2013年7月12日星期五

Distribution Adapt or die

Distribution Adapt or die

2013/06/17

Nick-JeffriesOrder patterns may be improving but the component distribution market may have some time to go before it sees any significant rebound.

Nick Jefferies, chief executive of Acal (pictured), takes a realistic view of the market improvements he has seen in the last six months.

“Order patterns are improving,” said Jefferies, “but my expectation is the industrial economy will have low or no growth for the next three to five years.”

The challenge for distributors, and Acal is not alone in this, is to find market or technology areas where they can see growth even in an economy that threatens to be flat, long term.

Some distributors are making the most of their activites with the longer term, so-called ‘protected’ projects of the aerospace, defence and transportation sectors.

Others look for niche product areas where technology, and specialist design-in support, can still command a premium price.

For Jefferies, the route is to specialisation and high-value custom products in sectors such as defence, and transportation and medical.

“I knew we must change and adapt,” said Jefferies. “It was no longer viable for us to compete as a standard semiconductor distributor.”

“We now offer more custom products than ever before, and we build multiple products sells in all accounts,” said Jefferies.

The company has also invested in its web offering.  “This can be our route to new customers,” said Jefferies.

But I believe Jefferies is wise enough not to think that he can rely totally on the web to return the company to higher and more sustained growth patterns.


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