Recently, the Global Technology Distribution Council released news that recent quarterly sales tracking in the technology distribution industry shows promising signs of IT market recovery in the U.S. and Europe. While revenue levels still remain significantly below comparable periods last year, industry conditions continue to improve. In Europe, the small-and-mid-size-business market has shown stability and improvement in recent weeks, especially in comparison to the larger enterprise market where GTDC members have expressed little surprise to see as slower recovery and less improvement.
GTDC member sales, which represent more than $100 billion in annual worldwide revenue, are tracked via independent research firms, The NPD Group’s Distributor Track® in the U.S. and Context SalesWatch in Europe. Both databases show better 2009 third-quarter sales than second quarter: up 10.7% in the U.S. and 2.3% in Europe. This marks the first time both regional tracking services have shown sequential quarterly improvement since the IT downturn at the end of 2008. U.S. Distributor Track sales in the second quarter also improved by approximately 4% over the first quarter in this region, recently reaching the $1 billion mark in a single week, the first time in the past year.
“We can’t declare that we are out of the woods yet,” GTDC CEO Tim Curran cautiously stated. “The tech industry will take time to crank back up to the levels it has achieved in previous years. We are still very encouraged by the current positive sales trends in distribution, particularly in the SMB space, and we have every reason to expect continued improvement on through 2010.”
The GTDC sees industry recovery potential in mobile solutions, cloud computing, security, storage, point-of-sale, wireless networking and other communications technologies. Emerging companies in the IT industry currently move more of their products through distribution, and industry leaders are currently diversifying their offerings to capitalize on shifting demand trends.
Curran continued, “IT distributors have a front-lines perspective on market developments. The NPD and Context databases that aggregate distributor sales also capture pricing information as well as other key indicators by channel. Such insight based on actual sales is far more reliable compared to market research surveys and estimates.”
For more information on the GTDC, please visit http://gtdc.org/research.htm.