Adaptability to new distribution trends will ensure survival - ADEC
1 March 2000
News
ADEC
"Certainly the year started off in a more upbeat mood with interest rates falling and projected GDP in excess of 3%, and there does appear to be considerably more optimism in the electronics sector. On the flip side however, the industry can undoubtedly expect a repeat of '94/'95 with allocations and possibly even moratoriums, as many components, even commodity products, are already showing extremely long leadtimes. This will have a negative impact on prices for the local manufacturers and will require careful managing to ensure uninterrupted supplies." says Steve Stafford, Chairman of ADEC.
"Local distribution continues to undergo major changes as globalisation becomes reality and overseas principals implement global strategies and policies, with co-distributor-ships seeming to be the trend. This is providing increased technical/logistical support and international pricing to the manufacturer, with many smaller independent distributors becoming more focussed on niche applications. For the larger broadline independents and multinational distributors, various innovative tailor-made value added programs are being offered in an attempt to forge strong partnerships between distribution and manufacturing."
"Clearly companies that can adapt to these challenges look set to have strong growth during 2000," he concluded.
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