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We analyze the qualitative results of our 1Q24 Baird-MDM Distribution Survey question that asked distributors about current or expected impacts from geopolitical issues.

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Market Insight Reports

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.
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.
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.
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.
Digital is driving a lot of change in distribution, but not everything. There are other factors at play. Its important to not fixate on Amazon (but dont ignore!). Its more important to maintain some perspective to figure out your best moves in 2019 to stay relevant to each part of the success formula your customers, employees and suppliers. Our lead article touches nicely on this.

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As President of Kelly & Hayes, a 73-year-old commercial and industrial electrical supply house, Christian Brockey knows firsthand the challenge of selling materials that have been sitting on the shelf for years. Often, we say that we have six months of good purchasing and 73 years of mistakes in our warehouse, Brockey says. Meeting that challenge led Brockey to found DistributorStock.com, an e-commerce marketplace to help independent distributors nationwide list shelf stock for sale online. MDM spoke with Brockey to hear his vision for the website, now in Beta, and how he sees it helping to move distributors stale inventory.

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In the world of digital, many distributors dont know where to start. Thats the consensus among several speakers at MDMs upcoming 2019 Digital Distributor Summit. Over the course of June 18-20, nearly a dozen distribution veterans will provide attendees with specific knowledge on how to figure out where their company stands now with digital technology application, develop the most essential foundational components for a successful program and find the right strategy to shape their future.

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State-of-EBiz-pt-1-Chart-1
Distributors and manufacturers who do not have e-commerce capabilities or have yet to get traction with existing e-commerce implementation still have an opportunity to get in the game. While the adoption rate is growing fast it increased by more than 50% for smaller companies ($10 million - $50 million) from 2018 to 2019 nearly 87% in this sector still do not have e-commerce. Even the majority (55%) of the largest companies (greater than $1 billion) still do not have e-commerce. These data, from the eighth-annual MDM distribution e-commerce survey conducted with Real Results Marketing, show there is still plenty of e-commerce runway left.

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MacLean_Graphic1

Analytics-driven operations can deliver staggering profit gains, but it takes a visionary leader who won’t accept a company’s current limited analytical expertise. In this article the author, who will outline these concepts at MDM’s Pricing & Profitability Summit, www.pnp.com, Apr. 15-17, argues that distributors can shift from a revenue-share mindset to a profit-share mindset by zeroing in on three key metrics: gross profit, cost-to-serve and net before compensation. It also outlines how the concepts of line-item profit analytics and quantum costing can create an effective analytics environment. This article is an excerpt from a chapter in A Distributor’s Guide to Analytics, a book published by MDM.

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The media is talking about 3-D printing, also known as additive manufacturing, more than ever. But adoption of the technology in everyday use is far from widespread. This article examines the role of 3-D printing in manufacturing today and how it might change the supply chain in the future.

This article is part of MDM’s Disruptive Technologies Special Report.

This article includes:

  • Current applications for 3-D printing
  • Barriers to widespread use of 3-D printing
  • The potential impact on the supply chain of the future

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  • The State of E-Commerce in Distribution: 2014
  • The State of Analytics in Distribution: 2014
  • Redefining Competitive Advantage
data-on-gray-background

In this two-page report, available to download in PDF after log-in, we feature data on merger and acquisition trends and financial metrics for the largest publicly traded distributors across diverse sectors in the first quarter of 2014.

In partnership with Houlihan Lokey, an investment banking firm, we have added data on M&A activity trends across all industries (not just distribution), as well as valuation multiples for deals in all industries.

College-recruiting

Distributors that have been successful in recruiting top talent straight out of school say that the key is to develop ongoing relationships that include guest speaking in classes, internship programs and involvement in student organizations. This article examines the challenges, benefits and best practices in recruiting at the college level. It includes comments from distributors that have seen success in this area, including WinWholesale, Womack Machine Supply and Laird Plastics.

This article includes:

  • How to build awareness among young talent
  • The importance of developing relationships early on
  • Best practices in internships

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Subscribers also have access to the following related articles:

  • A Demographic Shift in Distribution
  • Generational Shift Drives Changes in Technology, Customer Expectations
  • The Hiring Disconnect in Distribution

Theres a lot of jargon around all things digital, and I plead guilty on all charges when talking about them digital platforms, omnichannel, cloud, big data ... the more digital we go, the fuzzier the logic we seem to attach to the terminology used to describe it.

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  • The State of Analytics in Distribution: 2014
  • The Shifting Competitive Landscape in Distribution
  • Redefining Competitive Advantage

The third annual MDM distribution e-commerce survey found that distributors’ e-commerce revenue as a percent of overall revenue is rising. But while distributors are increasingly using multiple vehicles to drive demand online, they have not yet effectively integrated tools such as marketing automation and paid search into their efforts. This article looks at how distributors approach demand generation online and ways they can improve the weakest links, as revealed by the survey.

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  • The 2014 State of E-Commerce in Distribution, Part 1
  • Special Report: The Industrial Vending Boom
  • Behind Grainger's E-Commerce Strategy
shopkey-small

The third annual MDM distribution e-commerce survey conducted with Real Results Marketing revealed several key trends:

  • E-commerce revenue as a percent of overall revenue is rising relative to last year’s survey.
  • The primary objectives among distributors for e-commerce remain acquiring new customers, growing wallet share with existing customers and improving website usability.
  • Mobile deployments are growing rapidly.

This article examines the results of the 2014 State of E-Commerce in Distribution Survey and how the industry’s e-commerce offerings are maturing. Part 2 will look at best practices for distributor e-commerce marketing, data management and operations.

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  • Strategies for Private Label Success
  • Special Report: The Industrial Vending Boom
  • Behind Grainger's E-Commerce Strategy
KamanIndTech

In late February, Bloomfield, CT-based Kaman announced an agreement to acquire fluid power distributor B.W. Rogers, Akron, OH. Steve Smidler, president of the Kaman Distribution Group, recently spoke with MDM about the reasons for the acquisition and plans for integrating the distributor into Kaman’s business.

This article includes:

  • How acquisition deepens the Parker relationship
  • How acquisition will expand Kaman's end-market reach
  • How Kaman will integrate B.W. Rogers

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  • MDM Interview: Kaman's Expansion Strategy
  • Applied Industrial: Fluid Power a Growth Area for Distributor
  • Special Report: The Industrial Vending Boom
FLEX-QandA

As the face of the workforce shifts, managers need new skills to connect and effectively lead a more diverse employee base. A new book, Flex: The New Playbook for Managing Across Differences, was written to address this need. MDM Editor Lindsay Konzak recently spoke with the book’s co-author Jane Hyun, an executive coach and global leadership adviser to Fortune 500 firms.

This interview includes Hyun's take on:

  • Why it's important for manager's to be able to "flex" their management styles
  • How managers can bridge the power gap
  • The cost of not considering different management styles

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  • MDM Interview: Avnet's Roy Vallee Reflects on Changes in the Industry
  • Where Managers Blunder
  • Commentary: Re-evaluate the Human Capital in Your Company
GraingerMobile

In 2013, Grainger surpassed $3 billion in sales from e-commerce channels, representing a third of total company sales. Paul Miller, vice president of global e-commerce for Grainger, spoke with Editor Lindsay Konzak about Grainger’s approach and plans for e-commerce.

This article includes:

  • How the distributor approaches e-commerce
  • Grainger's multichannel approach
  • Where Grainger sees opportunity with technology

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • The State of E-Commerce in Distribution
  • Grainger's E-Commerce Evolution
  • Beyond Amazon: E-Commerce's Impact on Wholesale Distribution Markets
data-on-gray-background

In this two-page report, available to download in PDF after log-in, we feature a new, expanded quarterly report with data on merger and acquisition trends and financial metrics for the largest publicly traded distributors across diverse sectors.

In partnership with Houlihan Lokey, an investment banking firm, we have added data on M&A activity trends across all industries (not just distribution), as well as valuation multiples for deals in all industries.

Refocus

For distributors to successfully navigate a challenging landscape they must reinforce their core strengths. This facet of the 2016 Distribution Remodel could entail a number of solutions, from deepening customer engagement to dropping unprofitable customer segments to divesting noncore assets.

This article includes:

  • Devising a blueprint for remodeling
  • Remodelings role in M&A
  • How differentiating can help you win market share

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  • 2016 Distribution Remodel: Invest or Die
  • Distributors Getting Back to the Basics
  • Commentary: Refocus on the Foundation

Distributors looking to balance renewed focus on their core with meeting customer demand to provide more are turning to master distributors to achieve that end. This article looks at how the role of master distributors has evolved and the additional roles they now play for traditional distributors.

This article includes:

  • How distributors use masters
  • Additional benefits master distributors provide
  • How masters are elevating their traditional role

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  • Distributors Adapt to More Sophisticated Supply Chain
  • Integrated Supplys Next Phase
  • Industry 4.0: Technology-Driven Change

Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

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  • MDM Pricing Trends Report: Fourth Quarter 2015 and Annual
  • 2016 Distribution Remodel: How to Build a Better Business
  • Market Analysis: HVACR Consumption in the United States

The distribution industry is due for a remodel. What has worked for decades still works, but it is far less effective now for businesses that want to grow. MDMs team has identified key areas that distributors need to focus on in 2016 to build the adaptive model that changing market conditions require.

This article includes:

  • Bridging the cycle gap
  • Investing on the Down Side
  • Finding Balance & Focus

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  • MDM-Baird Distribution Survey: Declining Demand Drives Down 4Q
  • Top Trends for 2016
  • Chasing Profitability

Distributors that invest wisely in talent, technology or other areas of their business will gain a competitive advantage and market share when economic conditions improve. This article explains why strategic investment is critical and provides tips on where and how to devote resources.

This article includes:

  • Reasons to remodel
  • Areas to invest
  • Pitfalls to avoid

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  • Rebranding Road Map
  • 2015 State of Distribution Inside Sales: Strive to be Proactive
  • Industry 4.0: Technology-Driven Change

For business leaders to get better, they must disrupt their own businesses, engage more deeply with employees and continually innovate. This article shows how they can achieve these steps and others on the path to transforming their leadership skills.

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  • Chasing Profitability
  • MDM Interview: Beyond Change Management
  • The 2016 Strategy Playbook

Distributors cant rely on what works today to get them through tomorrow. Being proactive is key to future success.

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  • The 2016 Strategy Playbook
  • MDM-Baird Distribution Survey: Declining Demand Drives Down 4Q
  • MDM Interview: Beyond Change Management
MA_HVACR

The MDM Market Analysis, based on data from MDM Analytics, includes consumption of HVACR supplies by end user in the U.S., plus the top end users by 6-digit NAICS.

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  • MDM Pricing Trends Report: Fourth Quarter 2015
  • Market Analysis: Janitorial Supplies Consumption in the United States
  • Top Trends for 2016

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

This report is researched and produced by MDM editors. View the Third Quarter 2015 report here.

These product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Fourth quarter 2014 pricing levels are compared with fourth quarter 2015, third quarter 2015 with fourth quarter 2015, and end of year 2014 with end of year 2015.

To view this report, log-in and click on download link below the product listing to access the print-ready PDF.

Not a subscriber? Subscribe today for immediate access.

Industrial

  • Abrasives
  • Adhesives & Sealants
  • Metal Cutting Machine Tools
  • Metal Forming Machine Tools
  • Pumps, Compressors, & Eqmt
  • Ind. Material Handling Eqmt
  • Rubber & Plastic Hose
  • Rubber & Plastic Belts & Belting
  • Ind. Rubber Products, nec
  • Metal Valves (not fluid power)
  • Personal Safety Equipment & Clothing
  • 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

Other Related Electrical

  • Lighting Fixtures
  • Nonferrous Wire & Cable
  • Fabricated Ferrous Wire & Cable

Power Transmission/Bearing

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

Fluid Power

  • Fluid Power Eqmt
  • Fluid Power Valves
  • Fluid Power Hose/ Tube Fittings
  • Fluid Power Pumps & Parts
  • Fluid Power Actuators/ Accum/ Cylinders

Plastics

  • Plastic Resins & Materials
  • Plastic Products (Overall)

Fasteners

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

Hardware

  • Hardware (overall)
  • Builders’ Hardware

Tools

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

Gases/Welding

  • Industrial Gases
  • Welding Machinery/ Equipment

Paper

  • Pulp, Paper & Allied Products (overall)
  • Sanitary Paper Products
  • Boxes
  • Packaging Products from Plastic

HVACR/Plumbing

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

To view this report, log-in and click on Download pdf below the product listing.

Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM Pricing Trends Report: Fourth Quarter 2015 and Annual
  • 2015 State of Distribution Inside Sales: Strive to be Proactive
  • Market Analysis: Janitorial Supplies Consumption in the United States

Investment Banking Directory

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