European IT market outstrips American counterpart

The European IT market outstripped its American counterpart in Q1 2017 according to the Global Technology Distribution Council (GTDC).

Nearly all European countries registered growth in sales through distribution up 3% from January to 6% in March 2017.

The period witnessed a turnaround in fortunes for countries that not so long ago posted declines. In March, Spain was up 13%, Portugal 19% France 4%, Belgium 12% Germany 7%, Norway 16% and the UK 12%.

"This shows that there is a real opportunity for growth in the industry," stated GTDC CEO Tim Curran.

"There is a bold new world in distribution, providing more than pick, pack and ship, and as a resource for vendors in their go-to-market strategies," added Curran.

"We come from an industry based on inventory, cost and fixed assets, but integration between distribution and vendors has produced an industry with lower inventory, but much higher fulfilment rates. That makes it more efficient and profitable."

"Distribution has widened as a model to touch every part of the supply chain. Leveraging distribution services means vendors can grow their profitability.

"Distribution can also help solution providers with skills shortages, particularly in the technology solutions around cloud. Vendors often say they need help to enable their partners to take advantage for the new ways of working.

"Distributors are doing this now, he concludes, but there is still more that they do that vendors are not yet making use of."

That said, Curran also noted that buying intentions among consumers showed some hesitation, especially in the UK where there are concerns over Brexit.

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