Actum Electronics and 2006
30 November 2005
News
Actum Electronics (www.actum.co.za) has been a leading distributor of electronic components to the South African market for over 27 years. In late 2004, two entrepreneurs, Greg Barron and Kevin Klaff, purchased the business. These individuals, who are fully-involved in the operations of the business, have positioned the company as a provider of quality products, ensuring that it delivers with shortest lead-times and highest levels of client service.
In terms of prospects for the industry for next year, Actum Electronics responded to some questions posed by Dataweek.
How does the South African economy affect your business?
The economy has a big impact on our business from two main factors. Firstly, being exclusively an importer, the Rand/Euro exchange rate plays a large part in our profitability. Secondly, supplying products mainly into the military field means that a downturn in the economy has an impact on the military sector, which in turn, affects our business.
Was 2005 poor/good/great? And what are your expectations for 2006?
2005 was great! And for 2006, some things we intend doing are: consolidate our base; continue to strengthen client relations and reputation as a quality service provider; consolidate the newly-acquired Altico static control products business into Actum Electronics; expand our product range with new exclusive suppliers; remain looking to purchase businesses that have good synergies with Actum; looking forward to winning back the Currie Cup.
Do you experience any supply problems? Can this be improved?
Overseas suppliers have been very good. However, we have been experiencing big delays with customs and clearing of products. This is definitely an area where improvements can be made to ease the burden for small businesses. This has a direct impact on our ability to deliver to our clients, which impacts on our quality of service and business.
Do you see any particular hot opportunities ahead?
Many - there are big consolidation opportunities in the South African market.
Are there any issues in the industry that need to be tackled? Is the government or other industry organisations doing enough?
Clarity on customs codes and clearance procedures - this could be a value-add that ADEC could provide instead of trying to train people on accounting issues.
Any final comments about business in this industry?
It is all about providing clients with service!
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