After the downturn hit distributors hard, Tech Data Canada reported 12 consecutive months of growth in 2004.
Celebrating its 30th year, president Rick Reid said the broadline distributor won’t see the double-digit growth it has experienced in the past, but is confident about its future. “”We’re
quite pleased to be growing in the positive single digits year over year,”” said Reid. “”We’re now growing on top of growth. That’s encouraging.””
Contributing factors include substantial growth in the peripherals market, particularly in LCD monitors, printers and power accessories, said Reid.
Reid added that product units continue to experience double-digit growth. “”We’re delivering and invoicing, packing and shipping far more quantities than we’ve ever done in the past.””
As Tech Data’s fourth quarter draws to a close, Reid said competition amongst distributors for those numbers can get pretty fierce and in some cases, irresponsible. He’s been vocal on this topic in the past.
In reference to a recent CDN article, Reid said he did not specifically name a distributor, admitting that no one, including Tech Data, is perfect. “”It’s difficult to suggest that I’m lily-white as well,”” he said. “”Distribution has historically been quite aggressive near their quarter ends.””
Reid added that Canadian resellers are in a unique position as each of the top three distributors’ quarter-ends is in a different month. For example, Synnex ends in November, Ingram Micro in December and Tech Data in January.
“”We both typically get more aggressive at those periods of time . . . to the point of irresponsible pricing taking place in the market today. Tech Data doesn’t feel as though we’re leaders in that exercise.””
Reid is confident with Jim Estill leading Synnex Canada. “”I’m very pleased with the behaviour I’ve seen to date in trying to add some stability to the pricing,”” he said.
