Computer & Office Equipment Wholesalers Industry Profile

Companies in this industry distribute computers, computer equipment, and packaged computer software, as well as office machines and equipment. Major US-based companies include Ingram Micro, ScanSource, Tech Data, and divisions of diversified electronics distributors such as Arrow Electronics and Avnet. Major companies based outside the US include ALSO (Switzerland), Digital China (China), Esprinet (Italy), and Redington (India).

Top-tier wholesalers have locations in dozens of countries and typically maintain major distribution centers in multiple nations. Emerging markets such as China and India are being targeted for industry growth.

The US computer and office equipment distribution industry includes about 17,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $300 billion.

COMPETITIVE LANDSCAPE

Demand is strongly affected by the level of business activity. The profitability of individual companies depends on merchandising and efficient operations. Large companies have economies of scale in purchasing. Smaller companies can compete effectively by offering specialty products or superior service. The US industry is concentrated: the top 50 companies account for nearly 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include copiers, parts and equipment (about 50% of industry revenue), computer peripheral equipment (about 20%), office equipment, ATM machine and shredders (about 20%), and computer printers (about 10%).

Distributors buy products from equipment manufacturers or importers and resell them to retailers, systems integrators, and value-added resellers, or directly to end-users. Distributors are especially important for small manufacturers that can't directly reach ...