Vallee says electronics distribution industry better prepared for a downturn
“Structural changes” involving inventory capacity expansions will help distributors weather the slowdown
By Jim Carbone -- Purchasing, 11/6/2008 3:27:00 PM
Roy Vallee, chairman and CEO of Avnet, says the current global economic slowdown in the industry won’t be similar to the downturn of 2001.
“None of us is sure how deep the downturn will be and how long it will last, but I don’t think this will be anything like 2001,” said Vallee at the recent National Electronic Distributors Association (NEDA) conference where he was awarded the Gail S. Carter Award for his contributions to the electronics distribution industry.
Vallee noted that 2001 was an especially difficult time for Avnet and for the distribution industry. “Avnet’s revenue fell 40% in a span of nine months, component revenue fell by 60% in nine months,” said Vallee.
Valle added that “structural changes” have been made in the industry which have resulted in inventories being much better managed. “Capacity expansion is better managed,” he said. “As a result we are much more lean and more efficient. It won’t be like 2001, but I can’t tell you how long or deep it will be.”
In presenting the Gail S. Carter Award to Vallee, NEDA President Frank Flynn of Sager Electronics, praised Vallee’s contributions to the industry and for his support of NEDA’s programs and encouraging senior Avnet executives to serve on NEDA boards.
“It’s not often that an organization enjoys this type of high-level deployment of executive talent and expertise,” said Robin B. Gray, NEDA s executive vice president. He said Vallee and Avnet have helped to improve the visibility, importance and growth of electronic distribution and raised the professional standard and ethics for the electronic distribution industry.
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