GTDC: Distribution on upward curve

Latest global sales data reveals some product areas are beating pre-recession figures for the first time

On the up: Distribution sales figures are heading north, GTDC figures reveal

Distribution sales are finally beginning to smash pre-2008 recession levels, according to the latest figures from the Global Technology Distribution Council (GTDC).

The GTDC, which represents more than $100bn in global IT distribution sales, uses figures supplied by the NPD Group Distributor Track in the US and Context SalesWatch in Europe to reach its conclusions. Its latest results reveal that many sales categories now exceed peak levels achieved prior to the 2008 downturn.

In the US for example, sales of PCs through distribution grew 18.6 per cent, notebooks grew 16.5 per cent, printers grew 20.5 per cent and monitors increased 19.3 per cent.

Tim Curran, chief executive of the GTDC, said: ‘We are seeing steadily improving market conditions for distributors – not signs of a retraction. IT distributor sales were strong through the third quarter, up nearly 15 per cent in the US on a year-on-year basis.

“The more compelling indicator of an overall industry recovery, however, is that US and European market sales now consistently exceed peak levels achieved prior to the downturn in 2008,” he said.

Curran added that there is reason to be cheerful on both sides of the Atlantic.

“Everyone is still relatively cautious in their outlooks, but there is plenty of reason to be optimistic. The breadth of this recovery includes an expanding array of products.”

Dan Schwab, co-president of US-based distributor D&H Distributing, said: “Demand conditions have improved considerably from our perspective. Vertical markets such as health care are picking up momentum. We’ve also experienced growth throughout the year across most of the product lines we offer.”

Schwab attributes some of the growth to advanced technologies moving more clearly into small and mid-sized businesses.

“More sophisticated products and capabilities have moved downstream after previously only being found in – and designed for – larger enterprises. Such business innovations are more affordable today, and the vendor community is working proactively with distributors to bring these solutions to their SMB-focused partners."

Curran added: “This is a significant departure from the days when the ‘direct mantra’ was touted by many IT companies. Now they typically realise that distribution is the most cost-effective, best way to reach and effectively serve the solution provider community.”