Serving Customers in Many Industries Arrow UK's major customer segments are industrial, telecommunications, security systems, medical, aerospace, metering – such as devices used to measure electricity usage and cost – and automotive.  Stig Enslev, managing director, Arrow UK, says "Today, electronics constitute a much higher percentage of the cost and content of the automobile, compared to years ago.  Europe is in the forefront of developing electronics solutions for vehicle manufacturers, and Arrow is in the forefront of supporting companies that supply these electronics to the auto makers."  Innovative technology applications provide additional opportunities for Arrow UK and its customers and suppliers.  For example: High Brightness Light Emitting Diodes (LEDs). LEDs are used instead of light bulbs in many end products.  Imagine changing a light bulb in a traffic light during a London rush hour.  It's no easy task.  By contrast, LEDs can last for years – far longer than light bulbs.   Wireless Applications. Bluetooth wireless technology is being built into parking meters so that, instead of using coins, you can have the parking fee charged to your phone bill.  There's also a unique approach to improving security on commuter railways.  For example, railway cars are being equipped with infrared motion sensors that alert police, in real time, to the exact location of cars that are being vandalized.   Arrow UK is a leading player in helping develop and distribute components for these and other new applications.

The United Kingdom is a major player on the global economic stage and a significant force in the European electronic components industry. The UK is the fourth largest economy in the world and the second largest economy in the European Union.* It is also second only to Germany, among European countries, in electronics production.** Most of that production is in a variety of industrial sectors, and a significant portion of the components and sub-systems behind those electronic end products are provided by Arrow, the leading distributor in the UK.

Arrow UK traces its roots to the acquisition of such local enterprises as RR Electronics and Axiom in the late 1980s and early 1990s. The entity now known as Arrow UK was formed in 1998 with the merger of these and other acquisitions. Since 1998, however, Arrow UK has grown almost entirely organically, rather than through more acquisitions. Today, nearly 325 Arrow employees serve more than 5,000 original equipment and contract manufacturers from 10 locations throughout the UK.

The UK electronics market segment is sizeable. The total available market (TAM) for electronic components is approximately $5 billion, and the portion of that market segment that distribution addresses is approximately $1.5 billion. In the UK, the electronics business has changed considerably in recent years. The UK was one of the first market segments to see electronics manufacturing migrate to low cost regions such as Asia and Eastern Europe. As most large manufacturers moved business elsewhere, the UK economy has adapted.

Now, the UK electronics market segment thrives with a broad range of small and medium entrepreneurial companies, many of which are suppliers to the large manufacturers in a range of industries. Arrow offers these small and medium companies design and engineering and other services to help them compete locally and globally. Stig Enslev, managing director, Arrow UK, says, "We're very strong in demand creation. We help customers with the up-front design work. And if manufacturing is migrating elsewhere, we work with customers, suppliers and with our Arrow counterparts in the receiving region to ensure the best results for all."

Arrow UK also helps customers save money by lowering their total cost of ownership. "When you design and build a product, you also want the lowest possible risk, and we help them manage that risk," says Enslev. "We help customers select components with sufficient longevity so that their designs don't become obsolete because a component is no longer available. And we offer services to make sure they don’t carry too much inventory, but are never out of stock."

The key to Arrow UK's success and that of its customers and suppliers is a total solutions approach. Enslev says, "We're able to provide winning technology and support into a full solution that enables our customers to gain a real competitive advantage in terms of time to market, functionality, and cost."

*Source: U.S. Department of State
**Electronics.ca Publications, "Electronics Industry in the UK," January, 2006.