Arrow Electronics, Inc. (NYSE:ARW) was founded in 1935 and is headquartered in Centennial, Colorado, USA, with 18,800 full-time employees. It is a company that provides electronic components and enterprise computing solutions for industrial and commercial users. A global supplier of, services and solutions.
Arrow Electronics (ARW):
Arrow Electronics is one of the world’s leading component distributors, providing component products, services and solutions. Arrow Electronics, Inc. serves industrial and commercial users of electronic components and enterprise computing solutions (ECS).
Arrow Electronics provides a series of product portfolios for suppliers of electronic components and enterprise computing solutions, plus a series of services, solutions and tools for industrial and commercial customers.
Arrow Electronics is divided into 2 departments to operate:
1. Global Components-Mainly provide online catalogs of electronic components, cloud-based design tools, inventory of directly scrapped products from factories, and waste disposal solutions for technical asset replacement, resale and recycling.
2. Global Enterprise Computing Solutions-provides enterprise and mid-level computing products, services and solutions. Customers include distribution alliances in the Americas, Europe, the Middle East, Africa and the Asia-Pacific region.
Arrow Electronics, ranked in the top 150 on the Fortune List and with 18,500 employees worldwide, provides technology solutions for a wide range of markets including telecommunications, information systems, transportation, medical, industrial and consumer electronics. Arrow Electronics provides professional services and expertise throughout the product life cycle. Arrow does this by providing customers with the right technology in the right place, at the right time, and at the right price. Arrow Electronics realizes outstanding value for customers and suppliers-not only the world’s best technology companies-and brings them together with the company’s industry-leading services.
In fiscal year 2015, Arrow Electronics had revenues of US$23 billion.
Arrow Electronics (ARW) history:
- Arrow Electronics was founded in 1935 when a retail store called “Arrow Radio” opened on Cortland Street in the heart of “Radio Row” in Lower Manhattan, the cradle of the electronic component distribution industry. Arrow Radio was founded by Maurice (“Murray”) Goldberg who sold second-hand radios and radio parts to retail customers. Other industry leaders nearby include Charles Avnet and Seymour Schweber.
- Before the 1940s, Arrow mainly sold brand new radios made by RCA, GE, and Philco – as well as other home entertainment products and leftover radio parts sold directly in the parts department behind the store. Soon, in order to sell new parts, the store began to seek a franchise; the first manufacturers to obtain the Arrow franchise included RCA and Cornell Dubilier. This shop was incorporated in 1946 as a company named Arrow Electronics, Inc.
- In the early 1950s, Arrow set up more franchise stores and a small field sales organization, and began selling electronic parts to customers in the industry. The second store/sales department opened in Mignola, Long Island in 1956. By 1961, before the company’s first stock offering and listing on the American Stock Exchange, total sales amounted to 4 million U.S. dollars, accounting for more than half of the entire industry’s sales. The rest came from traditional retail. In the 1960s, Arrow moved its headquarters to Farmingdale, Long Island, and opened more branches in Norwalk, Connecticut and Totowa, New Jersey.
- In 1968, B. Duke Glenn, Jr., Roger E. Green and John C. Waddell, three students who just graduated from Harvard Business School, co-founded Glenn, Green & Waddell, and led a private investor team to acquire Controlling interest in Arrow. The new leadership team chaired by Duke Glenn foresaw a grant that could transform the electronic component distribution industry. The company’s 1969 annual report describes its strategic vision:
- The electronic component distribution industry has huge opportunities for us, mainly because of the fragmented competitive environment. The sales of about 1,500 small distributors control about half of the market share. …It is very likely that the future market will increasingly belong to the few large distribution companies with financial resources, professional management and modern control systems. These factors are all necessary to fully adapt to the current consolidation phase of the industry.
- After entering the 1970s, Arrow’s annual sales volume reached 9 million U.S. dollars, ranking 12 among American electronic component distributors. Among them, Avnet ranked first in size 8 times that of Arrow.
- In the 10 years of the 1970s, by winning several key semiconductor franchises (led by Texas Instruments in 1970) and setting up sales offices in more than 20 cities across the United States, Arrow’s rankings rose strongly, and electronics The average annual growth rate of component distribution is 34%. At the end of the 1970s, Arrow’s electronic component sales had climbed to 177 million U.S. dollars, establishing its position as the second largest electronic component distributor in the country.
- Arrow implemented an aggressive growth strategy and obtained the free integration of working capital needed to occupy the industry’s advantage, because the company’s reliance on publicly offered bonds temporarily caused abnormally high debt levels. By acquiring a lucrative company in 1969, Schuylkill Metals Corporation, a lead recycling company, gained more capital for growth. (The company was sold in 1987 after completing its mission.)
- In the 1970s, Arrow also ceased its own retail business and pioneered the use of the first comprehensive online, real-time computer system in the electronic component distribution industry. In 1979, Arrow went public on the New York Stock Exchange and also acquired Cramer Electronics (which was once the second largest distributor in the United States). This was Arrow’s first major industry acquisition and opened the way to occupy most of the dominant market in the western United States.
- In 1980, a fire in the hotel conference center claimed the lives of 13 members of Arrow’s senior management, including Glenn and Green. Waddell took the lead in 1982 and recruited Stephen P. Kaufman, a former partner of McKinsey & Company, to serve as the president of Arrow’s electronic components distribution department. Kaufman took over as Waddell’s CEO in 1986 and became chairman of the board in 1994.
- During his nearly 20 years in office, Kaufman has served as Arrow’s bold integration of the American electronic component distribution industry and the first to expand the European and Asia-Pacific markets. Under Kaufman’s leadership, Arrow has reshaped the global electronic component distribution map and completed more than 50 acquisitions of electronic component distributors, including such as Ducommun (Kierulff), Lex (Schweber), Zeus, Anthem, Bell and Wyle (all in the United States), Spoerle (Italy), Silverstar (Italy) and CAL (Hong Kong and China) were once familiar names. Kaufman also led the company into the domestic distribution of commercial computer products, which was initially achieved through the acquisition of Gates/FA Distributing. In the 21st century, Arrow’s global turnover has reached 9 billion US dollars-of which 6 billion comes from electronic components and 3 billion comes from computer products.
- Kaufman stepped down as CEO in 2000 and retired as chairman in 2002, and was succeeded by Daniel W. Duval, who has 15 years of board veteran experience. In 2003, William E. Mitchell, the former President of Solectron Corporation’s Global Services Division, joined Arrow as CEO and became Chairman of the Board in 2006. During the 6 years Mitchell was at the helm of Arrow, the company’s sales climbed to $17 billion, while at the same time increasing shareholder return on investment, setting a record for operating efficiency and completing 17 acquisitions.
- Michael J. Long took over as CEO of Mitchell in 2009 and became chairman of the board in 2010. As an experienced Arrow executive, Long joined the company through the Lex acquisition in 1991 and is currently serving in many senior leadership positions with increasing powers before serving as CEO. During Long’s tenure, Arrow completed 35 strategic acquisitions, further expanded its global components and computer systems business, led the company into the field of integrated communications, and incorporated reverse logistics and end-of-life management into Arrow’s product life. Periodic service.
- In 2014, Arrow ranked 138th on the Fortune 500 (with 2013 sales of $21.4 billion).
- In fiscal year 2015, Arrow Electronics had revenue of 23 billion U.S. dollars.