ADDvantage - Competitors

ADDvantage Competition

Now Viewing ADDvantage's competition in: Electronic Components & Semiconductor Wholesalers (primary)

Recent Developments

IT Spending Growth Expected to Slow - US corporate spending on IT products and services will grow more slowly year-over-year in 2008, according to Bernstein Research. IT spending will increase between 4 and 5 percent in 2008, compared with a 9 percent increase during 2007. Computer storage products will be a key spending priority; spending on servers is expected to decline.

Chip Manufacturer Consolidation Expected - Changes in chip manufacturing methods will force many electronics components and semiconductor manufacturers to consolidate, and some will go out of business, according to Intel. Product acquisition costs for electronic component and semiconductor wholesalers may rise due to decreasing competition among manufacturers. Electronic component and semiconductor manufacturers must invest about $1 billion a year in manufacturing facilities to remain competitive, and expected changes in manufacturing methods between 2010 and 2015 will be too expensive for many companies.

Rising Transportation Costs may Reduce Imports - The rising price of oil is beginning to offset cost advantages of countries like China, due to higher transportation costs. The cost to ship a container from port cities in China to New York has risen from $3,000 to $8,000, according to ABC News. US electronic components and semiconductor wholesalers may emphasize the transportation component of the cost of goods sold, and may buy more US-made building materials.

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.

Full Industry Overview For Electronic Components & Semiconductor Wholesalers

Electronic Components & Semiconductor Wholesalers Industry Forecast

from Hoover's/D&B subsidiary First Research

Domestic demand for US electronic components manufacturing is forecast to grow at an annual compounded rate of 2.7 percent between 2007 and 2012.

Electronic Components Growth Falls then Stabilizes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.