Now that 2006 has begun, it's a good time to review building products and industrial distribution in 2005 and look forward to the economic outlook for 2006.
Overall Wholesale Distribution
Total revenues of wholesale distributors grew by 8.9% in the past 12 months, marking another year of strong performance (See Exhibit 1). This revenue growth rate exceeded our original 2005 forecast of 7.7% due primarily to higher than expected commodity prices. Three of the four largest sectors contributed half of the industry's revenue growth during this period:
Oil and Gas Products Wholesale Distributors contributed 24% of total revenue growth as the price of crude oil shot above $60 per barrel in 2005 versus $32 in late 2003; ...