Demand for electronic components has skyrocketed during the pandemic, spelling good news for a Houston-based global distributor.
Houston-based Smith & Associates sources, tests and distributes electronic components to customers through the company's 16 offices in North America, Europe and Asia. Unlike companies operating in oil and gas, hospitality or other industries negatively impacted by the pandemic, disruptions to the global supply chain and increased demand for components have greatly benefitted Smith, said CFO Nick Bedford.
Bedford, who was hired as Smith's CFO late last year after spending most of his career in the energy sector, said the constant and ever-growing demand for electronic components fueled strong sales during the coronavirus pandemic. At this point in the pandemic, demand hasn't waned, Bedford said.
"Even though we're only a very small part of the chain, being a small part in an extremely big pie still makes Smith a very significant player," Bedford said.
After dealing with the demand shock early in the pandemic, suppliers are still working to ramp up supply to meet the strong demand, Bedford said. That means opportunity for Smith's services to connect suppliers that have too many components to the end customers who need them.
To meet the demand, Bedford said that Smith is hiring "across the board" for roles in Houston. On the financial side, Bedford needs more accountants with international tax and accounting experience. Smith also plans to build out its operations and trading teams, Bedford said.
"We're in growth mode, and it's very exciting times to be at Smith," Bedford said. "It's about how to grow and where to grow."
New manufacturing facilities and factories will eventually come online to help meet the strong demand for components. Further down the line, supply could actually outstrip demand. That shift would change the way Smith operates, Bedford said. As opposed to sending out parts as fast as possible, Smith can benefit customers by leaning into its inventory capabilities, stocking cheaper electronic parts for longer periods of time.
"We can't store it all in Houston if the customers are going to want it in Asia," Bedford said. "So how much storage do we need, how much operational capacity do we need, and where do we need it?"
Smith & Associates is headquartered at 5306 Hollister St. near the intersection of Highway 290 and Tidwell Road. The firm was founded in 1984. Smith has an operations warehouse for quality assurance and testing at 8820 Clay Road.
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