Digi-Key sales in north America surged 11 per cent in 2014 and the company posted revenues of $1.76bn, outpacing the global distribution market and many competitors. The distributor cites a spike in innovation driven by emerging technologies and increasing demand for its engineer-centric, fast and efficient product distribution model.
A key driver was The Internet of Things (IoT) or device-to-device connectivity driven by advances in wireless, embedded, single board computers, sensors and motion control along with demand for cloud-enabled applications. The company also attributes increasing demand for pre-built modules and development kits or “buy versus make” solutions built around single board computers with other embedded technologies.
“This year, we experienced an innovation-fuelled demand for emerging technologies to support the development of new applications,” commented Digi-Key’s Executive Vice President of Sales and Supplier Management, Chris Beeson. “A spike in new product introduction (NPI) activity lends itself extremely well to our model which is ideal for fast-turn production runs and high-mix, low-volume orders. By constantly adapting to the needs of our customers, we’re one of few distributors able to respond quickly with exactly what they’re asking for – new product availability, design resources and fast delivery.”
“It’s an extraordinary time of growth in this industry,” commented Dave Doherty, Executive Vice President of Operations for Digi-Key. “Particularly here in North America, we’re seeing a combination of market trends driving innovative new products that will literally change how we work and play. Along with breakthrough wireless and embedded technologies, the cost of components continues to drop, high-value EDA tools are now affordable and other game-changers like open source software and crowdfunding resources are breaking down the walls for the design engineer. Fortunately for Digi-Key, these kinds of market drivers all point to the need for a next-generation distribution model that values selection, speed and self-service.”
“By listening to our customers, we learned that they care about speed, selection and relevance, supported by knowledgeable professional resources,” said Paul Dosser, VP of Business Development for Digi-Key. “Suppliers and customers both place a high value on our proficiency in delivering high-mix, low volume orders. Manufacturers of all sizes are leveraging the flexibility of our model to increase efficiencies, reduce inventory risk and accelerate time-to-market from the design stage all the way through production. They see Digi-Key as a vital partner as they embrace emerging opportunities driven by technology innovation.”