ADC gears up distributors for stimulus awards

At least one manufacturer of telecom equipment that is likely to be used in broadband stimulus projects is gearing up its supply channels. ADC today said it would work with its distributors to increase their inventory levels of products proposed in numerous stimulus applications, including fiber and wireless equipment.

ADC reviewed every application for stimulus funding filed to date, ADC Director of Business Development Mike Hanahoe told Connected Planet. “Typically they did not identify the manufacturer, but they did identify the network architecture,” he said.

Based on that information and discussions with its distributors, ADC estimated the inventory levels it would need. ADC primarily sells through distributors because those distributors help in selling and supporting products and because this approach enables customers to get equipment more quickly and to deal with a single supplier for multiple equipment lines, Hanahoe said.

The Rural Utilities Service and National Telecommunication and Information Administration began awarding stimulus funds in December.

Since then some applications have been rejected while others are still pending.

ADC has been in discussions with some of the companies that have been awarded stimulus funds and has some purchase agreements pending, Hanahoe said. “We feel very good about our ability to win significant business in this market,” he said.

ADC also has made preparations to “increase or reallocate capacity” on the manufacturing side, said Hanahoe. “We’ve done a lot to prepare for the spike in demand that may occur,” he said. “We’re leveraging our production capabilities and value chain partners in driving solutions and stocking appropriate inventory levels,” he said.

Among the RUS-listed ADC products part of the stimulus stocking program include its Next-Generation Frames, OmniReachFiber Access Terminals, Passive Optical Splitter Modules, High-density Fiber Frames, Fiber Distribution Hubs, as well as OmniReach Multiport Service Terminals and fiber hardened drop cables.

Among the distributors ADC is working with include Graybar, KGP Logistics, Power & Tel and Walker and Associates.