Economic Benchmarks for Wholesale Distribution 2016 Sample Report In partnership with
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TABLE OF CONTENTS About this Report... v SECTOR Distributors... 1 Wholesale Distribution Industry... 10 National Economic Overview... 23 Regional Economic Overview... 28 Definitions... 29 About the Authors... 32 Table of Contents Page iv 2016 Economic Benchmarks for Wholesale Distribution
ABOUT THE ECONOMIC BENCHMARKS FOR WHOLESALE DISTRIBUTION The 2016 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 11th edition of this report, formerly known as the Wholesale Distribution Economic Trends Reports. It is published by Modern Distribution Management/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 2016 reports reflect the most recent Annual Wholesale Trade Survey and the preliminary results of the last Economic Census. Data may differ from previous years reports due to ongoing government data revisions. All forecasts for 2016-2017 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 Publisher Modern Distribution Management tom@mdm.com About Page v
Economic Benchmarks for Wholesale Distribution 2016 Sector Sample This sample is a general representation of how each of the 18 sectors reports will appear. There may be variations in how the data is displayed sector to sector. In partnership with
Distribution Sector TREND DATA Measure Value % Change vs. Previous Year Period Sector Revenues ($B), 2015:Q4 Oct 2015 through Dec 2015 Sector Revenues ($B), 2015 Jan 2015 through Dec 2015 Industry Revenues ($B), 2016 Forecast Growth Jan 2016 through Dec 2016 Industry Revenues ($B), 2017 Forecast Growth Jan 2017 through Dec 2017 Industry Inventories ($B), Non-LIFO method Dec 2015 Inventory-to-Sales Ratio, 3 Month Moving Average Oct 2015 through Dec 2015 Total Employment, 2015:Q4 Oct 2015 through Dec 2015 Average Annual Revenues per Employee Jan 2015 through Dec 2015 Average Weekly Earnings Jan 2015 through Dec 2015 Distribution Sector Page 2
Distribution Sector COMMENTARY Revenues for... COMMENTARY REMOVED Distribution Sector Page 3
SUBSECTOR SUMMARY Subsector (defined by primary products) Subsector 1 Subsector 2 Total Est. 2015 Revenues ($B) % of Sector Revenues No. of Companies No. of Branches SUMMARY STATISTICS Subsector (defined by primary products) Subsector 1 Subsector 2 Weighted Average Avg. Sales per Company Avg. Sales per Branch Avg. Sales per Employee Avg. Gross Margin (2014) Distribution Sector Page 4
Distribution Sector -- Major Subsectors SHARE OF REVENUE BY END-CUSTOMER MARKET Subsector (defined by primary products) Subsector 1 Subsector 2 Building Materials & Contractor Supplies MRO Supplies & End-Use Equipment OEM & Production Materials Retail Stores & Dealers Export Sales EMPLOYMENT SIZE DISTRIBUTION OF WHOLESALE DISTRIBUTION COMPANIES Subsector (defined by primary products) Subsector 1 Subsector 2 Total <20 Employees Number of Companies 20-99 Employees 100-499 Employees 500+ Employees Distribution Sector Page 5
Distribution Sector Actual Revenue Growth, 2004 to Present (not adjusted for inflation) % change from year ago 04-Q1 04-Q2 04-Q3 04-Q4 05-Q1 05-Q2 05-Q3 05-Q4 06-Q1 06-Q2 06-Q3 06-Q4 07-Q1 07-Q2 07-Q3 07-Q4 08-Q1 08-Q2 08-Q3 08-Q4 09-Q1 09-Q2 09-Q3 09-Q4 10-Q1 10-Q2 10-Q3 10-Q4 11-Q1 11-Q2 11-Q3 11-Q4 12-Q1 12-Q2 12-Q3 12-Q4 13-Q1 13-Q2 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 15-Q4 Distribution Sector Page 6
Distribution Sector Real Revenue Growth, 2004 to Present (adjusted for inflation) % change from year ago Correlation of Real Revenue Growth with Real GDP Growth (2000: Q1 to 04-Q1 04-Q2 04-Q3 04-Q4 05-Q1 05-Q2 05-Q3 05-Q4 06-Q1 06-Q2 06-Q3 06-Q4 07-Q1 07-Q2 07-Q3 07-Q4 08-Q1 08-Q2 08-Q3 08-Q4 09-Q1 09-Q2 09-Q3 09-Q4 10-Q1 10-Q2 10-Q3 10-Q4 11-Q1 11-Q2 11-Q3 11-Q4 12-Q1 12-Q2 12-Q3 12-Q4 13-Q1 13-Q2 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 15-Q4 Distribution Sector Page 7
Distribution Sector Employment Growth, 2004 to Present % change from year ago 04-Q1 04-Q2 04-Q3 04-Q4 05-Q1 05-Q2 05-Q3 05-Q4 06-Q1 06-Q2 06-Q3 06-Q4 07-Q1 07-Q2 07-Q3 07-Q4 08-Q1 08-Q2 08-Q3 08-Q4 09-Q1 09-Q2 09-Q3 09-Q4 10-Q1 10-Q2 10-Q3 10-Q4 11-Q1 11-Q2 11-Q3 11-Q4 12-Q1 12-Q2 12-Q3 12-Q4 13-Q1 13-Q2 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 15-Q4 Distribution Sector Page 8
Distribution Sector Inventory-to-Sales Ratio, 2004 to Present 3-month moving average with Trendline Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Distribution Sector Page 9
Economic Benchmarks for Wholesale Distribution 2016 Wholesale Distribution Industry In partnership with
Wholesale Distribution Industry TREND DATA Measure Industry Revenues ($B), 2015:Q4 Industry Revenues ($B), 2015 Industry Revenues ($B), 2016 Forecast Growth Industry Revenues ($B), 2017 Forecast Growth Industry Inventories ($B), Non-LIFO method Inventory-to-Sales Ratio, 3-Month Moving Average Total Employment, 2015:Q4 Average Annual Revenues per Employee Average Weekly Earnings Value % Change vs. Previous Year Period Oct 2015 through Dec 2015 Jan 2015 through Dec 2015 Jan 2016 throgh Dec 2016 Jan 2017 through Dec 2017 Dec 2015 Oct 2015 through Dec 2015 Oct 2015 through Dec 2015 Jan 2015 through Dec 2015 Jan 2015 through Dec 2015 Wholesale Distribution Industry Page 11
Wholesale Distribution Industry COMMENTARY Total revenues of wholesale distributors... COMMENTARY REMOVED (continued) Wholesale Distribution Industry Page 12
With record setting... COMMENTARY REMOVED Wholesale Distribution Industry Page 13
Major Sector (Largest to Smallest Sector Revenues) 2015 Revenues ($B) % of Industry Revenues No. of Companies Avg. Gross Margin (2014) Pharmaceutical Wholesalers Grocery and Foodservice Wholesale Distributors Electrical and Electronics Wholesalers Oil and Gas Products Wholesale Distributors Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Industrial Distributors Other Consumer Products Wholesale Distributors Computer Equipment and Software Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Apparel and Piece Goods Wholesale Distributors Metal Service Centers Beer, Wine and Liquor Wholesalers Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Chemicals and Plastics Wholesale Distributors Building Material and Construction Wholesale Distributors Office Product Wholesalers and Paper Merchants Furniture and Home Furnishing Wholesale Distributors Total Wholesale Distribution Industry Page 14
SUMMARY TREND DATA Major Sector (Largest to Smallest Sector Revenues) Pharmaceutical Wholesalers Grocery and Foodservice Wholesale Distributors Electrical and Electronics Wholesalers Oil and Gas Products Wholesale Distributors Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Industrial Distributors Other Consumer Products Wholesale Distributors Computer Equipment and Software Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Apparel and Piece Goods Wholesale Distributors Metal Service Centers Beer, Wine and Liquor Wholesalers Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Chemicals and Plastics Wholesale Distributors Building Material and Construction Wholesale Distributors Office Product Wholesalers and Paper Merchants Furniture and Home Furnishing Wholesale Distributors Total * Real revenues equal actual revenues adjusted for product inflation using sector-specific price deflators. Actual Revenues (2015) % change vs. previous year Real Revenues* (2015) Revenue Gap (Actual - Real) Employment (2015:Q4) Wholesale Distribution Industry Page 15
REVENUE FORECAST SUMMARY % change in revenues vs. previous year Pharmaceutical Wholesalers Grocery and Foodservice Wholesale Distributors Electrical and Electronics Wholesalers Oil and Gas Products Wholesale Distributors Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Industrial Distributors Other Consumer Products Wholesale Distributors Computer Equipment and Software Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Apparel and Piece Goods Wholesale Distributors Metal Service Centers Beer, Wine and Liquor Wholesalers Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Chemicals and Plastics Wholesale Distributors Building Material and Construction Wholesale Distributors Office Product Wholesalers and Paper Merchants Furniture and Home Furnishing Wholesale Distributors Total 2015 Actual 2016 Forecast 2017 Forecast 2016 vs. 2015 Wholesale Distribution Industry Page 16
Wholesale Distribution Industry -- Sector Growth vs. U.S. GDP Growth Major Sector (Highest to Lowest Correlation) Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Furniture and Home Furnishing Wholesale Distributors Building Material and Construction Wholesale Distributors Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Apparel and Piece Goods Wholesale Distributors Industrial Distributors Chemicals and Plastics Wholesale Distributors Electrical and Electronics Wholesalers Office Product Wholesalers and Paper Merchants Miscellaneous Durable Goods Wholesale Distributors Metal Service Centers Commercial Equipment and Supplies Wholesale Distributors Computer Equipment and Software Wholesale Distributors Beer, Wine and Liquor Wholesalers Other Consumer Products Wholesale Distributors Pharmaceutical Wholesalers Grocery and Foodservice Wholesale Distributors Oil and Gas Products Wholesale Distributors Agricultural Products Wholesale Distributors 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. Correlation of Real Revenue Growth with Real GDP Growth (2002:Q1 to 2015:Q4) Wholesale Distribution Industry Page 17
EMPLOYMENT SIZE DISTRIBUTION OF WHOLESALE DISTRIBUTION COMPANIES Major Sector (Largest to Smallest Sector Revenues) Pharmaceutical Wholesalers Grocery and Foodservice Wholesale Distributors Electrical and Electronics Wholesalers Oil and Gas Products Wholesale Distributors Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Industrial Distributors Other Consumer Products Wholesale Distributors Computer Equipment and Software Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Apparel and Piece Goods Wholesale Distributors Metal Service Centers Beer, Wine and Liquor Wholesalers Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Chemicals and Plastics Wholesale Distributors Building Material and Construction Wholesale Distributors Office Product Wholesalers and Paper Merchants Furniture and Home Furnishing Wholesale Distributors Total <20 Employees Number of Companies 20-99 Employees 100-499 Employees 500+ Employees Wholesale Distribution Industry Page 18
Wholesale Distribution Industry Actual Revenue Growth, 2004 to Present (not adjusted for inflation) % change from year ago 04-Q1 04-Q2 04-Q3 04-Q4 05-Q1 05-Q2 05-Q3 05-Q4 06-Q1 06-Q2 06-Q3 06-Q4 07-Q1 07-Q2 07-Q3 07-Q4 08-Q1 08-Q2 08-Q3 08-Q4 09-Q1 09-Q2 09-Q3 09-Q4 10-Q1 10-Q2 10-Q3 10-Q4 11-Q1 11-Q2 11-Q3 11-Q4 12-Q1 12-Q2 12-Q3 12-Q4 13-Q1 13-Q2 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 15-Q4 Wholesale Distribution Industry Page 19
Wholesale Distribution Industry Real Revenue Growth, 2004 to Present (adjusted for inflation) % change from year ago 04-Q1 04-Q2 04-Q3 04-Q4 05-Q1 05-Q2 05-Q3 05-Q4 06-Q1 06-Q2 06-Q3 06-Q4 07-Q1 07-Q2 07-Q3 07-Q4 08-Q1 08-Q2 08-Q3 08-Q4 09-Q1 09-Q2 09-Q3 09-Q4 10-Q1 10-Q2 10-Q3 10-Q4 11-Q1 11-Q2 11-Q3 11-Q4 12-Q1 12-Q2 12-Q3 12-Q4 13-Q1 13-Q2 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 15-Q4 Wholesale Distribution Industry Page 20
Wholesale Distribution Industry Employment Growth, 2004 to Present % change from year ago 04-Q1 04-Q2 04-Q3 04-Q4 05-Q1 05-Q2 05-Q3 05-Q4 06-Q1 06-Q2 06-Q3 06-Q4 07-Q1 07-Q2 07-Q3 07-Q4 08-Q1 08-Q2 08-Q3 08-Q4 09-Q1 09-Q2 09-Q3 09-Q4 10-Q1 10-Q2 10-Q3 10-Q4 11-Q1 11-Q2 11-Q3 11-Q4 12-Q1 12-Q2 12-Q3 12-Q4 13-Q1 13-Q2 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1 15-Q2 15-Q3 15-Q4 Wholesale Distribution Industry Page 21
Wholesale Distribution Industry Inventory-to-Sales Ratio, 2004 to Present 3-month moving average with Trendline Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Wholesale Distribution Industry Page 22
National Economic Overview COMMENTARY GDP Employment Unemployment COMMENTARY REMOVED Income Wealth Credit National Economic Overview Page 23
National GDP Percent Quarterly and Annualized Real GDP 1990-2016 Annualized GDP 1990-1999 Annualized GDP 2000-2009 Annualized GDP 2010-2016 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Sources: Bureau of Economic Analysis and Consensus Forecasts National Economic Overview Page 24
National Employment Thousands, month-over-month Recession 8Months Recession 18 Months 12-Month Moving Average 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sources: Bureau of Labor Statistics (seasonally adjusted), National Bureau of Economic Research, and Moody s Analytics National Economic Overview Page 25
State Employment Growth, Pre-Recession Peak to Current Source: Bureau of Labor Statistics (seasonally adjusted) National Economic Overview Page 26
Unemployment Rate Percentage of Labor Force U-6 U-5 U-4 U-3 U-2 U-1 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Source: Bureau of Labor Statistics (seasonally adjusted) U-1: U-2: U-3: U-4: U-5: U-6: Persons unemployed 15 weeks or longer, as a percent of the civilian labor force Job losers and persons who completed temporary jobs, as a percent of the civilian labor force Total unemployed, as a percent of the civilian labor force (This is the definition used for the official unemployment rate.) Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers Total unemployed, plus discouraged workers, plus all other marginally attached workers, as a percent of the civilian labor force plus all marginally attached workers 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 National Economic Overview Page 27
Regional Economic Overview COMMENTARY Personal Income Wages Employment COMMENTARY REMOVED Unemployment Home Prices Regional Economic Overview Page 28
Definitions Gross Margins Employment Wages Sales minus cost of goods sold. 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. 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: U.S. Census Bureau (http://www.census.gov/) and the Bureau of Labor Statistics (http://www.bls.gov/bls/glossary.htm). Definitions Page 29
Sector NAICS Definitions 4 Digit Code 4231 North American Industry Classification System (NAICS) Definitions 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 4233 4234 4235 4236 4237 4238 4239 4241 4242 Furniture and Home Furnishing Merchant Wholesalers Lumber and Other Construction Materials Merchant Wholesalers 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. Metal and Mineral (except Petroleum) Merchant Wholesalers Household Appliances and Electrical and Electronic Goods Merchant Wholesalers Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers 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. 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. Paper and Paper Product Merchant Wholesalers Drugs and Druggists' Sundries Merchant Wholesalers (contined) Definitions Page 30 2016 Modern Distribution Management
4 Digit Code 4243 North American Industry Classification System (NAICS) Definitions Apparel, Piece Goods, and Notions Merchant Wholesalers 4244 4245 Grocery and Related Product Merchant Wholesalers 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). 4246 4247 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. Petroleum and Petroleum Products Merchant Wholesalers 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 4251 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. Wholesale Electronic Markets and Agents and Brokers Source: U.S. Census Bureau (http://www.census.gov/eos/www/naics/). Definitions Page 31
ABOUT THE AUTHORS Data analysis in this edition of the Economic Benchmarks for Wholesale Distribution was produced by Modern Distribution Management (mdm.com) in collaboration with economists 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 1-888-742-5060. 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 leeds.colorado.edu/brd brdinfo@colorado.edu Modern Distribution Management (www.mdm.com) is a market research and publishing company that provides competitive intelligence to industrial product and wholesale distribution markets. Since 1967, MDM has been the definitive resource for distribution management best practices, business strategies and market trends through its twice-monthly newsletter, market intelligence reports, books and conferences. In 2015, MDM launched MDM Analytics, which provides proprietary market research and analytic services to profile market share and account potential for industrial products. Modern Distribution Management is owned by Gale Media, Inc. Thomas P. Gale, Publisher Modern Distribution Management tom@mdm.com About the Authors Page 32