Sample Report...Motor Vehicles and Motor Vehicle Parts Wholesale Distributors DATA REMOVED FOR SAMPLE Industrial Distributors Electrical and Electronics Wholesalers Apparel and Piece

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Economic Benchmarksfor Wholesale Distribution2019

Sample Report

2019 Economic Benchmarks for Wholesale Distribution

Copyright and Terms of Use / Disclaimer ii

Copyright and Terms of UseCopyright © 2019 Modern Distribution Management. All rights reserved. This report is protected by copyright law and may not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, in whole or in part, in any form or manner or by any means whatsoever, by any person without prior written consent from Modern Distribution Management. This report may not be used in commercial documents without the written permission of the copyright holder.

You may make one machine readable copy and/or one print copy for your personal use. You may also include limited excerpts of this content in printed memos, reports and presentations for internal, non-commercial use. We ask that you attribute this information by including “Source: Economic Benchmarks for Wholesale Distribution © 2019 Modern Distribution Management. All rights reserved.” A license must be purchased for every person who wishes to use the report within the same organization or enterprise.

DisclaimerThis report is for informational purposes only and is provided “as is” without any express or implied warranty. The analyses in this report are based solely on information and data that is in the public domain. Any conclusions, findings, opinions or recommendations are based on our own experienced and professional judgment and interpretations given the information available. While all information is believed to be reliable at the time of writing, the information provided here is for reference use only and does not constitute the rendering of legal, financial, commercial or other professional advice by Modern Distribution Management, MDM Analytics, or the authors. Any reliance upon the information is at your own risk, and Modern Distribution Management, and the authors shall not be responsible for any liability arising from or related to the use or accuracy of the information in any way. Modern Distribution Management does not make investment recommendations, in this report or otherwise. Nothing in this report should be interpreted as an opinion by Modern Distribution Management, MDM Analytics, Gale Media, Inc., or the authors on the investment prospects of specific companies.


© 2019 Modern DIstribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. Table of Contents iii

Table of ContentsAbout this Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

Wholesale Distribution Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

National Economic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Regional Economic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Oil and Gas Products Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Pharmaceutical Wholesalers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Grocery and Foodservice Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Electrical and Electronics Wholesalers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Motor Vehicles and Motor Vehicle Parts Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Industrial Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Other Consumer Products Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Commercial Equipment and Supplies Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Miscellaneous Durable Goods Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

Computer Equipment and Software Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Agricultural Products Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Metal Service Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Apparel and Piece Goods Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

Beer, Wine and Liquor Wholesalers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Building Material and Construction Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

Chemicals and Plastics Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198

Office Product Wholesalers and Paper Merchants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208

Furniture and Home Furnishing Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217

About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227


© 2019 Modern DIstribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. About the Economic Benchmarks for Wholesale Distribution Report iv

About the Economic Benchmarks for Wholesale Distribution

The 2019 Economic Benchmarks for Wholesale Distribution is a comprehensive economic reference guide to the U.S. wholesale distribution industry compiled using a model originally developed by Dr. Adam Fein and Pembroke Consulting Inc.

This is the 14th edition of this report, formerly known as the Wholesale Distribution Economic Trends Reports. It is published by MDM Analytics/Gale Media, Inc., in conjunction with the Business Research Division of the Leeds School of Business at the University of Colorado Boulder.

This report is based on information collected by the U.S. Census Bureau, the Bureau of Labor Statistics and the Bureau of Economic Analysis. The Economic Census provides the most reliable information about economic activity because it has participation rates of 90 to 100 percent and is validated through confidential sharing of company data with the Census Bureau. The figures may differ from data reported in trade association reports, which typically have lower participation rates than the census.

The subsectors are based on the North American Industry Classification System (NAICS), although we have combined certain subsectors and unbundled others to better reflect actual economic arrangements.

We have also renamed many sectors for ease of understanding.

Some data were collected as part of the Economic Census and statistically adjusted based on proprietary analyses of the wholesale distribution industry.

There are three significant methodological issues for readers to note:

• The 2019 reports reflect the most recent Annual Wholesale Trade Survey and the preliminary results of the last Economic Census. Data may differ from prior years’ reports due to ongoing government data revisions.

• All forecasts for 2019-2020 revenue growth for each sector are based on proprietary statistical models of wholesale distribution sector revenues.

• There is no consistent, up-to-date information on the number of companies and branch locations. The data in this report are estimates based on proprietary statistical models.

I hope you find this report to be a valuable and helpful planning tool for your company. Please contact me directly if you have any questions about this report.

Thomas P. Gale CEO/Publisher Modern Distribution Management [email protected]

In partnership with


Wholesale Distribution Industry (19 sectors)


© 2019 Modern DIstribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. Wholesale Distribution Industry 2

Wholesale Distribution IndustryKey Performance StatisticsMeasure Value ($B) % Change vs. Previous YearAnnual Revenue Baseline Optimistic Pessimistic

2018 Actual

2019 Forecast

2020 Forecast

Measure % Change vs. Previous YearQuarterly Revenue Baseline Optimistic Pessimistic

2018 Q4 Actual2019 Q1 Forecast2019 Q2 Forecast

DATA REMOVED FOR SAMPLE

2019 Q3 Forecast

2019 Q4 Forecast2020 Q1 Forecast2020 Q2 Forecast2020 Q3 Forecast2020 Q4 Forecast

Measure Observed % Change vs. Previous YearGross Margin, 2017Gross Margin as a Percent of SalesPurchases ($B), 2017Industry Inventories ($B), Non-LIFO method, Dec 2018Inventory-to-Sales Ratio, 3-Month Moving Average, Dec 2018

NumberTotal Employment, 2018 Q4Average Annual Revenues per Employee 2018Average Number of Employees per EstablishmentTotal Wages as a Percent of Revenue, Q3 2018Average Annual Pay (average weekly wages x 52), 2018


© 2019 Modern Distribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. Wholesale Distribution Industry 3

Wholesale Distribution IndustryCommentary

After recording strong growth of 6.3% in 2017, total revenues of wholesale distributors increased by...

COMMENTARY REMOVED FOR SAMPLE



Wholesale Distribution IndustryCommentary (continued)




Wholesale Distribution Industry – Major SectorsSector Summary

Major Sector (Largest to Smallest Sector Revenues)2018 Revenues

($B)% of Industry

RevenuesNo. of

CompaniesAvg. Gross

Margin (2017)

Oil and Gas Products Wholesale Distributors

Pharmaceutical Wholesalers

Grocery and Foodservice Wholesale Distributors

Electrical and Electronics Wholesalers

Motor Vehicles and Motor Vehicle Parts Wholesale Distributors

Industrial Distributors

Computer Equipment and Software Wholesale Distributors


Other Consumer Products Wholesale Distributors

Miscellaneous Durable Goods Wholesale Distributors

Commercial Equipment and Supplies Wholesale Distributors

Agricultural Products Wholesale Distributors

Metal Service Centers

Apparel and Piece Goods Wholesale Distributors

Beer, Wine and Liquor Wholesalers

Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers

Building Material and Construction Wholesale Distributors

Chemicals and Plastics Wholesale Distributors

Office Product Wholesalers and Paper Merchants

Furniture and Home Furnishing Wholesale Distributors

Total



Wholesale Distribution Industry – Major SectorsSummary Trend Data % change vs. previous year

Major Sector (Largest to Smallest Sector Revenues)Actual Revenues

(2018)Real Revenues*

(2018)Revenue Gap (Actual - Real)

Employment (2018:Q4)





















Total

* Real revenues equal actual revenues adjusted for product inflation using sector-specific price deflators



Wholesale Distribution Industry – Major SectorsRevenue Forecast Summary % change in revenues vs. previous year

Major Sector (Largest to Smallest Sector Revenues) 2018 Actual 2019 Forecast 2020 Forecast 2019 vs. 2018





















Total



Wholesale Distribution Industry – Major SectorsSector Growth vs. U.S. GDP Growth

Major Sector (Highest to Lowest Correlation)Correlation of Real Revenue Growth with Real GDP Growth (2009:Q1 to 2019:Q1)





















Note: All calculations use real (inflation-adjusted) data. Correlation shows the empirical relationship between the quarterly, year-over-year changes in real U.S. GDP to each sector’s

inflation-adjusted revenues.



Wholesale Distribution Industry – Major SectorsEmployment Size Distribution of Wholesale Distribution Companies

Number of Companies

Major Sector (Largest to Smallest Sector Revenues) <20 Employees 20-99 Employees 100-499 Employees 500+ Employees





















Total



Actual Revenue Growth, 2004 to Present (not adjusted for inflation)

Wholesale Distribution Industry

Q1 Q2 Q3 Q4

Detail: Last 2 Years 0

4-Q

1 0

4-Q

2 0

4-Q

3 0

4-Q

4 0

5-Q

1 0

5-Q

2 0

5-Q

3 0

5-Q

4 0

6-Q

1 0

6-Q

2 0

6-Q

3 0

6-Q

4 0

7-Q

1 0

7-Q

2 0

7-Q

3 0

7-Q

4 0

8-Q

1 0

8-Q

2 0

8-Q

3 0

8-Q

4 0

9-Q

1 0

9-Q

2 0

9-Q

3 0

9-Q

4 1

0-Q

1 1

0-Q

2 1

0-Q

3 1

0-Q

4 1

1-Q

1 1

1-Q

2 1

1-Q

3 1

1-Q

4 1

2-Q

1 1

2-Q

2 1

2-Q

3 1

2-Q

4 1

3-Q

1 1

3-Q

2 1

3-Q

3 1

3-Q

4 1

4-Q

1 1

4-Q

2 1

4-Q

3 1

4-Q

4 1

5-Q

1 1

5-Q

2 1

5-Q

3 1

5-Q

4 1

6-Q

1 1

6-Q

2 1

6-Q

3 1

6-Q

4 1

7-Q

1 1

7-Q

2 1

7-Q

3 1

7-Q

4 1

8-Q

1 1

8-Q

2 1

8-Q

3 1

8-Q

4

% change from year ago

DETAIL REMOVED FOR SAMPLE



Real Revenue Growth, 2004 to Present (adjusted for inflation)


Q1 Q2 Q3 Q4


4-Q

1 0

4-Q

2 0

4-Q

3 0

4-Q

4 0

5-Q

1 0

5-Q

2 0

5-Q

3 0

5-Q

4 0

6-Q

1 0

6-Q

2 0

6-Q

3 0

6-Q

4 0

7-Q

1 0

7-Q

2 0

7-Q

3 0

7-Q

4 0

8-Q

1 0

8-Q

2 0

8-Q

3 0

8-Q

4 0

9-Q

1 0

9-Q

2 0

9-Q

3 0

9-Q

4 1

0-Q

1 1

0-Q

2 1

0-Q

3 1

0-Q

4 1

1-Q

1 1

1-Q

2 1

1-Q

3 1

1-Q

4 1

2-Q

1 1

2-Q

2 1

2-Q

3 1

2-Q

4 1

3-Q

1 1

3-Q

2 1

3-Q

3 1

3-Q

4 1

4-Q

1 1

4-Q

2 1

4-Q

3 1

4-Q

4 1

5-Q

1 1

5-Q

2 1

5-Q

3 1

5-Q

4 1

6-Q

1 1

6-Q

2 1

6-Q

3 1

6-Q

4 1

7-Q

1 1

7-Q

2 1

7-Q

3 1

7-Q

4 1

8-Q

1 1

8-Q

2 1

8-Q

3 1

8-Q

4





Employment Growth, 2004 to Present


Q1 Q2 Q3 Q4


4-Q

1 0

4-Q

2 0

4-Q

3 0

4-Q

4 0

5-Q

1 0

5-Q

2 0

5-Q

3 0

5-Q

4 0

6-Q

1 0

6-Q

2 0

6-Q

3 0

6-Q

4 0

7-Q

1 0

7-Q

2 0

7-Q

3 0

7-Q

4 0

8-Q

1 0

8-Q

2 0

8-Q

3 0

8-Q

4 0

9-Q

1 0

9-Q

2 0

9-Q

3 0

9-Q

4 1

0-Q

1 1

0-Q

2 1

0-Q

3 1

0-Q

4 1

1-Q

1 1

1-Q

2 1

1-Q

3 1

1-Q

4 1

2-Q

1 1

2-Q

2 1

2-Q

3 1

2-Q

4 1

3-Q

1 1

3-Q

2 1

3-Q

3 1

3-Q

4 1

4-Q

1 1

4-Q

2 1

4-Q

3 1

4-Q

4 1

5-Q

1 1

5-Q

2 1

5-Q

3 1

5-Q

4 1

6-Q

1 1

6-Q

2 1

6-Q

3 1

6-Q

4 1

7-Q

1 1

7-Q

2 1

7-Q

3 1

7-Q

4 1

8-Q

1 1

8-Q

2 1

8-Q

3 1

8-Q

4





Inventory-to-Sales Ratio, 2004 to Present


The inventory-to-sales ratio shows the seasonally-adjusted relationship of end-of-month values of inventory to monthly sales. These ratios (3-month moving average) indicate the number of months of inventory on hand relative to the sales for the month. For example, a ratio of 1.5 indicates that wholesale distributors have enough inventory on hand to cover one and a half months of sales.

Jan-

04A

pr-0

4Ju

l-04

Oct

-04

Jan-

05A

pr-0

5Ju

l-05

Oct

-05

Jan-

06A

pr-0

6Ju

l-06

Oct

-06

Jan-

07A

pr-0

7Ju

l-07

Oct

-07

Jan-

08A

pr-0

8Ju

l-08

Oct

-08

Jan-

09A

pr-0

9Ju

l-09

Oct

-09

Jan-

10A

pr-1

0Ju

l-10

Oct

-10

Jan-

11A

pr-1

1Ju

l-11

Oct

-11

Jan-

12A

pr-1

2Ju

l-12

Oct

-12

Jan-

13A

pr-1

3Ju

l-13

Oct

-13

Jan-

14A

pr-1

4Ju

l-14

Oct

-14

Jan-

15A

pr-1

5Ju

l-15

Oct

-15

Jan-

16A

pr-1

6Ju

l-16

Oct

-16

Jan-

17A

pr-1

7Ju

l-17

Oct

-17

Jan-

18A

pr-1

8Ju

l-18

Oct

-18

Jan-

19

3-month moving average with Trendline



© 2019 Modern Distribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. National Economic Overview 14

National Economic OverviewCommentary

GDP

Employment

Unemployment

Income and Wealth



© 2019 Modern DIstribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. National Economic Overview 15

National GDP

National Economic Overview

Source: Bureau of Economic Analysis and Consensus Forecasts.

Percent change, SAAR DETAIL REMOVED FOR SAMPLE



National Employment


Sources: Bureau of Labor Statistics (Seasonally Adjusted), National Bureau of Economic Research, and Moody’s Analytics.

Rece

ssio

n 18

Mon

ths

Rece

ssio

n 8

Mon

ths

Thousands, Month-over-Month, 12 Month Average

0





State Employment

AK Percent ChangeYear-over-Year

WA

OR

ID

MT

CA

NV

UT

AZNM

CO

WYSD

NE

KS

OK

HI

NDMN

WI

MI

IA

IL IN OH

PA

NY

ME

VT

NHMACT RI

NJ

DEMD

KYWV VAMO

AR

MS AL GA

SC

NCTN

FL

LATX

Source: Bureau of Labor Statistics (Seasonally Adjusted).




Unemployment Rate


Source: Bureau of Labor Statistics (Seasonally Adjusted).

U-6

U-3

7.3%

3.6%

Percentage of Labor Force

U-3: Total unemployed, as a percent of the civilian labor force (This is the definition used for the official unemployment rate.)

U-6: Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers



© 2019 Modern Distribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. Regional Economic Overview 19

Regional Economic OverviewCommentary

Personal Income

Wages

Employment

Unemployment

Home Prices

Sources



© 2019 Modern DIstribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. Definitions 20

Gross Margins Sales minus cost of goods sold.

Employment Paid employment consists of full- and part-time employees, including salaried officers and executives of corporations, who were on the payroll in the pay period including March 12. Included are employees on sick leave, holidays, and vacations; not included are proprietors and partners of unincorporated businesses.

Wages Hourly straight-time wage rate or, for workers not paid on an hourly basis, straight-time earnings divided by the corresponding hours. Straight-time wage and salary rates are total earnings before payroll deductions, excluding premium pay for overtime and for work on weekends and holidays, shift differentials, and nonproduction bonuses such as lump-sum payments provided in lieu of wage increases.

LIFO LIFO is a method of valuing inventory where the latest items of merchandise added to the inventory are the first ones taken out.

Sources: United States Census Bureau (http://www.census.gov/) and the Bureau of Labor Statistics (http://www.bls.gov/bls/glossary.htm).

Definitions


© 2019 Modern DIstribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. Sector NAICS Definitions 21

Sector NAICS Definitions4-Digit Code North American Industry Classification System (NAICS) Definitions per the United States Census Bureau website

4231 Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of automobiles and

other motor vehicles, motor vehicle supplies, tires, and new and used parts.

4232 Furniture and Home Furnishing Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of furniture (except

hospital beds, medical furniture, and drafting tables), home furnishings, and/or housewares.

4233 Lumber and Other Construction Materials Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of lumber, plywood,

millwork, and wood panels; brick, stone, and related construction materials; roofing, siding, and insulation materials; and other construction materials, including manufactured homes (i.e., mobile homes) and/or prefabricated buildings.

4234 Professional and Commercial Equipment and Supplies Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of photographic

equipment and supplies; office, computer, and computer peripheral equipment; and medical, dental, hospital, ophthalmic, and other commercial and professional equipment and supplies.

4235 Metal and Mineral (except Petroleum) Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of products of the

primary metals industries (including metal service centers) and coal, coke, metal ores, and/or nonmetallic minerals (except precious and semiprecious stones and minerals used in construction).

4236 Household Appliances and Electrical and Electronic Goods Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of electrical

apparatus and equipment, wiring supplies, and related equipment; household appliances, electric housewares, and consumer electronics; and other electronic parts and equipment.



Sector NAICS Definitions (continued)4-Digit Code North American Industry Classification System (NAICS) Definitions

4237 Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of hardware;

plumbing and heating equipment and supplies (hydronics); warm air heating and air-conditioning equipment and supplies; and refrigeration equipment and supplies.

4238 Machinery, Equipment and Supplies Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of construction,

mining, farm, garden, industrial, service establishment, and transportation machinery, equipment and supplies.

4239 Miscellaneous Durable Goods Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of sporting,

recreational, toy, hobby, and jewelry goods and supplies, and precious stones and metals.

4241 Paper and Paper Product Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of bulk printing and

writing paper; stationery and office supplies; and industrial and personal service paper.

4242 Drugs and Druggists’ Sundries Merchant Wholesalers

4243 Apparel, Piece Goods and Notions Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of piece goods,

notions, and other dry goods; men’s and boys’ clothing and furnishings; women’s, children’s, and infants’ clothing and accessories; and footwear.

4244 Grocery and Related Product Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of (1) a general line

of groceries; (2) packaged frozen food; (3) dairy products; (4) poultry and poultry products; (5) confectioneries; (6) fish and seafood; (7) meats and meat products; (8) fresh fruits and vegetables; and (9) other grocery and related products.

4245 Farm Product Raw Material Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of agricultural

products (except raw milk, live poultry, and fresh fruits and vegetables), such as grains, field beans, livestock, and other farm product raw materials (excluding seeds).



4-Digit Code North American Industry Classification System (NAICS) Definitions

4246 Chemical and Allied Products Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of chemicals,

plastics materials and basic forms and shapes, and allied products.

4247 Petroleum and Petroleum Products Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of petroleum and

petroleum products, including liquefied petroleum gas.

4248 Beer, Wine and Distilled Alcoholic Beverage Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of chemicals,

plastics materials and basic forms and shapes, and allied products.

4249 Miscellaneous Nondurable Goods Merchant Wholesalers This industry group comprises establishments primarily engaged in the merchant wholesale distribution of nondurable

goods, such as farm supplies; books, periodicals and newspapers; flowers; nursery stock; paints; varnishes; tobacco and tobacco products; and other miscellaneous nondurable goods, such as cut Christmas trees and pet supplies.

4251 Wholesale Electronic Markets and Agents and Brokers

Source: United States Census Bureau (http://www.census.gov/eos/www/naics/).

Sector NAICS Definitions (continued)

In partnership with


SECTOR SAMPLEThis sector sample is a general representation of how each of the 19 sectors will appear. There may be variations in how the data is displayed sector to sector.


© 2019 Modern Distribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. Industrial Distributors 25

Sector SampleKey Performance StatisticsMeasure Value ($B) % Change vs. Previous YearAnnual Revenue Baseline Optimistic Pessimistic

2018 Actual

2019 Forecast

2020 Forecast

Measure % Change vs. Previous YearQuarterly Revenue Baseline Optimistic Pessimistic

2018 Q4 Actual2019 Q1 Forecast2019 Q2 Forecast


2019 Q3 Forecast

2019 Q4 Forecast2020 Q1 Forecast2020 Q2 Forecast2020 Q3 Forecast2020 Q4 Forecast

Measure Observed % Change vs. Previous YearGross Margin, 2017Gross Margin as a Percent of SalesPurchases ($B), 2017Industry Inventories ($B), Non-LIFO method, Dec 2018Inventory-to-Sales Ratio, 3-Month Moving Average, Dec 2018

NumberTotal Employment, 2018 Q4Average Annual Revenues per Employee 2018Average Number of Employees per EstablishmentTotal Wages as a Percent of Revenue, Q3 2018Average Annual Pay (average weekly wages x 52), 2018



Sector SampleCommentary




Sector SampleCommentary (continued)



© 2019 Modern Distribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use.

Subsector (defined by primary products)Est. 2018

Revenues ($B)% of Sector Revenues No. of Companies No. of Branches

Construction Machinery and Equipment

General Purpose Industrial Machinery and Equipment

Farm and Garden Machinery and Equipment

Aircraft and Aeronautical Equipment and Supplies

Other Industrial Machinery and Equipment

General Line Industrial MRO Supplies

Oil Well, Refinery, and Pipeline Equipment and Supplies


Materials Handling Machinery, Equipment, and Parts

Service Establishment Equipment and Supplies

Metalworking Machinery, Equipment, and Parts

Fluid Power Machinery, Equipment, and Parts

Mechanical Power Transmission (Bearings) Supplies

Industrial Containers and Supplies

Industrial Valves and Fittings (except Fluid Power)

Custodial and Janitorial Equipment and Supplies

Welding Supplies

Food Processing Machinery, Equipment, and Parts

Other Transportation Equipment and Supplies

Marine Machinery, Equipment, and Supplies

Total

Industrial Distributors 28

Sector SampleSubsector Summary



Subsector (defined by primary products)Avg. Sales per

CompanyAvg. Sales per

BranchAvg. Sales per

EmployeeAvg. Gross

Margin (2017)

















Welding Supplies




Weighted Average


Sector SampleSummary Statistics



Subsector (defined by primary products)Building Materials & Contractor Supplies

MRO Supplies & End-Use Equipment

OEM & Production Materials

Retail Stores & Dealers Export Sales

















Welding Supplies





Sector SampleShare of Revenue by End-Customer Market



Subsector (defined by primary products) <20 Employees 20-99 Employees 100-499 Employees 500+ Employees

















Welding Supplies




Total


Sector SampleEmployment Size Distribution of Wholesale Distribution Companies



Sector SampleActual Revenue Growth, 2004 to Present (not adjusted for inflation)

Q1 Q2 Q3 Q4


4-Q

1 0

4-Q

2 0

4-Q

3 0

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4 0

5-Q

1 0

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2 0

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4 0

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1 0

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2 0

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3 0

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4 0

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1 0

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2 0

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3 0

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4 0

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1 0

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2 0

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3 0

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4 0

9-Q

1 0

9-Q

2 0

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3 0

9-Q

4 1

0-Q

1 1

0-Q

2 1

0-Q

3 1

0-Q

4 1

1-Q

1 1

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2 1

1-Q

3 1

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4 1

2-Q

1 1

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2 1

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4 1

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2 1

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3 1

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4 1

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1 1

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2 1

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3 1

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4 1

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1 1

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2 1

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3 1

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4 1

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1 1

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2 1

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3 1

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4 1

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1 1

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2 1

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3 1

7-Q

4 1

8-Q

1 1

8-Q

2 1

8-Q

3 1

8-Q

4

% change from year ago DETAIL REMOVED

FOR SAMPLE



Sector SampleReal Revenue Growth, 2004 to Present (adjusted for inflation)

Real revenues equal actual revenues adjusted for product inflation using sector-specific price deflators. It is calculated by dividing the actual revenues by the price level, based on industry-specific price indices.

Q1 Q2 Q3 Q4


4-Q

1 0

4-Q

2 0

4-Q

3 0

4-Q

4 0

5-Q

1 0

5-Q

2 0

5-Q

3 0

5-Q

4 0

6-Q

1 0

6-Q

2 0

6-Q

3 0

6-Q

4 0

7-Q

1 0

7-Q

2 0

7-Q

3 0

7-Q

4 0

8-Q

1 0

8-Q

2 0

8-Q

3 0

8-Q

4 0

9-Q

1 0

9-Q

2 0

9-Q

3 0

9-Q

4 1

0-Q

1 1

0-Q

2 1

0-Q

3 1

0-Q

4 1

1-Q

1 1

1-Q

2 1

1-Q

3 1

1-Q

4 1

2-Q

1 1

2-Q

2 1

2-Q

3 1

2-Q

4 1

3-Q

1 1

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2 1

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3 1

3-Q

4 1

4-Q

1 1

4-Q

2 1

4-Q

3 1

4-Q

4 1

5-Q

1 1

5-Q

2 1

5-Q

3 1

5-Q

4 1

6-Q

1 1

6-Q

2 1

6-Q

3 1

6-Q

4 1

7-Q

1 1

7-Q

2 1

7-Q

3 1

7-Q

4 1

8-Q

1 1

8-Q

2 1

8-Q

3 1

8-Q

4





Sector SampleEmployment Growth, 2004 to Present

Q1 Q2 Q3 Q4


4-Q

1 0

4-Q

2 0

4-Q

3 0

4-Q

4 0

5-Q

1 0

5-Q

2 0

5-Q

3 0

5-Q

4 0

6-Q

1 0

6-Q

2 0

6-Q

3 0

6-Q

4 0

7-Q

1 0

7-Q

2 0

7-Q

3 0

7-Q

4 0

8-Q

1 0

8-Q

2 0

8-Q

3 0

8-Q

4 0

9-Q

1 0

9-Q

2 0

9-Q

3 0

9-Q

4 1

0-Q

1 1

0-Q

2 1

0-Q

3 1

0-Q

4 1

1-Q

1 1

1-Q

2 1

1-Q

3 1

1-Q

4 1

2-Q

1 1

2-Q

2 1

2-Q

3 1

2-Q

4 1

3-Q

1 1

3-Q

2 1

3-Q

3 1

3-Q

4 1

4-Q

1 1

4-Q

2 1

4-Q

3 1

4-Q

4 1

5-Q

1 1

5-Q

2 1

5-Q

3 1

5-Q

4 1

6-Q

1 1

6-Q

2 1

6-Q

3 1

6-Q

4 1

7-Q

1 1

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2 1

7-Q

3 1

7-Q

4 1

8-Q

1 1

8-Q

2 1

8-Q

3 1

8-Q

4





Sector SampleInventory-to-Sales Ratio, 2004 to Present

The inventory-to-sales ratio shows the seasonally-adjusted relationship of end-of-month values of inventory to monthly sales. These ratios (3-month moving average) indicate the number of months of inventory on hand relative to the sales for the month. For example, a ratio of 1.5 indicates that wholesale distributors have enough inventory on hand to cover one and a half months of sales.

Jan-

04A

pr-0

4Ju

l-04

Oct

-04

Jan-

05A

pr-0

5Ju

l-05

Oct

-05

Jan-

06A

pr-0

6Ju

l-06

Oct

-06

Jan-

07A

pr-0

7Ju

l-07

Oct

-07

Jan-

08A

pr-0

8Ju

l-08

Oct

-08

Jan-

09A

pr-0

9Ju

l-09

Oct

-09

Jan-

10A

pr-1

0Ju

l-10

Oct

-10

Jan-

11A

pr-1

1Ju

l-11

Oct

-11

Jan-

12A

pr-1

2Ju

l-12

Oct

-12

Jan-

13A

pr-1

3Ju

l-13

Oct

-13

Jan-

14A

pr-1

4Ju

l-14

Oct

-14

Jan-

15A

pr-1

5Ju

l-15

Oct

-15

Jan-

16A

pr-1

6Ju

l-16

Oct

-16

Jan-

17A

pr-1

7Ju

l-17

Oct

-17

Jan-

18A

pr-1

8Ju

l-18

Oct

-18

Jan-

19

3-month moving average with Trendline



© 2019 Modern DIstribution Management. Unlawful copying or sharing of this data is prohibited. See page ii for detailed terms of use. About the Authors 36

Data analysis in this edition of the Economic Benchmarks for Wholesale Distribution was produced by Modern Distribution Management (mdm.com) in collaboration with researchers at the Business Research Division of the Leeds School of Business at the University of Colorado Boulder.

For questions regarding the Economic Benchmarks for Wholesale Distribution, call 888-742-5060.

About the Authors

Serving Colorado since 1915, the Business Research Division (BRD) of the Leeds School of Business, University of Colorado Boulder, provides economic and demographic information needed by businesses, governments and nonprofit organizations. Specializing in economic and fiscal analysis, market research, and customized research projects, the division also produces the longest-running annual forecast of the state’s economy.

To learn more about the Business Research Division of the Leeds School of Business:

Dr. Richard Wobbekind, Executive Director Brian Lewandowski, Associate Director colorado.edu/business/brd [email protected]

MDM Analytics is a market analytics firm for industrial and construction products in North America. For more than 25 years, MDM Analytics has increased top-line revenues, lowered cost of customer acquisition and shortened the selling cycle for industrial product marketers. Founded as Industrial Market Information in 1987, MDM Analytics has helped clients target high-potential customers and markets with industrial products market size analysis, data services, dashboards and sales force management tools.

MDM Analytics is owned by Gale Media, Inc.

Thomas P. Gale, CEO/Publisher MDM Analytics/Modern Distribution Management [email protected]

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Sample Report...Motor Vehicles and Motor Vehicle Parts Wholesale Distributors DATA REMOVED FOR SAMPLE Industrial Distributors Electrical and Electronics Wholesalers Apparel and Piece

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