SOURCE: Global Technology Distribution Council

Global Technology Distribution Council

February 15, 2017 09:00 ET

IT Distribution Industry Organization Sees Positive Regional Outlook Despite Major Challenges, Including 'Wall of Uncertainty' in Mexico

ST. PETERSBURG, FL--(Marketwired - Feb 15, 2017) - In its first study focused on the Latin American region, the industry association for the world's leading distributors reports an optimistic overall outlook while citing major uncertainties affecting trade -- most notably U.S. government plans to build a wall across the country's border with Mexico. The LATAM in 2017 report complements a global study the Global Technology Distribution Council recently conducted on technology channel business prospects. Both are available for free download from the GTDC Research Center.

LATAM in 2017 features viewpoints from regional technology distribution leaders, analysts, and vendor community channel executives, with commentary covering a broad range of topics including:

  • Signs of Recovery and Resurgence
  • The Mobile Factor and Other Game Changers 
  • Opening New Vertical Market Doors 
  • A Wall of Uncertainty in Mexico 
  • Real Work Begins as Economies Recover
  • Cloud Platforms Rising Across the Region

"The region appears to be emerging from a two-year stretch of declining sales," commented Tim Curran, GTDC. "Although our report reflects expectations for relatively muted growth in Latin America, technology distributors and their vendor partners are in prime position to capitalize on major global and regional trends. They range from cloud developments to security and mobility advances, for example, to unique vertical market opportunities that extend into secondary and tertiary cities."

The regional report was introduced at the GTDC's LATAM Conference in Miami last week. Attendees learned how technology distributors are rapidly transforming their businesses to provide innovative new products and services for the digital era -- from cloud to mobility to vertical market solutions. Other topics included how to reinvent your business for more sustainable growth and how to take advantage of new-generation solutions such as 3D printing, virtual reality, PC gaming and smart homes. In addition, the conference showcased how the digital transformation is setting up Latin America for long-term industry success, with best practice examples and ideas around disruptive technology opportunities.

On a global scale, the GTDC's Insights Into 2017 study captured the pulse of more than 70 technology channel executives worldwide. Responses showed a high degree of confidence in and support for distribution partnerships:

  • Nearly 62% expect indirect to outpace direct sales
  • 13% indicated they are already 100% indirect
  • Only 7% expect direct to grow more rapidly than indirect
  • 55% anticipate double-digit growth through distribution 
  • Cloud, Security and Data Center ranked as the Top 3 Solution categories
  • 78% expect distributors to develop new business around vertical market solutions

With regard to the LATAM in 2017 report, Curran noted that the GTDC findings correlate to economic trends and geopolitical challenges, including "the wall's" dampening effect on Mexico trade and potential global supply chain threats related to China and other countries heavily involved in the technology industry.

"We're not a lobbying group or other type of organization subject to any particular political motives," Curran pointed out, underscoring the GTDC's focus on helping optimize distribution partnerships and IT channel success worldwide. In a recent LinkedIn Pulse column entitled Global Supply Chain Shouldn't be Trumped by Politics, Curran shares his perspective on corresponding world events and encourages readers to share their views in an online survey.

"The global supply chain works," Curran says. "It has helped transform the world in a positive way, providing us with amazing applications and devices. So while uncertainty over potential policy changes dominates headlines and earnings calls these days, it's imperative that leaders on all sides recognize it needs to continue to operate in a smooth manner."

For more information on the GTDC, the organization's distribution industry database partners, education programs and market research, go to www.gtdc.org.

About The Global Technology Distribution Council
The Global Technology Distribution Council is the industry consortium representing the world's leading tech distributors. GTDC members drive more than $130 billion in annual worldwide sales of products, services and solutions through diverse business channels. GTDC conferences support the development and expansion of strategic supply-chain partnerships that continually address the fast-changing marketplace needs of vendors, end customers and distributors. GTDC members include AB S.A (WSE: ABPL), ABC Data (WSE: ABC), Almo, Arrow Electronics (NYSE: ARW), Avnet (NYSE: AVT), Computer Gross Italia (SES: MI), D&H Distributing, ELKO Group, Ingram Micro (NYSE: IM), Intcomex, Logicom (CSE: LOG), Pinnacle, SiS Technologies (HKSE: 0529), ScanSource (NASDAQ: SCSC), SYNNEX (NYSE: SNX), Tarsus, Tech Data (NASDAQ: TECD), TIM AG and Westcon-Comstor.

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