ASCII Group Competition
Now Viewing ASCII Group's competition in: Computer and Office Equipment Distributors (primary)
Recent Developments
Tech Spending Up, Despite Economic Downturn - Worldwide IT spending is projected to exceed $3.4 trillion in 2008, an increase of 8 percent from 2007, according to research firm Gartner. Software and services show the most growth, with projected increases of around 10 percent each. Analysts point to a declining US dollar, emerging world markets, replacement of obsolete systems, and shifts in technology as growth drivers. Gartner expects IT spending to increase another 6 percent in 2009.
No More Free Freight - Leading IT distributors impacted by historically high fuel prices are charging shipping and handling fees, ending a long-standing free freight custom within the industry. Companies, including Avnet, Ingram Micro, and Tech Data, are charging either a flat fee per order or passing fuel charges to customers. IT distributors say that this move isn't a profit-generating initiative, but a way to defray some shipping and freight expenses.
Trend of Manufacturers Buying Distributors Continues - Japanese copier and printer manufacturer Ricoh plans to acquire US office equipment distributor Ikon Office Solutions for $1.62 billion. This purchase fits a recent trend of manufacturers buying distributors of their products to strengthen sales channels and get closer to customers. Xerox bought Global Imaging Systems in 2007; Konica acquired Danka Business Systems' US unit in 2008.
Competitive Landscape
Demand is strongly affected by the level of business activity. The profitability of individual companies depends on merchandising and efficient operations. Large companies have economies of scale in purchasing. Smaller companies can compete effectively by offering specialty products or superior service. The industry is highly automated: annual revenue per employee is about $600,000.
Full Industry Overview For Computer and Office Equipment Distributors
Computer and Office Equipment Distributors Industry Forecast
from Hoover's/D&B subsidiary First Research
The domestic demand for US computer and office equipment manufacturing, an indicator for wholesalers, is forecast to grow at an annual compounded rate of 4.8 percent between 2008 and 2013.
Computer and Office Equipment Demand Growth Uneven
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.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Tied to corporate profits
- Require good inventory management
- Risk: Slow economy cuts business spending
Industries Where ASCII Group Competes
- Computer Services
- Computer Products Distribution & Support (primary)
