Electronics distributors’ business in China rises

By Purchasing Staff -- Purchasing, 6/5/2008 12:46:00 PM

Asia is becoming more important to some North American-based distributors, according to a Purchasing magazine survey. Forty-four of the top 75 sales reported they had at least some sales in China. In fact in total those 44 distributors sold about $6 billion of electronics in Asia which amounts to 11% of the Top 75 distributors’ global revenue. In 2006, the Top 75 did about $5.6 billion of business in Asia.

In two years, only two distributors expect more than 50% of their total sales will be derived from China. Only one distributor predicts 20-49% of its revenues will come from the region and three say between 10-19% will come from the region, while the remainder believe zero to less than 10% of their sales will come from China.

The majority of distributors say zero to less than 10% of their sales will come from Asia in two years with only two distributors reporting that 10% or higher of their total sales will come from the region. 

Also see: Next stop for electronics sourcing and manufacturing could be Vietnam