Material Handling Equipment Wholesalers

7 .29.2013NAICS CODES: 423830

SIC CODES: 5084

INDUSTRY PROFILE

Material Handling EquipmentWholesalers

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About First Research

Companies in this industry distribute fork lifts, hoists and cranes, inventory handling systems, and other materialhandling equipment products. No major companies dominate the industry.

The US material handling equipment distribution industry includes about 4,000 establishments (single-locationcompanies or units of multi-location companies) with combined annual revenue of about $23 billion. The industryis forecast to grow at a moderate rate over the next two years. Key growth drivers include interest rates and theflow of goods in the economy.

Demand depends on the quantity of goods moving through the US economy. The profitability of individualdistributors depends on good marketing. Large distributors can negotiate favorable agreements withmanufacturers. Small distributors can compete by specializing in a specific industry or type of equipment, or byoffering excellent service programs. The industry is fragmented: the 50 largest companies generate about 35percent of revenue.

Major products include fork lifts (about 35 percent of sales) and inventory handling systems such as conveyingequipment (15 percent) and hoists and cranes (10 percent). Used equipment of various types accounts forabout 15 percent of sales. Distributors usually operate in either the lift truck segment or in the inventorysystems segment.

Product Segmentation by Revenue - Census Bureau

Most distributors have only one or two outlets. Distributors are usually independent, but are often affiliated witha particular manufacturer. Although some lift truck manufacturers are based in the US, distributors also importlift trucks and other material handling equipment. Well-known lift truck brands are Hyster, Yale, Crown, Clark,Caterpillar, Komatsu, Toyota, Nissan, and Raymond. A typical manufacturer sells products through a network ofmany distributors. For example, Clark Material Handling has over 200 dealers. Some manufacturers own theirown dealerships.

In addition to selling new and used equipment, some distributors lease and rent equipment either long- orshort-term. Lift truck dealers operate much like traditional car dealers, providing sales, service, spare parts,financing (often in cooperation with the manufacturer); taking trade-ins; and selling used trucks. A large baseof existing trucks provides dealers with a big market for replacement parts, maintenance, and retrofitting. Themargins on service are better than those on original sales. A dealer’s territory is limited by its ability to provideservice.

Typical customers are manufacturing plants and inventory-handling facilities. Because the industry is

Industry Overview

Competitive Landscape

Products, Operations & Technology

Sales & Marketing

diverse and fragmented, prices vary greatly, depending on the size and complexity of the equipment.High-volume, lower-priced products can be susceptible to competitive pricing, but more expensive equipment isless vulnerable to price pressures.

A key element in sales of complicated inventory or process systems is physical configuration of thecustomer’s production floor or warehouse space. With construction and real estate costs increasing, customershave distributors help them design and build the best layout and material handling system to maximize use of acompact space.

Revenue and cash flow in the industry are highly cyclical, sometimes changing sharply from year to year. Thesize and quality of receivables depend on the health of the end-use industries a particular distributor sells to.Large manufacturers may provide inventory financing to their distributors and sales financing to end-usecustomers.

Anti-dumping orders affect certain categories of imported products, including specific types of lift trucks. TheDepartment of Commerce’s anti-dumping orders levy fees to help ensure that foreign-produced products don'tsell in the US below fair market value. Distributors with warehouses are subject to OSHA and EPA regulations forsafety and waste management, respectively.

In the US, material handling equipment distributors tend to be concentrated in states with numerousmanufacturing companies, such as California, Texas, Illinois, Ohio, and Michigan.

Distributor sales and service personnel of complex products and systems need more advanced training and skillsthan their peers who work with low-level products. Average hourly pay for wholesalers of industrial machinery,equipment, and supplies, including material handling equipment, is moderately higher than the US average.

Turnover in the wholesale business is about 25 percent, lower than the 40 percent rate for the entire privatesector. The industry's safety record is about the same as the national average.

Finance & Regulation

Regional Highlights

Human Resources

Demand: Depends on trade volumeNeed good marketingRisk: Economic health affects industrial production and trade

Industry Growth Rating

Trend: New Equipment Orders Expected in 2013 and 2014 - An industry growth forecast of 6 percent for neworders in 2013 is welcome news for material handling equipment companies after some lean times. The latestMaterial Handling Equipment Manufacturing forecast also calls for new orders to grow by 10 percent or more in2014. Rebounds in the housing and automotive industries will benefit the industry. An expected expansion inindustrial, warehouse, and commercial buildings will also contribute to growth for the material handling equipmentmarket. Still, trade growth for material handling equipment manufacturing remains an area of concern because ofunstable foreign markets and reduced US demand. Import growth fell nearly 18 percent in 2012 over 2011, whileexport growth dropped 11 percent year over year.

Industry Impact - Material handling equipment wholesalers may need to increase staff to handle an expecteduptick in orders in the year ahead.

Quarterly Industry Update

7.29.2013

The average US retail price for diesel and regular gas, a major operating cost for material handling equipmentdistributor fleets, fell 3.9 percent and 8.5 percent, respectively in the week ending September 16, 2013,compared to the same week in 2012.

Total US manufacturers' shipments, which indicate manufacturing sector activity and demand for materialhandling equipment, rose 1.6 percent year-to-date in July 2013 compared to the same period in 2012.

Total US wholesale sales of durable goods, a potential measure of material handling equipment demand, rose 7.8percent in July 2013 compared to the same month in 2012.

Industry Indicators

Domestic demand for material handling equipment manufacturing, an indicator for wholesalers, is forecast togrow at an annual compounded rate of 5 percent between 2013 and 2017. Data Published: September 2013

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry EconomicResearch Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling theeconomy captures the links between industries and the aggregate economy. Forecast FAQs

Industry Forecast

Changes in the economic environment that may positively or negatively affect industry growth.

Data provided by First Research analysts and reviewed annually

Energy Prices Change in crude oil and related energy prices

Construction Spending Change in the overall level of commercial and residential construction spending

Industry Drivers

Highly Dependent on Flow of Goods - Demand for material handling equipment depends on the level of goodsmoving through the US economy from domestic production, imports, and sales. US manufacturer shipments ofgoods fell 17 percent during the late 2000s recession; imports of durable goods fell 20 percent. In a stagnant

Critical Issues

economy, customers tend to defer purchases of new equipment.

Competition from Rental Companies - Equipment rental companies provide an alternative to buying forklifts orother equipment from a distributor. Big companies, like United Rentals and Sunbelt Rentals, rent a limited line ofpopular forklifts along with other types of industrial and construction equipment. Smaller rental companies mayspecialize in specific types of material handling equipment.

Competition from Manufacturers - Some material handling equipment manufacturers have opened retail outletsand use Internet sites for direct sales, bypassing distributors. With sophisticated websites, manufacturers can fillorders directly from customers of any size. Distributors with large service operations are essential formanufacturers, but smaller companies that handle only sales may be cut out.

Supplier Consolidation - Customers are trimming their vendor lists as they continue to concentrate purchasesthrough fewer distributors. The trend toward vendor rationalization by customers is expected to continue as theyseek additional efficiencies in their supply relationships and buying processes, according to the NationalAssociation of Wholesaler-Distributors.

Dependence on Skilled Personnel - Mechanics to maintain and repair material handling equipment requirespecialized training from manufacturers. Servicing is often more lucrative for distributors than selling new or usedequipment. Service receipts and labor charges together account for about 10 percent of industry sales.

Business Challenges

Outsourcing Truck Fleets - More manufacturers and warehouses don't want to maintain their own lift truck fleet,preferring to lease rather than buy. Fleet management outsourcing is a trend that allows distributors to sellmaintenance and repair contracts along with leased vehicles, upgrades for new equipment developments, andrebuilt used equipment to recoup costs.

Growing Global Commodity Trade - The growing international trade in minerals and other bulk materialsrequires very efficient handling systems. Greater use of e-commerce, combined with low shipping costs, meansthat bulk commodities, like coal, are now traded intercontinentally. Bulk handling facilities at ports (includingstackers, reclaimers, and conveyors) are vitally important to minimize shipping costs. One significantdevelopment has been the sophistication of control systems that enable machines to operate automatically.

Increased Technical Expertise - Material handling equipment has become more complicated to operate andmaintain, especially with the introduction of computerized controls and radio frequency communications withwarehouse computer systems. For example, salespeople must have a deep understanding of the options forcomplex automated conveyor systems, including software, electric eyes, pneumatic components, and vacuumlifts. Distributors have been forced to increase their technical expertise and initiate special training fortechnicians.

Specialization - The growing emphasis on specialized technology has upgraded material handling, allowingsmaller companies to create niche markets for certain types of customers. Special requests for individualizedequipment are becoming the norm for distributors. Many special requests, like side restraints to protect the driverif a lift truck tips, may eventually become standard features.

Business Trends

More Services - Big distributors sell more parts and provide more repairs, industrial maintenance, and equipmentrental. Service contracts with guaranteed uptime appeal to customers who want to minimize expensive labor costsand maximize output. Leasing equipment and contracting for maintenance has become more common ascustomers wish to reduce maintenance costs.

Inventory Management - Changes in US industrial practice over the past decade have increased demand foreffective material handling and inventory management. Emphasis is on efficient inventory management, whetherfor just-in-time delivery to production lines or faster delivery of end product to customers.

Improving Ergonomics - Demand for ergonomic equipment has grown significantly as more companies use it

Industry Opportunities

to improve productivity, increase quality, and enhance safety. Ergonomic material handling equipment improvesease of operation, enables more efficient use, and decreases on-the-job injuries.

E-Commerce Increasing Demand - E-commerce distribution strategies place different demands on bothconveyor and sortation systems and their ability to manage the flow of a large volume of small packages dayafter day. Distribution centers have traditionally employed strategies to achieve bulk order handling efficienciesand economies of scale, but in e-commerce the rules have changed, with no two orders alike. Distributors areexploring new ways to process orders of various sizes and numbers of items.

Used Equipment Sales - More distributors are offering used equipment to customers. Demand for usedequipment increases as more customers look to keep costs down during periods of economic uncertainty. Somedistributors have had to reorganize their warehouses to better accommodate the growing number of sales fromused inventory.

Increasing DiversificationTo lessen dependence on the economic health of a specific industry, many distributors have broadened theirsales base into additional industries, targeting business segments they haven’t in the past. Companies withexpertise in automated inventory handling systems used in a particular industry, such as electronic partswarehouses, find that the technology is applicable to other industries, such as medical equipment distributionwarehouses, with only minor adaptations. Selecting industries that are contra-cyclical can help balance the risk ofserving cyclical industries.

Improving Customer ServiceMaterial handling equipment distributors are taking additional steps to improve customer service and follow-up toretain business share. Distributors are offering integration services, combining segments from multiplemanufacturers into integrated systems to automate material handling from end-to-end. Distributors focus onproviding excellent customer service and training, and helping customers onsite with planning, installation, andmaintenance.

Financing InventoryMaterial handling equipment can be expensive. Distributors finance major inventory purchases usingmanufacturer financing, when available, which is generally offered at better terms than bank financing.Distributors may also use third-party financing.

Mitigating Revenue CyclicalityThe material handling equipment industry is cyclical and depends on the economic health of its customers’industries. Demand for large and sophisticated equipment ebbs during economic downturns and picks up witheconomic surges. Many companies lease equipment that minimizes financial outlays by customers and helpsreduce the volatility in material handling equipment revenues. Offering service and maintenance contracts alsosmooths distributor revenue and cash streams.

Improving Inventory ControlsAs material handling equipment customers’ business increases and more industries have inventory controlissues, automating inventory is increasingly important. Material handling equipment firms, highly automatedthemselves, have installed computerized inventory and ordering systems to better track and manage inventoryon hand. Inventory management systems can facilitate implementation of just-in-time inventory and minimizefinancial outlays for excess items.

Integrating SystemsMany material handling equipment systems have programmable automated controls that require training andsupport, which material handling equipment distributors provide to customers installing such systems. Customerstypically buy systems consisting of equipment from multiple vendors and depend on the material handlingequipment distributor to tailor the systems to the individual customer’s specifications.

Training Sales Engineers

Executive Insight

Chief Executive Officer - CEO

Chief Financial Officer - CFO

Chief Information Officer - CIO

Human Resources - HR

Sales and service personnel need advanced technical training and skills as machines become more complex andinclude specialized technologies. Sales teams need to be able to help customers design the best material handlingsystem for them, so sales staff need to be knowledgeable about product lines and how to integrate several linesto meet customer requirements. Distributors train sales staff on complex material handling equipment and thelatest technological advances.

Providing Technical Training to MechanicsMechanics are critical to material handling equipment distributors, as servicing equipment is essential forsupporting customers and can be more profitable to the distributor than selling equipment. Companies providemechanics with specialized training from manufacturers and supplement it with refresher courses and training innew technologies.

Offering Fleet OutsourcingSome material handling equipment customers prefer to lease rather than buy to avoid worrying about capitaloutlays and equipment maintenance. Material handling equipment distributors may provide fleet managementoutsourcing, lease vehicles and equipment, and offer maintenance and repair contracts on purchased equipment.

Providing Integration ServicesCompanies that buy material handling equipment from multiple vendors require integration services to create theirhandling system. Many material handling equipment companies offer integration services that include inventorymanagement systems, automated storage systems, and conveyor belts. Material handling equipment companiesdesign, implement, and train customers on systems that can store inventory on pallets and containers andautomatically retrieve it as needed.

VP Sales/Marketing - Sales

What plans does the company have to diversify the industries it serves?To broaden the sales base, distributors seek non-cyclical, non-seasonal industries and those their products canserve with few or no changes.

How might the company improve its customer service?Some distributors integrate components to provide automated material handling, in addition to standard training,planning, installation, and maintenance.

What financing strategies does the company use to fund major inventory purchases?Distributors finance major inventory purchases using manufacturer, third-party, or bank financing.

How does the company meet challenges related to cyclical revenue?Many distributors lease equipment and offer service and maintenance contracts to help compensate for cyclicalrevenue and cash streams.

How effective are the company's efforts to automate inventory controls with suppliers and customers?Distributors install computerized inventory and ordering systems to better track and manage inventory.

How is the company challenged by integrating systems for customers?Customers buy systems with multi-vendor components and ask the distributor to tailor the systems to customerspecifications.

How is the company challenged by training its sales teams?Sales teams need to know how to integrate various products to meet customer requirements for customizedmaterial handling systems.

How important is technical training for the company's mechanics?Service can be more profitable than sales, so companies provide mechanics with manufacturer, refresher, andnew technology training.

Executive Conversation Starters

Chief Executive Officer - CEO

Chief Financial Officer - CFO

Chief Information Officer - CIO

Human Resources - HR

How big is the company's opportunity for fleet outsourcing and related services?Distributors may provide fleet management services, vehicle and equipment leasing, and maintenance and repaircontracts.

How important is system integration to the company's sales?By integrating various components, distributors can deliver a system tailored to a customer's uniquespecifications for storing and retrieving inventory.

VP Sales/Marketing - Sales

How do fluctuations in the flow of goods from manufacturing and foreign trade affect the company?Demand for material handling equipment depends on the level of goods moving through the US economy fromdomestic production, imports, and sales.

How much competition does the company get from equipment rental companies?Equipment rental companies provide an alternative to buying forklifts or other equipment from a distributor.

How much competition does the company see from direct sales by manufacturers?Some material handling equipment manufacturers have opened retail outlets and use Internet sites for directsales, bypassing distributors.

How might the company benefit by offering maintenance/repair services and selling spare parts?Big distributors sell more parts and provide more repairs, industrial maintenance, and equipment rental.

How is the trend toward "lean manufacturing" impacting the company?Changes in US industrial practice over the past decade have increased demand for effective material handlingand inventory management.

How is the company capitalizing on demand for ergonomic equipment?Demand for ergonomic equipment has grown significantly as more companies use it to improve productivity,increase quality, and enhance safety.

What type of staffing changes is the company considering due to forecasts of increased new equipmentorders?An industry growth forecast of 6 percent for new orders in 2013 is welcome news for material handling equipmentcompanies after some lean times.

How many outlets does the company have?Most distributors have just one or two outlets.

Does the company sell lift trucks, material handling systems, or both?Many dealers specialize in just one area.

Which major lift truck brands does the company carry?Well-known brands are Hyster, Yale, Crown, Clark, Caterpillar, Komatsu, Toyota, Nissan, and Raymond.

How many different models of lift trucks or material handling equipment does the company carry?Distributors may have an assortment of brands to offer customers.

What types of sortation systems does the company offer?The type of sortation system needed for open goods and cartons (crossbelt, tilt tray, sliding shoe, pop-updiverters, and pusher systems) depends greatly on the product and volume being processed.

Does the company offer maintenance/repair services and spare parts?Lift truck dealers operate much like traditional car dealers, providing sales, service, spare parts, financing (oftenin cooperation with the manufacturer); and taking trade-ins and selling used trucks. A large base of existing trucksprovides dealers with a big market for replacement parts, maintenance, and retrofitting.

Does the company lease and rent equipment as well as sell it?Rather than maintaining their own material handling equipment, more manufacturers and warehouses preferleasing over buying.

Call Prep Questions

Conversation Starters

Quarterly Industry Update

Operations, Products, and Facilities

How large a geographical area does the company service?The size of a dealer’s territory is limited by the need to have a central service facility.

Does the company have an exclusive territory?Some distributors operate within exclusive territories.

Do customers buy off the lot or order through the company?Distributors may allow customers to select and order merchandise in person or only over the phone or Internet.

How does the used material handling equipment market impact company sales?Closings of warehouse and distribution centers in difficult economic conditions can result in a glut of materialhandling equipment.

What proportion of sales is sold to existing customers?Repeat customers can be important to the bottom line.

What, if any, types of service contracts does the company offer?Service contracts with guaranteed uptime can appeal to customers who want to minimize expensive laborpositions and maximize output.

How does the distributor respond to increased numbers of special customer requests for individualizedequipment?Customers are demanding more personalized specialization in material handling equipment.

How does the company find sales leads?A material handling equipment distributor has a better chance at making a sale if the distributor learns about newwarehouse or manufacturing construction before specifying has taken place and competition moves in; however,many distributors lack the staffing abilities to hunt down these sales leads.

How does the company avoid spending time and money developing proposals that are unlikely to leadto work?One way to avoid this is by doing a better job of qualifying customers and screening projects.

Does the company mainly serve manufacturers or distributors?Wholesalers are major purchasers of material handling equipment.

To what extent does delivery time differ for foreign as opposed to domestic brands, requiring thecompany to have more inventory?Foreign deliveries may take longer to arrive due to unexpected transportation problems or customs issues.

How will the designs of automated material handling systems evolve to better meet the need ofmanufacturers, which must respond faster to fluctuating product demand and parts supply?Supply chain systems may require redesigns so companies can better handle "surge and ebb" situations inproduct demand and stock availability.

How long before equipment is delivered after an order is placed?Customers expect a quicker turnaround time on orders, usually within a week.

How does the company find and train technicians?Design improvements have boosted sales; however, dealers and distributors have been forced to increase theirtechnical expertise and initiate special training for product technicians.

What safety training is offered to maintenance and repair employees?Employees must be thoroughly trained to identify hazards, and report and record hazards and injuries.

What, if any, purchase financing options does the company provide?Many distributors have financing arrangements with manufacturers or third-party lenders.

How have company sales been affected by local or national economic conditions?Annual volume is sensitive to economic activity. Distributors must have a strategy for coping with decreaseddemand, such as increasing service business for older trucks.

How have changing methods of inventory distribution (such as just-in-time inventory) and warehousingaffected company equipment sales?

Customers, Marketing, Pricing, Competition

Regulations, R&D, Imports and Exports

Organization and Management

Financial Analysis

Function specialization has greatly increased the number of products a material handling equipmentdealer/distributor carries, requiring more sophisticated computerized inventory and ordering systems.

What statistical indicators does the distributor examine to determine material handling trends?Leading indicators show that nine to 21 months after these indicators fall or rise, material handling equipmentmanufacturing consistently will do the same.

How does offering equipment for lease affect the cyclicality of company revenues?The trend toward fleet management outsourcing allows distributors to sell maintenance and repair contracts alongwith leased vehicles, upgrades for new equipment developments, and rebuilt used equipment to recoup costs.

What are the future prospects for the company's major customers?Some distributors depend on a few large customers.

What, if any, plans does the company have to change the mix of products it offers?In local markets, customer industries may grow at very different rates.

How does the company differentiate itself from its competitors?Companies can differentiate through better prices, better products, better financing, or better service.

Business and Technology Strategies

Quick Ratio by Company Size

The quick ratio, also known as the acid test ratio, measures a company's ability to meet short-term obligationswith liquid assets. The higher the ratio, the better; a number below 1 signals financial distress. Use the quick ratioto determine if companies in an industry are typically able to pay off their current liabilities.

Data Period Last Update July 2013

Table Data Format Mean

Financial Information

COMPANY BENCHMARK TRENDS

Financial industry data provided by MicroBilt Corporation collected from 32 different data sources and represents financial performance of over4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS). Moredata available by subscription or single report purchase at www.microbilt.com/firstresearch.

COMPANY BENCHMARK INFORMATION

NAICS: 423830

Company Size All Large Medium Small

Size by Revenue   Over $50M $5M - $50M Under $5M

Company Count 20093 70 1510 18513

Income Statement

Net Sales 100% 100% 100% 100%

Gross Margin 25.8% 25.5% 25.5% 26.3%

Officer Compensation 2.1% 1.6% 1.6% 2.8%

Advertising & Sales 0.4% 0.4% 0.4% 0.4%

Other Operating Expenses 20.0% 20.3% 20.2% 19.6%

Operating Expenses 22.4% 22.3% 22.2% 22.8%

Operating Income 3.4% 3.3% 3.3% 3.5%

Net Income 2.0% 1.9% 1.9% 2.0%

Balance Sheet

Cash 10.2% 9.9% 10.3% 10.4%

Accounts Receivable 29.9% 30.2% 30.0% 29.6%

Inventory 31.6% 32.0% 31.9% 31.1%

Total Current Assets 78.1% 78.7% 78.5% 77.4%

Property, Plant & Equipment 12.4% 11.5% 12.2% 13.1%

Other Non-Current Assets 9.5% 9.8% 9.3% 9.5%

Total Assets 100.0% 100.0% 100.0% 100.0%

Accounts Payable 12.1% 12.7% 12.1% 12.0%

Total Current Liabilities 35.6% 34.9% 36.1% 35.5%

Total Long Term Liabilities 19.7% 14.9% 19.3% 22.5%

Net Worth 44.7% 50.2% 44.5% 42.0%

Financial Ratios

(Click on any ratio for comprehensive definitions)

Quick Ratio 1.14 1.16 1.13 1.14

Current Ratio 2.19 2.26 2.17 2.18

Current Liabilities to Net Worth 79.8% 69.6% 81.1% 84.4%

Current Liabilities to Inventory x1.13 x1.09 x1.13 x1.14

Total Debt to Net Worth x1.24 x0.99 x1.25 x1.38

Fixed Assets to Net Worth x0.28 x0.23 x0.27 x0.31

Days Accounts Receivable 51 51 51 50

Inventory Turnover x5.05 x5.02 x5.03 x5.10

Total Assets to Sales 46.9% 46.8% 46.8% 47.0%

Working Capital to Sales 19.9% 20.5% 19.8% 19.7%

Accounts Payable to Sales 6.0% 5.9% 6.0% 6.0%

Pre-Tax Return on Sales 3.2% 3.0% 3.1% 3.2%

Pre-Tax Return on Assets 6.7% 6.5% 6.6% 6.9%

Pre-Tax Return on Net Worth 15.0% 12.9% 14.7% 16.4%

Interest Coverage x5.75 x5.24 x5.69 x6.16

EBITDA to Sales 5.1% 4.9% 5.1% 5.1%

Capital Expenditures to Sales 1.9% 1.9% 1.9% 1.9%

Financial industry data provided by MicroBilt Corporation collected from 32 different data sources and represents financial performance of over4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS). Moredata available by subscription or single report purchase at www.microbilt.com/firstresearch.

ECONOMIC STATISTICS AND INFORMATION

Index of Industrial Production

Change in Producer Prices - Bureau of Labor Statistics

Wholesale Annual Sales Growth - Census Bureau

Imports of computer equipment to the US come primarily from China, Mexico, Japan, Thailand, and Singapore.

Major export markets for US computer equipment include Mexico, Canada, Brazil, China, and Netherlands.

33392 MATERIAL HANDLING EQUIPMENT

Material Handling Equipment Wholesalers

Valuation Multiple MVIC/Net Sales MVIC/Gross Profit MVIC/EBIT MVIC/EBITDA

Median Value N/A N/A N/A N/A

MVIC (Market Value of Invested Capital) = Also known as the selling price, the MVIC is the total consideration

paid to the seller and includes any cash, notes and/or securities that were used as a form of payment plus any

interest-bearing liabilities assumed by the buyer.

Net Sales = Annual Gross Sales, net of returns and discounts allowed, if any.

Gross Profit = Net Sales - Cost of Goods Sold

EBIT = Operating Profit

EBITDA = Operating Profit + Noncash Charges

Change in Dollar Value of US Trade - US International Trade Commission

VALUATION MULTIPLES

SOURCE: Pratt's Stats™ (Portland, OR: Business Valuation Resources, LLC) To purchase more detailed information, please either visit or call 888-287-8258.www.BVMarketData.com

Material Handling Equipment Distributors AssociationCurrent industry news.

Material Handling Industry of AmericaGood industry statistics. List of members based on product categories.

Material Handling WholesalerNews, links, and directory.

Materials Management and Distribution Online (Canada)News and reports.

Modern Materials HandlingNews.

Industry Websites

DC - distribution center

ISM - Institute for Supply Management

MHEDA - Material Handling Equipment Distributors Association

MHEM - material handling equipment manufacturing

MHIA - Material Handling Industry of America

NAWD - National Association of Wholesaler-Distributors

SKU - stock-keeping unit

WMS - warehouse management system

Glossary of Acronyms

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