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ECONOMIC OUTLOOK REPORTS

Our 2024 EOR is a comprehensive economic reference guide to the U.S. wholesale distribution industry and its many different verticals. It is comprised of 20 different subreports.

Premium Monthly

This issue’s content spans research on family-owned distributors’ succession plans; expectations of Trump 2.0’s impact on demand and margins; the industry’s top concerns at the start of 2025; the first two parts of our case study on MSC Industrial Supply; and more.

Market Insight Reports

Find a wealth of data and analysis extracted from the 4Q24 Baird-MDM Industrial Distribution Survey, including trending charts and figures for revenue and expectations, plus plenty of interesting commentary.
See the latest EBITDA trading multiples for 30 top industrial distributors along with our top M&A articles from 4Q24, including our analysis of 2024’s dealmaking activity; discussion on private equity’s role in distribution M&A; and analysis of QXO-Beacon and Applied-Hydradyne.

Case Studies

Watsco has achieved a marketing-leading position in HVACR distribution through a combination of deep supplier partnerships, a buy-and-build philosophy and a technology-first mindset. We examine the company’s recent evolution and where it’s going.
This case study explores the plumbing, HVACR, PVF and industrial supplies distributor’s past decade of growth through diversification, private branding and increased customer loyalty.
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Janitorial Supplies represented a market in 2006 of $19.98 billion, according to estimates by Industrial Market Information, Minneapolis.



These charts show the top ten industries, by SIC code, consuming these products; and the 2006 end-user consumption of these groups sorted by the nine government market regions.


Click on Related Document below to see the charts and breakdown by end-user.

Modern Distribution Management’s January Inflation Index, which measures a cross-section of industrial supplies, was up 0.59% from the previous month, and up 3.27% from January 2006.


Summary of&nbsp ; MDM Inflation Index for the past 12 months:

January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0
June 2006 Index 263.0
May 2006 Index 262.1
April 2006 Index 262.1
March 2006 Index 262.1
Febuary 2006 Index 261.2
January 2006 Index 260.2


Please click below on Related Document to view a print-ready pdf of the&nbsp ; MDM Inflation Index for January 2007, listing the ten …

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email [email protected] to …

This article details two mid-sized distributors' experiences with global sourcing and is adapted from presentations at the National Association of Wholesaler-Distributors' annual meeting, with additional information provided through follow-up interviews with MDM.

To use a cliché, the devil is in the details. Andrew Berlin, president of Berlin Packaging, says this has never been truer than when sourcing from China.

And one more cliché," he says. "You get out of it what you put into it."

Berlin should know. He's been sourcing from China for his customers and suppliers for almost 20 years, and understands the value of taking the time required to set up a profitable transaction rather than …

In Part II of MDM’s interview with Wolseley CEO Chip Hornsby, he addresses the differences between the global building materials and HVAC/plumbing distributor’s North American and European markets, and Wolseley’s aim to grow significantly on the European mainland -doubling its market share every five to seven years.

MDM: Can you talk a little about the European distribution landscape?

Chip Hornsby: The first thing I had to understand -we laugh about it all the time -was that in fifth-grade geography they didn’t teach us that there’s another continent out there called the UK. And then there’s Europe. And those 22 miles are bigger than the ocean between us and them. I get asked all …

Home Depot CEO Frank Blake reinforced his drive to refocus on the business’ retail division at the company’s annual investor and analyst conference at the end of February.


To that end, Blake told participants that acquisitions outside of the retail core won’t be a priority for us. HD Supply acquisitions have slowed and will continue to, with the exception of White Cap’s recent purchase of concrete distributor GSI General Materials.


Soon after the annual meeting – at which HD executives only briefly touched on the possible sale of HD Supply, and then only in response to a question – reports started to emerge on private equity firms’ interest. Many analysts and industry-watchers expect the supply division to be sold, despite Blake’s insistence that a decision has not …

Stuart C. Irby Co., Jackon, MS, a subsidiary of Sonepar USA, signed an agreement to become the authorized AllenBradley distributor for the Columbus and Meridian, MS, markets effective March 31, 2007. Irby will establish two new locations as full-line commercial and industrial branches to complement their existing Mississippi footprint.


&nbsp ;


Irby is the authorized distributor in Tupelo, Jackson, Hattiesburg, McComb and Pascagoula, Mississippi. Irby also has 12 additional locations in six additional states authorized by Rockwell Automation providing AllenBradley products and services.


&nbsp ;


“We are especially excited about the prospect of increasing our overall industrial and


commercial/contractor presence in our home state, said …

San Diego, CA-based Dixieline Lumber Company, a supplier of building materials to professional builders and contractors, has purchased Sandstone Brick Company. Dixieline is a division of Pro-Build Holdings.

A lumber, truss and building materials supplier, Sandstone Brick Company, Bakersfield, CA, serves the professional contractor retail market in California’s Kern County. The organization is comprised of a truss manufacturing plant and lumber distribution yard.

“The growing Southern California metro markets have performed favorably over the last few years and are expected to regain their strength in years to come. said Joe Lawrence, president of Dixieline Lumber Company. “The acquisition of Sandstone Brick Company complements our current operations in …

John F. Baugh, the founder of foodservice distributor Sysco Corp., has died at age 91.


&nbsp ;


Baugh left his job in 1946 as a manager for the local A & P, Waco, TX, to launch food distributor Zero Foods. He made deliveries in the company’s only truck six times a week – and after that he would make sales calls to cafeterias, bakeries and hospitals.


&nbsp ;


More than 20 years later, in 1969, Baugh met with eight other distributors and created SYSCO Corporation. Since the company’s initial public offering in 1970, when the company was at $115 million; SYSCO has grown to $30.3 billion in sales, according to its Web site.


&nbsp ;


SYSCO has 69 distribution facilities and provides products and services to more than 390,000 …

F & M Mafco, Inc., Cincinnati, OH, a distributor of construction and industrial supplies, has agreed to buy Carolina Industrial Tools, Inc., Charlotte, NC. Carolina is a distributor of tools, equipment, consumables, machinery and related products.


&nbsp ;


The Carolina Industrial Tools acquisition will expand F & M Mafco’s ability to serve customers in the southeast U.S.


&nbsp ;


Mike McKenna, vice resident of sales, said: “Not only does this acquisition carry out our strategic plan, it also adds to our already growing business in the consumables market and will give us the opportunity to establish our tool & equipment rental capabilities in this area.


&nbsp ;


F & M Mafco is a distributor of construction tools and …

The European manufacturing sector, much like that of the U.S. and Japan, saw its industrial cycle peak in 2006 and will see its growth moderate in 2007, according to the Manufacturers Alliance/MAPI Industrial Outlook for Europe February 2007, a report that analyzes 27 major industries.


&nbsp ;


In a sign of manufacturing sustainability, however, 23 of the 27 industries tracked in the report had inflation-adjusted production above the level of the previous year, indicating continued broad-based growth in the industrial sector.


&nbsp ;


Top industry performers in 2006, recording year-over-year double-digit growth, were valves, tubes and electronic components (20 percent); machine tools (14.7 percent); optical instruments (14.3 percent); electric …

Albuquerque-based SUMMIT Electric Supply has opened a new sales office in Dubai in the United Arab Emirates.


< &nbsp ;


< “Opening shop in Dubai signifies our commitment to global electrical professionals, says SUMMIT president and CEO Vic Jury. "SUMMIT has been servicing international customers for many years through our export division in Houston."


< &nbsp ;


< SUMMIT's Dubai office opened in February and is a partnership with the drilling supplies and services company Driltools.


< &nbsp ;


< SUMMIT's export department is staffed by multilingual personnel versed in export law and regulations, as well as packing and shipping procedures. They can solicit requests and contracts, purchase material worldwide, negotiate agreements, and ...

RONA Inc., Canadian retailer and distributor of home improvement, hardware and gardening products, reported sales grew 13.1% in fiscal 2006; organic growth (without major acquisitions) was 6%. Profit reached $190.6 million, up 8.8% over 2005.


&nbsp ;


Same-store sales were up 1.3%.


&nbsp ;


“RONA’s 2006 results are in line with our 7-07 target, said Chief Executive Robert Dutton. “Our growth was both solid and profitable: Network retail sales are now nearing the&nbsp ; $6 billion mark and earnings have increased for the 16th straight year. We also made significant progress against all our benchmarks, especially those related to operating efficiency.”

“Still promising in the medium and long term, our market is being affected by the …

In a time when most building
materials distributors and suppliers are cutting assets, <A
href=http://www.84lumber.com/” target=_blank>84 Lumber
Company, Eighty Four, PA, supplier of building materials, recently
announced it has opened three new stores.


&nbsp ;


The first, in <st1:place
w:st=”on”>Gonzales, <st1:State
w:st=”on”>LA, includes a 5,865 square-foot main building
and 38,580 square-foot warehouse on 9.1 acres of property. The second is in
Sarasota, <st1:State
w:st=”on”>FL, the company’s 23rd location in
the state. It includes a 6,918 square-foot main building and …

Interline Brands Inc., Jacksonville, FL, distributor of MRO products, has named William Sanford president. The role was previously held by Michael Grebe who continues to serve as chairman and CEO.


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Sanford joined Interline Brands as Chief Financial Officer in March of 1999 and was promoted to Executive Vice President and Chief Operating Officer in September of 2004. He has more than 24 years experience in distribution, holding senior executive positions with MSC Industrial Direct and Airgas, Inc.


&nbsp ;


Bill has played a major role in building Interline Brands into the organization it is today and our board is very pleased to recognize his contributions with this promotion,” Grebe said.


&nbsp ;


Interline reported sales of $1.068 …

Brady Industries, Las Vegas, NV, a janitorial supply distributor, has acquired Boulder Creek Supply, a Boise, ID-based company.

Boulder Creek was founded in 1999.  With this acquisition, Brady Industries expands its geographic footprint to seven locations with plans for further expansion in 2007.

"The Boise acquisition compliments our regional coverage of the Idaho market, said Travis Brady, president of Brady Industries. "With branches in Salt Lake City and Idaho Falls, this acquisition strengthens our regional service capabilities."

Brady Industries supplies janitorial supplies and commercial cleaning equipment and service in the Las Vegas market. Brady has expanded its offering to include a complete warewash product line along with its already extensive kitchen cleaning and sanitation program.

Columbus McKinnon Corporation, Amherst, NY, manufacturer of material handling products, has sold Larco Industrial Services, Ltd., the Canadian subsidiary of the company’s wholly owned subsidiary Crane Equipment & Service, Inc.


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Larco, a manufacturer and servicer of large capacity overhead cranes based in Stoney Creek, Ontario, was sold to Canadian Overhead Handling Inc. of Montreal, Quebec. The net proceeds of the Larco sale will be used for debt reduction and general operating purposes.


&nbsp ;


For the latest 12 months, Larco contributed revenue of approximately $10 million and operated near breakeven.


&nbsp ;


Columbus McKinnon CEO Timothy T. Tevens said: Given its narrowly focused product line and market, Larco was not an …

Kaman Corp.,
Bloomfield, CT, reported sales of $1.2 billion, up 9.5% from $1.1 billion in
2005. The Industrial Distribution segment recorded sales of $665.4 million, a 7%
increase.


&nbsp ;


Kaman’s Aerospace
division saw a 13% increase in sales for the year to $326 million, and its Music
division saw a sales increase of 12% to $214.8 million.


&nbsp ;


Profit for the year
was $31.8 million, up from $13 million in 2005.


&nbsp ;


For the fourth
quarter 2006, sales were $308.9 million, up 7% from the same period last year.
Industrial Distribution saw a 3.6% sales increase in the fourth quarter to
$157.6 million.


&nbsp ;


The increase in
sales (in Industrial Distribution) was driven by strong …

Nucor Corp., Charlotte, NC, has acquired 96% of Toronto-based Harris Steel for C$46.25 in cash per share. Nucor intends to eventually buy all of Harris and take the company private.


&nbsp ;


Harris Steel has several business units: Harris Rebar, involved in the fabrication and placing of concrete reinforcing steel and the design and installation of concrete post-tensioning systems; Laurel Steel, a manufacturer and distributor of wire and wire products, welded wire mesh and cold finished bar; and Fisher & Ludlow, a manufacturer and distributor of heavy industrial steel grating, aluminum grating and expanded metal.


&nbsp ;


Harris also participates in steel trading on a worldwide basis through Novosteel and in the distribution of reinforcing steel and …

Lawson Products, Inc., Des Plaines, IL, distributor of services, systems and products to the MRO and OEM marketplaces, announced sales of $518.2 million for 2006, a 15.1% increase from 2005. Profit decreased 52.8% to $12.6 million in 2006.


&nbsp ;


In 2006, Lawson integrated Rutland Tool & Supply Co., acquired in December 2005. That acquisition added about 80,000 SKUs to the company’s offering. Lawson also reconfigured its Suwannee, GA, distribution center and started construction on a 140,000 square foot addition to its Reno, NV, DC.


Sales for the fourth quarter 2006 increased 9.2% to $126.2 million from the same quarter in 2005. Fourth quarter 2006 results include a full quarter of the operations of Rutland, which was acquired in December 2005. …

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