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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.

What can other B2B distributors learn from watching Grainger's pricing story unfold? Three tips for B2B distributors.

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  • Distribution M&A Playbook, pt. 2: The 8 Fatal Flaws in M&A
  • Top Trends for 2017
  • MDM Interview: Watsco Aims for ‘Bigger, Better, Faster’
MA_Playbook_Pt2

Many distribution verticals are seeing consolidation; those that haven’t are ripe for it. This article, the second in a three-part series, will help buyers avoid common pitfalls that can derail M&A transactions.

Part 1 discussed how distributors can prepare for the inevitable by understanding the landscape, their place in the consolidation cycle and the new measures of shareholder value.

This article includes:

  • Recognizing and capturing the talent being acquired
  • Understanding the market during due diligence
  • Taking acquisitions seriously

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This article is available for purchase as a special report.

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

  • MDM-Baird Distribution Survey: ‘Good, Not Great’
  • Top Trends for 2017
  • Commentary: What are you doing to make distribution ‘sexy?’

This article originally ran as a blog on mdm.com. Rusty contributed to this column over many years. He was passionate about this newsletter, and in this day of blogs and 24/7 content, it is fitting to include it here to honor him in the printed edition, which takes a deeper look at the industry issues he cared so much about.

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  • Culture as a Competitive Advantage
  • Amazon Elevates ‘Right-Now’ Expectations
  • Data Redefines Channel Roles
Watsco_Interview

Miami, FL-based HVACR distributor Watsco Inc. has invested millions of dollars in technology in recent years – from business intelligence to mobile apps to IT personnel. And the company is reaping numerous benefits, including $4.2 billion in annual sales and second place on MDM’s 2017 list of the Top 10 HVACR & Plumbing Distributors. Following a solid second quarter, President A.J. Nahmad and Senior Vice President Barry Logan spoke with MDM Associate Editor Eric Smith about Watsco’s technology focus.

This article includes:

  • Watsco's increased technology spend
  • Balancing people, process and technology to grow in sync
  • Creating a culture where technology is a priority

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

  • MDM-Baird Distribution Survey: ‘Good, Not Great’
  • Top Trends for 2017
  • Commentary: What are you doing to make distribution ‘sexy?’

The MDM Market Snapshot, based on data from MDM Analytics, includes market demand for Hydraulic Valves, Pumps & Cylinders in the U.S., plus the top end users by 6-digit NAICS.

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  • Use Tech to Work Smarter, Not Harder
  • Market Snapshot: Cutting Tools Market Demand in the U.S.
  • MDM Pricing Trends Report: Fourth Quarter 2016

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 second quarter of 2017.

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.

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

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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: First Quarter 2017
  • How to Navigate Key HR Issues in 2017
  • Market Snapshot: Cutting Tools Market Demand in the United States

It’s amazing how often I hear this comment when talking with distribution executives at industry events. Other distributors aren’t seen as the biggest competition for the next generation; the Silicon Valley tech giants are.

This article includes:

  • How to sell yourself to the next generation
  • Explaining the role of the wholesale distributor
  • How to compete with the tech giants

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:

  • Culture as a Competitive Advantage
  • Amazon Elevates ‘Right-Now’ Expectations
  • Data Redefines Channel Roles

Every marketer in industrial and commercial markets should pay close attention to what Amazon is doing. But don’t let them drive your strategy. Don’t give them the keys to your strategy; don’t even let them near your strategy. They have the resources to do well enough on their own without your help. And yet, that is exactly what is happening on a widespread basis today.

If you sell through an Amazon Webstore platform, as many distributors do, you are providing …

Investment Banking Directory

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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