The following analysis by longtime industry expert Al Bates examines key profit drivers in wholesale distribution across 34 lines of trade monitored by the Profit Planning Group. This article looks at historical data from the past five years, and particularly trends in 2013, the last year for which full data is available. In 2013, distributors, as a group, experienced slowing sales growth, which led to an increase in expenses as a percent of sales, but also saw a slight rise in profitability.This article provides insight into this trend and provides recommendations to improve profitability in 2015.
This article includes:
- Trends across distribution industry segments
- Pattern of ROA over the past 5 years
- Factors leading to profitability
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