Latest In Quarterly MDM-Baird Distribution Survey

Robert W. Baird & Co., in partnership with Modern Distribution Management, conducted a survey of more than 600 distributors and manufacturers to gauge business trends and the outlook for the distribution industry in diverse sectors.

On average, respondents to the latest quarterly MDM/Baird survey said fourth-quarter revenues were up 10.3 percent year-over-year. When compared to the third quarter of 2010, respondent sales increased 6 percent.

Optimism is beginning to return in most sectors, with forecasts turning toward conservative growth. For 2011, the average forecast for respondents is revenue growth of 8.3 percent when compared to 2010.

Robert W. Baird & Co. in partnership with Modern Distribution Management, conducted a survey of more than 750 distributors and manufacturers to gauge business trends and the outlook for the distribution industry in diverse sectors.

On average, respondents to the latest quarterly MDM/Baird survey said second-quarter revenues were up 7.8 percent.

While there has been some improvement, most respondents still feel uncertain about the economy. "The economy is relatively difficult to …

Robert W. Baird & Co., in partnership with Modern Distribution Management, conducted a survey of distributors and manufacturers to gauge business trends and the outlook for the distribution industry in diverse sectors. Here's the exclusive look at all the results for premium subscribers to MDM.

First-quarter revenues among survey respondents were down 0.9 percent from last year, and pricing and gross margins were flat. Overall, survey respondents expect an average 3.1 percent increase in revenues in the second quarter 2010, and 3.9 percent growth for 2010 overall.

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."

Survey Details
Baird's ...

The first quarter Baird Industrial Distribution Survey, from Robert W. Baird & Co. Inc., indicates revenues were down significantly during the quarter, with both the six-month and full-year forecasts slightly better than current trends.
 
Pricing and gross profit margins appear to be holding relatively steady. The survey also shows 68% of respondents expect some level of benefit to their business as a result of U.S. Government stimulus efforts.
 
Baird's Industrial Distribution Research Team, led by Senior Research Analyst David Manthey, CFA, collected feedback on first quarter results from nearly 300 independent and captive distributors with combined annual revenue in excess of $40 billion. Key survey findings include:
 
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The fourth quarter Baird Industrial Distribution Survey, from Robert W. Baird Inc., indicates the industrial economy is in recession.


On average, respondents' fourth quarter revenues were down significantly, with increased pricing offsetting unit volume declines. Expectations are for continued declines through 2009, though the trajectory should not be as severe as it was in recent weeks which were negatively impacted by abnormal holiday closures.
 
Baird's Industrial Distribution Research Team, led by senior research analyst David Manthey, CFA, collected feedback on fourth quarter results from nearly 300 independent and captive distributors with combined annual revenue in excess of $30 billion. Key survey findings include:


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