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 7,400 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 7,400 firms that employ about 304,400 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
Apr 3, 2024 - Sales Vary As Economic Uncertainty Continues
- Industry sales varied considerably during the first nine months of 2023, according to the US Census Bureau (CB). Distributors were selling down their inventories during the first quarter of 2023, which contributed to lower inventory value, but inventories leveled off through the third quarter, according to the CB. Labor costs decreased during 2023 as industry employment and wages for nonsupervisory employees decreased slightly, according to the US Bureau of Labor Statistics.
- The total amount of office space vacated since 2019 surpasses the amount vacated during the dot-com bubble and dwarfs that of the global financial crisis of 2007-08, according to real estate analysis firm Green Street. Computer and office equipment distributors may be negatively impacted by decreasing demand for office space. Available office space was about 25% of existing supply at the end of 2023, both historic highs. Prior recoveries in US office occupancy have been mostly “V-shaped” in nature - a sharp rebound from a big decrease. This cycle is likely to play out differently, however, as it will take a lot more new jobs to generate the same level of office demand as in the past because remote work will act as a long-term headwind on office demand, according to Green Street.
- Commercial Chapter 11 bankruptcy filings increased 72% year over year in 2023, according to Epiq AACER. Bankruptcy filings may reduce spending on computer and office equipment. Overall commercial filings increased 19%. Subchapter V bankruptcies within Chapter 11 increased 45% during the period. “Though still below pre-pandemic figures, bankruptcies in all filing categories climbed last year amid the evaporation of pandemic emergency responses, increased interest rates and tougher lending standards,” said Amy Quackenboss, executive director at the American Bankruptcy Institute.
- Workplace occupancy, an indicator of demand for office equipment, was 51.2% for the seven-day period ending on March 27, down from 51.3% for the seven-day period ending on March 20, 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 March 27 at 66.6%. The Philadelphia, PA, metropolitan area trailed all others tracked at 41.7%.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.