUP, INC.
The NPD Group is the leading provider of reliable and
comprehensive consumer and retail information for a wide range of
industries. Today, more than 1,700 manufacturers, retailers, and
service companies rely on NPD to help them drive critical business
decisions at the global, national, and local market levels. NPD
helps our clients to identify new business opportunities and guide
product development, marketing, sales, merchandising, and other
functions. Information is available for the following industry
sectors: automotive, beauty, commercial technology, consumer
technology, entertainment, fashion, food and beverage, foodservice,
home, office supplies, software, sports, toys, and wireless. For
more information, contact us or visit http://www.npd.com/ and
http://www.npdgroupblog.com.
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GTDC MEDIA CONTACT: Chuck Miller (727) 939-1562 Email
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