MDM-Baird 4Q11 Survey: Things Are Looking Up - Modern Distribution Management

MDM-Baird 4Q11 Survey: Things Are Looking Up

Latest results show renewed sense of optimism from distributors and manufacturers for 2012.
lindsay-white

Results from the fourth quarter 2011 MDM-Baird survey, benchmarking revenues, pricing and gross margins across sectors, were a breath of fresh air. Gone was the cautious optimism of recent quarters. Many of the respondents were outwardly optimistic, with expectations that 2012 will be a year of growth for them.

We Deliver Distribution News to Your Inbox
Sign up below to receive MDM Update, your free weekly distribution news update by email.

\"\"

The results – compiled from more than 600 responses from distributors and manufacturers – showed fourth quarter 2011 overall was up on average 7.4 percent.

The greatest growth came from Pipes, Valves and Fittings distributors and manufacturers in the survey, which reported sales rose on average 14.2 percent in the fourth quarter. One segment saw revenues decline in the final quarter of the year – Janitorial/Sanitation, which saw a decrease of 1 percent. Other companies that saw flat or low growth were all serving construction markets.

Respondents on average expect growth to continue in the first quarter 2012, despite tougher comparisons, with a 4.5 percent increase. Revenues are expected to grow 4.6 percent overall in 2012.

Pricing was up 1.3 percent in the fourth quarter 2011 on average, and gross margins fell on average 40 basis points.

Inventory levels were consistent with expectations for moderate growth – in the first quarter 2012, about a third of respondents expect to increase inventories, with just 16 percent expecting to decrease.

Read the full results of the latest joint survey with Baird in the latest issue of MDM, out today.

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.

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!

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.