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2019 MDM Market Leaders | Top Industrial Distributors

Sponsored by:

 Oracle Netsuite  Sage

The companies in our Top 40 list on this page – the largest industrial and construction products distributors in North America – have aggregated revenues of $110 billion and a 20-% U.S. market share, according to MDM estimates. MDM Analytics estimates the total North American market size for the product categories sold by the companies on this page and profiled in their respective sectors in the following pages at approximately $650 billion (U.S. market $550 billion). It includes a highly diversified product portfolio of MRO, production and consumable products (OEM products excluded).

The top five on this list have aggregated revenues of $46 billion. The top 10 on this list account for $69 billion in annual revenues, or a 12.5% share of the U.S. market. While a cautionary note is required because of the fragmented product portfolios across this group, the market share analysis indicates how low the concentration ratio is across industrial and construction products distribution.

As noted in the introduction, this year’s rankings include several new companies not in prior-year lists. For that reason, it is not accurate to compare rankings on a year-to-year basis for our Top 40 list. Most notably, Ferguson Enterprises was added back in the No. 1 spot and three other HVACR/Plumbing/PVF distributors were included as well in the top 20: Watsco, Core & Main and Hajoca. We feel the inclusion of this group more accurately portrays the competitive landscape – particularly as more companies in this list pursue product category expansion strategies into tangential markets every year.

A prime example of this trend impacting our 2019 listings includes Applied Industrial Technologies’ multi-year expansion into fluid power markets, and its 2018 further expansion into flow control markets with the acquisition of FCX Performance. In a similar vein, SunSource (No. 21 on the list), now a sister company of Core & Main (No. 13 on the list), acquired specialty flow control distributor Ryan Herco Flow Solutions (No. 36 on our 2018 list) and hose and sealing products distributor United Distribution Group (No. 15 on our 2018 list).

As an overall industry sector, industrial distributors experienced a 13.6% revenue growth over the prior year, based on government agency data compiled in MDM’s 2019 Economic Benchmarks for Wholesale Distribution report. Gross margin as a percent of sales was 26% for this group, with an average annual revenues per employee at $670,000. There were an average number of 10.3 employees per establishment in this sector in 2018.


View 2018 Rankings 

This list does not include master distributors.

1. Ferguson Enterprises
2. W.W. Grainger
3. HD Supply
4. Amazon Business
5. Airgas, An Air Liquide Company
6. Motion Industries
7. The Fastenal Company
8. Watsco
9. MRC Global Corp.
10. McMaster-Carr
11. Winsupply
12. MSC Industrial Supply
13. Core & Main
14. NOW Inc.
15. Applied Industrial Technologies
16. SupplyWorks
17. Hajoca
18. Wurth Industry North America
19. Wolseley Industrial Group PVF
20. Vallen Distribution
21. SunSource
22. F.W. Webb
23. DXP Enterprises Inc
24. Kaman Industrial Technologies
25. Global Industrial
26. Bearing Distributors Inc.
27. ERIKS North America
28. Edgen Murray
29. Turtle & Hughes
30. SBP Holdings Inc.
31. Wajax Corp
32. OTP Industrial Solutions
33. BlackHawk Industrial
34. DGI Supply
35. RS Hughes Co.
36. Lawson Products
37. Hisco, Inc.
38. Purvis Industries
39. Dillon Supply Company
40. Kimball Midwest

 

*Indicates 2018 annual revenue estimate not provided by the company, but by MDM research with best publicly available information. Some estimates remove other product category sales to more accurately reflect industrial/construction/MRO product sales, and may not be total annual corporate revenues.

Free Download:
2019 Top Distributors List

2019 Top Distributors List PDF: Free
This free PDF includes lists of top distribution companies across 15 sectors. You will also receive MDM Update, our daily distribution e-newsletter & other distribution-focused content.


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Methodology Note: Unless otherwise noted, revenues reflect the 2018 fiscal year. Revenues for all companies in this report are in U.S. dollars. For companies who report their data in other currencies, we converted their revenues to U.S. dollars using the exchange rate in place on the last day of that company’s reported fiscal year to determine ranking.