Avnet is a company with more than 100 years of history. It was founded in New York City in 1921 by Charles Avnet, who began buying and selling surplus radio parts on Radio Row following the First World War. During the mid-twenties, as factory-made radios became common, Avnet shifted from retail to supplying parts to manufacturers and dealers. In the Second World War, the firm produced antennas for US armed forces, then returned to trading surplus electronic components after the war.
In 1955, Avnet incorporated formally, and by 1959, it is listed on the American Stock Exchange as Avnet Electronics Corp. The 1960s and 1970s brought significant growth, including expansion into semiconductor distribution. Notably, in 1969, Avnet became the first technology distributor to place an order with Intel, marking a critical step into the microprocessor industry. The company established microprocessor demonstration centres to support engineers and customers, further strengthening its position as a technology enabler. By 1979, Avnet achieved $1 billion in revenue, reflecting its successful scaling across multiple electronics markets.
Through the 1980s and 1990s, Avnet expanded internationally, opening offices across Europe and Asia and diversifying into multiple electronics and IT sectors. Strategic acquisitions strengthened its supply chain capabilities and product portfolio, enabling it to meet growing global demand. The company positioned itself as a central player in the technology supply chain, providing design, distribution, and logistics solutions to a growing network of manufacturers and technology partners. This period established Avnet’s global footprint and reputation for reliability and expertise.
In the 21st century, Avnet continues growth through acquisitions and innovation. The acquisition of Bell Microelectronics in 2010 expanded its global distribution reach, while the 2016 purchase of Premier Farnell enhanced its capabilities in design‑led solutions and Internet of Things hardware.
Today, Avnet is headquartered in Phoenix, Arizona, serving 143 countries worldwide. Its most profitable region is Europe, with Asia Pacific contributing over 40% of revenue, reflecting a truly globalised supply chain.
“The aspect I am most proud of is our culture and our people. Even though we operate in the technology supply chain and high tech industry, it is people who make things happen. Over the last 40 years, what we do has changed, but how we do it remains just as important,” notes Phil Gallagher, CEO, Avnet. “Beyond our people, we take pride in our global presence, capable of moving supply chains anywhere in the world. Our balance sheet is strong, we rank first or second with all top suppliers, and the overall diversity of our portfolio is significant.”
An expanding global footprint
Avnet’s evolution is closely tied to its expanding global footprint. In the 1980s, the company was predominantly in the US but, over time, it began to centralise operations, enabled by the rise of overnight shipping through UPS, DHL, and FedEx. This shift allowed Avnet to streamline inventory and respond faster to customer needs while maintaining operational efficiency.
The company also adapted to the rise of outsourced manufacturing. Previously, vertical OEMs handled design, manufacturing, and purchasing locally. Today, production often spans continents. To support this, Avnet expanded its global footprint largely through acquisitions. Over 100 acquisitions around the world helped Avnet establish a presence in Europe first, followed quickly by Asia Pacific.
“Many of our employees in Europe and Asia Pacific come from these acquisitions. For example, in Taiwan, we acquired a company with roughly $30 million in revenue, and today our operations there generate over $4 billion. These transformations illustrate the scale of the strategic moves we have made over the decades,” notes Gallagher.
Design and technology services have also become a core part of Avnet’s proposition. In the 1980s, the company primarily focused on sales, but by the 1990s, suppliers increasingly relied on Avnet as an extension of their teams. Today, Avnet can help with design with field application engineers and software engineers supporting product development. This design expertise now seamlessly integrates with manufacturing and supply chain fulfilment, allowing Avnet to provide end-to-end solutions for its customers worldwide.
A commitment to sustainability
Avnet has demonstrated a structured commitment to sustainability through its Corporate Social Responsibility (CSR) initiatives, integrating environmental, social, and governance (ESG) considerations into its operations in line with global standards and frameworks. Its approach spans environmental stewardship, social responsibility, governance, and maintaining a responsible value chain, reflecting a strategic focus on sustainable business practices.
“We are very committed to ESG and carbon reduction. Most of our efforts, though not all, are focused on our warehouse and logistics centres, where we carry out the majority of recycling, refurbishment, and related activities,” states Gallagher.
In terms of environmental stewardship, Avnet has achieved measurable progress in reducing its impact. Since 2019, it reduced Scope 1 and Scope 2 greenhouse gas emissions by 45%, with a target of cutting emissions by 50% from the 2019 baseline by 2025. The company has also exceeded its waste diversion targets, diverting over 83% of waste from landfills, surpassing its 2025 goal. To support energy transition, Avnet aims to source 30% of its energy from renewable resources by 2025.
Avnet maintains a responsible and ethical supply chain. Its supplier assessment processes has been strengthened, incorporating training, corrective actions, and feedback mechanisms. The company is also preparing for compliance with new EU responsible sourcing legislation, ensuring that ethical practices remain a priority throughout its value chain.
“ESG is one of the areas where we add value to the supply chain, and we know it will continue to be important to many of our stakeholders – from customers to suppliers to shareholders and our employees. We will continue to shape our plans to meet the needs of our business and the communities we support so we can best deliver on our promise to deliver superior service while staying grounded in our core values,” said Gallagher.
A one-stop shop
Avnet can serve as a one-stop shop for engineers and procurement teams, addressing different needs depending on the user. For design engineers, the appeal lies in the company’s online design services and its broad depth of technology. Depending on the component or widget an engineer is seeking, Avnet can provide multiple options without bias toward any particular technology. Increasingly, engineers are looking for complete ‘chip-down’ solutions rather than individual processors or controllers.
A key part of this capability is Avnet’s embedded board design business, Tria Technologies. Tria was officially launched in July 2024 to consolidate the company’s embedded compute design and manufacturing capabilities under a single brand. This strategic move aimed to provide original equipment manufacturers (OEMs) with comprehensive, modular embedded compute solutions, facilitating faster time-to-market and reduced product development risks.
The launch of Tria represents a significant step in Avnet’s commitment to providing end to-end solutions for embedded computing, combining its design and manufacturing expertise with a global presence to support OEMs in delivering innovative products to market.
On the procurement side, customers have slightly different requirements. They are often seeking a one stop shop that offers flexibility, adaptability, and effective inventory management. Avnet positions itself as highly capable in this area, able to adjust supply chains as needed. With geopolitical uncertainties prompting shifts in manufacturing locations, Avnet can move supply chains between countries with minimal disruption, a capability that reassures analysts and shareholders alike.
“Our vision is that when engineers start their day, their first stop is the Avnet site to discover the latest design solutions we are offering,” said Gallagher.
The evolving electronics landscape
The electronics industry has experienced significant shifts over the past decade, driven by rapid technological innovation, changing consumer behaviour, and evolving supply chains. For companies like Avnet, understanding these trends and positioning strategically is key to maintaining relevance and supporting the engineers and businesses that rely on their solutions.
“AI is a major focus right now, and it’s impossible to have a conversation without mentioning the hyperscalers and data centres,” notes Gallagher. “What is particularly exciting, however, is the potential this creates for Edge technology. It can accelerate IoT applications, which have been discussed for years, and bring them to the Edge in a meaningful way. This development is especially promising for us in industrial and medical applications.”
The electronics market has faced several challenging years, marked by supply chain disruptions, fluctuating demand, and geopolitical uncertainties but Gallagher has a positive outlook.
“The peaks we saw several years ago have now averaged out over the last few years, but overall, I feel really positive about where we are.
“If you look around your office, your home, or wherever you are right now, the technology that surrounds you is remarkable. Everything is filled with chips, connectors, capacitors, and resistors. Electronics are everywhere today, which wasn’t the case just 25 years ago.
“I’m very optimistic about the future, and even more so about Avnet’s position in the marketplace. The market is beginning to evolve, and we are well placed to benefit from that.”
This article originally appeared in the Sept/Oct issue of Procurement Pro.
