GTDC: Distribution holding its own
Latest figures from distribution body reveal a record quarter in the US and solid performance in Europe
Distribution in Europe is enjoying a ‘solid’ performance, according to the latest figures released by the Global Technology Distribution Council (GTDC).
In the US, the organisation, whose members represent more than $100bn in annual revenue, reported ‘record levels’ of sales across multiple product categories.
Tim Curran, chief executive of the GTDC, said: “The breadth and depth of the industry’s recovery is clearly evident from the results of our members. Total US hardware sales have increased significantly over the past year and surged in March, with the first quarter in this region tracking nearly $370m ahead of Q1 last year.”
In Europe the market is more affected by seasonality fluctuations, with diverse economies moderating regional results, he added.
“IT distributor sales have been trending higher in the northern countries tracked and lower in the southern part of the region,” Curran said. “Despite these and other challenges, our members have been generating solid overall financial performance.”
To reach its conclusions, the GTDC established a PC Market Index (ranging from desktops and notebooks to workstations and servers) for each region based on sales, unit volume and ASP ratios of corresponding products from the downturn in Q1 2009 to the most recent quarter. For the quarter that ended in March, the GTDC’s Index was up 37 points in the US and seven points in Europe.
Curran said distributors are proving their worth. “Distributors are in a prime central position within the overall IT industry,” he said. "These leaders know the real story in IT because they live and enable it every day, and our member data shows exactly where market opportunities are unfolding or contracting across all product categories.
"The best news for distributors is that they have again proven their resilience in the toughest of business conditions - emerging from the downturn stronger and more diversified, as well as more strategically aligned with vendor partners on all levels."
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