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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.

As part 1 and 2 in this series outlined, distributor e-commerce reached a remarkable tipping point in 2017: According to our most recent survey, the percentage of distributors deriving more than a tenth of total revenues from e-commerce grew from 34 to 41 percent. Part 2 discussed the key drivers for e-commerce demand, with field sales continuing to lead the way, but with SEO gaining in importance. In this article, we explore survey findings on how distributors are using Amazon as a sales channel, types of products sold and ways in which Amazon may be a threat.

This article includes:

  • Key Activities with Amazon
  • Pros & Cons of an Amazon Relationship
  • Moving Forward

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  • MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
  • Distributors Up Search Marketing Efforts
  • Amazon Business: The Burning E-Platform
April survey: Business conditions remain strong.

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  • MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
  • Distributors Up Search Marketing Efforts
  • Amazon Business: The Burning E-Platform
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 first-quarter 2018 results and distributor and manufacturer expectations for 2018.

This article includes:

  • First-quarter revenue & pricing trends for wholesale distribution
  • Revenue forecasts for 2018
  • Sector-specific trends for 19 sectors
  • Inventory levels
  • How steel/aluminum tariffs will impact distributors

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  • Top Trends for 2018
  • When Good Distributors Do Bad Branding
  • Key Drivers for E-commerce Demand

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

In this two-page report, available to download in PDF after log-in, we feature data on merger and acquisition trends and financial metrics for the largest publicly traded distributors across diverse sectors in the first quarter of 2018.

In partnership with Houlihan Lokey, an investment banking firm, the report includes data on M&A activity trends across all industries (not just distribution), as well as valuation multiples for deals in all industries.

This report is researched and produced by MDM editors. View the Fourth Quarter & Annual 2017 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. First quarter 2018 pricing levels are compared with fourth quarter 2017 and first quarter 2017.

To view this report, log-in and click on the 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.

In the past few years, technology usage in distribution has exploded as adoption of mobile devices as sales tools has increased. But many people continue to make excuses as to why some new technology isn't right for us. They're just excuses, though, and distributors should avoid letting technophobia keep them from efficient and effective tools.

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  • Replenex Builds Culture of Cost Savings
  • MDM Interview: Breaking Down the Barriers for CRM
  • MDM Interview: As Manufacturing Evolves, Learn & Adapt or Be Left Behind


 

Mobile02

As data moves from paper to digital, information is easier to store and manage – and to move and steal – than ever before. This is especially true in distribution, where companies are turning to mobile technology to improve customer service, sales and operations. In this article, labor law specialists and distributors weigh in on the biggest data security risks and how distributors can contain them.

This article includes:

  • Risks to data security that distributors need to consider
  • Steps to reduce data security risk
  • How to be proactive about protecting data

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:

  • Minding the Gap Between Data & Action
  • 2013 State of E-Commerce in Distribution
  • Foodservice Sector Tackles Data Standards


 

Sales and inventories data for wholesaler-distributors in April 2014.

This article includes:

  • Wholesale trade revenues for durable and nondurable goods in April 2014
  • Monthly inventories/sales ratio for the industry
  • Sales & inventory trends for durable and nondurable goods

Subscribers should log-in below to read this article.

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

  • 1Q14 MDM-Baird Distribution Survey Results
  • 1Q14 MDM Pricing Trends Report
  • Building on Already Profitable Business

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 1Q14 Pricing Trends Report
  • MDM Interview with Guy Blissett: Uncertainty + Change = Opportunity?
  • The State of Analytics in Distribution

Industry-watchers say that robotics technology is growing more sophisticated and can increasingly perform a wider range of tasks and collaborate with humans. This article examines the potential impact on distribution operations.

This article is part of MDM’s Disruptive Technologies Special Report.

This article includes:

  • Current applications for robotics
  • The growth of robotics
  • The business case for automation

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:

  • 3-D Printing Drives Supply Chain Shift
  • Bridging the Digital & Physical through Augmented Reality
  • Redefining Competitive Advantage

Mark Zandi, chief economist at Moody’s Analytics, and Bradley Holcomb of the Institute for Supply Management provide their perspectives on economic conditions in 2014-2015.

This article includes:

  • Why Zandi is optimistic for 2014-2015
  • Raw material and commodity price impacts
  • Impact of uncertainty on the economy

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-Baird Quarterly Distribution Survey
  • MDM Pricing Trends Report
  • College Recruiting Best Practices

Sales and inventories data for wholesaler-distributors in March 2014.

This article includes:

  • Wholesale trade revenues for durable and nondurable goods in March 2014
  • Monthly inventories/sales ratio for the industry
  • Sales & inventory trends for durable and nondurable goods

Subscribers should log-in below to read this article.

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

  • 1Q14 MDM-Baird Distribution Survey Results
  • 1Q14 MDM Pricing Trends Report
  • Building on Already Profitable Business

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 1Q14 Pricing Trends Report
  • MDM Interview with Guy Blissett: Uncertainty + Change = Opportunity?
  • The State of Analytics in Distribution

The May 10, 2014, issue of MDM kicks off a series of articles on disruptive technologies. This article provides an introduction to the series, examining how distribution executives should think about the potential impacts of these technologies - 3-D printing, augmented reality, robotics and innovations like drones and driverless cars - on their businesses, as well as those of their customers and suppliers.

This article includes:

  • Advice for executives on how to think about emerging technologies
  • Definition of disruptive technologies

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:

  • The State of E-Commerce in Distribution: 2014
  • The State of Analytics in Distribution: 2014
  • Redefining Competitive Advantage

After a year of slow, uneven recovery in 2013, distributors should focus on meeting the challenges posed in 2014, as well as positioning for growth in 2015 and beyond, according to Alan Beaulieu, president of ITR Economics. Beaulieu was featured in the recent MDM Webcast, The Path to Profitability in 2014. This article is an exclusive summary of the webcast, which is available on-demand and on DVD at mdm.com.

This article includes:

  • Forecast for 2014-2015
  • Key indicators to watch
  • Challenges distributors may face, including margin pressure

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:

  • First Quarter 2014 MDM Pricing Trends Report
  • MDM-Baird Distribution Survey
  • Redefining Competitive Advantage

In this article, Publisher Tom Gale writes: This is my fourth post-recession cycle since I first starting working in industrial and distribution markets in the mid-1980s. The current cycle has been the longest for us all, but has some interesting parallels to other cycles. Here are a few thoughts from a file I keep labeled: I might just learn something if I listen hard enough. (Apologies/credit to fellow St. Louis native Yogi Berra.)

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:

  • The State of Analytics in Distribution: 2014
  • The Shifting Competitive Landscape in Distribution
  • Redefining Competitive Advantage
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 Fourth Quarter 2013 and annual 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. First quarter 2013 pricing levels are compared with first quarter 2014 and fourth quarter 2013 with first quarter 2014.

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

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.

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. This article provides a summary of first-quarter results and distributor and manufacturer expectations for 2014.

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
  • The State of Analytics in Distribution: 2014
  • The 2014 State of E-Commerce in Distribution

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