SOURCE: Global Technology Distribution Council

Global Technology Distribution Council

December 01, 2009 09:05 ET

IT Market Momentum Continues; U.S. Sales Recovery Tracking Ahead of Europe, Distribution Association Says

ST. PETERSBURG, FL--(Marketwire - December 1, 2009) - Signs of IT market recovery continue to be evident in the U.S. and Europe based on recent quarterly sales tracking of the technology distribution industry, according to the Global Technology Distribution Council (GTDC), the world's largest consortium of IT distributors. Although industry conditions have improved, revenue levels are still significantly below comparable periods last year in both the U.S. and Europe. 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, which GTDC members are not surprised to see as slower in recovery and not yet improving.

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, which are available by subscription, show third-quarter sales of 2009 improved over the second quarter -- up 10.7% in the U.S. and 2.3% in Europe, the first time both regional tracking services have shown sequential quarterly improvement since the IT downturn worsened 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 -- and recently reached the $1 billion mark in a single week, which had not been achieved in over a year.

"We can't declare that we're out of the woods yet," GTDC CEO Tim Curran cautioned. "The tech industry will take time to crank back up to the levels it has achieved in previous years. We're 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 mobile solutions, cloud computing, security, storage, point-of-sale, wireless networking and other communications technologies as drivers of industry recovery. Emerging companies in the IT industry are now moving more of their products through distribution, and industry leaders are further diversifying their offerings to capitalize on shifting demand trends.

"IT distributors have a front-lines perspective on market developments," Curran pointed out. "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 and IT distribution industry research, visit


The Global Technology Distribution Council (GTDC) is a worldwide industry association dedicated to defining and promoting the role of wholesale distribution in a successful and healthy information technology channel. The Council is comprised of the computer industry's top wholesale distributors dedicated to serving "the channel," a network of skilled value-added resellers and retail stores focused on providing hardware, software, and services to businesses and consumers around the globe. GTDC members include ABC Data, AB SA (WSE: ABPL), Actebis, Arrow Electronics (NYSE: ARW), Avnet (NYSE: AVT), Bell Micro (OTCBB: BELM), Computer Gross, Computerlinks, DCC SerCom, D&H, Esprinet (ISE: PRT), Ingram Micro (NYSE: IM), Intcomex, Magirus AG, Redington, ScanSource (NASDAQ: SCSC), SiS Technologies (HKSE: 0529), Synnex (NYSE: SNX), 20:20 Mobile Group, SiS, Tech Data (NASDAQ: TECD), Westcoast LTD and Westcon.

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