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IT Distribution CEOs Say Sustainable Economic Recovery Not on the Way

September 17, 2012, 08:11 AM
Filed Under: Technology reported the CEOs of five of the largest IT distributors in the world aren't holding up much hope for a quick or sustainable economic recovery.

According to the report, revenue growth for their respective companies will be at best a small single-digit increase -- at best -- with some geographies lucky to fare that well, the executives said during a panel at the Global Technology Distribution Council's Vendor Summitthis week in Newport Beach, Calif.

Alain Monie, CEO of Ingram Micro noted that increased uncertainty of gross domestic product combined with an acceleration in the delivery and methodology of IT to the cloud has rendered any economic crystal ball even murkier.It's also become more difficult to categorize economic growth by continent now because of the fluctuation on a country-by-country and region-by-region basis, Monie said.  "That's uncertainty we all need to deal with," Monie said.

Per the report, Mike Long, CEO of Arrow Electronics says the U.S. economy had held up fairly well compared to other geographies, but domestic sales "started to slow significantly" after the first quarter. Like Hamada, he doesn't see a sustained recovery coming any time soon. "We're probably in this for a little while," he said. Long added that any potential stimulus packages proposed by the government won't help beyond an initial boost. Long compared stimulus plans to end-of-quarter vendor promotion plans. "Everybody buys for a couple days but then it slows down again," he said.

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