Slowness Doesn't Dampen Optimism - Modern Distribution Management

Slowness Doesn’t Dampen Optimism

Distributors expanding capabilities to boost growth during "flat" economy.
jenel-white

The U.S. economy hasn't quite been able to get its footing since the Great Recession. While it keeps moving onward and upward, it seems to keep finding new speedbumps along the way.

The industry was cautiously optimistic coming out of the fourth quarter, but a variety of factors resulted in unmet expectations. As one respondent in the first quarter MDM-Baird Distribution Survey noted: “It’s been surprisingly flat. This was unanticipated, we thought the economic barometers were more promising entering the year.” (The second-quarter results will be released July 25, 2015.)

And distributors that we spoke with for the 2015 Distribution Trends Special Issue, which came out last week, are still optimistic for the second half of the year. And part of that is because of strategic investments they are making in their companies.

In MDM's market trends survey, conducted prior to the release of the special issue, many distributors noted that they were investing in technology – of all different varieties, from pricing to customer relationship management – to position their companies for success in the second half of 2015. And they're focusing on providing better training to get new people up to speed faster.

The willingness to make these types of investments now is a testament to their belief in a quick return on the investment.

"I think the realization is coming around, independent of business cycles and everything, that they need to invest in these kind of tools, and I think that's a good thing," says Michael Sprague, director of e-business development, ThomasNet. "It's a good thing for everybody – consumers, manufacturers, distributors."

Access the 2015 Distribution Trends Special Issue and the 2015 MDM Market Leaders Top Distributor Lists here.

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!