Global Distributors Enjoy Double-Digit Growth in 2018

/ -- Was 2018 the 'Good Old Days'?

In the electronics industry, fortunes can turn on a dime. After two years of component shortages and soaring demand, the supply chain hit “pause” in 2019. The market dramatically softened at the beginning of the year and has been trending downward since.

Electronics distributors enjoyed a robust 2018. Among leaders in North America, 27 distributors posted double-digit sales growth. In the global market, some did even better. Expectations of more electronics content in cars finally reached fruition, and latest- generation consumer devices gobbled up resistors, capacitors and other commonly-used components.

Fast forward to 2019. Avnet Inc., North America’s No. 2 distributor, reported its fiscal Q4 sales declined 7.5 percent from the prior year; No. 1 Arrow Electronics Inc.’s calendar Q2 sales declined 1 percent. Distributors cited margin pressure, softening demand and global trade tensions as headwinds.

But 2018 saw strong growth over multiple industry sectors: military/aerospace, industrial, medical and transportation. Automakers’ demand for capacitors contributed to MLCC shortages in 2018, although distributors said they were able to support customers’ demand. Capacitors may be the bright spot in an otherwise soft 2019 market: TTI’s Jeff Ray, in a September TTI Insights article, said MLCCs “appear” to be more readily available than they were in 2018.

“Given these supplies, one could almost assume that the risk to manufacturers’ supply chains has subsided,” Ray said. “That simply isn’t the case.”

MLCC makers, in 2018, began to shift capacity away from certain case sizes and capacitance ranges. This pressured supply during the year.

“As we entered Q3 2019, the MLCC market was in ‘the eye of the storm,’” said Ray. ”Between a wave of products going through end-of-life and leaving production and increasing need for components in high-consumption applications such as mobile devices, vehicles and Internet of things devices, the MLCC market will tighten once more.”

Interconnect sales also drove distribution growth in 2018 as interconnect distributors outpaced their peers. Interconnect sales grew by 37 percent in 2018, reaching $3.4 billion, compared with five percent growth in 2017. The top 10 interconnect distributors reported $3.1 billion in connector sales, up from $2.2 billion in 2017.

Distributors’ 2018 chip sales grew 9.6 percent. The top 10 semiconductor distributors posted $5.6 billion in chip sales, compared with $4.9 billion in 2017.

Although the current global electronics market is at best unsettled, distributors did well internationally in 2018. The top North American distributors increased their global sales by 13.1 percent in 2018, up from 10 percent growth in 2017. Top distributors’ global revenue reached $70.3 billion in 2018, up from $62.1 billion in 2017. North American distributors derive the majority – 45 percent -- of their global sales from the Americas, down from 49 percent in 2017.

A September survey by Technology Partners Consultants indicated distributors may see some market improvement in the third quarter. “The quarter over quarter (q/q) demand outlook for calendar Q3 improved, while calendar 4Q’s outlook stayed generally the same,” TPC said. “Both quarters are viewed as sub seasonal compared with last year.”

TPC surveys more than 25,000 electronics industry professionals. For Q3, 24 percent of respondents expect weaker q/q growth compared with 30 percent previously; 47 percent see better growth. Twenty-two percent view Q3 as sub seasonal vs. 21 percent who see it above seasonal.

This remains weaker than in the previous two years, reported TPC. Calendar Q4 survey data shows generally in-line q/q demand growth expectations compared with the previous two years. However, bookings expectations are slightly improved vs. the previous two years.

Pricing continues to erode into Q3, TPC said, where a third of the respondents see Q3 pricing decreasing by two percent q/q and getting worse in Q4.

EPSNews’ annual distribution survey found resellers continue to add services to offset eroding prices. Assisting customers with product designs is a leading strategy. Broadline distributors – which carry multiple product lines – focus on “soup to nuts” solutions in a variety of applications. IoT is particularly lucrative as many designers have not established a supply chain to support their products. Distributors are also able to assist in network security through software integration.

However, given that Americas sales declined from 49 percent in 2017 to 45 percent in 2018 for the Top 50, distributors may have to look globally to increase future sales. Expanding into new markets was the second most popular growth strategy in 2018.

Barbara Jorgensen, editor-in-chief, EPSNews

/ -- Table of Contents

2 Editor's Note

Is 2018 already the 'good old days?' After two years of growth, the market is taking a turn . 5 Distribution Market Takes Sharp Turn After Robust 2018

In 2018, the top NA franchised distributors increased revenues by nearly 11 percent. 16 Top 50 North American Franchised Distributors Ranking

Franchised distribution leaders 17 Global Distributors Enjoy Double-Digit Growth in 2018

As good as 2018 was for North American distributors, it was better for global distributors. 20 TTI Resilient in the Face of Mercurial Market Cycles

TTI has weathered a lot of market cycles since its founding in 1971 by Paul Andrews Jr. 22 Top Global Distributors Ranking Global distribution leaders

24 Independents & Hybrids Raise Their Global Profile Suppliers have found independents can promote their products to an extensive, global customer base. 28 Independents Benefit From Shortages

Fusion Worldwide is now a billion-dollar global distributo r.

30 The Playing Field is Leveling for Franchised, Hybrid and Independent Distributors

The global flexibility of independent distributors has made them attractive to many customers. 32 Sourcing Guide

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- Distribution Market Takes Sharp Turn After Robust 2018

By Gina Roos The North American (NA) franchised distribution industry in 2018 posted strong growth for the second year in a row. The clear winners during any allocation period are distributors. In 2018, the top NA franchised distributors increased revenues by nearly 11 percent. As the industry awaits the end of Q3 2019, the prospects aren’t so good. Sales at publicly traded distributors declined in Q2 and are expected to remain soft. The U.S. manufacturing industry contracted for the first time in three years. 2018 already looks like the good old days. These are the key findings of EPSNews' exclusive electronics distributors survey.

North American revenue for the top franchised electronics distributors increased by 10.9 percent to $30 billion in 2018, up from $27.1 billion in 2017, according to EPSNews’ annual survey. In 2017, the industry grew by 8 percent. Increased demand across several sectors and extended lead times for several product types fueled growth as component manufacturers hesitated to ramp up production capacity. Average selling prices (ASPs) increased, particularly for memory ICs.

2018 was another example of a robust year that was compounded by buyers exhibiting scarcity concerns and building inventory beyond the real supply constraints in a finite number of areas such as MLCC capacitors and certain discrete and linear families.

--Dave Doherty, president, Digi-Key

Distributors added to their head count in 2018. Of the 44 distributors that provided employee data, 31 added to their head count; eight maintained employee levels and five cut their workforce.

Semiconductor sales accounted for 59 percent of the total NA distribution sales in 2018, up from 57 percent in 2017. Passives/electromechanical sales remained level at 23 percent.

/ Fifteen percent of sales came from interconnects in 2018, and the balance from computer and other component sales.

Interconnect sales grow the fastest

Interconnect distributors outpaced their peers. Interconnect sales grew by 37 percent in 2018, reaching $3.4 billion, compared to five percent growth in 2017. The top 10 interconnect distributors reported $3.1 billion in connector sales, up from $2.2 billion in 2017.

Computer product sales dropped significantly in 2018, indicating that fewer distributors are selling these products. Computer-related sales dropped from $6.3 billion in 2016 to $1.5 billion in 2017 to only $186.7 million in 2018. Sales of “other” components rebounded in 2018. Sales grew by 23.7 percent in 2018, reaching $598.5 million, after dropping 3.5 percent in 2017. Other components include batteries, power, thermal products, filter components, chemicals, automation & control, test & measurement, and hardware. Semiconductors registered 9.6 percent sales growth in 2018, reaching $13.9 billion, compared to six percent growth in 2017. The top 10 semiconductor distributors posted $5.6 billion in chip sales, compared to $4.9 billion in 2017. Despite continued supply constraints for some resistors and capacitors, passives/electromechanical component sales grew by 8.8 percent in 2018, reaching $5.3 billion, compared to 11 percent growth in 2017. The top 10 passive/EM distributors posted $2.7 billion in sales in 2018, the same as the previous year. Together, the interconnect, passive and electromechanical (IP&E) segment grew by 18.3 percent in 2018. IP&E components typically make up 80 percent of a printed circuit board. Although these devices are relatively low priced, the sheer volume demand for these components continues to keep the IP&E market lucrative. These products are also becoming smaller and designers can fit more on a board. However, many IP&E suppliers have been conservative in adding capacity and were caught short-handed last year.

Component sales are based on responses from 43 distributors-- several of the top 10 distributors did not break out sales by component type.

/ Last year’s shortages were as much about market behavior as they were about products, . suggests Dave Doherty, president of Digi-Key. “Despite the fact that we think we are getting smarter, emotion continues to play a role in the supply chain,” he said. “2018 was another example of a robust year that was compounded by buyers exhibiting scarcity concerns and building inventory beyond the real supply constraints in a finite number of areas such as MLCC capacitors and certain discrete and linear families.”

Fear of rising prices due to pending tariffs magnified these concerns, Doherty added. “Suppliers responded by building capacity to an inflated demand and, well you know, we’ve been here before. We are actually seeing a very active 2019 and the revenue pressures are coming less from end OEM output than it us from a natural inventory burn off that occurs after the buildup. "We are seeing signs that we are feeling the bottom of this cycle,” he concluded

/ Overall, North American distributors benefited from strong demand across the aerospace, industrial, and automotive sectors. Thirty-nine of the top NA electronics distributors increased their revenue in 2018, the same as last year. Of the 39 distributors with growth, 27 posted double-digit sales gains. This is up from 20 in 2017. Twelve distributors recorded growth in the single digits. Only five of the top distributors posted negative growth, and one reported flat growth.

Rankings Arrow Electronics still holds the top spot for North American sales. Arrow’s NA sales grew 10.1 percent, reaching $12.2 billion in 2018, up from $11.3 billion in 2017, and $10.5 billion in 2016. Global sales grew by 11.8 percent, reaching $29.7 billion in 2018, up from $26.8 billion in 2017, and $23.8 billion in 2016 .

Avnet, ranked at No. 2, reported flat growth in 2018, maintaining revenues at $5 billion in the Americas. However, Avnet’s global sales increased by 9.4 percent, reaching $19 billion in 2018, up from $18.2 billion in 2017.

/ There were no major surprises in the top 10 rankings. Most of the top 10 distributors maintained their rankings in 2018 – Arrow (No. 1), Avnet (No. 2), Future (No. 3), Digi-Key (No. 4), TTI (No. 5), Allied Electronics (No. 8) and Sager (No. 9), and Master (No. 10). Only DAC and Mouser flipped positions. Mouser moved up to No. 6 and DAC dropped to No. 7. Demand remained strong for low-volume, high mix “catalog” distributors. Digi-Key and Mouser, which derive close to half of their sales from semiconductors, posted double-digit gains in 2018. Digi-Key posted 31.7 percent growth in North America in 2018, after increasing sales by 19.8 percent in 2017. Mouser also increased its North American revenue significantly, posting 35.6 percent growth in 2018, after recording 15.1 percent growth in 2017.

Catalog house Allied Electronics & Automation, now focused on both electronics and automation and control products, grew its sales by 21.6 percent in 2018. This is up significantly from two percent growth in 2017 and 5.6 percent growth in 2016.

A newcomer to the top distributor listing last year, Chip 1 Exchange, recorded the highest growth rates in 2018 and 2017. The hybrid distributor, ranked No. 35T, doubled its North American revenues from $10 million in 2017 to $20 million in 2018. Chip 1 Exchange derived 55 percent of its sales from semiconductors, and 40 percent from IP&E products. Several other small to midsized distributors experienced high gains. Semiconductor specialist Symmetry Electronics (No. 24) grew by 48.6 percent, newcomer PCX Inc. (No. 44T) posted a 43.1 percent gain, and Benchmark Connector Corp. (No. 41) increased sales by 27.5 percent. Bisco Industries (No. 11), recorded 25.8 percent growth and The Powell Group (No. 13) increased its revenues by 24.6 percent. "By all accounts, 2018 was a record year for Symmetry Electronics. Revenue, growth percentage and customer OTD hit all-time highs,” said Mark Zack, vice president and general manager, Symmetry Electronics. “As a specialist distributor in all things wireless and video, we were poised to support OEMs and ODMs as the internet of things (IoT) deployments experienced uplift and became more widespread. Our supplier base, technical expertise and robust inventory position all contributed to our stellar performance," he added.

/ “In the early months of 2019, like the rest of the industry, we did experience a slight road bump in continued rapid growth as customers burned off excess inventory and as network carriers required a firmware change across the board,” Zack continued. “Both of these are behind us now and we’re very optimistic about the future as IoT solutions are implemented across all vertical markets, in every walk of life, and we expect the pending explosion of 5G will be a great low cost enabler." Surprisingly, only a few acquisitions were reported in 2018. Avnet acquired Softweb Solutions, and Electronic Connector Co. (ECCO) purchased Magellan in Boston. Given their preferences, distributors prefer to grow organically.

Future Electronics, throughout its history, has been exceptionally conservative regarding acquisitions — a total of five. “Future Electronics has grown its sales organically and not through acquisition,” said Dan Casey, executive vice president. “We have found that the acquisitions have not been accretive to our business.”

“Acquisitions are a lot of work unless you have a team that specializes in M&A and we don’t. We’ve always grown organically, which suits us,” he added. Only a few distributors reported investments in new offices and locations in North America. Diverse continued its expansion into Western Canada, and Mouser added a new location in Canada. Only Waldom reported expansion into Asia, with a new sales team in China. Challenges in 2018

For the second year in a row, lead times were the biggest headache for distributors. They also cited supply chain issues and factory capacity as concerns. Some are lingering issues. “When looking at 2019, some of the challenges we see pertain to product delivery lead times, margin erosion, and market stability," said Jeff Newell, senior vice president of products for Mouser Electronics.

"Again in 2019, delivery times on certain components will continue to be a challenge, in order to meet the market demands,” he said. “But since Mouser’s focus is on design and small production quantities, the impact was not as dramatic as it may have been at other distributors.” “Also, because of the pricing fluctuations and supply/demand, we may continue to see an erosion in the margin,” Newell added. “And of course, the market stability seems to be gaining more attention as we move into 2019. The market has been strong for few years, and the question is, will we be able to sustain the momentum for the rest of this year?”

/ Supplier consolidation and margin erosion also impacted the channel in 2018, as did global economic uncertainly, tariffs/trade wars, and government regulation. More sophisticated counterfeiters raised concerns. In 2018, the top distributors derived 29 percent of their revenues from the industrial sector, up slightly from 28 percent in 2017. Aerospace/military accounted for 21 percent; automotive 11

percent; telecommunications 10 percent; medical 7 percent; energy 3 percent; computer products 4 percent; and mobile communications 7 percent. The remainder came from “other” markets. Mobile communications jumped five percentage points in 2018.

Aerospace usurped the industrial market as the biggest growth driver by segment. Twenty-four distributors cited the segment, up from 19 in 2017. The industrial market drove sales for 23 distributors, and the medical sector for 20. Fifteen respondents expect the transportation and medical markets to drive future sales growth, while 10 respondents believe it will be the communications sector. Lighting and telecommunications each were cited by eight distributors. NPIs support growth in 2019 Most top North American distributors offer value-added services, which help offset margin erosion. Services will become more important as distributors face online competition from Amazon and other non-traditional e-commerce players. New product introductions (NPIs) and expansion into new markets also boosted the bottom line. However, a few distributors reported difficulty in finding qualified employees, which could be a barrier to market expansion. Thirty-seven distributors expect NPIs will drive growth; 33 cited market expansion; and 26, value-added services. Applications such as the internet of things (IoT) will be a growth factor for 20 distributors; lighting for 12; and smart grid/smart meter sector for eight distributors. Electric vehicles, secure networking/storage received honorable mention. Value-added services More than half of the top distributors believe value-added services will help them grow in 2019. Sixteen distributors derived 50 percent or more of their 2018 sales from value-added services.

/ Seven distributors said 20 percent to 49 percent of their sales are derived from value-added services. The remaining 13 respondents said value-added services accounted for 19 percent or less of their sales. Value-added sales totaled $4.7 billion or 15.7 percent of distributors’ NA revenues in 2018 – a decrease from $4.8 billion (or 17.5 percent) in 2017. The decrease could be attributed to the sharp component shortages and allocations over the past few years. Only 36 of the top distributors responded to the question, and six out of the top 10 distributors did not provide the percentage of their sales from VA services. Distributors continue to provide design services, particularly for emerging technologies like Industry 4.0, industrial IoT, and 5G. Thirty-one distributors said they offer design services. These companies employ between 1 and 1,200 FAEs, and between 1 to 300+ designers. Catalog distributors drive online sales growth Of the top distributors, 30 said they offer online buying. However, several of the largest distributors — Arrow, Avnet, Future, DAC, and Master Electronics – did not provide the percentage of their sales via the internet. Eight distributors reported double-digit sales via online purchases, including Allied Electronics, Digi-Key, and Mouser Electronics. These distributors continue to derive most of their revenues from online sales. Digi-Key's online sales held fast at 89 percent of total sales in 2018. Its online sales have grown annually from 83 percent in 2011 to 89 percent in 2017. Allied's online sales also held steady, accounting for 43 percent of its total revenue. Revenue from online orders has averaged between 40 to 43 percent from 2011 to 2018. Mouser’s online sales remained at 54 percent in 2018. The company has increased its online sales from 40 percent in 2011 to 54 percent in 2018. Lower sales needed to make the top ranking To earn a spot on the top North American franchised distribution ranking in 2018, distributors needed to post $5 million in revenue, down from $6.1 million in 2017. Hybrid distributors had to meet a franchised-sales baseline to be considered. However, this year’s ranking only includes 47 distributors instead of the traditional 50, due to steady consolidation in the industry. Three distributors — CDM, Dee Electronics, and March Electronics — that usually rank on the Top 50 did not participate this year. However, Edge Electronics returned to the ranking joined by newcomer PCX Inc.

/ Global sales climb 13% in 2018 The top North American distributors increased their global sales by 13.1 percent in 2018, up from 10 percent growth in 2017. Top distributors’ global revenue reached $70.3 billion in 2018, up from $62.1 billion in 2017. North American distributors derive the majority – 45 percent -- of their global sales from the Americas, down from 49 percent in 2017. Forty-two respondents provided regional breakdowns. The leaders derived $28.4 billion or 45 percent of their sales from North America; $18.1 billion or 29 percent from EMEA (Europe, Middle East, and Africa). Sales in Asia rose significantly to $16.1 billion or 25 percent of sales in 2018, up from only $9.3 billion or 18 percent in 2017.

Similarly, revenue of the top global distributors (See Top 30 Global Distributors Ranking) increased by 13.7 percent, or $104.2 billion, from $91.6 billion in 2017.

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- Global Distributors Enjoy Double-Digit Growth in 2018

By Barbara Jorgensen

As good as 2018 was for North American distributors, it was better for global distributors. One international reseller, NewPower Worldwide, grew in the triple digits—135 percent – in 2018 to reach $252 million. Distributors that source parts in the open market – independents and hybrids--had a distinct advantage in 2018 as many components were scarce or on allocation. Authorized distributors resell the components they are franchised for. Independents can source from anywhere—often, excess inventory from component factories, EMS providers or from OEMs. The ability to simply provide parts last year increased the standing of distributors sourcing from the open market. Nevertheless, authorized distributors hold the top nine spots in global distribution. Arrow Electronics and Avnet Inc., No. 1 and 2, respectively, have spent decades expanding to every region of the world, largely through acquisition. For the most part they have secured global franchises from their suppliers, and they have duplicated their service offerings in the Americas, EMEA and Asia-Pacific. Arrow’s global sales grew by 11.8 percent in 2018 to $29.67 billion. Avnet increased its global revenue by 9.4 percent to $19 billion. Asia-Pacific-based distributors, WPG Holdings and WT Microelectronics, ranked third and fourth on the global list, are solidly positioned in that region. WPG has expanded worldwide, opening in the Americas in 2007. WT Microelectronics hasn’t pursued global expansion but grew 45.7 percent, to $9 billion, in 2018 by focusing on China, Taiwan, Korea, and the rest of Southeast Asia. WPG Holdings sales increased by 3.2 percent to $18 billion. Global distributor rankings numbers five through nine are held by authorized North America- based distributors. Future Electronics, No. 5, has expanded organically over its history rather than through acquisition. Digi-Key, Allied and Mouser specialize in small-volume (catalog) orders and rapid fulfillment. No. 7, TTI Inc., is also a specialist, focused on IP&E and semiconductor products. TTI's global sales grew 24.4 percent in 2018 to $2.8 billion. The No. 10 spot is held by independent Smith and Associates, which grew its sales 10.7 percent to $1.66 billion. Independents, like franchised distributors, are boosting their global revenues by adding more global resources. Smith, for example, relocated and expanded its Amsterdam distribution center by 30,000-square-feet. The distributor intends to further develop its EU business to provide resources and support to meet European customers’ unique needs.

/ Like North American distributors, some of the biggest challenges cited by global distributors include tariffs/trade wars, counterfeiting, global economic uncertainty, and oversupply of product. Distributors worked with suppliers during 2018 to mitigate the impact of tariffs. When possible, the supply chain will ship orders from tariff-free ports such as Hong Kong. The channel has helped customers transition to products that aren’t sourced in China. Some suppliers, such as Kemet Corp., have won tariff exemptions for some of their products. When all else fails, though, suppliers and distributors have passed on tariff costs to their end-customers. Tariffs aside, Asia-Pacific has become a challenge for distributors that are accustomed to higher profit margins on component sales. The region doesn’t tolerate prices commensurate with the Americas and EMEA. In some cases, large volume orders from Asia aren’t profitable and distributors will disengage with customers. At the same time, the top authorized distributors have been investing in their engineering personnel and resources in Asia-Pacific. If a distribution engineer assists in a customer’s design, that distributor is likely to capture volume orders when the design reaches production. These investments indicate more designs are being crafted in the Asia-Pacific region.

/ All types of distributors are considered for the top 30 global list – franchised, independents and hybrids. Revenues for global distributors grew by 13.7 percent in 2018, reaching $104.2 billion up from $91.6 billion. All 30 of the top global distributors posted increased sales revenues in 2018 with 23 posting double-digit growth. If a hybrid makes the North American franchised ranking, they cannot be considered for the independent ranking; only the global list if they have enough revenue. If an independent derives a certain portion of its sales from franchised lines, they make the franchised list. The global landscape in 2019 is going to look challenging for all distributors. From a 2018 shortage of components there is now excess inventory. Prices have held firm, however. Although the trade war between China and the U.S. has certainly complicated the global supply chain, electronics demand has significantly declined in 2019, which is the channel’s biggest problem this year. The authorized distribution channel expects the third quarter of 2019 represents the bottom of the cycle. Fourth-quarter demand usually increases as factories begin building for end-of-year holidays. However, the threat of additional tariffs still looms, and exports from the Americas have stagnated, according to the Institute for Supply Management, due to the trade war. Some suppliers — such as those that manufacture MLCCs — report they are well on their way to transitioning to higher-tech products. Next-generation components always represent an opportunity for higher prices and margins for the supply chain. Although capacity expansion is far from industry-wide, certain parts, such as MLCCs, are more available. However, no one is forecasting a balanced electronics market anytime soon.

- TTI Resilient in the Face of Mercurial Market Cycles

By Barbara Jorgensen Specialty distributor TTI Inc. made its first major global acquisition, Changnam I.N.T. Ltd., in 2017. The worldwide electronics market has been mercurial since then. Explosive component demand drove double-digit sales growth for distributors in 2018. As Q3 2019 begins, prospects for another growth year are dim. TTI has weathered a lot of market cycles since its founding in 1971 by Paul Andrews Jr. TTI’s global sales grew 24.4 percent in 2018 to $2.8 billion, making it the 7th largest global distributor in EPSNews' 2019 rankings. Its revenue grew 22.2 percent in North America. Andrews, in a rare interview, discussed TTI’s evolution. At the time of TTI’s founding, distributors housed inventory near their biggest customers. “In the old days—when dinosaurs roamed the earth—you had to have local inventory since transportation logistics was still emerging," said Andrews. "We began branching out with no particular [geographic] strategy in mind. You opened a branch with someone who knew what they were doing.”

We knew what we are good at and we just kept working on it.

--Paul Andrews Jr., founder and CEO, TTI .

As TTI expanded, it duplicated its processes, inventory and IT systems at every new site— referred to as greenfielding. TTI’s aim was to offer consistent products and services at every site.

/ “Not only did you need to deliver regionally, you received your franchises location by location often times state by state,” Andrews explained. The electronics industry advanced rapidly during the 1980s. Local customers became national. FedEx and UPS revolutionized logistics. Distributors began to consolidate their inventory in hubs. “Little by little we began to centralize in Texas,” Andrews said. “Everybody said when we closed our local warehouses we’d go out of business. Truth was, if had we maintained so many local warehouses we may have gone out of business.” After nationalization, distribution went right to globalization. Arrow Electronics Inc. and Avnet Inc. led the charge, acquiring dozens of foreign competitors. “Global wasn’t something I really wanted to do,” Andrews said. “It was uncomfortable for me, but suppliers were requiring something beyond local distributors. In 1990 we expanded into Europe and in 2000 into Asia.”

“If you look at the consolidation of distributors, it was led by people like Steve Kaufman at Arrow that I admire as a smart and intelligent person,” Andrews added. “That changed the industry and Avnet was right there with them. That caused a large evolution in the industry – customer consolidation, supplier consolidation and distributor consolidation – it was a major change.” Fast-forward to 2019, when TTI is a multi-billion-dollar global distributor. TTI built its business on low-tech, low- cost interconnect, passive and electromechanical (IP&E) devices. It wasn’t until 2017 that TTI made its first major foreign acquisition, South Korean semiconductor specialist Changnam I.N.T. Ltd. It has remained true to its roots as a specialist—now including chips. Andrews never envisioned a global TTI that focuses on semiconductors—he gives credit to his management team. “We were blessed with having a lot of good people dedicated to the vision of being a specialist,” he said. “We didn’t want to be the biggest, we wanted to be the best. I’m not an overly public person. We have better salespeople than me. People made the difference here.”

/ Andrews typically doesn’t assign a grand strategy to TTI’s success. “Our vision is ‘do it right.’ We are a block-and-tackle distributor. Maybe we’d be bigger if we focused on higher technology parts, but nobody has ever won a contract by designing in a resistor. We sell the parts that populate the board after the semiconductor."

(This is an excerpt from a TTI profile that will be published in the coming weeks.)

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- Independents & Hybrids Raise Their Global Profile

By Barbara Jorgensen The rate of change in the electronics distribution industry has accelerated in recent years. Global procurement, consolidation and the digital revolution have driven previously- inconceivable solutions in the supply chain. Just a decade ago, distributors were divided into two main categories: Independent (or non- authorized); and authorized. More recently, hybrid distributors—independents that also carry franchised lines—have evolved to meet market needs. Hybrids focus on suppliers largely overlooked by larger distributors while procuring components in the open market. Independents were considered high-risk sources of material. Many were considered brokers that bought excess inventory for pennies on the dollar and resold components at a premium. Brokers were known for price gouging, questionable quality and other unsavory business practices. Independents fought – successfully – to change that perception. They’ve also started adding franchises. As authorized distributors got bigger, it became impossible for them to focus on all their suppliers. The industry’s largest global distributors carry hundreds of component lines. “There’s a simple explanation for why suppliers started authorizing independents,” said John Magee, president of sales for Freedom USA. “When I started in distribution there were 30 companies that don’t exist anymore. There are fewer choices in the market for suppliers.”

You can have lots of eggs in a lot of baskets, but you also have to have eggs in smaller baskets. --John Magee, president of sales, Freedom USA

Many suppliers are carried by global and catalog distributors that may not actively promote their products. “We are the next choice,” said Magee. “We have the staff and the skills to manage their products and then some.” Magee, who worked for America II, was instrumental in securing that distributor’s franchised lines.

/ Still, the open market increases the risk of procuring counterfeits. Hybrid distributor Chip 1 Exchange provides sourcing transparency to help customers measure risk. In the 23 years it has been in business, CEO Sasan Tabib explains, Chip 1 has developed a track record for reliable sources of supply. Chip 1 Exchange, in addition to its strict quality control practices, provides information to customers so they can measure their risk. “We have a variety of suppliers that we have long-term relationships with,” Tabib said. “These are sources that we know and have had absolutely no problems with. We consider them to be very well-vetted.”

We offer everything we can about all our vendors, so customers can determine what level of risk – if any – they are comfortable with. -- Sasan Tabib, CEO, Chip 1 Exchange

A second tier of sources have been dependable over the years but haven’t been used frequently by Chip 1. “We’ve never had any problems with them,” Tabib said, “just a lesser level of experience.” A third tier of suppliers have provided reliable components to Chip 1 but are mostly sources for spot buys. “We provide what we know about them to our customers, but emphasize we’ve had limited experience,” Tabib explained. The system, Tabib explains, allows customers to decide how much risk they can afford to take. “We are very experienced in global quality control – the U.S. and EU have been driving companies toward more strict QC practices,” said Tabib. “We find transparency works with our customers.” Chip 1 has developed a template for open-market sourcing. “We explain that when [customers] have a shortage, maybe 20 percent of the volume they’re ordering can be fulfilled from authorized channels. We can manage the other 80 percent. Of that, 50 percent comes from sources that are reliable and we trust the products. They may not have 100 percent

/ traceability, but customers can use them with no worries. The other 20 to 30 percent comes from sources that we think are good; and 10 percent comes from sources we don’t have a lot of experience with. We offer everything we can about all our vendors, so customers can make the decision on their own, and then determine what levels of testing, if any, they require.” Chip 1 Exchange was ranked No. 1 among the Top 10 European Distribution Sources in 2019. Independents and hybrids also provide options for customers or suppliers that don’t want to concentrate their business with only a few partners. Freedom secured its first two authorizations within the past couple of months. “They’ve been well-received,” said Magee, “and they’re not over distributed. "Their existing distributors have loyal customers for these products, but they may not be chasing new business. That’s where we have a value proposition. We’ve proven we are willing to do the work for our suppliers.” At the same time, customers want to limit their vendor base. “It’s a hassle for customers to manage a lot of part numbers, so we present an option," said Magee.

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- Independents Benefit From Shortages

The biggest winners of component shortages are typically independent distributors. This was certainly the case in 2018 when there were significant shortages and allocations across a variety of components, including MLCCs, DRAMs, processors, transistors and diodes.

Independent distributors posted some of the highest growth rates in the distribution industry in 2018. Fusion Worldwide is one of those. The company not only grew its sales by 91 percent in 2018, it marked a major milestone, joining the billion-dollar club. Fusion grew its revenues from $525 million in 2017 to $1 billion in 2018. Paul Romano, COO at Fusion Worldwide, attributes the company’s growth rate to significant shortages, location and employee head count expansions, and new business development teams to better service customers. “The market was very favorable and there were significant shortages across a wide range of commodities from processors to MLCCs to transistors and diodes. There were immense shortages in the market and that always is a positive business driver,” said Romano. “But secondly, a number of years ago, we began a push to expand internally, which has allowed us to bring in a significant number of new customers and a significant amount of new business.” “Thirdly, we also began a new push to bring in additional layers of sales, so we could better service customers and all of that played into our ability to gain that revenue,” he continued. Romano expects to grow moderately in 2019. He says there are shifts in the marketplace, but there is a lot of technological change within the market that is driving growth. “Medical is a big driver and continues to expand, and industrial automation is a huge driver with robotics and artificial intelligence driving a lot of technological change within the market. industrial automation is taking over everywhere, and building more efficiencies into the technology supply chain. Those two markets — medical and industrial automation — will be big drivers, putting continuous pressure on components supply,” Romano said. But there will be challenges that all distributors will face, he said. “A big unknown is what’s going to happen with all these tariffs, which will have a strong impact on business.” The second challenge is determining which technology trends are going to play the biggest role in the market, Romano said. The question is which of those technologies and markets – automotive, transportation, 5G, big data, and industrial automation — will drive component demand and shortages, he added.

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- The Playing Field is Leveling for Franchised, Hybrid and Independent Distributors

By Jens Gamperl, Sourceability

The different roles of distributors in the electronic component industry were clearly separated 20 years ago. Independent distributors were typically brokers that focused on shortages and end-of-life/hard-to-find products. Franchised distributors were the main source of components for OEMs and the then-developing supply chain for original equipment manufacturers (OEMs) and the electronic manufacturing services (EMS) industry. We have since seen major developments in both categories. Franchised distributors have acquired independents. And, while most global franchised distributors (except for catalog distributors) still act locally, independents began to move on to the global stage in the early 2000s. The global flexibility of independent distributors has made them attractive to many customers. Independents are not limited to the local restrictions of manufacturers and franchised distributors. By adding franchises their portfolio, independents have morphed into hybrid distributors, increasing the value they bring to their customer base. Franchised distributors are now very focused on design-in activities and engaging with customers in the early stage of hardware/software development. Through manufacturer- sponsored field application engineers (FAEs), authorized distributors have developed very deep relationships with the OEM and EMS community.

The independent/franchised tradition began to change with the rise of the internet and search engines such as Google, Yahoo, Baidu, etc. Technical information is available online and demand for FAEs is on the decline.

Engineers are developing global networks for exchanging information. The first companies to take advantage of this were catalog distributors, which serve a clear majority of design-in or NPI activities with their huge product portfolio and 24-hour delivery.

The internet has become the first option for price shopping, which in turn has put pressure on suppliers and distributors. Component margins are declining.

/ The distribution landscape is moving toward a level playing field. Global pricing will develop. Texas Instruments took the first steps in this direction two years ago. Franchised distribution may face pressure to reduce overhead and use advanced technology to develop new services and revenue streams. This development will put hybrids, independents and authorized distribution in the same competitive zone. Independents/hybrids can provide comparable services with less overhead. There are now independents with more than $1 billion in revenue, proving demand for their services. This will not change.

Differences will further be reduced with the use of technology. In the age of AI and blockchain, product traceability is improving across the supply chain. These technologies may also reduce the threat of counterfeits and increase supplier trust. The opportunity of digital marketplaces will also be enhanced. For example, Sourcengine has 800 franchised distributors and 100 manufacturers on its platform. Distributors have immediate access to a wide range of customers all over the world. The supply chain is rapidly becoming global.

- Sourcing Gu ide

Air Electro, Inc. 9452 De Soto Ave., Chatsworth, CA 91311; (818) 407-5400 Distributor type: Specialized Management: Steven Strull, president; Todd Walk, VP; Ben Strull, sales contact Major lines: Carlisle Tri-Star, Corsair, Glenair, Postitronic, Radiall, RMS, Souriau, TE Connectivity Deutsch Value-added (product) services: Connector assembly, design and kitting Website: http://www.airelectro.com

Allied Electronics and Automation/Electrocomponents 7151 Jack Newell Blvd. S, Ft. Worth, TX 76118; (800) 433-5700; (817) 595-3500 Distributor type: Broadline Management: Lindsley Ruth, CEO, Electrocomponents plc; Steve Newland, president, Allied; Scott Jayes, VP: Mark Simon, VP; Andrew Jackson, VP; Frank Cantwell, VP; Patti Crozier, VP; Nick Hawtrey, VP; Mark Simon, VP; Dan Stewart, VP Major lines: Alpha Wire, Amphenol, Belden Wire & Cable, Crouzet (Automation, Crydom, Crydom-Controls, Motors, Switches), Crydom Inc. Danaher, Eaton Cutler-Hammer, Ebm-papst, Fluke (Amprobe, Fluke Corporation, Fluke Networks, Pomona, Fluke Calibration), Honeywell, Keysight, Molex, Omron, Panduit, Pentair (Birtcher, Calmark, Hoffman Cooling, Hoffman Enclosures, Schroff), Phoenix Contact, Schneider Electric (Schneider Electric, Schneider Electric Industrial, Schneider Electric/Magnecraft, Square D, Telemecanique, Schneider Electric IT USA, Inc.), Siemens, SMC, TE Connectivity, Vishay Value-added (product) services: Kitting, bar coding, customized shipments, parts customization, bagging & tagging, next plane out, break standard packaging, and online design tools Website: www.alliedelec.com

America II Electronics

/ 2600 118th Ave. North, St. Petersburg, FL 33716; (800) 767-2637 Distributor type: Hybrid/broadline Management: Michael Galinski, CEO; Jed Pecchioli, COO; Dimitra Tsekos, VP; Rick Kauchak, VP; Doug Gilchrist, chief procurement officer; [email protected], sales contact Major lines: N/A

Value-added (product) services: Custom cable assemblies, displays Website: http://www.americaii.com

Area51 Electronics 51 Post, Irvine, CA 92618; (949) 387-0051 Distributor type: Broadline Management: Steven G. Shammah, president; Peter Nguyen, CEO; Daniel Nguyen,VP of operations; Miroslav Maramica, VP of quality, PhD; Kevin Webb, director of sales and sales contact Major lines: AEM, Black Box, EDAC, Fluke, L-Com, Littelfuse, Panduit, Walsin Value-added (product) services: Cable and harness assemblies, switch assemblies, connector assemblies, tape & reel, and testing Website: http://www.area51esg.com

Arrow Electronics, Inc. 9201 E. Dry Creek Rd., Centennial, CO 80112; (303) 824-4000 Distributor type: Broadline Management: Michael J. Long, chairman, president, CEO Major lines: Visit website. Value-added (product) services: Design services, engineering, programming, assembly services, end-of-life services, etc. Website: http://www.arrow.com

/ Avnet, Inc. 2211 South 47th St., Phoenix, AZ 85034; (480) 643-2000 Distributor type: Broadline Management: Rodney Adkins, chairman; William Amelio, CEO Major lines: https://www.avnet.com/wps/portal/us/mfr/linecard/ Value-added (product) services: https://www.avnet.com/wps/portal/us/solutions/overview/ Website: http://www.avnet.com

Benchmark Connector Corp. 4501 NW 103rd Ave., Sunrise, FL 33351; (954) 746-9929 Distributor type: Specialized Management: Wayne Nelson, general manager; Jason Brand ([email protected]), sales contact Major lines: ADI, Aiconics, Aero-Electric, American Micro, Conesys, Elecsys, Divion of DCX- Chol, Delta Electronics, Deteronics, EMP, J-Tech, Preci-Dip, Step N Components, Spacecraft Components and SPI-Connects Value-added (product) services: Custom assemble to customer specifications (several different types of Mil-Spec electrical connectors), government packaging, kitting, and cable assemblies Website: http://www.benchmarkconnector.com

Bisco Industries Inc. 1500 North Lakeview Ave., Anaheim, CA 92807; (714) 693-2901 Distributor type: Broadline Management: Glen Ceiley, chairman, CEO; Don Wagner, president, COO; Zachary Ceiley, VP and sales contact; Joshua Uhlich, director of material Major lines: Acme, Brady, Essentra, Heyco, Kato, Keystone, Mill-Max, Pentair, RAF, Southco Value-added (product) services: Kitting, bar coding, customized quality programs

/ Website: http://www.biscoind.com

Bluff City Electronics 3339 Fontaine Rd., Memphis, TN 38116; (901) 345-9500 Distributor type: Broadline Management: Alfred Cowles III, chairman, president; Alfred Cowles II, CEO; Daniel Cowles, VP; Laura Cantrell, chief procurement officer; Barry Gillespie, sales contact Major lines: Avigilon, Banner, Belden, GE, General, Idec, Magpowr, Panduit, P&F, Puls, Turck Value-added (product) services: Kitting Website: http://www.bluffcityelectronics.com

Chip 1 Exchange USA Inc. 25652 Commercentre Dr., Lake Forest, CA 92630; (949) 589-5400

Distributor type: Hybrid Management: Sasan Tabib, CEO; Damon Pouya, COO; Salvador Lagos, chief procurement officer; Dennis Rex, sales contact Major lines: Visit website. Value-added (product) services: In-house testing, design services, kitting Website: http://chip-1.com

Component Distributors, Inc. 3963 Walnut St., Denver, CO 80205; (800) 777-7334 Distributor type: Specialized Management: John Williammee, chairman, president; Lori Pacheco, COO; Whit Allen, VP and sales contact; Doug Slansky, VP Major lines: Skyworks Solutions, Solartron, Sumitomo, TDK, Meanwell, InvenSense, TE Connectivity, Xicato

/ Value-added (product) services: Evaluation platforms, kitting, and special assemblies Website: http://www.cdiweb.com

Crestwood Technology Group Corp. 1 Odell Plaza Suite 139, Yonkers, NY 10701; (914) 779-3500 Distributor type: Independent

Management: John Mancino, chairman, president, CEO; Mike Boyd, co-COO, sales contact; Catherine Murphy, co-COO; David Boland, VP Major lines: N/A Value-added (product) services: N/A Website: http://ctg123.com

Cumberland Electronics Strategic Supply Solutions (CE3S)

2501 Sycamore St., Harrisburg, PA 17111; (800) 223-3221 Distributor type: Broadline Management: Donald G. Smeltz, president; Jeremy Wagner, VP; Tom Misiti, sales contact Major lines: Belden, 3M, Alpha Wire, Aim Solder, Chemtronics, Techspray, IDEC, Dymo, Panduit, Greenlee, Fluke, Desco, PACE, HAKKO, Wieland, SSAC.Symcom, Dremel, EATON, Weller Value-added (product) services: Kitting, production and rework support, wire and tube cutting, cable assemblies, repackaging Website: http://www.ce3s.com

DAC

58 Jonspin Rd., Wilmington, MA 01887; (800) 400-7041 Distributor type: Specialized Management: Robert W. Clapp, chairman Major lines: Visit website.

/ Value-added (product) services: Visit website. Website: http://www.heilind.com, http://www.dbroberts.com,

Digi-Key Corp. 701 Brooks Ave. South, Thief River Falls, MN 56701; (218) 681-6674; (800) 344-4539

Distributor type: Broadline Management: Ronald A. Stordahl, chairman; Dave Doherty, president; [email protected], sales contact Major lines: Visit website. Value-added (product) services: Assembly, cut tape, reeling, kitting, programming, and battery packs Website: http://www.digikey.com

Diverse Electronics 5400 Thimens Blvd., St. Laurent, Quebec, Canada H4R 2K9; (800) 381-7308 Distributor type: Broadline Management: Rick Masciotra, president, CEO; Eric Grados, COO; John Massi, VP; Robert Miozzo, sales & operations director; Roussos Koliakoudakis, sales contact; Ingrid Bergh; sales contact Major lines: Mean Well, GW Instek, Yageo, Henkel/Loctite/Bergquist, 3M, Panduit, JBC Soldering, Swanstrom Tools, SCS/Desco, Wieland, Brady, Keystone, E-Switch, SunLED, Apem, Hitano, HSM, Isocom, Kang Yang, UTC/Unisonic, ECS, ILSI, Apex-Weller, Stannol, MG Chemicals, Aven, Steinel Value-added (product) services: Tape and reeling, component labeling, device programming, pin cutting, lead trimming & forming, BGA reballing, custom packaging, component marking (Kapton/poly labels, laser mark, ink dot), kitting Website: http://www.diverseelectronics.com

/ Edge Electronics Inc. 75 Orville Dr., Bohemia, NY 11716; (800) 647-3343 Distributor type: Specialized Management: Adrienne Giannone, president, CEO; Robert Tomasino, sales contact Major lines: Aaeon, AMTouch, Digital View, Fingerprint Cards, JDI, Micron, Mornsun, On Shore Technology, Tianma Value-added (product) services: Assemblies, kitting, integration and design services Website: http://www.edgeelectronics.com/

Electro Enterprises Inc. 3601 North Interstate 35 Service Rd., Oklahoma City, OK 73111; (405) 427-6591 Distributor type: Specialized

Management: Marilyn Enright, president; Mitch Enright, COO; Nathan Little, sales contact Major lines: Amphenol PCD, Aptiv Connection Systems, Cinch Connectivity Solutions, Corsair Electrical Connectors, DRI Relays, Harbour, Honeywell Sensing & IoT, RMS Connectors, Smiths Interconnect, Sumitomo, RSCC Aerospace, Souriau, Sumitomo, TE Deutsch, TE Connectivity, Winchester Electronics, WL Gore Value-added (product) services: Circular connector assemblies, wire striping and laser marking

Website: http://www.electroenterprises.com

ECCO (Electronic Connector Co.) 6332 South Central Ave., Chicago, IL 60638; (773) 767-2000 Distributor type: Interconnect specialized Management: Bernard Gizzi, president; Michele Porter, COO; Kevin Hayes, VP; Marc Natola, chief procurement officer; John Garcia, sales contact

Major lines: Amphenol, Cinch, Conesys, ITT Cannon, Molex, Otto Value-added (product) services: Connector assembly, EMCO design services, special packaging and marking, and cable, cordset and harness assembly services.

/ Website: http://www.eccoconnectors.com

Electronics Supply Co., Inc. 4100 Main St., Kansas City, MO 64111; (816) 931-0250

Distributor type: Broadline Management: Joanne LaBelle, chairman & CEO; Janet Niekamp, president; Robert Niekamp, COO; Kirk LaBelle, VP; Donn Weisser, chief procurement officer; Bill Neustadt, sales contact Major lines: APC, Belden, Commscope Value-added (product) services: Panel assemblies, cable assemblies, kitting Website: http://www.eskc.com

Excelpoint Technology Ltd. 15 Changi Business Park Central 1 #06-00 Singapore 48657, +65 6741 8966 Distributor type: Broadline and Specialized Management: Albert Phuay Yong Hen, chairman, group CEO; Ivan Lee See Thiam, group CFO; Stanley Chan Tung Hong, SVP, assistant to group CEO & sales contact Major lines: Analog Devices, Microchip, NXP, Qualcomm, Qorvos, Samsung Electronics, SEMCO, Seoul Semiconductor Value-added (product) services: Kitting, design and development of module solutions, PCB designs, and technical support Website: http://www.excelpoint.com

Fedco Electronics, Inc. dba Fedco Batteries 1363 Capital Drive, Fond du Lac, WI 54937; (920) 922-6490 Distributor type: Specialized Management: Stephen Victor, Jr., chairman, CEO; Peter Victor, president and sales contact; Dennis Boelter, chief procurement officer Major lines: Enersys, FDK, Energy Access, Maxwell, Renata, Ultralife, Panasonic, Saft, Varta

/ Value-added (product) services: Design, prototyping, assembly and fulfillment of battery packs and battery systems Website: http://www.fedcobatteries.com and http://www.energyplusbatteries.com

Falcon Electronics Inc. 47 Mall Drive (Suite #5), Commack, NY 11725; (631) 351-8515 Distributor type: Specialized Management: Brian Diaz, chairman, president, CEO; Richard Wecker, COO, VP; Carrie Wallrabe chief procurement officer; Ian Mikles, sales contact Major lines: HoltIC, FMJ Storage, Microsemi, TT Electronics (Semelab and Optek) Value-added (product) services: Additional screening tape and reeling, and solder testing Website: http://www.falconelec.com

Flame Enterprises 21500 Gledhill St., Chatsworth, CA 91311; (818) 700-2905 Distributor type: Specialized Electromechanical Management: Michael Epstein, chairman, CEO; Neil Rostholder, COO; Peter Epstein, VP; Dave Boush, chief procurement officer; Monica Beith, VP; Jim Finegan, sales contact Major lines: Amphenol PCD, Esterline/Leach, Electrodynamics, Hartman, Rebling Power Connectors, Sagem, Safran, TE Connectivity

Value-added (product) services: N/A Website: http://www.flamecorp.com

Freedom USA 11225 Challenger Ave., Odessa, FL 33556 Distributor type: Independent

/ Management: Carl DePaolo, CEO; James Brown, COO, John McKay, president of sales & purchasing; John Magee, VP; Crystal DePaolo, CMO; Sally Arno, director of quality Major lines: N/A Value-added (product) services: https://www.freedomusa.com/Value_Added_Services.html Website: http://www.freedomusa.com

Fusion Worldwide One Marina Park Drive, Suite 305, Boston, MA 02210, (617) 502-4100 Distributor type: Independent Management: Peter LeSaffre, president, CEO; Paul Romano, COO; Tobey Gonnerman, EVP of trade Major lines: Intel, Samsung, Micron, Xilinx, Altera, TI, ON Semi, Broadcom, Hynix, Murata, AVX, Vishay, Infineon, Seagate, Yageo, Renesas, Kemet, NXP, Analog Devices Value-added (product) services: Kitting, labeling, specialized packaging Website: http://www.fusionww.com

Future Electronics 237 Hymus Blvd., Pointe Claire, Quebec, Canada H9R 5C7; (514) 694-7710 Distributor type: Broadline Management: Robert Miller, chairman, president, CEO; Pierre Guilbault, VP; Dan Casey, VP; Karim Yasmine, VP; Jamie Singerman, VP; Sam Abrams, VP; Helmut Lippmann, VP; Frederick Miller, VP; Omar Baig, VP; Karim Yasmine sales contact

Major lines: Visit website. Value-added (product) services: Kitting, technical support services, lighting solutions Website: http://www.futureelectronics.com

Gopher Electronics 222 Little Canada Rd., St. Paul, MN 55117; (651) 490-4900

/ Distributor type: Broadline with electromechanical focus Management: Jeff Mrozinski, chairman, CEO; Dennis Tully, VP; Dave Mancuso, VP; Kei Cheung, VP and sales contact Major lines: Visit website.

Value-added (product) services: Flat flexible cable assembly, value-added customization, cable harness, DIN rail/panel build, sensor and switch assemblies, custom “connectorizing of fan and blower assemblies, and heavy gauge wire assemblies Website: http://www.gopherelectronics.com/company

HOB Custom Power (House of Batteries) 10910 Talbert Ave., Fountain Valley, CA 92708; (800) 432-3385 Distributor type: Specialized Management: Don West, president; Maggie West, CEO; Mel Weis, COO; Terry Ragone, chief procurement officer; Carlos Gonzalez, sales contact Major lines: Duracell, EnerSys, Energizer, LG Chem, Panasonic, Saft, Samsung Value-added (product) services: Design & manufacturing of custom battery packs, testing, custom packaging Website: http://www.hobcustompower.com

Hughes-Peters 8000 Technology Blvd., Dayton, OH 45424; (937) 235-7100 Distributor type: Broadline Management: Michael Okel, president; Donna Hensley, VP; Mike Smith, VP Major lines: Apem, ebm-papst, Honeywell, Littelfuse, Mean Well, NMB, Schurter, Mechatronics, Omron, Schroff, ZF Value-added (product) services: Visit website. Website: http://www.hughespeters.com

/ IBS Electronics, Inc. 3506-D Lakecenter Drive, Santa Ana, CA 92704; (714) 751-6633 Distributor type: Broadline Management: Bob Tavi, chairman, president, CEO Major lines: Visit website. Value-added (product) services: Visit website Website: http://www.ibselectronics.com

Kensington Electronics, Inc. 11801 Stonehollow Dr., Ste 150, Austin, TX 78758; (512) 339-3300 Distributor type: Specialized Management: Doris Rabbitt, chairman; J. Patrick Rabbitt, president; Casey Cavender, VP; Terence Rabbitt, VP; Timothy Rabbitt, VP; Sean Donovan, sales contact Major lines: Visit website.

Value-added (product) services: Kitting, cable assemblies, overmolding, special labeling Website: http://www.keiconn.com

Marsh Electronics 1563 S. 101st Street, Milwaukee, WI 53214; (414) 475-6000 Distributor type: Broadline Management: Jim S. Banovich, CEO; Steve Banovich, COO Major lines: ASC Capacitors, Cornell-Dubilier, Eaton-Cooper Industries, Littelfuse, Vishay, ZF Cherry Value-added (product) services: Cutting/stripping/marking of wire, wire harnesses, cutting tubing, ROHS soldering, light mechanical assemblies, kitting, special packaging, indicator light assemblies, lead tinning (Visit website for complete list.) Website: http://www.marshelectronics.com

/ Master Electronics 2425 South 21st Street, Phoenix, AZ 85034; 888-4-RELAYS Distributor type: Specialized Management: Riad Nizam, president; Ike Nizam, chairman; Jamil Nizam, CEO Major lines: Visit website. Value-added (product) services: http://www.masterelectronics.com/va Website: http://www.masterelectronics.com

Memphis Electronics AG Industriestr. 4-6, 61440 Oberursel, Germany; 49-6172-903540 Distributor type: Hybrid Management: Peter Nitschbe, CEO Major lines: Visit website. Value-added (product) services: Visit website. Website: http://www.memphis.ag

Metuchen Capacitors Inc.

2139 Hwy. 35, Ste. 2, POB 399, Holmdel, NJ 07733; (800) 899-6969 Distributor type: Limited Line Management: Gary Ficsor, president; Lisa Mace, VP; Steven Young, VP Major lines: API Technologies, Kemet Electronics Value-added (product) services: Testing, soldering, burn-in, filter plates, marking, specialty capacitors Website: http://www.metcaps.com

Mouser Electronics 1000 North Main Street, Mansfield, TX 76063; (817) 804-3800

/ Distributor type: Catalog Management: Paul Andrews, chairman; Glenn Smith, president, CEO; Pete Shopp, VP; Mark Burr-Lonnon, VP; Jeff Newell, VP; Kevin Hess, VP; Hayne Shumate, VP; Raju Shah, VP; Todd McAtee, VP; Scott Brown, VP; Coby Kleinjan, sales contact Major lines: Altera, Amphenol, AVX, Analog Devices, Avago Technologies, Kemet, Littelfuse, Maxim Integrated, Microchip, Molex, Murata, NXP, ON Semiconductor, Panasonic, Phoenix Contact, STMicroelectronics, TDK, Texas Instruments, TE Connectivity, Vishay Value-added (product) services: Cable assembly, chip and crystal programming, kitting, broken pack quantities, local tech support Website: http://www.mouser.com

NRC Electronics, Inc. 6600 Park of Commerce Blvd., Boca Raton, FL 33487; (561) 241-8600 Distributor type: Broadline Management: Dennis Eisen, CEO; Eric Eisen, VP Major lines: http://www.nrcelectronics.com/products.aspx Value-added (product) services: Barcoding, in-house testing, on-site FAE support, customizable software (http://www.nrcelectronics.com/services.aspx) Website: http://www.nrcelectronics.com

NewPower Worldwide 107 Northeastern Blvd., Nashua, NH 03062; (603) 718-8189 Distributor type: Independent Management: Carleton Dufoe, president, CEO; James Dufoe, CFO; Barry Lafontaine, chief quality officer; Matthew Fonstein, VP; Jeffrey Hong, VP; Patrick Deware, VP of business development; Shelly Guthro, purchasing manager; Garie Ang, purchasing manager Major lines: Visit website. Value-added (product) services: Visit website. Website: https://www.newpowerww.com and https://scoutww.com

/ PCX Inc. 17912 Gothard Street, HB, CA 92647; (714) 374-3070 Distributor type: Independent hybrid Management: Gilles Aouizerat, CEO Major lines: N/A Value-added (product) services: N/A Website: http://www.pcxco.com

PEI-Genesis 2180 Hornig Rd., Philadelphia, PA 19116; (215) 673-0400 Distributor type: Specialized Management: Steven Fisher, chairman, president, CEO; Peter Austin, VP; John Hufnagle, sales contact Major lines: Amphenol, Anderson Power Products, Cinch, Esterline Connection Technologies, ITT Cannon, LEMO, Souriau-Sunbank, TE Connectivity Value-added (product) services: Connector design & assembly, cable assemblies, custom packaging, kitting, custom bar coding, marking, labeling, and specialty services (http://www.peigenesis.com/en/value-added-services/custom-packaging-and-kitting.html ) Website: http://www.peigenesis.com

Phoenics Electronics Corp. 31 Nagog Park, Acton, MA 01720; (978) 856-0111

Distributor type: Specialized Management: Peter Rooks, chairman, president, CEO, COO; Sheri Klatsky, VP, marketing and chief procurement officer; David Owens, sales contact Major lines: Marvell/Cavium, Micron, Microchip/Microsemi, QLogic, Gigabyte, ABB, Parade, ATP, Viking, Monta Vista

/ Value-added (product) services: Kitting, firmware maintenance, fiber-optic transceiver integration Website: http://www.phoenicselectronics.com

The Powell Electronics Group 200 Commodore Dr., Swedesboro, NJ 08085; (856) 241-8054 Distributor type: Broadline Management: Ernie Schilling, chairman; Ernie Schilling Jr., CEO; Schawn Beatty, CEO; John Barrington, VP; Todd Bethea, VP; Rodney Sellers, VP; Tony Strope, VP Major lines: Amphenol, Glenair, AirBorn, Honeywell, TE Connectivity, Positronic, Conesys Value-added (product) services: Kitting, cable assemblies, connector assemblies, switch assemblies, test kits, battery packs Website: http://www.powell.com

PUI Projections Unlimited, Inc. 15311 Barranca Parkway, Irvine, CA 92618; (714) 544-2700 Distributor type: Specialized Management: David R. Herring, president; David Burgener, VP; Travis Griffin, VP; Bob Gau, sales contact Major lines: Apem, Cornell-Dubilier/Illinois Capacitors, Delta, Kycon, Mill-Max, PUI Audio, Samtec, Sanyo Denki, SunLED, TT Electronics, United Chemi-Con Value-added (product) services: Fan & fan tray assembly, cable and harness assembly, sensor and switch assembly, heat sink & thermal management assemblies, power supply, customization Website: http://www.shoppui.com

Rand Technology 15225 Alton Parkway, Suite 100, Irvine, CA 92618; (949) 255-5700 Distributor type: Hybrid/broadline

/ Management: Andrea Klein, CEO; Bruce Jones, COO; Tawnie Bassett-Parkins, CFO; Trang Nguyen, VP sales Americas & Global Remarketing; Andy Murphy, VP sales & business development, Americas; Doug Schilletter, VP & GM, R2/ITAD facility; Chris Lam, director of purchasing; Kim Fix, director of quality Major lines: Visit website. Value-added (product) services: http://www.randtech.com/solutions Website: http://www.randtech.com

RFMW Ltd. 188 Martindale Lane, San Jose, CA 95119; (408) 414-1452 Distributor type: Specialized Management: Joel Levine, president; Steve Takaki, VP; John Hamilton, VP; Josh Levine, VP; Mike Carroll, VP and sales contact Major lines: Qorvo, Skyworks, Ampleon, EMC RF Labs, MACOM-Metelics, Aethercomm, Rosenberger, Sangshin, P1dB, Carlisle, API Value-added (product) services: Cable assemblies, die handling, die visual inspection, special marking, tape and reel, hybrid assembly, custom packaging, parametric test, evaluation boards, part screening/sorting/binning, and lead trimming/forming/tinning Website: http://www.rfmw.com

Richardson Electronics, Ltd.

40W267 Keslinger Rd., LaFox, IL 60147; (630) 208-2200 Distributor type: Specialized Management: Edward J. Richardson, chairman, president; Greg Peloquin, EVP; Robert J. Ben, CFO; Philippe Valy, sales contact Major lines: Qorvo, Macom, NJRC, Anokiwave, CPI, Thales, UnitedSiC, Starpower, Ohmite, Cornell Dubilier, Vishay Value-added (product) services: Kitting, RF testing, manufacturing of RF & microwave assemblies, RF die testing and packaging, HFE & GFS matching, local engineering support Website: http://www.rellpower.com

Rutronik GmbH Industriestraße 2, 75228 Ispringen, German; +4972318010

Distributor type: Specialized Management: Helmut Rudel, president; Thomas Rudel, CEO Major lines: https://www.rutronik.com/electronic-components Value-added (product) services: Visit website. Website: http://www.rutronik.com

Sager Electronics 19 Leona Dr., Middleborough, MA 02346; (508) 947-8888 Distributor type: Specialized Management: Paul Andrews, chairman; Frank Flynn, president; Bruce Kellar, senior VP of sales; Faris Aruri, senior VP of marketing; Shannon Freise, VP operations Major lines: Artesyn, EBM-Papst, Honeywell, Laird Technologies, Mean Well, Molex, Omron, Phoenix Contact, Samtec, Sensata Technologies, SL Power, TE Connectivity

Value-added (product) services: Modular power supplies, custom modifications, setpoints and adjustments, power cycling and HALT testing, wire harnessing, series and parallel connections, enclosures, firmware updates, fan assemblies, DIN rail cutting & assembly, marking/label printing, wire duct cutting, laser printing, switch assembly, engraving, special package labeling, bar coding, bag & tag, kitting, UL certified for repackaged recognized components Website: http://www.sager.com

Serial System Ltd. 8 Ubi View #05-01, Serial System Building, Singapore 408554; (65) 6510 2408 Distributor type: N/A Management: N/A

/ Value-added (product) services: N/A Website: http://www.serialsystem.com

Sherburn Electronics Inc. 175 Commerce Dr., Hauppauge, NY 11788; (631) 231-4300 Distributor type: Specialized Management: James Burke, president; John Odenthal, VP; Gerard Barry, sales contact Major lines: Burndy, Boeing, Dell, HP, EHC, Ohmite, PAAL Technologies, Struthers Dunn, TE Connectivity, Tripp-Lite, PEC, Zippertubing, Schneider Electric Value-added (product) services: Visit website. Website: http://www.sherburn.com

SMD Inc. 1 Oldfield, Irvine, CA 92618; (949) 470-7700 Distributor type: Specialized Management: Rich Unruh, president; David Herrera, VP; Pete Ainsworth, VP; Sean O'Bannon, VP; Paul Klein, VP; Jeni Rodriquez, chief procurement officer; [email protected], sales contact Major lines: Avery Dennison, Bussman, Cal Chip, CIT, ECS, EDAC, EPCOS, E-Switch, Hellermann Tyton, King Cord, KEMET, Kycon, NKK Switches, NMB Fans, Novacap, OST, Oupiin, Panduit, Pentair, Samtec, Singatron, TDK, Yazaki

Value-added (product) services: Cable assembly and testing, kitting Website: http://www.smdinc.com

Smith 5306 Hollister Street, Houston, TX 77040; (713) 430-3000 Distributor type: Independent

/ Management: Bob Ackerley, co-founder, co-owner; Lee Ackerley, co-founder, co-owner; Marc Barnhill, CEO, chief trading officer & sales contact; Kirk Wehby, chief operating officer; Matthew Hartzell, chief administrative officer, Mark Bollinger, chief globalization officer; Phyllis Tsu, chief information officer; Sean Evans, CFO, Todd Burke, VP of business development; Margo Evans, VP of marketing; Choon Byun, president, Asia-Pacific; Art Figueroa, VP of operations & quality, NA & EU; Cleat Kimbrough, VP of business development, Europe; Minji Hong, VP of Asia, Ken Pang, VP of Asia; Jennifer Kabbara, trader development manager; Todd Snow, VP of global purchasing; Mike Pursley, VP of global purchasing; Thuy Tran, general counsel; Sean Trinh, VP of finance/treasurer Major lines: N/A Value-added (product) services: HDD and SSD wiping, flashing, shredding, dry packing and packaging, tape and reeling, barcode labeling, baking, kitting, rework services, component recovery Website: http://www.smithweb.com

Sourceability LLC 8880 Nw. 20th St., Doral, FL 33172; (949) 385-5300 Distributor type: Independent Management: Jens Gamperl, CEO; Frank Bruno, COO; Yashar Shahabi, VP; Joakim Stafwerfeldt, VP; Sabih Khan, VP; Mike England; Dev Rai, VP of procurement; Josh Pucci, VP of sales; Brian Schmiedel, sales contact

Major lines: Visit website. Value-added (product) services: Visit website. Website: https://www.sourceability.com Steven Engineering, Inc. 230 Ryan Way, So. San Francisco, CA 94080; (800) 258-9200 Distributor type: Specialized

/ Management: Bonnie A. Walter, chairman; Paul E. Burk III, president and sales contact; Bryan J. Wolfgram, CEO & COO; Kevin F. Mutto, chief procurement officer Major lines: ABB, Banner Engineering, E-T-A, Honeywell, IDEC, Mersen, Moog-Animatics, Pepperl + Fuchs, Macron, Phoenix Contact, Rittal, Schneider Electric, SMC Pneumatics, Turck, Value Added Services Value-added (product) services: Kitting, cable assemblies, rail assemblies, engraving, enclosure modifications, pneumatic assemblies, terminal block marking, custom modification, etc. Website: http://www.stevenengineering.com

Symmetry Electronics Corp. 5400 Rosecrans Ave., Hawthorne, CA 90250; (310) 536-6190 Distributor type: Specialty semiconductor Management: Mark Zack, president; Brett Smith, VP, Clancy Barham, VP; Stephan Buba, product management Major lines: Digi International, Lattice Semiconductor, Micronas, Nordic Semiconductor, Silicon Labs, Telit Value-added (product) services: Field and in-house applications engineers, cellular and cloud services, testing, custom engineered solutions, exclusive development kits, design services, cellular and cloud plans for M2M/IoT applications, programming, kitting Website: http://www.symmetryelectronics.com

Transfer Multisort Elektronik sp. z o.o. Ustronna 93-350 Lodz; +48-42-645-55-55 Distributor type: Catalog-Online Management: Zbigniew Kuczynski, president; CEO; Andrzej Kuczynski, COO; Grzegorz Kuczynski, VP Major lines: Amphenol, AVX, Fluke, Harting, Kemet, Mean Well, Microchip, Molex, Omron, Sunon, TE Connectivity Value-added (product) services: N/A

/ Website: https://tme.eu

Trio Supply Chain Solutions LLC 2905 Tech Center, Santa Ana, CA 92705; (949) 648-7141 Distributor type: Independent Management: Michael Khoury, CEO; Marcus Moawad, COO; Aniket Sharma, chief procurement officer; Martina Tewes, sales contact Major lines: Visit website.

Value-added (product) services: Visit website. Website: http://www.trioscs.com

TTI, Inc. 2441 Northeast Pkwy., Ft. Worth, TX 76106; (817) 740-9000 Distributor type: Specialized Management: Paul Andrews, CEO; Mike Morton, COO; Chris Goodman, CFO; Tom Vanderheyden, SVP, America Sales & sales contact Major lines: Amphenol, AVX, APTIV, Bourns, FCI, Glenair, Honeywell, KEMET, KOA, Littelfuse, Molex, Nichicon, Ohmite, Omron, Osram, Panasonic, Phoenix Contact, TDK/Epcos, TE Connectivity, Vishay Value-added (product) services: Connector assembly, product special services, packaging, and labeling Website: http://www.ttiinc.com

URS Electronics 123 NE 7th Ave., Portland, OR 97232; (800) 955-4877 Distributor type: Broadline Management: Earl Twietmeyer, chairman; Mark Twietmeyer, president and sales contact; Mark Godfrey, chief procurement officer

/ Major lines: Phoenix Contact, Pelco by Schneider Electric, Belden, Axis, Eaton, Cincon, Panduit Value-added (product) services: Kitting, control panel assembly, design support, cable assemblies, terminal block assemblies, terminal block label printing Website: http://www.ursele.com

Velocity 2208 Energy Drive, Austin, TX 78758; (512) 973-9500 Distributor type: Independent Management: Kristofor Kelly, president, CEO; Johan Dahl, VP; Isaac Tan, VP; Hal Juergens, VP; Karrin Franco, VP; Jose Lopez, VP; Dina Mavridis, VP; Chuck Davidson, VP; Rocel Juntra, VP; Grant Schnabel, VP; Jason Bresler, chief procurement officer; [email protected], sales contact Major lines: N/A Value-added (product) services: http://velocityelec.com/services Website: http://www.velocityelec.com

Waldom Electronics Corp.

1801 Morgan Street, Rockford, IL 61102; (815) 968-9661 Distributor type: Wholesaler Management: Basel Nizam, president; Peter Rovekamp, VPk Jelger Bos, VP; Hillary Bagley, sales contact Major lines: Honeywell, Molex, TE Connectivity, Amphenol, Kemet, CK Switches, ZF Electronics, Dialight, Bulgin, Sensata, The Bel Company, Omron Value-added (product) services: Kitting, retail packaging, mini-reels Website: http://www.waldom.com

WPG Holdings Ltd. No. 489, Tiding Blvd., 8th flr, Sec. 2 Neihu District, Taipei City, 114, Taiwan; 886-2-87978860

/ Distributor type: Broadline Management: Simon Huang, chairman; Frank Yeh, CEO Major lines: Infineon, Intel, TI, Samsung, NXP, Toshiba, Micron, ON Semiconductor, ST Micro Value-added (product) services: Visit website. Website: https://www.wpgholdings.com

WT Microelectronics Co., Ltd. 14F, No. 738, Chung Cheng Rd., Chung Ho District, New Taipei City 235, Taiwan; (886) 2-8226- 9088 Distributor type: Broadline Management: Eric Cheng, chairman, president, CEO Major lines: Ambarella, Broadcom, Texas Instruments, Skyworks, ON Semiconductor, ST, Realtek, Marvell, NXP, Micron, Nanya, Maxim Integrated

Value-added (product) services: Applications engineering support, customized services, system design solutions Website: http://www.wtmec.com