Commentary: In the Face of Consolidation, Have a Laser-Like Value Proposition
Machine tool sales have long been a fairly reliable leading indicator for other industrial distribution sectors on sales trends. In a similar fashion, the metals distribution sector may be worth watching to gain some insight into consolidation activity in wholesale distribution channels.
While many MROP markets were still struggling for profitability and cash flow over the past few years, there have been a few high profile deals on a global basis among steel producers as well as distributors.
The global pressures at the customer level essentially drove a chain reaction in North American distribution. That channel is getting more polarized, with the mid-sized companies particularly squeezed by the increasing global reach of its larger competitors. So the metals ...