SHIFT 2023 Playbook

How Global Industrial Became a Distribution Outperformer

Census Bureau Revisions Lead to Rosier 2024 MDM Forecast

Operations

Distributors See Local but Limited Impacts from Baltimore Bridge Collapse

Premium Monthly

MDM March 2024 Premium Monthly

MDM February 2024 Premium Monthly

Market Insight Reports

MDM 4Q 2023 M&A Report

The report features in-depth articles that recap the year that was 2023 in distribution dealmaking, a full rundown of every deal we covered in October-December, the latest EBITDA trading multiples and more.

MDM 4Q 2023 MarketPulse Report

Find a wealth of data and analysis extracted from the 3Q23 Baird-MDM Industrial Distribution Survey, including trending charts and figures for revenue and expectations, plus plenty of interesting commentary.

MDM 3Q 2023 MarketPulse Report

MDM 3Q 2023 M&A Report

Our 2023 third quarter M&A report features in-depth articles on activity by Ferguson and Veritiv, and chronicles the overall quarterly pace of new deals.

MDM 2Q 2023 M&A Report

See MDM’s analysis of 2Q23 M&A activity pertaining to wholesale distributors, plus M&A financial benchmarks and recent Premium articles that had an M&A focus.

Strategy

Mike Hockett recounts his fireside chat with Barry Litwin at MDM's SHIFT conference, where the CEO detailed how the company actioned its many recent initiatives.

How to Apply Analytics for Smarter Distribution Labor

In the second of his three-part series, Randy MacLean shows the manageable metrics that drive operational efficiency and guide labor assignments.

Data: Distributors Working Though Overstock Amid Slowdown

Mike Hockett examines where wholesale inventory levels are at today, where they are headed and MDM's latest data on just how big of an issue excess inventory may be entering 2024.

Data: Distributors, Manufacturers Seeing Slow Progress on Labor Front

The 3Q23 Baird-MDM Survey revealed new quantitative data on industry-wide frontline hiring/retention, and plenty of interesting commentary.

Wholesale Revenue Expectations Improve as Monthly Growth Continues

Mike Hockett examines the latest economic trending data as it pertains to wholesale distributors, including their revenue expectations through next year.

Tech as a Teammate: How to Use Automation to Lighten the Sales Load

Technology has the power to lighten the load on a distributor's sales team, freeing time to focus on higher-quality deals, says Gartner's sales VP.

How Changing Demographics Are Killing Profits

In Part 1 of a three-part series, Randy MacLean uses government data to explain why labor has become scarce and expensive before outlining action to exploit the opportunity it actually presents.

4 Elements of a Distributor’s Culture that Foster Growth

Three executives share how they implement elements of a 'good company culture' in order to grow their business, attract new employees and keep existing employees invested.

Market Analysis

Ferguson Eyes Market Opportunities, Acquisitions Despite Headwinds

We extract key takeaways from the plumbing, HVAC, PVF and industrial supplies distribution giant’s earnings call on Sept. 25.

Finance

Equipment Leasing vs. Purchasing: What Distributors Should Know

As distributors look to modernize their facility equipment, financing is always the biggest question. This Q&A sheds light on what distributors should keep in mind as they consider buying vs. leasing.

September Wholesale Data: Major Downshift in Revenue Outlook

Mike Hockett examines the latest economic trending data as it pertains to wholesale distributors, including their revenue expectations through next year.

Perspective

Glimpsing the Future: Will You Be a Flintstone or a Jetson?

Nelson Valderrama explores a fictional (but increasingly likely) 2030 wholesale distributorship that includes physical, technological and cultural changes in the making today.

Facilities Maintenance (MRO)

The State of Grainger’s Footprint: What’s Changed and What Hasn’t

Mike Hockett analyzes the MRO products giant’s physical presence, which has surpassed 30 million square feet.

Strategy

How Distributors Can Drive Value Amid New Business Models

New manufacturing business models are disrupting traditional distribution channels, creating risks and opportunities. Several actions can allow distributors to add value for OEMs alongside growth and profitability for themselves.

Branding for Distributors

Inside Global Industrial’s ‘Engaged’ Sports Marketing

Mike Hockett dives into the distributor’s sponsorship of a NASCAR XFINITY Series race car, focusing on the many benefits the distributor is seeing from it.

August Wholesale Data: 2023-2024 Expectations Further Regress Slightly

We examine the latest economic trending data as it pertains to wholesale distributors, including their revenue expectations through next year.

Strategy

What Distributors Should Know About the Federal Sustainable Procurement Initiative

The proposed rule would expand federal purchasing recommendations across existing and new-purchase categories in healthcare, laboratories, professional services, foodservice, uniforms and clothing.

Facilities Maintenance (MRO)

Home Depot’s HD Supply Eyes Deeper MRO Market Penetration

After re-acquiring HD Supply in 2020, The Home Depot reveals plans for the MRO distributor's role in expanding market reach.

Analysis: What Can Manufacturers Do to Reduce Distributor-Supplier Friction?

In the latest Baird-MDM quarterly industrial distribution survey, we asked how manufacturers could make partnerships more efficient. See our analysis and plenty of respondent commentary.

Data: Distributors Gauge Potential Impact of Government Programs, Reshoring

We distill results of the 2Q23 Baird-MDM Industrial Distribution Survey's polling of respondent expectations for the impact of government programs and reshoring on theIr businesses in the next 5-10 years.

Commentary: If There is Any Time to Re-Examine Long-Held Beliefs, It Is Now

We have the opportunity to question the efficiency and effectiveness of our daily routines now like never before.

How to Reframe Outdated Sales Operation Assumptions

Indian River Consulting Group’s Mike Marks argues that sales transformation cannot happen for a distributor without releasing these long-held beliefs.

Commentary: Pump Up the Empathy, Get Customers’ Attention

Bringing your sales and marketing teams together on customer communications and interactions is a great way to ensure you are capturing a broader picture of what clients are going through right now.

Operations

Minimum Order Size: Is It the Right Move for You?

How distributors can assess whether or not implementing a published Minimum Order Size (MOS) policy makes sense when considering both company and market dynamics.

Featured Premium

The Cultural Shift that will Create an Empowered, Integrated Sales Team

Marketing and sales make a powerful team when working together.

Strategy

A Pandemic Operating Manual

Thirteen lessons from distributors who are finding the silver linings in COVID-19.

Strategy

Commentary: ‘I Don’t Have Time’ Doesn’t Work Anymore

Digital transformation is no longer something to get to eventually. It’s an imperative for survival.

Strategy

One Disruption, Many Responses

Wholesale distribution finds innovative ways to navigate the COVID-19 pandemic that are remodeling business operations.

Technology

Sonepar USA Doesn’t Miss a Beat

Data analytics and strong digital presence contribute to Sonepar USA's success.

The Collective Market Power of Affiliated Distributors

Industrial marketing group AD continues to see reliable growth.

Technology

Preparation Pays Off for Würth

Distributor excels in difficult environment with streamlined technology and new 3D printing capabilities.

Commentary: Rethink the Automatic Price-Dropping Response

The last few times a customer told you they found a lower price on a product at one of your competitors, how often did you lower your price in response?

Character Traits that Strengthen Remote Sales Management

Managers who prioritize strengthening the emotional intelligence skills of their sales team, such as empathy, find customers feel more connected and are more likely to share pain points that lead to purchases.

5 Rules for Conducting a Pricing Reset

In the past, distributors would often sacrifice margins to gain market share and drive the topline. However, such tactics negate a strategic pricing process, rendering it nearly nonexistent. Without process, your people must make pricing decisions in a vacuum. As hard as they might try to compensate for and cope with inefficiencies, and as effective as their efforts might be in the short-term, you can’t expect them to sustain healthy margins in the long run.

3 Levers to Improve Your Sales Process

Customers continue to leverage digital and e-commerce tools to improve their buying processes. But for many distributors, their outside sales model isnt working as effectively as in the past to keep up with how customers want to buy. That growing gap is why a dedicated part of our research and coverage has been on the strategies, best practices and tactics for how to transform the sales process to reduce selling costs and increase efficiency and customer engagement. And its why the prize when it comes to increasing sales performance is on specific ways to become a more buyer-centric seller.

Subscribers should log-in to read this article.

Operations

5 Nontraditional Roles to Add Value

Introducing any of these jobs product manager, chief digital officer, sales enablement manager, trusted adviser and director of inventory has the potential to make your company more open to change, better embrace the customer experience and streamline operations to meet evolving business demands.

Subscribers should log-in to read this article.

Operations

Alibaba Group Wants to Recruit You

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.

Subscribers should log-in to read this article.

Wholesale Distribution Value Series: Creating Value with Inside Sales

Most distributors dont view their inside sales team as a proactive sales force. Its relatively rare for inside sales reps to make outbound calls to generate more business or to employ active selling techniques. In fact, in a survey, nearly two-thirds of distributor respondents told Real Results Marketing their inside sales force spends less than 25% of their time proactively selling.

Subscribers should log-in to read this article.

6 Decision Criteria for Developing a Customer-Centric SKU Management Plan

Play the role of a critical customer, focusing on availability, urgency, reliability, accuracy and individual SKU characteristics.

Analytics that Quantify Value & Grow Profits (Get Control of Your Results)

Sell Better: Fish Where the Fish Are

How much time does your sales team spend in unproductive waters?

Data & Analytics

Randy MacLean shares the most effective analytics used by companies to actually control their results and appease all stakeholders.

Technology

ChatGPT’s Big Potential in Supplier Negotiations

Mike Hockett discusses how AI chatbot tech is being utilized by a retail giant in supplier negotiations, and how it can apply in distribution.

Featured Premium

Friction Fixes: How to Align Sales with Operations

The age-old conflict of sales vs. revenue operations doesn't have to be a combative relationship. Mike Hockett distills takeaways from an ISA23 session on ways to make this dynamic more collaborative.

Technology

What’s the Biggest Barrier to Leveraging Tech? Here’s What Distributors Said

In the Baird-MDM 1Q Survey, we asked distributors what obstacles they faced when trying to leverage technology. Read the responses here.

Trends Report

Data: Distributors See Slightly Improved Staffing Amid Inconsistent Labor Market

Distribution executives commented on their current staffing situations in response to the Baird-MDM 1Q 2023 Distribution Survey.

Breaking Down the DSG-Hisco Acquisition and its Market Impact

It combines the No. 34 and No. 38 companies on MDM’s 2022 Top Industrial Distributors List. Mike Hockett dives into the details.

Addressing M&A Valuation Considerations: Emotion, Risk and Retirement

Mike Hockett shares commentary and distills lessons from an MDM M&A Summit session on three key factors in the dealmaking process.

Operations

A Year After its Formation, A Deep Dive on Distribution Solutions Group

After Lawson Products transformed into DSG last year, the multi-faceted distributor has reported strong financials. Here's why the company isn't slowing down.

In Distribution Dealmaking, Burying Bodies Never Ends Well

Mike Hockett shares a conversation from MDM's recent M&A Summit that dove into the specifics of dealmaking communication best practices.

Pricing

How Rockstar CFOs Solve the Inflation Puzzle

Nelson Valderrama discusses how CFOs can navigate market disruptions by reimagining pricing and inventory processes.

Strategy

Don’t Break ‘The Mothership’: 3 Keys to a Successful Build-Buy-Invest Strategy

Mike Hockett analyzes value-creation advice for acquisition-interested distributors shared in an MDM M&A Summit session.

Poll Results: Could a Four-Day Workweek Work in Distribution?

The world's largest trial of the four-day work week drew rave reviews from companies that participated. Could the distribution industry benefit from such a change?

Finance

What Distribution Executives Don’t Understand About Profitability and Pricing

Mike Hockett distills takeaways from a NAW Executive Summit session that featured distribution executives discussing what leading companies do differently when it comes to profits and pricing strategy.

Top Distributors Point to Strong Demand as Forecasted Downturn Pushes Out

A new report states a majority of economists now think a would-be recession is coming later than expected. It suggests a softer economic landing as distributors continue to report strong financials.

Finance

Quantum Costing: The Better Alternative to ABC (and the Cost Model You Always Wanted)

In many sectors, Activity-Based Costing is being replaced by Quantum Costing, a newer and more accurate alternative that adds power and benefits to cost analysis. Randy MacLean explains the differences here.

Behind the Deal: Field Fastener’s Merger with Mid-State Bolt & Nut

MDM spoke with Field Fastener CEO Jim Derry to learn more about the company's recent acquisition of Mid-State Bolt & Nut.

Operations

Why Supply Chain Nearshoring is Soaring

In the first of a two-part series, John Johnson examines the key factors leading manufacturers to domesticate more of their production and what distributors should keep an eye on.

Tech & Operations

4Q Survey: Distributors Lay Out 2023 Digital Priorities

Baird and MDM polled distributors about what digital projects they’ll prioritize this year. Read the exclusive analysis and commentary here.

After 2 Years of Healthy M&A, What Can We Expect in 2023?

With slumping economic indicators and a forecasted demand slowdown, can we expect M&A deal volume to follow suit? Mike Hockett analyzes the current state of activity as we start 2023 and the factors involved.

Technology

IT, as in Integral to Transformation

Successful digitalization requires a change agent. Here’s why distributors would be wise to give that role to their IT teams.

Market Analysis

Data: Mixed Signals Continue as Distributors’ Expectations Improve

Mike Hockett analyzes the Census Bureau's latest wholesale trade data and how it compares with commentary MDM has gathered.

Commentary: Distributors Chime In on Choppy Industrial Demand

Some markets voiced robust 1Q demand while others saw things at least start to slow. Here’s what distribution execs had to say in the 1Q 2023 Baird-MDM Survey.

Trends Report

Data: Distributors See Slightly Improved Staffing Amid Inconsistent Labor Market

Distribution executives commented on their current staffing situations in response to the Baird-MDM 1Q 2023 Distribution Survey.

Strategy

How to Map Your Customers to the Right Channels and Reps

In this second of a two-part series by Redwood Advisors, learn about the final steps to optimizing an expansive sales force: mapping your accounts to the right sales channel and assigning them the right rep.

April Wholesale Data: Industrial Distributors’ Optimism Hard to Ignore

While talks of a slowdown persist, industrial distributors outperformed nearly all other wholesale sectors in 1Q's first two months.

Pricing

How Did Pricing Inflation Affect Gross Margin in 2022? Here’s What Distributors Said

We asked distributors if their gross margin was over- or under-inflated in 2022 thanks to pricing inflation. Here's what the data says.

What Distributors Stand to Gain from America’s Factory Building Boom

U.S. factory construction spending hit a record level in 2022, and it hasn't slowed down in 2023. Mike Hockett breaks down the numbers and what this means for distribution.

Pricing

How Rockstar CFOs Solve the Inflation Puzzle

Nelson Valderrama discusses how CFOs can navigate market disruptions by reimagining pricing and inventory processes.

Market Analysis

March Wholesale Data: 2023 Outlook Dips, Inventory Trends Negative

Mike Hockett breaks down the latest U.S. Census Bureau's wholesale trade data, covering revenue expectations and trends, inventory and more.

Strategy

Don’t Break ‘The Mothership’: 3 Keys to a Successful Build-Buy-Invest Strategy

Mike Hockett analyzes value-creation advice for acquisition-interested distributors shared in an MDM M&A Summit session.

Poll Results: Could a Four-Day Workweek Work in Distribution?

The world's largest trial of the four-day work week drew rave reviews from companies that participated. Could the distribution industry benefit from such a change?

Top Distributors Point to Strong Demand as Forecasted Downturn Pushes Out

A new report states a majority of economists now think a would-be recession is coming later than expected. It suggests a softer economic landing as distributors continue to report strong financials.

7 Ways Distributors Can Benefit from Reshoring

In the second of a two-part series, John Johnson covers how distributors can take advantage of the movement to reshore sourcing and shorten supply chains.

Distributors’ Expectations Hold After Sector Revenue Topped $8.2T in 2022

It was a second-straight record revenue year for the wholesale trade sector. Here, we break down the key latest figures from the U.S. Census Bureau.

Data: Are Distributors Seeing Customers Return as Supply Improves?

Breaking Down 2023-2024 with Alan Beaulieu

What should we expect in economic performance, inflation, labor and more in the next two years? Mike Hockett distills takeaways from Alan Beaulieu’s economic outlook presentation at the NAW Executive Summit.

Operations

Why Supply Chain Nearshoring is Soaring

In the first of a two-part series, John Johnson examines the key factors leading manufacturers to domesticate more of their production and what distributors should keep an eye on.

Research & Analytics

We polled distributors to ask if those that lost customers amid the height of supply chain issues in the past few years are starting to see those customers return. See the exclusive results and commentary here.

Data: Distributors Share Their 2023 Labor and Freight Cost Expectations

We polled distributors about how they expect their labor and freight costs to change from 2022 to 2023. See the exclusive results and commentary here.

Pricing

How Much Did Pricing Impact 2022 Revenue? Here’s What Distributors Told Us

We polled distributors about how much pricing influenced last year's revenue numbers. See the exclusive results and commentary here.