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Distributors see increased opportunities from automotive

Some distributors say their sales to the automotive supply chain are rising because of semiconductor shortages, rising electronic content in cars and the trend towards electric vehicles. Automotive represents a small percentage of electronics distributors’ overall sales, but distributors say there has been a sharp increase in demand by automakers and their key systems suppliers and contract manufacturers fueled by severe shortages of some semiconductors. Some distributors say demand by automotive customers may be short lived while others say there is a paradigm shift occurring and automotive OEMs will continue to use the distribution channel even after shortages abate. Catalog…

Small, specialized distributors deal with disruptions caused by the pandemic

Long lead times, transportation delays, and finding new customers are some of the issues that small, specialized distributors face. Last year was a challenging time for most distributors, including small, specialized distributors which have smaller line cards and fewer customers and resources than larger broad line distributors. But such distributors have risen to the challenge and have managed to be competitive and in some cases grow sales despite the impact the coronavirus pandemic has had on the overall electronics supply chain. With fewer customers and limited line cards, it would seem that specialized distributors would be more at risk when…

Distributors rise to the occasion in managing supply chain risk

Distributors are bearing more of the responsibility of managing risk in the supply chain, as more semiconductors and other components are sold through the channel. Helping OEMs and electronics manufacturing services providers manage supply chain risk is not a new task for distributors, but that role seems to have become more important and is now an integral part of the distribution business model. Outsourcing, shorter product lifecycles, increased government regulation, trade wars and tariffs have increased risk in the supply chain. That’s in addition to “normal” supply risks caused by supply/demand imbalances which can result in longer lead times, shortages…

Pandemic limits distributors’ semiconductor sales

Chip sales declined in the first half, but demand bounced back in the third and fourth quarters and distributors expect to post modest semiconductor sales growth for the year. When the coronavirus pandemic spread across the world, most distributors thought that their semiconductor sales would fall this year because the pandemic shut down production of electronics equipment and components. However, the severity of impact on distributors’ semiconductor business was somewhat muted as demand for chips from a range of industries increased in the second half. Many distributors now expect a modest low single-digit increase in semiconductor revenue for the year,…

Distributors expect a rebound in business in Europe in 2021

While European distribution sales will end 2020 declining, most distributors believe business will bounce back next year as demand increases from automotive and industrial segments. The European electronics distribution business will fall about two to four per cent in 2020 due in large part to the coronavirus pandemic, but distributors expect a return to sales growth in 2021. Distribution business in Europe was down about 5 per cent in the first half of the year compared to the first half of 2019, but there were signs of improvement in the third and fourth quarters, according to Adam Fletcher, Electronic Components…

Some independent distributors see sales increases because of pandemic

Component demand from “essential” industries such as medical OEMs have boosted sales for independent distributors. Independent distributors say they have seen healthy demand and robust sales increases despite the slowdown in production at some global OEMs and electronics manufacturing services (EMS) providers because of the coronavirus pandemic. Much of the sales growth for independent distributors has been driven by “essential” industries such as medical equipment, mobile computers and networking equipment. “Electronic component demand has remained steady throughout the year and business has been brisk,” said Todd Burke, president, Americas for independent distributor Smith, based in Houston. However, demand has not…