This article originally appeared in the May/June issue of Procurement Pro.
Key facts:
- Headquarters: Odessa, Florida
- Facility size: 20,000 sq. ft
- Locations: Florida, USA; Shenzhen, China; Bangalore, India
- Number of employees: 60 • $60 million revenue in 2024
- Estimated $75 million in 2025
The mission
“My goal has been to keep things simple. We want to be a good distribution partner. It doesn’t matter whether we’re independent or franchised. In my world, we’re looking for customers who are actively seeking service partners. One of the key principles we all try to follow is flexibility in everything we do. If I had to summarise it in a few words: customer service and flexibility are at the heart of our core values, and we work to deliver on those every day,” John Magee, President, Sales and Operations, Freedom USA.
Freedom USA manages the entire component lifecycle to support production requirements and address inventory and supply chain challenges. Its global presence extends across the Americas, Europe, and Asia.
With a line card focused on industry standard commodities including semiconductors, connectors, passives, and electromechanical products, Freedom supports Original Equipment Manufacturers and Electronics Manufacturing Services Providers (EMS) with customer centric supply chain solutions.
The company stocks and manages millions of electronic components from thousands of manufacturers in its ANSI/ESD S20.20 certified warehouse.
Over 25 years in business
Freedom was incorporated in 1999, so 2024 marked its 25th year in business.
“For me, one of the positives is that we’ve become an established company. A footprint of 25-plus years speaks for itself, and we’ve continued to grow our brand in a positive way,” notes John Magee, President, Sales and Operations, Freedom USA.
Today, the company operates from four global locations: two in Florida, one in Shenzhen, China, and another in Bangalore, India. The primary market focus remains North America – the US, Canada, and Latin America, which, for the company, includes South America.
“90% of our global revenue comes from the Americas today and we continue to scale our business to service more customers. Latin America is driving new opportunity as we have added more bilingual account managers to our team. We have seen increased sales into Europe, and a growing presence in Asia,” said Magee.
The service toolbox
Freedom operates as a broadbased business, with several well-penetrated market sectors. The medical sector represents a significant area for the company, while general industrial applications also perform well.
Various forms of communications, including telecom and IoT-related applications, form an important part of the business. Aerospace and defence currently account for less than 10% of Freedom’s activity, though the company is working to steadily expand its presence in this sector. It has secured relevant certifications to support this, including DLA certification from the US government, allowing it to sell directly to government agencies. This certification holds value with larger contractors, as it simplifies the supplier approval process.
“We’re a company that believes in investing. We’re privately held, so we take a careful, deliberate approach to where we put our inventory dollars. Rather than investing in speculative stock and hoping companies will come along and buy it, we invest in the customers we’ve built programmes or services around.
“In many cases, that means building up a large inventory profile based on programmes we already have in place. When we engage with a customer, we like to hold inventory and use that as part of our service toolbox. It allows us to do a couple of important things: first, it helps stabilise the price, because once we own the stock, the cost is what the cost is. Second, it gives us flexibility when customers demand changes.
“For us, inventory isn’t just about stock on shelves – it’s a tool we use to strengthen our service offering,” said Magee.
Growth in the pipeline
The company’s website is currently undergoing a transition. The initial, older version was primarily informational, offering little beyond basic details about the business. It lacked the capability to integrate e-commerce and other advanced features. However, the new platform is built with that potential in mind, and the company plans to add e-commerce functionality in the coming year.
The company does have some franchise lines, which fit well with the e-commerce model. These lines provide more data that can be represented to customers, and there are plans to introduce tools that will enhance this experience. Eventually, this will allow customers to log in, view their open orders, and access other useful features.
The company currently employs 60 people, with around half of that number dedicated to the sales team. Over the past couple of years, the company has been steadily hiring, focusing on expanding the sales team. As the sales team grows, there will be opportunities to bring in additional procurement staff as well. Along with this expansion, the warehouse operation will also need to scale. As box counts increase, more staff will be required to inspect, process, and manage the additional volume.
The company is clearly on a growth trajectory and has even made significant investments in its infrastructure. One of the key moves was acquiring an additional facility in Florida, which was converted entirely into a warehouse. After purchasing the building, it was modified to create what is now considered a world-class distribution centre.
Once the warehouse was established, the corporate headquarters underwent renovations to become a dedicated space for sales and operations. “The changes have had a positive impact on the team, creating a brighter, more cheerful atmosphere,” notes Magee. “The company values an open-concept environment, so the sales floor, which spans about 15,000 square feet, is free from cubicles. There are no private offices either, as the leadership team, including the CEO, believes in being accessible and approachable.”
Expanding into the European Market
The company is also placing more attention on expanding into the European market. This would start with hiring staff who are focused on that region, with the long-term goal of establishing a small office in Europe to create a physical presence.
Entering a new market aggressively always presents challenges, especially when it comes to establishing a more direct presence. While the company has been selling into Europe for 20 years, it currently lacks personnel on the continent. To overcome this challenge, the company aims to hire the right people, whether they are experienced professionals or newer talent to engage European customers more effectively.
Tariff insights
Speaking of challenges, the recent tariffs announcements by President Donald Trump have been a real challenge for Freedom and its customers.
“I think the biggest issue in the short term is, firstly, the size of the tariffs for certain countries, which is definitely going to be a challenge. Then, right alongside that, the fact that it’s changing almost daily at the moment.
“The tough truth is, no matter who you are, if you’re delivering parts into the US for US customers, everyone’s dealing with the same issue. So, in a way, there’s a level playing field from that perspective,” notes Magee.
From the customer’s perspective, there is considerable frustration. Many are spending extensive internal resources and time trying to determine how to handle the additional costs, whether to pass them along to their own customers, and how to manage the financial implications. This situation is also slowing procurement activity, as organisations find themselves caught up in meetings about tariff management and customer communications.
“My advice to customers would be to reach out and have that conversation with us early. In the short term, there may be some opportunities. Because we’re open to holding inventory, we could bring it in now at a relatively low tariff rate compared to what it might be in three or four months. We also have some programmes for customers outside the US, where we can hold inventory in other regions – like Canada – to support them.
“But ultimately, if the stock has to come into the US, the best thing anyone can do is be open, communicate honestly, and make sure their customers understands exactly where things stand.”
The boutique distributor
As a relatively small player in the market, the company considers itself a boutique distributor, offering a more personalised service compared to larger competitors. Everything associated with being a boutique distributor is reflected in the company’s approach – focusing on customer service and maintaining a human element in its sales activities.
“I think we offer a great distribution experience. Our independent nature, even though we have some franchise lines, gives us the flexibility to tackle a wide range of challenges. We’re not just focused on one commodity, which allows us to help in a variety of different ways.
“Ultimately, if a customer comes to us and says, ‘Here’s what I’m struggling with, and I need a solution’, we don’t focus as much on the part number or commodity. What matters most to us is understanding what they need and finding the best solution for them,” says Magee.
