6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
1. Diversifying into New Product Lines
Big distributors diversifying into fluid power, motion control and industrial supplies, as well as expanding in core power transmission and bearing lines. The expansion into fluid power does provide some challenge to these distributors, who have said that fluid power markets tend to be less centralized, contrasting with the business model in other distribution sectors. Canada is a growth market for some. Suppliers also continue to expand their product areas to open their reach to new markets.
2. End-Market Opportunities
Distributors say they continue to diversify their end-market exposure. Alternative energy , such as wind power, is attractive to power transmission/bearing distributors looking to take advantage of new markets. Energy efficiency is also a target area for many distributors and manufacturers in this sector, with growing customer interest in more efficient products that can save customers money.
Automotive markets have strengthened. Many power transmission/bearing distributors said that this was an area of growth for them. Oil & gas, as well as he petrochemical industry, is a growth area for some in this sector.
3. Technical Expertise Grows in Importance
Customers are demanding more technical expertise, as the products in the channel become more technologically advanced. Distributors are focused on product training and application.
Average sales growth 2009 to 2010 for Top PT/Bearing Distributors: 11.44%
Economic indicators of interest to this sector: