The global e-commerce platform's business model is built around the premise of making it easier for distributors and manufacturers to do business around the world, says John Caplan, president of North America B2B and chief growth officer, global B2B.
Distributors posted aggregate revenue growth (excluding acquisitions) of 0.8% during the fourth quarter of 2019 — below the 1.9% growth originally forecasted for the quarter, according to the latest Baird Industrial Distribution Survey, conducted in partnership with MDM. Growth decelerated 160 basis points versus the previous quarter, continuing the recent trend of sequentially moderating growth.So, what are distributors going to do about it?
You'll be hard pressed to find a distribution executive in January – in Europe or North America – who had a good thing to say about the last two weeks of business in 2019. The likely culprit was having Christmas and New Year’s holidays fall mid-week; customers, employees and revenues took time off. Manufacturing employment declined slightly in December as well but changed little in 2019 after growth the year before.
In this two-page report, available to download in PDF after log-in, we feature data on merger and acquisition trends and financial metrics for the largest publicly traded distributors across diverse sectors in the fourth quarter of 2019.
In partnership with Houlihan Lokey, an investment banking firm, the report includes data on M&A activity trends across all industries (not just distribution), as well as valuation multiples for deals in all industries.
At MDM, we’re strengthening our commitment to helping you with your goals by ensuring every type of content we deliver to you — be it through our articles, blogs, webcasts, special reports, podcasts, events or our new spotlight videos — answers for you, up front, this critical question: “What’s in it for me?”
Tunnel vision around the importance of logistical capabilities and low price to customers may be keeping distributors from promoting the real benefits many say are important to their value propositions, including helping the end customer to reduce cost and decrease equipment failure.
The race to embrace digital marketing can put you in a strong position with clients, the MDM/Real Results Marketing 2019 State of Distributor Marketing survey shows, but don’t elevate online efforts at the expense of traditionally profitable opportunities.