Engineering customers are driving a sales comeback at Digi-Key.
Following a torrid first half to the year Mark Larson, Digi-Key president and chief operating officer says September business was up on September last year - "an encouraging sign as September was the last good month of 2008."
"I estimate October is running about 12 per cent ahead of last year," he adds. Larson is more optimistic about prospects for the business. He is encouraged that even during the downturn Digi-Key gained market share, and crucially grew its customer base by eight to 10 per cent.
"These customers will be the foundation for growing future business," observes Larson. Engineers are now back buying from Digi-Key which indicates previously dormant projects are back on the agenda.
"The smaller OEMs and CEMs are also coming back to us," says Larson. "They've had trouble getting credit from the banks during the worst of economic downturn, but now banks are beginning to lend to them again and this is feeding through into the market."
Larson and Digi-Key have not been immune to cost cutting. Vacancies were left open and overtime dropped, and (gulp!) media marketing budgets were reduced.
Now the company is back making "a not insignificant number of hires," says Larson. Technical support has also been strengthened as the company adds more complex products in the wireless applications market.
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