Baird Survey: Outlook More Positive Than Current Trends

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:
 
·   ...

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:
 
·   Average revenues were down significantly in 1Q09 at -13.4% vs. -3.9% last quarter.
·   Average pricing was -1.4% year-over-year in 1Q09 vs. +1.1% last quarter. Gross profit margins remain relatively stable with most reporting no change.
·   Six-month outlook is somewhat better than recent trends with an expectation of -8.2%.
·   2009 outlook is consistent with the six-month outlook with an expectation of -8.9%.
·   Inventories generally decreased in line with or greater than revenue with many distributors planning on 2009 being, “more hand to mouth.”

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.