Recommended Reading: Downward Trend Continues for Distributors - Modern Distribution Management

Recommended Reading: Downward Trend Continues for Distributors

Eight sectors reported negative growth in the 2Q MDM-Baird Distribution Survey.
brooke-84x84

The second quarter marked the third consecutive quarter of negative growth for distributors – continuing the downward trend that began last year, according to Economy Stuck on the Bottom in 2Q, which includes the results of the most recent MDM-Baird Distribution Survey.

Excluding acquisitions, distributors averaged -0.2 percent revenue growth in the second quarter – far from the 1.5 percent they projected for the quarter in the 1Q survey.

In the industrial supply category, companies finished with an average of -2.1 percent revenue growth in the quarter. Fasteners was the only sector with positive growth.

“We continue to hear from analysts and forecasters that the second half of the year will be better than the first half, yet we see nothing in the market that would indicate such an improvement,” said one survey respondent.

Among the 20 product sectors included in this quarter's report, respondents in the building products and facilities maintenance category again outperformed the rest of the industry, and pool & spa posted the strongest revenue growth (7.9 percent).

Eight sectors saw negative revenue growth in the second quarter (up from seven in 1Q): waterworks (-0.1 percent), safety (-0.6 percent), MRO – manufacturing (-1.7 percent), welding hardgoods (-2.5 percent), hoses & accessories (-2.8 percent), mechanical/power transmission (-3.4 percent), metalworking/cutting tools (-5 percent) and industrial/energy PVF (-5.6 percent).

After another period failed to meet expectations, survey respondents now project 1.9 percent revenue growth in the third quarter and 1.3 percent revenue growth for 2016 – the latter of which has been revised downward from a previous expectation of 2.2 percent revenue growth for the year.

Read more about distributors' second-quarter revenues in Economy Stuck on the Bottom in 2Q.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!