Although only 46 out of the top 75 distributors responded to Purchasing's question on what percent of their total sales in 2005 were derived from Asia and China, it reveals that it may be more difficult for small to midsized distributors to do business in China. However, $3.8 billion or 9.9% of the top 75 distributors' global sales were derived from Asia and China in 2005.

Still, the survey reveals that 15 distributors derive none of their revenue from Asia and China in 2005, and they expect that will remain the same in two years.

Seven distributors report double-digit sales from Asia and China, which is the same as 2004. Twenty-five distributors say that 1-9% of their sales come from the region. This is expected to change in 2006, according to respondents. Two distributors expect more than 50% of their total sales will be derived from Asia and China, and two distributors say 25-49% of their revenue will come from the region. Eight distributors say 10-24% will come from the region, while the remainder of distributors say less than 10% of their sales will result from sales in Asia and China.

Over the past two years, the top 75 distributors have been making some headway into China. Two distributors in 2005 expanded or opened offices in China including Nu Horizons and Symmetry. In 2004, several distributors including All American, Arrow, IBS, IMS, Jaco, Powell, Symmetry, and TTI expanded offices in China, particularly in Shanghai and Shenzhen.