Capacity is not the issue across Distribution in AU/NZ right now. Over-stocked positions are the real issue. Or put another way, lack of demand.
Each Australian Distributor is up to their eyeballs with inventory across most OEMs. Yes there are still some spot specialised shortages. But these are trivial in comparison. Inventory can age very quickly. Keep an eye on any DOI metrics.
At this moment in time; the market has surplus capacity, surplus inventory and declining demand across consumer, SMB/SME and Corporate.
Acquisition targets that move the needle are now also thin on the ground.
Having said all that, the DDR team are smart operators.
DDR Price at posting:
$8.18 Sentiment: None Disclosure: Not Held
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