Avnet CEO sees slower growth
Staff -- Purchasing, 2/17/2005 2:00:00 AM
The electronics distribution industry will post single-digit growth in 2005, but growth will be stronger in Asia than in North America, says Roy Vallee, CEO and chairman of the board for Avnet.
Vallee sees slower growth in 2004 because overall demand for electronics will cool down. He said 2004 was a strong year for electronics distributors. "The industry enjoyed double-digit revenue growth for the year. It was the best year since 2000. It reminded everyone that this could be a growth business and a fun business," he says.
However, growth was not equally spread across all regions in 2004 and won't be in 2005, either. "Asia Pacific was far and away the dominant growth story on a global basis. Europe and America lagged, but still grew," says Vallee.
More of Avnet's sales are coming from Asia. For instance in 2000, about 12% of Avnet's electronic component sales revenue was from Asian customers. In 2004, Asia accounted for 24% of Avnet's component sales revenue. That percentage is likely to further increase over the next several years as Avnet boosts its footprint in Asia. (See related story p. 28).
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