Every year the Profit Planning Group prepares an analysis of distribution financial performance for its financial benchmarking clients. The company prepared a summary of the finding exclusively for readers of Modern Distribution Management. The information focuses on 2008, which is the last year for which complete financial information is available.

Given recent economic turbulence, 2008 may seem like ancient history. But the financial results for 2008 provide useful insights for distributors and their suppliers. They provide a clear picture of how firms responded to economic challenges. They also reflect the limits of such data.

This analysis covers 40 lines of trade in distribution. The results for distribution are divided into three groups:

• Industrial — Lines of trade in distribution that primarily service the factory floor or commercial facilities.
• Construction — Lines of trade that primarily serve the construction trades.
• Consumer — Lines of trade that sell consumer products or sell products utilized by retailers in their operations.