The 2020 Mid-Year Economic Update_long

May 10 2011

Volume 41, Issue 9 - Research Report, Part 1: The Distributor Marketing Imperative

Volume:

41

Issue:

9

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Features

Editor's Note: In this article, survey results are frequently presented showing Market Leader response vs. other distributors. MDM’s Market Leaders lists are available at mdm.com/marketleaders. The lists show the largest distributors in eight sectors.


There is a wide variety of marketing practices within the wholesale distribution industry. Real Results Marketing in partnership with Modern Distribution Management conducted an online survey to better understand these practices. In general, distributor respondents that appear on MDM’s Market Leaders lists more broadly embrace marketing as evidenced by the amount of resources they apply. Not surprisingly, they obtain better marketing results than other distributors. This article, the first in a two-part series, explores approaches to sales channels. The second article, to be published May 25, examines how marketing vehicles are used in independent distribution channels.

Over the past 20 years, there has been a broad movement by distributors to make various operational improvements through the use of warehouse automation, RFID, transportation management systems, 3PL outsourcing, process …

Which comes first: Revenue from product sales or the innovative idea or product that will drive future sales? Trick question on a tough balancing act. As wholesale distribution channels go through business cycles, it’s easy to lose perspective.

Managers at every level get so focused on hitting the numbers when times are tight that every creative effort tends to focus on the target, while delivering value – often …

This report was formerly called the Inflation by Commodity Group Report.

These 60 product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. First quarter 2010 is compared with first quarter 2011, and fourth quarter 2010 with first quarter 2011.

To access, premium subscribers should ensure they are logged-in to download this pdf report by clicking Download pdf below the product list (link shown after logging in).

Not a subscriber? Buy this report, complete with graphs for each product group.

Industrial:

  • Abrasives
  • Adhesives & Sealants
  • Metal Cutting Machine Tools
  • Metal Forming Machine Tools
  • Pumps, Compressors, & Eqmt
  • Ind. Material Handling Eqmt
  • Ind. Rubber Products, nec
  • Ind. Safety Eqmt
  • Metal Valves (not fluid power)
  • Steel Mill Products

Construction:

  • Softwood Lumber
  • Hardwood Lumber
  • General Millwork
  • Gypsum Products
  • Hardboard, Particlebd, Fiberbd
  • Plywood
  • Plastic Construction Products
  • Wood Ties, Siding, Shingles, Shakes

Electrical:

  • Electrical Machinery & Eqmt
  • Electronic Components & Accs
  • Integrating and Measuring Instruments
  • Motors & Generators
  • Wiring Devices
  • Transformers & Power Regulators
  • Switchgear, Switchboard, etc. Eqmt
  • Communications & Related Eqmt
  • Electric Lamp Bulbs & Parts

Power Transmission & Fluid Power

  • Mechanical Power Transmission Eqmt
  • Ball & Roller Bearings
  • Plain Bearings & Bushings
  • Speed Changers, Drives & Gears
  • Fluid Power Equipment
  • Fluid Power Valves

Fasteners

  • Nuts, Bolts, Screws, Rivets, Washers (overall)
  • Aircraft Fasteners
  • Externally Threaded Fasteners
  • Internally Threaded Fasteners
  • Nonthreaded Metal Fasteners

Tools

  • Cutting Tools & Accessories (overall)
  • Hand & Edge Tools
  • Power-Driven Hand Tools
  • Precision Measuring Tools
  • Small Cutting Tools
  • Tools, Dies, Jigs, Molds, Fixtures

Jan-San & Packaging

  • Sanitary Paper Products
  • Spec. Cleaning, Polish & Sanitary Products
  • Boxes
  • Label/Wrap Printing for Packaging
  • Packaging & Ind. Converting Paper
  • Packaging Products from Plastics
  • Pulp, Paper and Allied Products

Hardware

  • Hardware (overall)
  • Builders’ Hardware

HVAC/Plumbing

  • Air Cond. & Refrigeration Eqmt
  • Heating Eqmt
  • Plumbing Fixtures & Fittings

Gases/Welding

  • Industrial Gases
  • Welding Machinery/Equipment

Plastics

  • Plastic Resins & Materials
  • Plastic Products (overall)

A pdf of these graphs is linked below for premium subscribers. If you do not see the link to Download pdf, log-in to mdm.com first.

Marketing industrial distribution to younger generations without family ties to the industry has been a challenge for many companies. University programs, such as the Industrial Distribution program at the University of Nebraska at Kearney, are working to counter that problem and prepare students to meet the needs of the industry through a variety of experiences including internships and a hands-on simulation lab. MDM visited UNK during the program’s Spring Career Event to take a closer look at how schools are preparing students for careers in distribution.

The U.S. jobless rate remains a sticking point in recovery. In March 2011, the rate continued to hover around 9 percent. But several companies – including wholesaler-distributors – have reported having trouble finding qualified candidates to fill openings. At the same time, industrial distribution programs, such as the one offered by the University of Nebraska at Kearney, …

4109Cover
This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost of this issue toward an annual subscription, which includes two issues a month plus access to more than eight years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. Subscribers log-in to download this issue.
PDF Download

Editor's Note: In this article, survey results are frequently presented showing Market Leader response vs. other distributors. MDM’s Market Leaders lists are available at mdm.com/marketleaders. The lists show the largest distributors in eight sectors.


There is a wide variety of marketing practices within the wholesale distribution industry. Real Results Marketing in partnership with Modern Distribution Management conducted an online survey to better understand these practices. In general, distributor respondents that appear on MDM’s Market Leaders lists more broadly embrace marketing as evidenced by the amount of resources they apply. Not surprisingly, they obtain better marketing results than other distributors. This article, the first in a two-part series, explores approaches to sales channels. The second article, to be published May 25, examines how marketing vehicles are used in independent distribution channels.

Over the past 20 years, there has been a broad movement by distributors to make various operational improvements through the use of warehouse automation, RFID, transportation management systems, 3PL outsourcing, process …

Which comes first: Revenue from product sales or the innovative idea or product that will drive future sales? Trick question on a tough balancing act. As wholesale distribution channels go through business cycles, it’s easy to lose perspective.

Managers at every level get so focused on hitting the numbers when times are tight that every creative effort tends to focus on the target, while delivering value – often …

This report was formerly called the Inflation by Commodity Group Report.

These 60 product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. First quarter 2010 is compared with first quarter 2011, and fourth quarter 2010 with first quarter 2011.

To access, premium subscribers should ensure they are logged-in to download this pdf report by clicking Download pdf below the product list (link shown after logging in).

Not a subscriber? Buy this report, complete with graphs for each product group.

Industrial:

  • Abrasives
  • Adhesives & Sealants
  • Metal Cutting Machine Tools
  • Metal Forming Machine Tools
  • Pumps, Compressors, & Eqmt
  • Ind. Material Handling Eqmt
  • Ind. Rubber Products, nec
  • Ind. Safety Eqmt
  • Metal Valves (not fluid power)
  • Steel Mill Products

Construction:

  • Softwood Lumber
  • Hardwood Lumber
  • General Millwork
  • Gypsum Products
  • Hardboard, Particlebd, Fiberbd
  • Plywood
  • Plastic Construction Products
  • Wood Ties, Siding, Shingles, Shakes

Electrical:

  • Electrical Machinery & Eqmt
  • Electronic Components & Accs
  • Integrating and Measuring Instruments
  • Motors & Generators
  • Wiring Devices
  • Transformers & Power Regulators
  • Switchgear, Switchboard, etc. Eqmt
  • Communications & Related Eqmt
  • Electric Lamp Bulbs & Parts

Power Transmission & Fluid Power

  • Mechanical Power Transmission Eqmt
  • Ball & Roller Bearings
  • Plain Bearings & Bushings
  • Speed Changers, Drives & Gears
  • Fluid Power Equipment
  • Fluid Power Valves

Fasteners

  • Nuts, Bolts, Screws, Rivets, Washers (overall)
  • Aircraft Fasteners
  • Externally Threaded Fasteners
  • Internally Threaded Fasteners
  • Nonthreaded Metal Fasteners

Tools

  • Cutting Tools & Accessories (overall)
  • Hand & Edge Tools
  • Power-Driven Hand Tools
  • Precision Measuring Tools
  • Small Cutting Tools
  • Tools, Dies, Jigs, Molds, Fixtures

Jan-San & Packaging

  • Sanitary Paper Products
  • Spec. Cleaning, Polish & Sanitary Products
  • Boxes
  • Label/Wrap Printing for Packaging
  • Packaging & Ind. Converting Paper
  • Packaging Products from Plastics
  • Pulp, Paper and Allied Products

Hardware

  • Hardware (overall)
  • Builders’ Hardware

HVAC/Plumbing

  • Air Cond. & Refrigeration Eqmt
  • Heating Eqmt
  • Plumbing Fixtures & Fittings

Gases/Welding

  • Industrial Gases
  • Welding Machinery/Equipment

Plastics

  • Plastic Resins & Materials
  • Plastic Products (overall)

A pdf of these graphs is linked below for premium subscribers. If you do not see the link to Download pdf, log-in to mdm.com first.

Marketing industrial distribution to younger generations without family ties to the industry has been a challenge for many companies. University programs, such as the Industrial Distribution program at the University of Nebraska at Kearney, are working to counter that problem and prepare students to meet the needs of the industry through a variety of experiences including internships and a hands-on simulation lab. MDM visited UNK during the program’s Spring Career Event to take a closer look at how schools are preparing students for careers in distribution.

The U.S. jobless rate remains a sticking point in recovery. In March 2011, the rate continued to hover around 9 percent. But several companies – including wholesaler-distributors – have reported having trouble finding qualified candidates to fill openings. At the same time, industrial distribution programs, such as the one offered by the University of Nebraska at Kearney, …

4109Cover
This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost of this issue toward an annual subscription, which includes two issues a month plus access to more than eight years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. Subscribers log-in to download this issue.