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        Electronic Component Wholesalers Industry Profile

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        Excerpt from Electronic Component Wholesalers Industry Profile

        Companies in this industry are engaged in the merchant wholesale distribution of electronic parts and equipment such as blank audio and video tapes, 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) and 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 IHS Markit. 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 70% 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, ...

         
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