Computer & Office Equipment Distributors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 7,300 computer and office equipment distributors in the US serve as middlemen between manufacturers and retailers/resellers and end-users. Major revenue categories include computers, computer peripheral devices, office equipment, and computer software. Office equipment includes copiers, point-of-sale terminals (POS), automated teller machines (ATMs), cash registers, mailing machines and check handling machines. Companies may also provide services, such as repair, maintenance, technical support, systems assembly, systems integration, and training.
Rapidly Changing Technology
The IT arena is characterized by rapid change in technology and evolving industry standards and product specification requirements.
Price-Based Competition
Intense price-based competition in the information technology products and services market creates consistent pressure on margins.
Industry size & Structure
The average computer and computer peripheral distributor operates out of a single location, employs fewer than 20 workers, and generates about $46 million annually. The average office equipment distributor also operates out of a single location and employs fewer than 20 workers, but generates about $18 million annually.
- The computer and office equipment distribution industry consists of about 7,300 firms that employ about 306,000 workers and generate about $290 billion annually.
- Computer and computer peripheral distributors account for 73% of firms and 88% of industry revenue.
- The industry is concentrated; the top 50 computer and computer peripheral distributors account for about 76% of category revenue and the top 50 office equipment distributors account for about 77% of category revenue.
- Large companies, which include Ingram Micro, Tech Data, and SYNNEX, may have international operations. Computer and office equipment manufacturers may have distribution operations.
Industry Forecast
Computer & Office Equipment Distributors Industry Growth
Recent Developments
Dec 17, 2024 - President-elect Trump Plans To Impose Broad Tariffs
- President-elect Donald Trump has said that he will impose significant tariffs on Canada, Mexico, and China, America's three biggest trading partners. Computer and office equipment distributors may face inventory shortages as a result. Trump said that he would impose a 25% tariff on imports from Canada and Mexico until they reduced the quantity of drugs, particularly fentanyl, and migrants crossing the border. "On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on all products coming into the United States, and its ridiculous Open Borders," Trump said. Trump also promised "an additional 10% tariff, above any additional tariffs" on imports from China.
- Global shipments of traditional PCs decreased 2.4% year-over-year to 68.8 million units during the third quarter of 2024, according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. Factors including rising costs and inventory replenishment led to a surge in shipments in the previous quarter, resulting in a slightly slower sales cycle. New AI PCs and Apple’s M4-based Macs are expected to drive a premium segment increase in coming months, according to IDC.
- Workplace occupancy, an indicator of demand for office equipment, was 53% for the seven-day period ending on November 20, up from 52.7% for the seven-day period ending on November 13, according to data gathered from swipes of access control cards in buildings with security systems provided by Kastle Systems. Occupancy rarely hit the 50% mark from the early days of the coronavirus pandemic through early 2024 despite attempts by many organizations to bring employees back. The Austin, TX, metropolitan area had the highest occupancy for the seven-day period ending on November 20 at 63.3%. The San Francisco, CA, metropolitan area trailed all others tracked at 41.4%.
- Computer and office equipment distributor industry employment increased slightly and average wages for nonsupervisory employees increased moderately during the first 10 months of 2024, according to the US Bureau of Labor Statistics. Computer and office equipment industry sales are forecast to grow at a 3.2% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Total sales for professional and commercial equipment distributors increased 12.1% year over year but decreased 2.9% month over month in June, according to the US Census Bureau.
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