THIEF RIVER FALLS, MN — Global electronic components distributor Digi-Key Corporation on Tuesday reported increase of more than 11-percent in 2014 North American sales revenue, as compared to the prior year. Amid single digit sales reports across the industry, Digi-Key attributes its success to a spike in innovation driven by emerging technologies and increasing demand for its engineer-centric, fast and efficient product distribution model.
In 2014, Digi-Key noted an especially healthy demand for Internet of Things (IoT) or device-to-device connectivity driven by advances in wireless, embedded, single board computers, sensors and motion control along with demand for cloud-enabled applications. The company also attributes increasing demand for pre-built modules and development kits or “buy versus make” solutions built around single board computers with other embedded technologies.
“This year, we experienced an innovation-fueled demand for emerging technologies to support the development of new applications,” commented Digi-Key’s Executive Vice President of Sales and Supplier Management, Chris Beeson. “A spike in new product introduction (NPI) activity lends itself extremely well to our model which is ideal for fast-turn production runs and high-mix, low-volume orders."
Digi-Key’s total 2014 global sales of $1.76 billion reflect a growth rate more than three times the average for the electronics industry. The company credits its strong performance to its hybrid distribution model, which offers a broad selection of in-stock components, a unique competence in high-mix, low-volume orders and efficient, next-day product delivery.
“It's an extraordinary time of growth in this industry,” commented Dave Doherty, Executive Vice President of Operations for Digi-Key. “Particularly here in North America, we’re seeing a combination of market trends driving innovative new products that will literally change how we work and play. Along with breakthrough wireless and embedded technologies, the cost of components continues to drop, high-value EDA tools are now affordable and other game-changers like open source software and crowdfunding resources are breaking down the walls for the design engineer. Fortunately for Digi-Key, these kinds of market drivers all point to the need for a next-generation distribution model that values selection, speed and self-service.”
Additional company information is available at www.digikey.com.