ITAD Business Closure Opens Golden Opportunities for Other E-Recylers

SEATTLE (Scrap Monster): The recent decision by Colorado-based Arrow Electronics Inc. to quit information technology and asset disposition (ITAD) business has opened up immense opportunities for competitors. The company had announced its decision to shut down the operations of ITAD division on July 15, as part of efforts to preserve its profits.

On the very next day of the announcement, ERI extended an open invitation to former customers of Arrow Electronics to use the company for ITAD services. Meantime, CyberCrunch announced its decision to offer discount of 25% to Arrow customers for their existing contracts through the end of the current year, for all renewed contracts. Other major companies to express interest in welcoming Arrow customers included Dynamic Lifecycle Innovations, Ingram Micro, Metech Recycling, CompuCycle and Tri-Star Recycling.

ALSO READ: ERI Portrays Massive Shifts in Electronics Recycling and ITAD Industry

Commenting on the closure, David Daoud, principal analyst at Compliance Standards noted that the closure was necessary and overdue. Though the company achieved big expansion through key acquisitions over the past decade or so, it met with difficulties in integrating those companies under a corporate model. Incidentally, Arrow’s market penetration had surged higher significantly from nearly 10% in 2015 to approximately 23% in 2019.

Further, Daoud stated that there are more companies who have followed similar acquisition plans, but are finding it difficult to fit the ITAD business with their core business, which clearly indicates that more closures are likely to follow.

This story originally appeared in Resource Recycling