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Resideo offers smart home products like Honeywell Home and Buoy

All About ADI Global Distribution

The global distribution segment accounts for half of Resideo’s revenue and provides an important lens into the industry

Resideo’s ADI Global Distribution business is the number one global wholesale distributor of security and low-voltage products. Think: video surveillance, intrusion and access control, and fire and life safety products. Through its global distribution segment, Resideo serves a $20 billion low-voltage electronics and security distribution market. This segment is growing at roughly 3% to 4% annually and ADI consistently performs above market.

ADI is an important channel to market for both products and third-party solutions. Professional contractors can get everything they need for a job with one stop at one of ADI’s 200+ stocking locations globally. ADI gives Resideo day-to-day interaction with the pro channel, providing a unique lens into needs and trends in the industry and a crucial connection to the end-user.

In the first quarter, Resideo saw continued growth in its global distribution, with the business growing 6% on a constant currency basis. Growth was particularly solid in the Americas and EMEA, and within the security life safety businesses. EBITDA for the segment grew $5 million to $46 million for the first quarter.

Frequently Asked Questions:

Q: Could you go into some of the other services and value-added functions that the distribution business provides? What are you doing in distribution to create a higher value proposition for that division?

A: We are more optimistic and positive about the distribution business than ever before. It provides a clear window into exactly what's happening out there with consumers, and how professionals are positioning themselves to really drive value for their customers.

Training is a key differentiator at our more than 200 ADI facilities, where we’re able to train the professional channel on how to install our new products and technologies quicker, how to be more efficient, and how to work applications for the homeowner.

Q: How much product does Resideo sell through ADI?

A: Resideo sells about 15% of its own products through ADI, and our teams have to compete to get shelf space there as well, just like everybody else. As our number one touch point to the customer, we’re excited about our ADI business, its growth and the value it provides to the professional contractor channel.

Q: Could you talk about ADI’s key growth drivers?

A: Category expansion into new and adjacent spaces represents a considerable amount of growth every year. Private label is another very successful area for us through our W Box Technologies in-house brand. The products do not directly compete with any of our current suppliers, and we are seeing good growth every year with them. In addition, our core growth principles remain, which include: a 10% year-over-year growth culture; focus on new product introductions from our supplier partners; and new suppliers to fill gaps in our offerings, such as body cameras and smart home products. In addition, continued expansion of our geographic footprint and a digital transformation objective will accelerate growth and customer acquisition, as well as enhance the customer experience, in the very near future and beyond.

Learn More

Resideo's Rob Aarnes, president of ADI Global Distribution, recently sat down with Security Systems News to discuss his perspective on five winning ways to achieve meaningful leadership. Watch the video.

Bosch public safety devices are now available at ADI in UK. Read more.