Electronic Component Wholesalers Industry Overview

Excerpt from Electronic Component Wholesalers Report

The US electronic component wholesalers industry includes about 15,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $230 billion. Major companies include Arrow Electronics and Avnet. The industry is concentrated: the 50 largest companies account for nearly 60 percent of industry revenue.

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 capital-intensive: average annual revenue per worker is more than $800,000.

Products, Operations & Technology

Major products include semiconductors (computer chips); connectors; and electromechanical devices. Other products include disk and tape drives, computer subsystems, microwave and fiber optic components, transistors, diodes, power supplies, and switches.