For a while there was a belief in the South African electronics industry that component distribution would become the virtual preserve of the large multinational organisations. That perception has however been dispelled following the astounding success of smaller niche distributors such as CST Electronics (CST). In the last four years CST has, in fact, grown significantly and has exceeded the sales figures for some of the product lines it shares with larger organisations. To keep pace with its growth the company moved from its original Tarsus Park location to Woodmead and then more recently to extensive new premises conveniently located in the quiet suburb of Edenvale, next-door to leading PCB manufacturer Bosco. In that time the staff complement, still led by dynamic MD Craig Thomson, has grown to some 20 people.
Craig Thomson has once again taken the rest of the component distribution industry by surprise with his bold decision to create an independent sister company to be known as Analog Data Products (ADP). ADP will operate completely autonomously under Stephen Silberman, previously the senior Field Applications Engineer with CST, who has a very broad expertise in semiconductor products from Analog Devices, the sole product focus for the new company. To further emphasise its independence, ADP is located in its own premises in Bramley Park, officially opened on 17 September. Thomson, with his wide knowledge of the distribution industry, will remain a Director on the Board of the new company but says he will not interfere in the day-to-day running of the operation.
ADP intends to address the market opportunities in the whole of southern Africa although the main focus initially will be on the Gauteng, Cape and KwaZulu-Natal regions, with Silberman personally handling the latter two areas. It is intended to organise a number of technical seminars using experts from Analog Devices as speakers. These will be held countrywide and the objective will be to create greater awareness of the product range and the applications, and to enhance customer acceptance.
Silberman foresees that ADP will grow rapidly, but the company starts off life with a staff of five. Two of these individuals are well known to CST's existing customers, namely Stella Homan who has more than eight years' experience in analog devices and will handle internal sales, and Jeff Mann who will be responsible for stores management. Craig Gibbs and Maya Shatkovsky have joined ADP from outside while for the interim Stephen Silberman will fulfil the dual role of MD and Field Application Engineer. With his in-depth experience of the very large range of Analog Data Products and his new-found freedom to focus on this single product range he believes that ADP should become a highly sought-after supplier of semiconductor products, the company being able to offer unrivalled technical and application support.
Analog Devices, which is listed on the New York Stock Exchange, was founded in 1965 and employs some 9400 people worldwide. A consolidated semiconductor company it develops, manufactures and markets high performance ICs for use in signal processing and other applications. While the company has a direct sales presence in some countries it relies heavily on dynamic distributors like Analog Data Products to market its range in developing economies.
The largest single product grouping in the vast portfolio of Analog Products is its range of general-purpose Standard Linear ICs, which include data converters and amplifiers. The company is also a major supplier of DSP ICs including integrated application-specific devices, many of which combine analog with digital signal processing capability in a single IC. The company's sales are divided almost equally between North America and the rest of the world, and its market is serviced through manufacturing facilities located in the USA, Ireland, Japan, the Philippines and Taiwan. In addition to these production facilities the company has a worldwide network of R&D laboratories and development houses, these being located in the above countries as well as Canada, Israel and India. Both development and manufacturing facilities are thus always located close to the customer.
Meanwhile CST will devote its efforts to its other product lines that include Dallas Semiconductor and Maxim, the former recently having been acquired by Maxim. The success of CST in promoting the Dallas range over the last few years at the expense of its competition is no doubt one of the prime reasons that the company has been awarded the prestigious Maxim agency. Thomson, together with his new FAE Gareth Kneal and Product Manager for Semiconductors, Cecile Wolhouter, are looking forward to the challenge of ensuring that the growth in sales of the combined Maxim/Dallas range significantly exceed the highs achieved in the past.
While there will indubitably be some competition between ADP and CST, as similar products are produced by both Maxim/Dallas and Analog Devices, both Craig and Stephen view this as healthy and beneficial for the customer. They believe that the refocusing of both companies will increase their strike power and their penetration of the local market for both the leading ranges of semiconductor products.
For further information contact Craig Thomson, CST Electronics, (011) 452 0706.
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