As is often the case, theory and practice can be very different. In theory, chemical distributors ought to be the perfect partners for purchasing professionals at electronics or high-tech companies looking to off-load their worries and perhaps even save money. In fact, those in the field say as much as they might like to rely more on distributors, the right mix of chemical distributor offerings for the electronics industry is hard to find.

What's more, while the chemical distribution market as a whole has been undergoing consolidation, the dynamics of the electronics industry have also been undergoing changes as well, which in many cases are upsetting buying patterns. More pointedly, Lee Oden, facilities manager at Microwave Networks, a Stafford, Texas-based supplier of wireless infrastructure solutions and services, says he is planning to decrease his inventory of chemicals and hazardous materials "down to pretty much nothing" except alcohol and cans of freeze spray. The reason? "We have started outsourcing the majority of our printed circuit board assembly so the need [for chemicals and hazmats] will no longer exist."

In the meantime, however, Oden finds distributors are a helpful source for trichloroethylene, alcohol, stencil cleaners and some other chemicals. "I can generally get this material cheaper when I go through a distributor, so basically cost determines the purchase method," he says. Furthermore, he notes, distributors usually have a shorter leadtime, "so I win in both instances."

Oden also has a gripe about chemical suppliers that's not limited to distributors. Some suppliers that badly want to sell solvents "are not always above board" and will claim approval from SNAP (the EPA's Significant New Alternatives Policy program for identifying and promoting more environmentally friendly chemicals) on a particular chemical "but have not yet received this approval." That means extra work for Oden and has given him a more cautious, "show me" attitude in chemicals sourcing.

Making sure buyers don't run into those kinds of frustrations is a key to success and finding a niche is the best way to do it. According to Steve Quandt, executive vice president at distributor Columbus Chemical Industries in Columbus, Wis., buyers in the semiconductor industry come to Columbus because they supply hazardous and difficult to handle chemicals such as hydrofluoric acid and ammonium hydroxide. "Not many companies are willing to do that and we have developed the expertise," says Quandt.

Columbus sometimes works with its customers on more of a partnership basis. "This is something that is primarily driven by the larger chip manufacturers that objectively evaluate their suppliers using scorecards. Those that rate higher are the ones that get preferred opportunity and visibility."

Quandt says Columbus positions itself in this environment by emphasizing quality, on-time delivery, and always seeking to provide cost reductions. "It boils down to being prepared to manage change," he says.

But while change may be good in that case, it isn't something that can be done lightly. "In order to maintain our Six Sigma status, we don't change anything without a 12-month notice to customers." That's because even the smallest process variation can jeopardize results downstream, at the customer's site.

To ensure that its capabilities remain state-of-the-art, Columbus recently completed a $5 million expansion in Phoenix, providing a 44,000 sq ft facility for purifying nitric acid to a parts-per-billion level. And like others in the business, Quandt has had to contend with the fact that growth is on hold. "It is not that our customers are going out of business, but many of them continue to move production overseas," he says.

However, electronics is still 40% of his business. And, although Quandt stresses that electronics is always a volatile market, he says at present Columbus is expecting to see growth of around 8% through 2009.