Distribution stamping out recession

Latest figures from the GTDC reveal distributors in both the US and Europe are seeing pre-downturn growth levels

European dream: GTDC figures show many sectors of European distribution are growing

Sales through distribution are on the rebound in both Europe and the US, either matching or going above peak levels achieved before the start of the downturn in 2008.

The figures, released by the Global Technology Distribution Council (GTDC), and formed from data from NPD Group Distributor Track in the US and Context SalesWatch, paint a rosier picture for the sector going forward.

In Europe, comparing sales in the fourth quarter of 2009 with Q2 2009, the GTDC claimed sales rebounded in several categories compared to 2009, with PC sales increasing 48 per cent during the period – one of the largest categories gaining momentum in the region.

Storage product sales increased 33 per cent during the same period and increased nearly eight per cent on a year-on-year basis in Q1 2010. Networking product sales grew 13 per cent between Q2 2009 and Q4 2009, and increased three per cent in Q1 2010.

IT sales in the US have exceeded the peak levels achieved before the September 2008 economic crisis, the organisation claimed.

Tim Curran, chief executive of the GTDC, said: “April sales in the US actually came in higher than in April 2007 and 2008 as well as 2009, growing by more than 27 per cent on a year-over-year basis. The industry downturn hit Europe three months later than the US, and we are now also starting to see year-over-year growth return to various product categories in this region.”

Curran added that there were new strengths in the distribution industry which has included movement into other markets including flat-panel TV and video products including camcorders, which grew even when other categories were declining.