Current industry trends—what’s happening?
As a specialist distributor, we see material availability becoming increasingly important in sourcing electronic components. The days are gone where a distributor could use their inventory management software and scheduling systems to support JIT deliveries to customers. Now with raw material shortages and logistics and delivery company issues, if you are not stocking inventory for your customer your value proposition is greatly diminished.
How’s business?
Recovering, but bumpy for sure. We have been building customer backlog since Q4, 2020 but as usual now we face supply constraints, so that could temper growth mid-year.
What are the key challenges, and how are distributors addressing them?
Supply chain issues and international logistics are demanding us to put more inventory in place. We are addtionally challenged with price increases from our manufacturers right now, and we have to buy smart to avoid major price increases for our customers.
What new opportunities, markets, customer segments, etc. do you see emerging?
Medical is always going to be a steady growth market given the aging population, but we are encouraged by continued growth in traditional energy, industrial and military markets. Of course, value-added services—including being extensions of our customer’s and supplier’s factories—are driving ECCO to do more for our partners, allowing them to focus on their core strengths.
In fact, we recently added a full paint room and powder coating capability for a specific manufacturing operation that is now available to our other partners who want to take advantage of our capabilities and environmental certifications.
What’s the outlook for the next few months?
Pandemic or no pandemic, we are busy solving customer problems and battling above our weight class, as our competition is often larger—and fierce fighters, too! We also are adjusting to the new normal and embracing technology to better serve our customers with virtual calls, a new software suite, enhanced inventory visibility and a new building. Onward and upward!
