The U.S. economy improved in 2017, and all signs are pointing to continued prosperity in the new year. While distribution also performed well in the past 12 months, can it keep pace?

This is the 10th year MDM has partnered with Baird for a quarterly industry survey. Collaboratively, we compile the most comprehensive and granular snapshot of distribution economic trending for the most recent three-month period to accurately gauge how business conditions are likely to shape up in the quarters ahead.

The results of the latest survey, which is now closed, will be in the Jan. 25 edition of MDM Premium.

Distributors averaged 3.9 percent revenue growth in the third quarter, according to the last MDM-Baird Distribution Survey, taken in October. That was down slightly from second quarter but up significantly from the nearly flat performance of 3Q 2016. It also fell shy of the 4.5 percent revenue growth distributors projected for the quarter.

Hurricanes stunted growth in 3Q by disrupting building material supply chains in places like Texas and Florida, offsetting strength in the industrial sector, but the weather didn’t diminish distributors’ hopes for a steady finish to the year. Survey respondents projected revenue growth of 3.9 percent for the fourth quarter and 4 percent for 2018. Will those expectations hold up?

The early indicators out of Washington have been mostly positive. Here’s our coverage of key economic trend reports from the first week of 2018 that show the economy is on the right track:

• NFIB Small Business Optimism Hits New Record in 2017
• Conference Board Employment Trends Index Increases in December
• CEO Confidence Bounces Back in 4Q
• Manufacturing Sector Expands in December
• November Construction Spending Up 2.4% Year-Over-Year

Where will we go from here? Recently passed tax legislation holds the promise of increased capital investment, while renegotiated trade deals such as NAFTA could provide an economic stumbling block.

The MDM-Baird Distribution Survey provides a quarterly snapshot of sales trends and other key metrics across the distribution industry. The survey is conducted by the Distribution Research Team at Robert W. Baird & Co. All individual information is held strictly confidential and responses are aggregated to provide a gauge of overall trends.