Why does Digi-Key choose to focus on organic growth? And you’ve done it without acquisition, which is uncommon in electronics distribution. That’s probably the strongest defense you can have.ĮDN: Digi-Key’s enjoyed a very healthy 22% compound annual growth rate over the last 20 years.

Everything we sell comes directly from the manufacturer. We don’t buy any product from brokers or EMS guys that overbought. Larson: All we do is buy direct from the manufacturer. It will be interesting to see how that plays out because theoretically I think that’s much more difficult for an independent distributor than a franchise distributor, but there’s still more diligence required in processing returns.ĮDN: What does Digi-Key, specifically, do to thwart counterfeiting? Certainly another issue, more internationally, is counterfeiting. It’s not that that puts incredible immediate pressure, but it makes it difficult to plan with great confidence. Larson: Clearly there is a lot of uncertainty in the economic conditions and the market is lethargic. What follows are excerpts of that conversation.ĮDN: What’s the biggest challenge to North American-based distributors right now?

Electronic Business recently spoke with Digi-Key Corp President Mark Larson about electronics distribution, growth through Web 2.0, and creating a global business from a small-town headquarters in Minnesota.