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Electronics Production | February 20, 2006

Tough competition for Danish distributors

Danish component distributors are in a tough situation.
The increasing outsourcing to low cost regions means less orders for the Danish distributors to fight for. The shrinking market is resulting in increased pricing pressure to the distributors and this will of course lead to narrowed margins to the components suppliers.

"There is no doubt about that the prices are squeezed and along with that also the margins so we had better be extremely cost effective", Arrow Denmark's manager Preben Risvang told ing.dk.

Future Electronics Michael Hansen agrees and said that the simple reason to the tougher climate for the distributors is the increased transfer of production to Eastern Europe and Asia.

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