MSC Industrial Supply has low growth expectations for its fiscal-year second quarter, based on recent trends.
Profit increased 5.6 percent to $63.2 million.
Fourth-quarter sales for MSC were up 19.1%.
President and COO Erik Gershwind will take on the CEO role, effective Jan. 1, 2013.
MSC executives say the distributor will continue to focus on e-commerce and vending as growth platforms.
Vending is now making a significant contribution to many national distributors’ top lines. The trend is most prominent in the industrial MRO sector.
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MSC will maintain its current New York office, but expects new executive additions to be made primarily in North Carolina.
Amazon’s new website, AmazonSupply.com, will cater to the B-to-B market for industrial and scientific supplies.
Both MSC Industrial Supply and Fastenal tout the potential of vending as a growth engine.
MSC’s executives share plans for expanding programs and the map that will eventually lead them to $10 billion.
Year-over-year profit for the second quarter increased 21 percent.
Focus for MSC will initially be on deeper product line penetration.
ATS Industrial Supply had sales of $34.5 million in 2011.
Profit grew 26% for the metalworking, MRO distributor.
In addition to his role as COO at MSC, Erik Gershwind has been promoted to president of the company.
MSC Industrial Direct Co. Inc., Melville, NY, is accelerating its approach to acquisitions, according to COO Erik Gershwind. “Historically, I would categorize MSC as opportunistic when it came to acquisitions,” Gershwind says. “But now we’re getting more proactive, making it a bigger part of our plan.”
Together American Tool Supply and American Specialty Grinding generate $50 million in annual sales.
Profit for the industrial and metalworking distributor increased 40 percent.
Increased demand from customers driving improvements to MSC’s Web interface.
This is Part 2 of MDM Associate Editor Jenel Stelton-Holtmeier’s interview with MSC Industrial Supply President and CEO David Sandler and COO Erik Gershwind.
MDM: Each year MSC continues to build its catalog offerings. Are there specific product lines that you’re looking to aggressively grow in the near future, and what drives the expansion of those specific lines?
Erik Gershwind: To understand our product strategy, it is important to understand how we’ve positioned ourselves with our customers…
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