Subscriber Login

MDM Premium Content  What's this?
Close
Subscribe today to access MDM's premium content with two issues a month of timely and to-the-point content for the busy wholesale distribution executive. Here's what you get:
  • Analysis of distribution trends
  • Interviews with industry leaders
  • Quarterly Public Distributor Report
  • Quarterly Inflation by Commodity Group Report
  • Market and economic data analysis
  • Access to the best online research tool in distribution

And much more! Learn more

login close
Forgot Your Password?
For more precise results try using quotation marks ("") around your search terms. See more search tips.

 

Home » Commentary: Grinding Out Growth in 2010

Commentary: Grinding Out Growth in 2010

By    Thomas P.  Gale 
September 25, 2009
More good financial news keeps strengthening the outlook for distributors. A big surprise to many in August was the flipping of the purchasing manager index to the positive side of 50 (52.9 from 48.9 in July). That reinforces much of what we at MDM have been hearing about production and corresponding orders in August being more positive than expected. That said, this is not shaping up to be your grandfather's recovery from previous sharp economic cycles.
Text Size
Email Print
More good financial news keeps strengthening the outlook for distributors. A big surprise to many in August was the flipping of the purchasing manager index to the positive side of 50 (52.9 from 48.9 in July). That reinforces much of what we at MDM have been hearing about production and corresponding orders in August being more positive than expected. That said, this is not shaping up to be your grandfather's recovery from previous sharp economic cycles.

Distributors and manufacturers planning for 2010 – and thankful to be forward-looking for a change – have to deal with a lot of mixed signals. But as our Webcast last week with Mike Marks pointed out, it's time to deal with it and get a plan in place.

Most economists expect the next 12 months to be a grind, with flat to weak growth. That will feel good by comparison. Where the new up six months ago was slightly down, today the new normal is flat.

Some distributors have managed to keep their balance sheets and banking relationships strong. Others are furiously working to get new lines of credit as some traditional large lenders are dealing with a stew of problems.

To address this, MDM is preparing an article on how some of the "smaller" regional banks who didn't get slammed are actually buying market share and in a better place to offer competitive rates for inventory-backed credit.

A few critical areas for positioning have emerged as distributors rebuild with smaller staff and resources:

Revisit how you segment customers. Markets and customer buying behavior have changed. If you are applying fewer resources to the way you used to segment, you may be missing new growth opportunities.

Mike Marks addresses this in the 60-minute (free) Webcast last week as he outlined focus areas for finding growth in this low-growth economy.

Access the Webcast at this link: www.mdm.com/webcast-downloads.

Reexamine pricing. The lead article in this issue by Brent Grover on strategic pricing execution addresses margin improvement and extracting more yield from the piece of the pie you have. Pricing is an internal process many distributors left in the hands of salespeople when sales were strong.

And finally, review how you manage talent. With smaller staff, roles and leadership responsibilities have changed. Do you have middle and top managers with the right skill sets for growing the company in an environment where sales aren't necessarily the primary driver?

Print Email
Use the form below to leave a comment

MDM Digital

Executive Briefing: January 2012The Case for Mobile
in Distribution Marketing
John Sonnhalter explains why distributors should include mobile in their marketing plans and how to start. Watch now.
iPad users: click here to view.		 Economic Update January 2012 Economic Update:
The Festering Euro-Crisis
MAPI Economist Kris Bledowski analyzes the outcome of recent meetings about the European banking and debt crisis. Watch now.
Bob DeStefano's #1 Mistake on Company WebsitesOnline Marketing Tips
from Bob DeStefano
Many companies make the same mistake on their company websites. Do you? Find out.		 More Audio and Video Features from MDM:

  • MDM Podcast

Think About It:
When They Google,
Will You Be There?

In this digital age, the first stop a potential customer makes is the internet. If you're not there, you're not part of the decision-making process.

Listen now.

Learn more or subscribe to the Think About It podcast.

  • Training

Upcoming Programs

Feb. 9: Operating for Profit: The Coming Revolution in Supply Chain Finance with Jonathan Byrnes. This program is part of the quarterly Islands of Profit Webcast Series.

Did you miss MDM's recent webcasts? Order the DVDs and share with your team today:

* Leading for Profit: How to Lead a Profitability Turnaround

* Inventory Management Best Practices in 2012

  • Featured

USAbrasives-100-for-trifecta

U.S. Abrasives Market Demand Report

This report provides a three-dimensional view into estimated market size, customer segment potential and customer size demographics for the U.S. Abrasives Market.

These three data slices give you deep insight into total market potential and your market share by both customer type and size.

Learn more about the U.S. Abrasives Market Demand Report

Training Resources

Current Issue   Management Tips 2011   Inventory Management   Benchmarks and Best Practices

Featured Article - MDM-Baird Benchmarking Survey: Distributor Optimism Returns

$34.95

Buy now >>

Management Tips from Modern Distribution Management

$49.95

Buy now >>

Inventory Management Best Practices with Jon Schreibfeder: DVD + Book

$119.00

Buy now >>

Benchmarks & Best Practices: The Answer Book for Growth-Minded CFOs & Controllers

$249.00

Buy now >>
Job Board
Title Company Location
Credit/Collections Manager APR Supply Co. Lebanon, PA
Management Trainee APR Supply Co. Lebanon, PA
INDUSTRY SPECIALIST - Rubber Products KAMAN Industrial Technologies North East Area - CT, MA, ME, NY, RI, VT
Sales Account Manager - Energy Market Segment TESSCO Baltimore, MD
Channels Marketing Representative -- Advanced Supply Chain Business Information Systems Scientel Information Technology, Inc. Southeast Michigan
Technical Trainer - Innovative Change Agent - Long Island City, NY Daikin AC Long Island City, NY
Sales Representative Superior Essex Minnesota
View ALL Wholesale Distribution Job Listings

MDM Premium

January 25, 2012  

4202 cover image

MDM/Baird Survey: Optimism Returns

Rexel's U.S. CEO on Service & Alternative Energy

Global Markets Not Just for Large Companies

December 2011 Industrial Inflation Index

subscribe now View Table of Contents >>
Subscribers: Log-in
View Previous Issues


Featured Products

answer book for CFOs and Controllers

Benchmarks & Best Practices: The Answer Book for Growth-Minded CFOs & Controllers

Reviews (0)
 
Price: $249.00
An ultra practical idea-guide that gives an inside look at how leading companies are dealing with some of today's toughest financial and business management challenges.
Distribution Landscape Report - 2011

2011 MDM Market Leaders and Distribution Landscape Report

Reviews (0)
 
Price: $295.00
The ideal resource for anyone that wants to get a quick overview of the distribution landscape and the top players in major sectors! Includes the 2011 Distribution M&A Special Report.
B-to-B Online Marketing Toolkit Cover

The B-to-B Online Marketing Toolkit:
A Step-by-Step Plan for Distributors and Manufacturers to Leverage Online Marketing for Bottom Line Results

Reviews (0)
 
Price: $249.00
The 2011 Edition of this valuable marketing tool provides a step-by-step plan for leveraging Online Marketing to produce Bottom-Line Results. Bulk pricing available.


tech directory: start your search here



Sponsored Links