Electronics distributor finds the sweet spot
Many companies have struggled to get needed parts and equipment as the global supply chain remains tangled. But for Smith, an international electronic components distributor, those struggles have represented an opportunity for growth.
“When people hear that you’re in the computer chip business and they hear about the massive computer chip shortage, people’s initial response is, ‘Oh my God, this must be really affecting you guys terribly,” said Smith’s chief trading officer
Marc Barnhill. “But what they don’t realize is this is what we built the company to do. This is our time to shine.”
Smith’s ability to deliver for its customers helped make it No. 5 among the Houston Chronicle’s list of top private companies. Founded by brothers
Bob and Lee Ackerley in 1984, the company has grown into one of the largest electronics distributors in the world, with $3.4 billion in revenue in 2021.
The demand for electronics components boomed during the pandemic in part because work moved from the office to the homes of employees, who needed laptops and other equipment. The increased demand, along with COVIDrelated
factory shutdowns in countries such as China led to the shortages.
“This is when we help people more than ever,” Barnhill said. “And so, we’ve actually been in a big period of growth.”
Smith has also helped in detecting counterfeit computer chips that have flooded the market during the shortage. Smith operates three worldclass testing facilities — in Hong Kong, the Netherlands and Houston — where the products it markets undergo strict testing to ensure that they are of the highest quality.
Barnhill said he expects the company has posted record sales in nine of the last 14 months and expects revenues to grow around 20 percent or more to between $4 billion to $5 billion.
Barnhill pointed to another factor that he said is likely to contribute to the company’s future growth: the younger employees that Smith has recently hired, particularly in its sale force. Smith employs 700 people in 17 cities around the world, including about 300 in the Houston area.
Because of the number of deals that Smith transacts on a daily basis, younger workers are learning the business rapidly.
“It’s like they’re taking a crash course,” he said. “They’re getting up to speed so much faster, and that’s really enabling a lot of growth.”