NetPlus Outlook: 3 in 4 Members Expect 2024 Sales Improvement - Modern Distribution Management

NetPlus Outlook: 3 in 4 Members Expect 2024 Sales Improvement

Meanwhile, about one-third reported decreased gross margins because of supplier price increases and other cost pressures.
Credit: Mike Hockett

NetPlus Alliance‘s members — comprised of industrial and contractor supplies distributors — remain mostly optimistic for continued growth in 2024, according to the buying group’s latest quarterly Industry Outlook report.

Nearly 46% of members reported significant gains through the third quarter of 2023 (+8% or more), with an additional 35% reporting moderate gains (+3% to 7%), according to an October survey of distributors featured in NetPlus’ fourth quarter report. About three-quarters of them are expecting sales to be up in 2023.

The distributors said that focusing on new product-line opportunities, capturing business with existing and new customers, hiring new salespeople, adding new branches and taking market share have contributed to this growth.

NetPlus AllianceSome NetPlus Alliance member distributors are more conservative in their forecasts for 2024, citing industry slowdowns and fewer long-term projects in their customers’ pipelines. About a third of respondents reported decreased gross margins because of supplier price increases and other cost pressures.

The distributors continue to experience challenges in hiring, training, and retaining employees.

“It will be an interesting year in a lot of ways: a presidential election, two significant regional wars, and a robust economy, but with an inflation level that the Fed is trying to get under control,” NetPlus Alliance founder Dan Judge said in a Dec. 12 news release. “The survey results for the third quarter are still very positive but do show some signs of softening.”

In this quarter’s survey, NetPlus Alliance also asked distributor members about their business plans for 2024. Nearly 83% reported plans to sell more to existing customers, with another 56% investing in operational improvements to increase productivity.

The NetPlus Alliance Industry Outlook tracks business results and trends in the industrial and contractor supply markets. The latest quarterly survey was completed by 3 Aspens Media in October 2023, and the outlook was based on members’ third-quarter results. NetPlus Alliance negotiates pricing, rebates and terms with more than 200 manufacturers on behalf of 415 industrial and contractor supplies distributor members.

Related Posts

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.