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With 2024 shaping up to be another big year in distribution M&A, we spoke with several investment banks on the state of industry dealmaking, what’s driving it, best practices and the outlook for 2025.
The company’s biennial Grainger Show customer event perfectly demonstrated how the distributor is hyper-focused on customer solutions — just one of which is its expansive product assortment.
While application possibilities understandably drive AI discussions, the ethics component has been overlooked. This piece dives deep into the guardrails distributors will want to keep in mind as they navigate their AI journey.
While distribution has been slow to embrace the game-changing technology that tech giants have pioneered and exploited, the industry can still take advantage of the AI infrastructure that exists.
Hear from Ferguson’s CFO on its growth strategy and the acquisitions keeping the plumbing and industrial distribution giant in the headlines.
With 2023’s final wholesale trade numbers accounted for, see how the sector fared compared to previous years, and our latest 2024-2025 revenue expecations by industry vertical.
With cyber attacks being a matter of when rather than if it happens to you, Nick Pericle concludes his 3-part series here with initial response steps to take when your organization suffers an attack and longer-term recovery.
Distributors won’t be able to pass along price increases in 2024 at nearly the rate of 2021-2023. So, the 4Q23 Baird-MDM Survey asked distributors how they see supplier pricing impacting gross margin.
Using charts from our 4Q23 Baird-MDM Survey conducted in the first half of January, we illustrate what this year’s sales growth expectations are for distributors across five key customer end markets.
Nearly all respondents in our 4Q23 Baird-MDM Industrial Distribution Survey conveyed some level of concern, but you’ll want to see what portion consider it a top threat, and their interesting commentary.
It’s one of the biggest challenges as Baby Boomers retire and young talent is prone to job-hop. Here, we analyze our latest research into what distributors told us about their efforts on this front.
Part 2 of this cyber threats series goes all-in on defense: The steps distributors can take to prep a security framework and an incident response plan.
Our latest forecast called for downward revisions, snapping a three-month streak of optimistic revenue trends.
The final part of this series explores commentary from a panel of executives on what they’d do differently with a career restart and advice for younger talent.
Some distributors treat purchasing and procurement roles as administrators tasked with buying what the company needs to function. But you can unlock profits by rethinking purchasing and treating your purchasing manager like a rock star.
Before companies can conquer cybersecurity, they need to know what risks exist. The first of this article series outlines the evolving landscape of cyber threats and what distributors should be aware of.
Derived from COO Joe Limbaugh’s fireside session at MDM’s 2023 SHIFT Conference, we dive into Motion’s 5-year and ongoing organizational transformation.
One year after plumbing distributor Hajoca took majority ownership of HVACR distributor GA Larson, we chat with the latter’s chairman on that relationship and the path forward.
Mike Hockett extracts commentary from a panel discussion between STAFDA distributors, manufacturers and rep agents on what they voiced as their biggest challenge: talent management.
The previous two years were strong for M&A activity in distribution, but 2023 was on a whole other level. We dive into 2023’s dealmaking figures here.
Mike Hockett extracts commentary from a panel discussion between STAFDA distributors, manufacturers and rep agents.
The global e-commerce platform's business model is built around the premise of making it easier for distributors and manufacturers to do business around the world, says John Caplan, president of North America B2B and chief growth officer, global B2B.
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Most distributors dont view their inside sales team as a proactive sales force. Its relatively rare for inside sales reps to make outbound calls to generate more business or to employ active selling techniques. In fact, in a survey, nearly two-thirds of distributor respondents told Real Results Marketing their inside sales force spends less than 25% of their time proactively selling.
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Play the role of a critical customer, focusing on availability, urgency, reliability, accuracy and individual SKU characteristics.
How much time does your sales team spend in unproductive waters?
There are fishermen, and then there are catchers of fish.Some anglers are more successful than others, and it isnt about who has the best technology.How much time does your sales team spend in unproductive waters?
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Three key changes that are forcing distributors to reexamine sales coverage models
Analytics-driven operations can deliver staggering profit gains, but it takes a visionary leader who won’t accept a company’s current limited analytical expertise. In this article the author, who will outline these concepts at MDM’s Pricing & Profitability Summit, www.pnp.com, Apr. 15-17, argues that distributors can shift from a revenue-share mindset to a profit-share mindset by zeroing in on three key metrics: gross profit, cost-to-serve and net before compensation. It also outlines how the concepts of line-item profit analytics and quantum costing can create an effective analytics environment. This article is an excerpt from a chapter in A Distributor’s Guide to Analytics, a book published by MDM.
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Theres a lot of talk about whether or not the U.S. is looking at an economic recession in the near future and the impact a market downturn could have on distributors profitability in the process. But the truth is, distributors should be examining their pricing strategy no matter how well or poorly the economy is performing, says Al Bates, principal at Distribution Performance Project. Whether its a good market or a bad market, youve got to get control of your pricing, he says.
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If this isnt the year to prioritize pricing and profitability improvement, Im not sure when would be better! Do something before you have to.
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January is typically not a big sales month for Earnest Machine, a 72-year-old fastener distribution company out of Cleveland. But this January was not typical. The company was up 29% at the start of 2019, said CEO Kirk Zehnder. Speaking last month at MDMs Sale GPS Conference, Zehnder explained the radical shift in Earnests sales department structure that he credits for the boost.
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Industry leaders shared their recruiting and placement strategies at MDMs Sales GPS 2019.
Who is responsible for creating preference for a product as well as for where the product is purchased? A new economic formula demands that we devote scarce resources to fewer partners.
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Distributors looking to grow and compete in the digital landscape need to take a structured approach and build a system. This excerpt from the book Digital Branch Secrets: eCommerce Playbook for Distributors outlines a critical component of this system your product content.
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Like it or not, how customers interact and buy is changing.
Branch managers in distribution are often stuck between the proverbial rock and a hard place.
The rise of Amazon, other digital platforms and fast-changing customer expectations of the buying process have disrupted the role of the traditional field salesperson. More than 100 distribution industry leaders met in Denver in late June at MDMs Sales GPS 2018 event to discuss the evolution of the distribution sales model to one that adds more value and helps them adapt to a changing market.
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Three key warning signs that your outside sales team is running your business.
Product and customer mix are the key levers.
Project selling is a value-added service that building products distributors can offer their customers that truly differentiates them from pure digital (online only) competitors. Who will sell the project of building moats for your company?
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Project selling – an area where there is room for simple, high-value improvements – stands out as one of the most critical and lucrative ways a distributor can create a value-added service component. Here’s a primer on how to develop project selling as a competitive moat and some important keys to success.
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As distributors look to modernize their facility equipment, financing is always the biggest question. This Q&A sheds light on what distributors should keep in mind as they consider buying vs. leasing.
Nelson Valderrama explores a fictional (but increasingly likely) 2030 wholesale distributorship that includes physical, technological and cultural changes in the making today.
In the latest Baird-MDM quarterly industrial distribution survey, we asked how manufacturers could make partnerships more efficient. See our analysis and plenty of respondent commentary.
“The tone on the ground is one of leveling rather than significant declines,” said MSC CEO Erik Gershwind during a June 29 3Q earning call.
We examine the quantitative and qualitative aspectsof that question, which was asked in the new 2Q23 Baird-MDM Distribution Survey.
Within the distributor-supplier relationship, product information sharing can be hard to come by. But here, Mike Hockett details a partnership between ARG Industrial and Midland Industries as a winning example.
Mike Hockett distills key takeaways from a new MDM whitepaper and webcast on the topic of customer experience and what distributors are doing to improve it.
Global Industrial CEO Barry Litwin shares what made Indoff the perfect fit to be the industrial distributor’s first acquisition since 2015.
MDM spoke with BlackHawk Industrial CEO John Mark to learn more about the company’s recent acquisition of Chattanooga-based Stock’d Supply.
Lowe’s reports a more positive outlook on Pro customer sales as projects shrink and Pros work through backlogs.
Randy MacLean shares the most effective analytics used by companies to actually control their results and appease all stakeholders.
Mike Hockett discusses how AI chatbot tech is being utilized by a retail giant in supplier negotiations, and how it can apply in distribution.
The age-old conflict of sales vs. revenue operations doesn’t have to be a combative relationship. Mike Hockett distills takeaways from an ISA23 session on ways to make this dynamic more collaborative.
In the Baird-MDM 1Q Survey, we asked distributors what obstacles they faced when trying to leverage technology. Read the responses here.
Distribution executives commented on their current staffing situations in response to the Baird-MDM 1Q 2023 Distribution Survey.
It combines the No. 34 and No. 38 companies on MDM’s 2022 Top Industrial Distributors List. Mike Hockett dives into the details.
Mike Hockett shares commentary and distills lessons from an MDM M&A Summit session on three key factors in the dealmaking process.
After Lawson Products transformed into DSG last year, the multi-faceted distributor has reported strong financials. Here’s why the company isn’t slowing down.
Mike Hockett shares a conversation from MDM’s recent M&A Summit that dove into the specifics of dealmaking communication best practices.
Nelson Valderrama discusses how CFOs can navigate market disruptions by reimagining pricing and inventory processes.
We extract key takeaways from the plumbing, HVAC, PVF and industrial supplies distribution giant’s earnings call on Sept. 25.
Mike Hockett examines the latest economic trending data as it pertains to wholesale distributors, including their revenue expectations through next year.
New manufacturing business models are disrupting traditional distribution channels, creating risks and opportunities. Several actions can allow distributors to add value for OEMs alongside growth and profitability for themselves.
Mike Hockett dives into the distributor’s sponsorship of a NASCAR XFINITY Series race car, focusing on the many benefits the distributor is seeing from it.
We examine the latest economic trending data as it pertains to wholesale distributors, including their revenue expectations through next year.
The proposed rule would expand federal purchasing recommendations across existing and new-purchase categories in healthcare, laboratories, professional services, foodservice, uniforms and clothing.
After re-acquiring HD Supply in 2020, The Home Depot reveals plans for the MRO distributor’s role in expanding market reach.
We distill results of the 2Q23 Baird-MDM Industrial Distribution Survey’s polling of respondent expectations for the impact of government programs and reshoring on theIr businesses in the next 5-10 years.
Full-year revenue expectations soured for a second-straight month, falling from a slight gain to decline. Mike Hockett recaps those figures and more.
Vesna Brajkovic details how Home Depot targets a market typically served by wholesale distributors with its plans to be a one-stop-shop for complex contractor projects.
Mike Hockett breaks down the latest economic indicators, wholesale sector data and industry sentiment, which points to improved full-year outlook.
Mike Hockett analyzes the Census Bureau’s latest wholesale trade data and how it compares with commentary MDM has gathered.
Some markets voiced robust 1Q demand while others saw things at least start to slow. Here’s what distribution execs had to say in the 1Q 2023 Baird-MDM Survey.
Work with a banking partner that knows your business. Get detailed information on investment banks with expertise in the wholesale distribution industry.
Build strategic sales plans.
Determine market and demand.
Create smart prospect lists.
Turn your sales data into actionable data with Market Prospector. A web-based SAAS tool that gives you insight into your market, your territories, your customers and new prospects too.
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