Electronics buyers can expect to get more attention from distributors this year.

Many distributors are concerned about the ongoing migration of a sizable amount of equipment manufacturing to Asia. Because that has them worried that their number of North American customers are shrinking, they will strive to become more competitive in order to maintain or grow their business in North America.

While that's good news for buyers, the impact of the transition of manufacturing to Asia is unclear. Much of the manufacturing that has moved offshore involves high-volume equipment such as cell phones and portable PCs. Most distributors were never big players in those segments. PC and cell-phone makers buy their parts directly from component manufacturers.

Instead, the bread and butter business of most distributors is with small- to medium-size OEMs and EMS providers in a variety of industries including industrial automation, medical instrumentation, and defense and aerospace. They build everything from magnetic resonance imaging equipment to gas pumps for service stations. Expect that lower volume business to stay in North America.

jcarbone@reedbusiness.com