Product and Service

Companies included in direct marketer &reseller–technology solution/products sector in information processing equipment industry primarily provide technology solutions and industrial products, including hardware, software, and service, directly to customers including companies, government, and education institutes.

 

Demand for Product and Service

As indicated by the typical company data, the demand for technology and industrial products has been growing fast in the past two years probably as a result of increased profitability of their business customers.

The Sector

Sector’s Current, Trend, Causes behind trend, and Future

Current and Trend
  1. It seems that the demand for technology products and service, from customers of business of companies in this sector, has been strong and growing fast in the past two years.
  2. It seems that the demand for industrial products and service provided by companies in this sector has been strong and growing fast in the past two years.
  3. It seems that the demand for technology solutions and products, from public sector customers, has been seen declining in US market.
  4. Companies have been seen improved margin as demand increased.
Causes behind the trend
  1. Generally, the growth in this industry in the past two years has been driven by recovery of macro-economy and increasing profitability of their business customers.
Industry Future
  1. Companies may find that demand will continue to be strong from their business customers as economy’s recovery accelerates and companies increase investment in technology to improve efficiency.

Numbers

General Financial Performance of Companies In the Sector

It seems that the demand for technology products and service and industrial products and service provided by companies in this sector has been strong and growing fast in the past two years thanks to strong demand from for profit business customers in North America and Europe. However, the demand from public sector customers has been seen declining in US market.
Shift of sales/mix to higher products and service and leverage of fast increased revenue improved companies’ margin. The typical gross margin is about 15% and with a SG&A as percentage of sales of 14% the operating margin is about 1% in 2018. The typical enterprise price/EBI ratio is 46.

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