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The second quarter Baird Industrial Distribution Survey indicates that average second quarter year over year revenues were slightly worse than the first quarter, with the third quarter forecast slightly better than current quarter trends. Encouragingly, pricing and gross margins appear to be holding relatively steady while inventory levels continue to decline with no re-stock expected in the near-term.
"The bottoming process appears to be underway in most industries," said David Manthey, CFA, Baird's senior research analyst who leads the firm's Industrial Distribution sector research. "With conditions stabilizing and inventories at very low levels throughout most supply chains, industrial distributors should continue to see improvement into 2009."
Baird's Industrial Distribution Research Team collected feedback on second quarter results from nearly 300 independent and captive distributors with combined annual revenue of nearly $50 billion. Key survey findings include: