SHIFT 2023 Playbook

Data: Distributors Gauge Potential Impact of Government Programs, Reshoring

Census Bureau Revisions Lead to Rosier 2024 MDM Forecast

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Market Insight Reports

MDM 1Q 2024 MarketPulse Report

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.

Quarterly MDM-Baird Distribution Survey

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.

How Much Do Distributors Leverage AI Today, and Where?

MSC Voices ‘Leveling’ Market Tone

"The tone on the ground is one of leveling rather than significant declines,” said MSC CEO Erik Gershwind during a June 29 3Q earning call.

Technology

We examine the quantitative and qualitative aspectsof that question, which was asked in the new 2Q23 Baird-MDM Distribution Survey.

July Wholesale Data: Expectations Weaken for 2023 2H and 2024

Full-year revenue expectations soured for a second-straight month, falling from a slight gain to decline. Mike Hockett recaps those figures and more.

Home Depot’s Plan to Serve the Untapped Contractor Market

Vesna Brajkovic details how Home Depot targets a market typically served by wholesale distributors with its plans to be a one-stop-shop for complex contractor projects.

eCommerce

Mutual Gains: ARG Industrial & Midland Industries Both Win by Sharing Product Data

Within the distributor-supplier relationship, product information sharing can be hard to come by. But here, Mike Hockett details a partnership between ARG Industrial and Midland Industries as a winning example.

How Customer Engagement is Changing in Distribution, and Where AI Applies

Mike Hockett distills key takeaways from a new MDM whitepaper and webcast on the topic of customer experience and what distributors are doing to improve it.

Behind the Deal: Global Industrial Finds Strategic Fit in Indoff

Data: Wholesale Optimism Grows for Soft Landing

Mike Hockett breaks down the latest economic indicators, wholesale sector data and industry sentiment, which points to improved full-year outlook.

Mergers & Acquisitions

Global Industrial CEO Barry Litwin shares what made Indoff the perfect fit to be the industrial distributor's first acquisition since 2015.

Mergers & Acquisitions

Behind the Deal: BlackHawk Grows in Fasteners with Stock’d Supply

MDM spoke with BlackHawk Industrial CEO John Mark to learn more about the company's recent acquisition of Chattanooga-based Stock'd Supply.

Home Depot, Lowe’s Ready for Pros’ Shrinking Project Sizes

Lowe’s reports a more positive outlook on Pro customer sales as projects shrink and Pros work through backlogs.

Data & Analytics

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

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.

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.

Quarterly MDM-Baird Distribution Survey

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.

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.

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.

How to Refresh and Refine Your Customer Segmentation

This MDM Premium piece from Redwood Advisors focuses on how your organization can develop a detailed customer segmentation methodology.

Commentary: Sell Better: Fish Where the Fish Are

There are fishermen, and then there are catchers of fish.Some anglers are more successful than others, and it isnt about who has the best technology.How much time does your sales team spend in unproductive waters?

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Mismanaged Omni-Channel Models are a Threat to Distribution

Three key changes that are forcing distributors to reexamine sales coverage models

Technology

How to Grow a Profit Analytics Culture

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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Commentary: Process Improvement

If this isnt the year to prioritize pricing and profitability improvement, Im not sure when would be better! Do something before you have to.

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Earnest Machine Revolutionizes Sales Department

January is typically not a big sales month for Earnest Machine, a 72-year-old fastener distribution company out of Cleveland. But this January was not typical. The company was up 29% at the start of 2019, said CEO Kirk Zehnder. Speaking last month at MDMs Sale GPS Conference, Zehnder explained the radical shift in Earnests sales department structure that he credits for the boost.

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Why Building a Pricing Strategy is Worth the Effort

Theres a lot of talk about whether or not the U.S. is looking at an economic recession in the near future and the impact a market downturn could have on distributors profitability in the process. But the truth is, distributors should be examining their pricing strategy no matter how well or poorly the economy is performing, says Al Bates, principal at Distribution Performance Project. Whether its a good market or a bad market, youve got to get control of your pricing, he says.

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Targeting Millennials to Forge the Next Evolution of Distribution Sales

Industry leaders shared their recruiting and placement strategies at MDMs Sales GPS 2019.

Commentary: Look Hard at Your Value in 2019. Seriously.

Who is responsible for creating preference for a product as well as for where the product is purchased? A new economic formula demands that we devote scarce resources to fewer partners.

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Data That Drives Customer Experience

Distributors looking to grow and compete in the digital landscape need to take a structured approach and build a system. This excerpt from the book Digital Branch Secrets: eCommerce Playbook for Distributors outlines a critical component of this system your product content.

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Can You Handle the Truth?

Like it or not, how customers interact and buy is changing.

The Death of the Local Branch Has Been Greatly Exaggerated

Branch managers in distribution are often stuck between the proverbial rock and a hard place.

A Strategic Imperative to Fight the Sales Status Quo

The rise of Amazon, other digital platforms and fast-changing customer expectations of the buying process have disrupted the role of the traditional field salesperson. More than 100 distribution industry leaders met in Denver in late June at MDMs Sales GPS 2018 event to discuss the evolution of the distribution sales model to one that adds more value and helps them adapt to a changing market.

This article includes:

The traditional sales force as a margin killer
Why customer size doesnt equal customer potential
Proceeding with caution

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Is Your B2B Distribution Sales Model Out of Balance?

Three key warning signs that your outside sales team is running your business.

The Secret to Improving Margins

Product and customer mix are the key levers.

Commentary: Differentiating from Digital Distributors

Project selling is a value-added service that building products distributors can offer their customers that truly differentiates them from pure digital (online only) competitors. Who will sell the project of building moats for your company?

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Top Trends for 2018
When Good Distributors Do Bad Branding
Key Drivers for E-commerce Demand

Project Selling: A Vital Part of Creating Value

Project selling – an area where there is room for simple, high-value improvements – stands out as one of the most critical and lucrative ways a distributor can create a value-added service component. Here’s a primer on how to develop project selling as a competitive moat and some important keys to success.

This article includes:

Helping Customers to Shop
Annuity from Follow-on Sales
Project Selling = Competitive Moat

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MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
Distributors Up Search Marketing Efforts
Amazon Business: The Burning E-Platform

How To Develop Branding Strategy

In the prior two articles of this series, we explored the pitfalls of bad branding and damage branding agencies can do. We outlined the Branding Matrix and how you can use it to understand how much time and money to focus on developing your branding strategy. For the final article in this series, lets talk about the branding strategy itself how should you develop your slogan and your supporting messages?

This article includes:

The Branding Process
The Branding Ladder
Defining the Role of Branding in Your Company

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MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
Distributors Up Search Marketing Efforts
Amazon Business: The Burning E-Platform

How Important is Branding for Your Business?

In part one of this three-part series, MDM President and COO Ian Heller explored the dangers of working with a pure branding agency and how the wrong partner can do more harm than good for a distributor. In part two, Ian uncovers how you determine the value of branding for your distribution company.

This article includes:

Sizing the purchase
Emotional attachments
The Branding Matrix

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MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
Distributors Up Search Marketing Efforts
Amazon Business: The Burning E-Platform

Commentary: Are Pricing Consultants Worth the Price?

When pricing projects fail its often the distributors fault.

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MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
Distributors Up Search Marketing Efforts
Amazon Business: The Burning E-Platform

When Good Distributors Do Bad Branding

This three-part series examines why distributors struggle with branding. In this, the first article in the series, MDM President & COO Ian Heller contrasts the difference between what branding agencies promise and what they actually deliver. He outlines why such agencies have objectives that conflict with yours, and why you should consider pure B2B advertising agencies that do more than just branding.

This article includes:

Convincing distributors to rebrand
The myth of branding
The reality of branding

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MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
Distributors Up Search Marketing Efforts
Amazon Business: The Burning E-Platform

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.

Dairy Farming Innovation Shows What’s Possible in Distribution

Tired of Job-Hopping Staff? It May Soon Get Worse

Keeping staff from seeking greener pastures has been a major challenge for distributors in recent years, and a proposed FTC rule to end noncompete clauses could take it to another level.

Strategy

Inside Werner Electric’s Digital Evolution

Mike Hockett recounts a case study that walked through the distributor’s four-year and ongoing journey that defined a digital strategy catering to an omnichannel customer experience.

eCommerce

Analysis: Zoro’s Explosive Marketplace Growth

Mike Hockett dives into the numbers behind Grainger’s $1 billion U.S. digital marketplace, what Zoro has done to support its rapid growth and why there’s no slowdown in sight.

Tech & Operations

Mike Hockett recounts a keynote speech on how a small dairy farm in Iowa illustrates asking 'What is possible?' to drive innovation for distributors.

Inventory Management

3 Ways for Distributors to Embrace Digital Inventory Trends in 2023

Robert Brice discusses how digital and automation technology can help deal with challenges faced by the modern distributor.

MRO

Here’s How Grainger is Helping NASA Return to the Moon

In an exclusive interview with MDM, the MRO supplies distribution giant detailed its ongoing partnership with NASA and how it’s supporting the Artemis missions that will return humans to the moon for the first time since 1971.

How to Use Reporting and Data in Channel Incentive Programs

In-Office vs. Remote vs. Hybrid: The Great Debate

Mike Hockett takes a deep dive into the new normal of different working environments in distribution and recaps a lively B2BOnline debate session on this topic.

Strategy

Distributors’ Big Bets Take Many Forms

Acquisitions and technology investments remain viable ways for distributors to bet on themselves to outperform competitors, but they aren't the only options available. Here, Mike Hockett outlines those and other investments worth particular consideration ahead of a forecasted economic slowdown.

Data & Analytics

Nichole Gunn dives into the ways distributors and manufacturers can access and wield incentive program reporting and data to elevate sales and marketing strategies.

Are You Hiring Honestly?

Does the messaging in your hiring materials and practices reflect what it's really like to work at your company? Mike Hockett recaps an ISSA Show session that dove into the nuances of being transparent in all phases of the recruitment and onboarding process.

Fastenal, Motion Voice Different Tones for 2023 Market Outlook

Mike Hockett analyzes the noticeably different levels of optimism in the commentary given by industrial distributors Fastenal and Motion in their third-quarter earnings calls.

What are Distributors Doing to Recruit and Retain Talent? Here’s What They Told Us

We share new comments from distributors regarding whether they plan to use new or unique strategies to recruit and retain employees. It illustrates that some are faring much better than others.

Finance

Budgeting During Volatile Times: How to Approach Your Incentive Program

Lincoln Smith advises on refocusing an incentive program in times of market correction in the face of supply chain snarls, high inflation and overall economic precarity.

Operations

Key Takeaways from NetPlus Alliance’s ‘All In’ Annual Meeting

Get a recap of NetPlus' 10th annual meeting, held Oct. 2-4 in Las Vegas, where the group shared updated stats on its impressive five-year growth and where it's headed.

Unpacking SHIFT: What Distribution Leaders Do Differently to Outperform

Mike Hockett breaks down the opening keynote presentation at MDM's SHIFT Conference, which featured plenty of new market data from McKinsey & Company.

Data & Analytics

4 Blind Spots in Making Analytics Actionable

Too often, distributors get to the edge of the diving board with analytics development and suddenly realize they can’t jump. Here's why.

Technology

Why Are Some Distributors Still Resisting Technology?

When it comes to technology, what’s considered business as usual won’t cut it any longer. It needs to be invested in and updated.

Operations

Turning 100, Wesco Nets Major Acquisition and Reflects on Anixter Impact

The distributor of electrical, data and security products celebrated its centennial with an eventful Sept. 7 that shared a 'New Wesco' vision going forward. Get the details here.

Earnings

Fastenal’s Sales Remain Robust Despite Construction Slowdown

Continued strong sales growth means the third quarter will likely be another windfall fiscal period for most industrial distributors.

Inflation, Freight, Output & Demand: Where Things Stand to Begin 2023

Ahead of MDM's Economic Outlook webcast, Mike Hockett gave a snapshot of a handful of key indicators showing current trajectories.

Strategy

Inside Werner Electric’s Digital Evolution

Mike Hockett recounts a case study that walked through the distributor’s four-year and ongoing journey that defined a digital strategy catering to an omnichannel customer experience.

Perspective

Q&A: What Distributors Can Expect in 2023

How will 2022’s biggest distribution trends and factors evolve in the year ahead? Here, we chat with Wipfli’s manufacturing and distribution partner about the technology, supply chain and labor issues that will matter most in 2023, and how curiosity may be the best way to attack them.

Financial Acumen: The Not-So-Secret Fundamental of Distribution Leadership

Mixed Economic Signals Continue Through Year’s End

Mike Hockett dives into the numbers for distributors' 2023 expectations and the latest economic indicators for the industrial economy.

Strategy

An Introduction to Incentive Loyalty Programs

What is loyalty marketing? Lincoln Smith explains and makes a case for using incentive loyalty programs to bolster your revenue.

Future Leaders

Read Frymire details how the ability to understand, manage and interpret numbers is a critical soft skill that enables distribution leaders to speak the language, make managerial decisions and understand the implications of financial data.

Distributors’ Market Optimism Rises for 2023 Despite Economic Indicators

Distributors and their suppliers say they continue to see strong demand for industrial and commercial products, with no real slowdown in sight.

Strategy

Distributors’ Big Bets Take Many Forms

Strategy

Rewrite Your Strategy to Win the New Self-Serve Customer

The end customer increasingly desires to buy from you like they do in their everyday personal life. If you aren’t rewriting your strategy to meet the needs of the self-service customer, you are in danger of falling behind.

Baird-MDM 3Q Survey: Distributors Expect Pricing to Increase at Slower Rate in 2023

Are You Hiring Honestly?

Pricing

The quarterly Baird-MDM industrial distribution survey gauged distributors' confidence heading into 2023. Here's what they had to say about pricing expectations.

Wholesale Data Analysis: Falling Expectations and the Numbers Behind Employment Struggles

Mike Hockett breaks down the latest figures showing distributors' expectations for 2023 and beyond, as well as data that illustrates why distributors are still struggling with staffing despite a growing labor pool.

Fastenal, Motion Voice Different Tones for 2023 Market Outlook

Mike Hockett analyzes the noticeably different levels of optimism in the commentary given by industrial distributors Fastenal and Motion in their third-quarter earnings calls.

What are Distributors Doing to Recruit and Retain Talent? Here’s What They Told Us

We share new comments from distributors regarding whether they plan to use new or unique strategies to recruit and retain employees. It illustrates that some are faring much better than others.

Strategy & Research

Navigating the Digital Transformation Minefield Starts with Culture, Not Technology

MDM's Brad Star recaps Jason Hein's SHIFT conference session about how distributors must first assess their culture before jumping into adding digital tools.

Unpacking SHIFT: What Distribution Leaders Do Differently to Outperform

Mike Hockett breaks down the opening keynote presentation at MDM's SHIFT Conference, which featured plenty of new market data from McKinsey & Company.

What to Watch: Movement in Imports, Container Prices Amid Inflation

A disappointing inflation index reading grabbed headlines, but it's certainly not the only metric to keep an eye on.

Strategy

Taking Unfair Share with Improved Distributor-Supplier Analytic Partnerships

If your 2023 annual planning sessions use the same metrics, scorecards and templates from even a few years ago, you may be falling behind.

Reshoring: A Potential $15B Windfall for Industrial Distributors

A new report calculates that U.S.-based industrial distributors could stand to benefit considerably over the next decade from increased MRO demand driven by the domestication of manufacturing production and foreign investment.