Consolidation impacts sales growth

By Industrial Distribution Staff -- Industrial Distribution, 9/1/1999

1998 sales for authorized North American electronics distributors grew by 6.6 percent, a decrease from the 11.8 percent growth of 1997. That's according to an annual industry review conducted by the National Electronic Distributors Assn.

Total worldwide sales by all North American electronics distributors grew by 9.6 percent to $39.1 billion. Total worldwide sales by authorized North American electronics distributors stood at $37.2 billion at the end of 1998. "Authorized" distributors, according to NEDA, are those that have permission from a manufacturer to distribute their products.

The numbers reflect the dramatic effect industry consolidation has had on market share. Including acquisitions announced last year but completed this year, the top 10 electronics distributors increased their share of the market to 80.7 percent, according to NEDA . What's more, since 1995, the top 10 authorized North American electronics distributors have increased their share of the market by 23.4 percent, while all others lost market share.

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