Over the past decade, the electronics distribution market has been pounded with waves of change, both in the business model and the competitive landscape. In recent years, though, growth in the industry has been more of a game of inches, with major players wrestling for greater customer share.
Compared to last year, only two companies moved more than a single spot in the listing, with the top seven remaining completely static. Excelpoint Technology rose two spots in the ranking, showing solid revenue growth.Premier Farnell dropped from a #10 rankling last year to #13 this year. The company also had the single biggest change in revenues, with a drop of 36.5% in global revenues from 2015 to 1016, a reduction that took the company from a billion dollar plus company to $888.93 million revenues.
Last October, the company announced that it was being acquired by Avnet (#1 on the list). The all cash merger for £1.85 per share equates to an equity value of approximately £691 million. "The combination of Premier Farnell with Avnet's components business will create a truly unique distribution model that supports customers at every stage of the product lifecycle. By pairing our deep expertise in large volume broadline distribution with Premier Farnell's specialization in proof of concept and design, we can offer true end-to-end solutions that accelerate a customer's time-to-market and moves their products seamlessly from prototype through to volume production," said William Amelio, chief executive officer of Avnet said in a written statement. In addition, Avnet finalized the sale of its Technology Solutions business in February 2017.
Avnet’s global revenues for the calendar year 2016 dropped 8% compared to the year before. Electrocomponents plc dropped 12.3% in year over year revenue; and Macnica Fuji Electronics had a slight (1.7%) revenue decrease in the same period. In all, only four distributors reported a revenue decrease.
At the same time, four of the companies on the list reported double digit revenue growth. The list included: WT Microelectronics, 24.8%; Excelpoint, 19.3%; Master, 11%; and Mouser, 10.4%. Mouser is notable as well in that the increase took them into a billion dollar revenue category.
Further, this year’s top 25 distributor list has only a single newcomer: Glyn Jones. The company took spot #23 on the list. Although new to our listing, the company is certainly a 35-year marketplace veteran with 20 offices and 200 employees across 13 countries. The company focuses on semiconductors, display and system solutions, GSM, and flash memory media.
Hughes Peters was the only company that disappeared this year compared to last year. The multi-regional distributor sells interconnect, passive and electromechanical products.
For this year’s list of top distributors, along with revenue and other company information, click on the image below to start a slideshow.
2017 Top 25 Global Electronics Distributors
— Hailey Lynne McKeefry, Editor in Chief, EBN