Anixter Security Business Struggling

By John Honovich, Published May 05, 2014, 12:00am EDT (Info+)

Just a week after their key partner Axis turned in disappointing results, mega distributor Anixter's financials reveal significant struggles in their IP security business.

Over the past decade, Anixter has emerged as a major distributor in this industry, move ~$800 million of security products annually. However, now they have hit a wall.

In this note, we dig into the financials, management's explanation and the impact of this situation.

Anixter Financial Details

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Comments (8)

Undisclosed Manufacturer #1

05/05/14 01:08pm

"We run 2 brands in the U.S., Accu-Tech and Anixter...."

So pardon my ignorance, but does this mean Accu-Tech and Anixter are the same or part of the same company?

Undisclosed Integrator #2

In reply to Undisclosed Manufacturer #1 | 05/05/14 01:17pm
Accu-tech has always been a division of Anixter.

Undisclosed Manufacturer #1

In reply to Undisclosed Integrator #2 | 05/05/14 01:22pm

Thanks. I just never knew that, but very good to know.

Undisclosed Integrator #3

05/05/14 04:11pm

We have historically been with Anixter on the voice and data cabling side (inventory, terms, pricing are the advantage) however, on the security side, there isn't much additional value other than their inventory. We have moved most of our video purchasing to CSC because they provide more than just price quoting.

For example, I am not yet well versed on media conversion and the CSC rep assisted us in a somewhat complex 40 camera port project that included wireless backhaul, 13 varying types of fiber connections (multimode/singlemode/distances, etc.

On the flipside, CSC was known as 'Can't Ship Crap' but in the last 6 months have delivered on time with competitive pricing.

Undisclosed Manufacturer #4

05/06/14 01:46pm
Good! Maybe some of their more arrogant and inflated managers will go away now. In terms of security products...Anixter's sales team touts themselves as "demand creators." In all my years, all I have seem them do is demand project registrations when my products are specified. They are opportunistic, they cancel meetings at the last minute, they get heavy handed and pushy, bullying their vendors at times. And, they still sell direct to end-users, even though they continue to claim they don't, and is something integrators NEVER forgive. CSC and ScanSource have some go-getters on their teams. CSC grew their core product sales close to 50% last year. Although some of the salespeople here are at times unscrupulous and unethical (demanding discounts and threatening to flip projects, ignoring agreed upon follow up efforts, etc.). Many distributors are usually a necessary evil and bring very little dynamism into the channel.

Undisclosed Integrator #5

05/06/14 02:32pm

So now they WANT our business? (small/mid size integrators). Should be interesting to see how they'll beg forgiveness for taking our customers direct for years and now ask for our trust & business. Looks like Anixter is in for a healthy dose of Karma and its about time. I also didn't know Accu-tech was a division of Anixter and will now add them to my list of distributors NOT to buy from (the list now has two).

Undisclosed Manufacturer #6

08/11/14 01:12pm

I heard last night from an excellent source inside Tri-ed that Anixter just bought Tri-Ed.

So I guess they still had an interest in the security sphere!

Agree
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Informative
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Undisclosed Integrator #5

08/11/14 03:20pm

Geez o Pete! Another one added to the "do not buy" list. Anything with Anixters paws on it is likely to blatantly take end user business direct & stomp on the small to med size integrators at every turn - they can't be trusted.

Agree
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