Anixter Security Business Struggling

Author: John Honovich, Published on May 05, 2014

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

**** * **** ***** ***** *** ******* **** ****** ** disappointing *******, **** *********** *******'* ********** ****** *********** ********* ** their ** ******** ********.

**** *** **** ******, ******* *** ******* ** * ***** distributor ** **** ********, **** ~$*** ******* ** ******** ******** annually. *******, *** **** **** *** * ****.

** **** ****, ** *** **** *** **********, **********'* *********** and *** ****** ** **** *********.

Anixter ********* *******

[***************]

******* ******* ********* ~$* ******* ****** *******. *******, ******** ** only *** ******* ** *** ***** ** ******* (*** - Enterprise ******* *** ********).

******** ** **** ******* *** ~$*** ******* ***, '********* ********' year **** ****. ** ***** *****, ********* ******* ********'* ******** overall ** ****.

**** ********* * ******** ***** *** *******'* ******** ********. **** in****, ****** *** ***** ** **% *** ******, ** *********** ** ~**%. ***, ***** ** *********** ** ******.

Anixter ********** ******** ***** ********

******* ** ****** **** ***** *********, ** **** ******* *** repeatedly********* ** ***** ** **** ******** ****, ******:

  • "**'** *** *** ********** ******** ** ****** ***********." *********, **** are ************ ****** ** *** / *** / ****** ***** security ******** **********.
  • "** **** ** ********* *******."
  • "**'** ******* *** ***-******. .... *** **'** **** ****** *********** ** ****** that ***-******."
  • "******** ****** ** *** **********, *** ** *** *** ***** **** ** ***** **** the ***** *** ***-**** **** ** **********, ******** **********."
  • "** *** * ****** ** *** *.*.,****-******* *******. *** ****-**** ******* **** **** ** *** ********** market *** *** ***** *** ***-**** ********** ******. *** ***** security ***** *** ******** ***** ********** **** ** **** ******."

****** ************

******* ******* ** ** ****** * ****** ** ********** ******:

  • *** ********** ****** ** ** ****** ** ********** ** ** **** to **. *** ****** *** **** ********** *** ***** ** transition ** ** *** *** **** ** ** ******* ****, it ** ****** ** *** *** **** ****** ** ***** past (*.*., **** ** **** **** ** / *** ***?)
  • **** *** * *********** **** ** ***** ********* ****** ** security *** ***, **** ** ******* (******* ******, ******* ****). ******* ***********, **** ** ********* ** *** ********** ******, the **** ***** ****** ** **** ***********.
  • ******* *** ***** **** ** *** ***** *** ***-**** ************* * *** ** ***** *** **** '***********' *** ******* / ****** *****. ** ******* ****** ***** / ***** ** deal **** ****? *** ** **** ****** **** ** ***** those *****, ** **** **** ** ****** **** ** ** ADI **** ******* **** ** **** ******? (*** *** ** **** **** ******)

******* ***** ********* *** *********. *** ********, *** ***** ****, gives ** *** ***** ** ***** ********** ********* ***** *** extensive ********* ********, **** ** ***** ******* **** *********** *******.

***, ***** *******'* ***** ** ********* ****, ** ****** *** results **** *******. *******, *** ********** ****** ******** **** ******* 10 - **% ****** **** ************ ** * ******* *** Anixter ** ******* ** ********.

Comments (8)

"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?

Accu-tech has always been a division of Anixter.

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

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.

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.

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).

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!

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.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Most Recent Industry Reports

Magos Radar Company Profile on Nov 12, 2018
Magos America General Manager Yaron Zussman admits when he first came across Magos, he asked himself: "What's innovative about radar?" Be that as...
Genetec Privacy Protector Tested on Nov 12, 2018
Genetec has built Kiwi Security's Privacy Protector into Security Center, an analytic which anonymizes individuals in cameras' fields of view...
Chinese Government Increases Hikvision Ownership on Nov 12, 2018
The Chinese government - Hikvision's controlling shareholder - is increasing its ownership of the video surveillance giant amid sharp stock price...
Axis: "No One Wants To Buy A Camera" on Nov 09, 2018
Axis has, in its own description, made a bold declaration: The industry is changing so rapidly that the following statement might seem bold but...
Video Surveillance Hard Drive Size Statistics 2018 on Nov 08, 2018
What is the most common hard drive size for video surveillance? 150+ integrators answered: What size hard drive do you most commonly use? What...
Axis 2N Intercom Tested on Nov 08, 2018
Axis expanded its video intercom business buying Czech-based 2N in 2016. Despite competing against owner Axis' intercoms, 2N recently registered as...
Haven Targets School Security with Lockdown Lineup on Nov 08, 2018
Haven, a US startup founded in 2014 as a residential-focused company, has now raised funding and is offering a lineup of commercial grade locks for...
Ubiquiti Protect Video Surveillance Profile on Nov 07, 2018
Ubiquiti has now been in the video surveillance market for 7 years (see our first coverage back in 2011). In that time, the company's revenue has...
Kogniz Silicon Valley AI Startup Profile on Nov 07, 2018
Kogniz is a Silicon Valley company that aims to bring AI analytics to security and surveillance, centering on their own smart cameras: We spoke...
Dahua Dual Imager Dome Camera Tested (HDBW4231FN-E2-M) on Nov 07, 2018
Dahua has introduced a dual-imager dome model, the HDBW4231FN-E2-M, with two independently positionable sensors including integrated IR, not found...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact