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This jam-packed issue includes nine articles that span Ferguson’s diversification and private brand strategy; QXO’s acquisition plans; research on labor trends; Fastenal’s AI tools; and much more.

Market Insight Reports

Find a wealth of data and analysis extracted from the 2Q24 Baird-MDM Industrial Distribution Survey, including trending charts and figures for revenue and expectations, plus plenty of interesting commentary.
See our Premium M&A articles from April-June 2024, including Sonepar’s acquisition journey; how dealmaking impacts MDM’s Top Distributors feature; and the latest EBITDA trading multiples.
See our in-depth M&A articles from the first three months of 2024, including the Home Depot-SRS blockbuster; the acquisition strategy for Ferguson and Border States; and the latest EBITDA trading multiples.

Case Studies

This report examines Fastenal’s strategic pivots over the past ten years – digital, self-service, product mix, sales specialization and more – that have created one of the highest performing North American distributors as measured across most financial benchmarks.
FCX Performance, a distributor of parts and equipment into process industries, was acquired by Applied Industrial Technologies this year for $768 million, following 18 years of merger and acquisition activity. FCX reported 2016 revenues of $346 million. In this interview, former FCX CEO Charley Hale discusses how analytics formed the backbone of its growth strategy over 18 years. It was conducted by MDM CEO Tom Gale at MDMs 2018 Digital Summit in Denver on September 20, 2018.

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Digital technologies have opened the door for distribution leaders to achieve dramatic improvements in productivity and create compelling customer experiences. Many leaders are leveraging digital tools as a foundation for continuous improvement and some are hoping to go much further by innovating the traditional distributor business model. Either way, the adoption of digital tools is prompting leaders to focus on strengthening their companys abilities to remain competitive and lead.

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Analytics in the distribution industry are at an early stage and yet more accessible to management teams than ever. Some distributors will leverage these new tools more effectively than their competitors to open a gap; others will wonder why they are losing share in increasingly disruptive markets.

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Distributors are taking differing approaches to pricing product and planning for the future in the wake of ongoing tariffs on Chinese goods.

This article includes:

  • Inventory Shortages and Stocking Plans
  • Issues in China
  • Passing Costs on to the End Consumer

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In a wide-ranging podcast interview with MDM, Brent Grover, bestselling author of The Little Black Book of Strategic Planning for Distributors, addressed the current market for sales and acquisitions as well as factors that could soon cause disruption. He shared advice on how to maintain relevancy and the best ways for distributors to position their firms for long-term success. Here are the highlights.

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Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Distribution M&A Playbook, pt. 3: Integration Best Practices
  • Grainger’s Pricing Initiative, pt 2: The Quest for Optimization
  • Commentary: Harvey’s Stark Reminder on Disaster Planning

As top distributors become more proficient with data analysis, others are falling behind, creating a critical gap in competitive business intelligence. Four of the speakers at MDM’s upcoming Analytics Summit share their recommendations here for optimizing data analytics across a range of business operations.

This article includes:

  • The Will to Do It
  • Why It's Been Lacking
  • Spreading the Knowledge

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mdm_premium_extra_RR

To thank you for your business and add value to your MDM Premium subscription, MDM offers bonus content each month exclusively to premium subscribers.

This month we feature a bonus article on United Stationers' decision to reposition to a new brand, Essendant. Associate Editor Eric Smith recently attended Emerge Core Live, the company's trade show and conference for customers and suppliers in Nashville, TN. During the show, CEO Cody Phipps conducted a media roundtable to outline the strategy behind United Stationers' efforts as it adapts to an evolving industry.

This content is exclusively available as bonus content to MDM subscribers. Log-in below to download the PDF of this month's report.

Not a subscriber? Subscribe now starting at $195.

Increased competitive pressures rise out of strategic investments made during the recovery.

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Top 10 Trends to Watch in 2015
  • Global Economy Faces Uneven Growth
  • MDM Interview: Need for Innovation in Disruptive Times
MA_chemicals

The MDM/Industrial Market Information Market Analysis includes consumption of chemical products by end user in the U.S., Canada and Mexico, plus the top 10 end users by industry in the U.S.

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM Pricing Trends Report: Fourth Quarter 2014 and Annual
  • Deadline for Chemical Label Changes Looms
  • Forecast: Continued Growth in 2015

Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM Interview: Creating a Culture of Innovation
  • Cost-Effective Channel Alignment
  • Strategic Options for Shipping Efficiency
4Q2014-mdm-baird-survey

Robert W. Baird & Co., in partnership with Modern Distribution Management, conducted a survey of more than 500 distributors and manufacturers to gauge business trends and the outlook for the distribution industry in diverse sectors. Here is a summary of fourth-quarter 2014 results and distributor and manufacturer expectations for 2015.

This article includes:

  • Revenue, inventory and pricing expectations
  • Sector breakdown
  • Analysis of trends affecting sales and operating performance

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM Industrial Inflation Index
  • MDM Pricing Trends Report: Fourth Quarter 2014
  • 4Q2014 Financial Metrics & Trading Multiples
pricing-trends-generic

This report was formerly called the Inflation by Commodity Group Report.

This report is researched and produced by MDM editors. View the Third Quarter 2014 report here.

These product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Fourth quarter 2013 pricing levels are compared with fourth quarter 2014, third quarter 2014 with fourth quarter 2014, and end of year 2013 with end of year 2014.

To view this report, log-in and click on download link below the product listing to access the print-ready PDF.

Not a subscriber? Subscribe today for immediate access.

Industrial

  • Abrasives
  • Adhesives & Sealants
  • Metal Cutting Machine Tools
  • Metal Forming Machine Tools
  • Pumps, Compressors, & Eqmt
  • Ind. Material Handling Eqmt
  • Rubber & Plastic Hose
  • Rubber & Plastic Belts & Belting
  • Ind. Rubber Products, nec
  • Metal Valves (not fluid power)
  • Personal Safety Equipment & Clothing
  • Steel Mill Products

Construction

  • Softwood Lumber
  • Hardwood Lumber
  • General Millwork
  • Gypsum Products
  • Hardboard, Particlebd, Fiberbd
  • Plywood
  • Plastic Construction Products
  • Wood Ties, Siding, Shingles,
  • Shakes

Electrical

  • Electrical Machinery & Eqmt
  • Electronic Components & Accs
  • Integrating and Measuring Instruments
  • Motors & Generators
  • Wiring Devices
  • Transformers & Power Regulators
  • Switchgear, Switchboard, etc., Eqmt
  • Communications & Related Eqmt
  • Electric Lamp Bulbs & Parts

Other Related Electrical

  • Lighting Fixtures
  • Nonferrous Wire & Cable
  • Fabricated Ferrous Wire & Cable

Power Transmission/Bearing

  • Mechanical Power Transmission Eqmt
  • Ball & Roller Bearings
  • Plain Bearings & Bushings
  • Speed Changers, Drives & Gears

Fluid Power

  • Fluid Power Eqmt
  • Fluid Power Valves
  • Fluid Power Hose/ Tube Fittings
  • Fluid Power Pumps & Parts
  • Fluid Power Actuators/ Accum/ Cylinders

Plastics

  • Plastic Resins & Materials
  • Plastic Products (Overall)

Fasteners

  • Nuts, Bolts, Screws, Rivets, Washers (overall)
  • Aircraft Fasteners
  • Externally Threaded Fasteners
  • Internally Threaded Fasteners
  • Nonthreaded Metal Fasteners

Hardware

  • Hardware (overall)
  • Builders’ Hardware

Tools

  • Hand & Edge Tools
  • Power-Driven Hand Tools
  • Tools, Dies, Jigs, Molds, Fixtures
  • Cutting Tools & Accs (overall)
  • Precision Measuring Tools
  • Small Cutting Tools

Gases/Welding

  • Industrial Gases
  • Welding Machinery/ Equipment

Paper

  • Pulp, Paper & Allied Products (overall)
  • Sanitary Paper Products
  • Boxes
  • Packaging Products from Plastic

HVACR/Plumbing

  • Air Cond. & Refrigeration Eqmt
  • Heating Eqmt
  • Plumbing Fixtures & Fittings

To view this report, log-in and click on Download pdf below the product listing.

Optimism in the U.S. tempered by slowdowns in BRIC, eurozone. This article looks at the state of global economies and the outlook for 2015.

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  • Commentary: Emerging Trends for 2015
  • U.S. Economy: Out of Surviving and on to Thriving
  • Forecast: Continued Growth in 2015

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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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Top 10 Trends to Watch in 2015
  • Commentary: Analyzing Analytics
  • MDM Interview: Need for Innovation in Disruptive Times
2015

This article, based on the 2014 MDM Industry Outlook Survey, outlines and analyzes key trends and issues affecting how distributors will do business in 2015.

This article includes:

  • E-commerce and other technology challenges.
  • Finding and training "qualified workers."
  • Port slowdown causing inventory management disruptions.

Subscribers should log in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • 7 Key Investments to Grow Online Revenue
  • Manufacturings Millennial Dilemma
  • Deadline for Chemical Label Changes Looms

Economic growth in the U.S. will continue in 2015, say the nations purchasing and supply management executives in their December 2014 Semiannual Economic Forecast. Expectations are for a continuation of the economic recovery that began in mid-2009, as indicated in the monthly Institute for Supply Managements Report on Business.

This article includes:

  • An overview of key indicators in the manufacturing sector
  • An overview of key indicators in the non-manufacturing sector
  • Outlook for 2015

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM Interview: Need for Innovation in Disruptive Times
  • Manufacturings Millennial Dilemma
  • MDM Interview: Creating a Culture of Innovation

Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM Interview: Creating a Culture of Innovation
  • Cost-Effective Channel Alignment
  • Strategic Options for Shipping Efficiency

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Work with a banking partner that knows your business. Get detailed information on investment banks with expertise in the wholesale distribution industry.

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