SIC 5045 Computers and Computer Peripheral Equipment and Software
SIC 5045
This industry consists of establishments primarily engaged in the wholesale distribution of computers, computer peripheral equipment, and computer software. These establishments also sell related supplies, but establishments primarily engaged in wholesaling supplies are classified according to the individual product for example, computer paper in SIC 5112: Stationery and Office Supplies. Establishments primarily engaged in the wholesale distribution of modems and other electronic communications equipment are classified in SIC 5065: Electronic Parts and Equipment, Not Elsewhere Classified. Establishments primarily engaged in selling computers and computer peripheral equipment and software for other than business or professional use are classified in SIC 5734: Computer and Computer Software Stores.
421430
Computer and Computer Peripheral Equipment and Software Wholesalers
443120
Computer and Software Stores
The industry of computer and computer peripherals wholesale distribution was big business during the information technology (IT) boom of the late 1990s. However, the early 2000s brought a distinctive drop in the IT market, severe downward price pressures, and a generally sluggish economy. Distributors responded by cutting costs and slimming operations. By the mid-2000s, the economy was back on track and, although fierce competition continued to push prices down, distribution firms were once again growing.
Five distinct segments exist within the traditional electronics wholesale distribution arena: full-line distributors, technical and professional distributorships, regional and local distributorships, hardware distributors, and software distributors. The limited focus of the respective wholesaler segments distinguishes each from the mixed-sales distributor segments.
Full-line distributors predominate the computer wholesale industry with the broadest product and customer base. Sales in this segment represent 35 percent of the total traditional distribution market and 23 percent of U.S. wholesale computer-distribution network revenue.
Hardware distributors accounted for 22 percent of the nonsystems products. Regional and local distributors within the wholesale category account for 28 percent of the traditional distribution total and 18 percent of the U.S. wholesale computer distribution revenue. These distributors emphasize sales to independent dealers and fulfillment services.
Most of the wholesalers in this industry are in the technical distribution segment, which supplies goods to corporations. Typical product lines include disk drivers, terminals, computers, keyboards, printers, and other computer equipment. Up to 20 percent of sales in the industry are commonly filtered to corporations via systems integrators and value-added reseller (VAR) channels. This segment is characterized by an overriding value-added focus consisting of integration and networking services. High-end product mixes involving complex hardware and software configurations predominate in this market.
Software-only distributors accounted for a scant 4 percent of traditional distribution sales. Their primary focus was on the sale of educational and entertainment software to the mass market. They also played an important role in bringing new software products to the market.
A vital transformation occurred in the computers, computer peripheral equipment, and software industry during the late...
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