$1,995.00 2014 U.S. MARKET ANALYSIS: JAN-SAN MRO DATA ESTIMATED END-USER DEMAND BY REGION & END-MARKET e l p m a S researched & produced by: www.imidata.com www.mdm.com 2014 by Gale Media Inc. All rights reserved. Material may not be reproduced in whole or in part in any form whatsoever without permission from the publisher. To request permission to copy, republish, or quote material, please call 303-443-5060.
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About the Authors Data and trend analysis were produced by Modern Distribution Management (www.mdm.com) and Industrial Market Information (www.imidata.com). Modern Distribution Management and Industrial Market Information are divisions of Gale Media Inc. IMI is the leading market analytics firm for industrial and construction products in North America. Since 1987, IMI has helped clients reach their full market potential with data services, dashboards and sales force management tools to target highpotential customers and markets. IMI helps industrial products manufacturers, distributors and others make data-based decisions for market planning, product analysis, territory management, strategic planning, account management and potential analysis, joint distributor/vendor planning, and competitive analysis. IMI provides market demand estimates, account potential reports and prospect lists based on estimated usage for 150+ MRO/OEM product groups. Learn more about Industrial Market Information: Thomas P. Gale, President www.imidata.com tom@imidata.com Modern Distribution Management is the only specialized information business that provides high-level in-depth resources for executives who are in or serve the wholesale distribution industry. With MDM s information services, you ll find fresh analysis, accurate reporting and good ideas to practice across many lines of trade. We provide original, in-depth thinking. MDM s editors have received several Editorial Excellence Awards from the Specialized Information Publishers Association and are regularly recognized by industry groups as content leaders in wholesale distribution. Learn more about Modern Distribution Management: Jenel Stelton-Holtmeier, Editor www.mdm.com jenel@mdm.com
JAN-SAN Product Category Profile According to Industrial Market Information s annual analysis of Jan-San MRO markets, the U.S. market size for Jan-San products in 2014 is estimated at $xx billion, based on end-of-year 2013 data. Find the methodology and a definition of MRO on page 13. This report provides a high-level view of the total market demand for Jan-San products by providing the estimated end-market consumption of these products. This does not represent the amount sold by wholesaler-distributors. A percentage of the total estimated demand is sold direct from manufacturers to end-user. Est. Demand: $xx Billion This report provides a look into the Jan-San product category which makes up xx% of the Construction/ Facility sector. The total Construction/Facility sector makes up xx% of the estimated total MRO market. Estimated total demand for MRO products overall is $xx billion. Total MRO Market Size: $xx billion Estimated overall market demand: 2008-2013 2014 Industrial Market Information Inc. Other MRO $xx Jan-San MRO $xx Other Construction/Facility MRO $xx Line graph removed for sample Page 4
U.S. market - total mro This report defines Jan-San as part of a broader construction/facility MRO product category within the total MRO product consumption landscape. Jan-San is classified in this way because it is widely consumed within health care, retail and a variety of other end-markets. The tree diagram below shows how MRO products have been categorized for this report and other MRO product reports available at www.mdm.com/store. estimated consumption of mro products by product category The following data provide an overview of MRO product categories and their share in dollars of the total MRO market in the U.S. TOtal estimated mro product consumption in u.s.: $xx billion Core Industrial Distribution products: Industrial MRO products $xxb ABRASIVES BRUSHES CHEMICALS CONTROLS CUTTING TOOLS FASTENERS FLUID POWER HAND TOOLS INDUSTRIAL PVF MACHINE TOOL ACCESSORIES MATERIAL HANDLING POWER TRANSMISSION RUBBER PRODUCTS SAFETY SAWS WELDING EQUIPMENT & GASES $xx billion Electrical MRO products $xxb Construction/ facility MRO products $xxb CONTRACTOR SUPPLIES HVACR JANITORIAL SUPPLIES PLUMBING SUPPLIES other products: $xx billion DATA METHODOLOGY NOTE: other MRO $xxb COMPUTER/TELECOM ELECTRONICS PACKAGING PLASTICS STEEL The data on this page and the following pages represents estimated total consumption at the end-user level of MRO products in the U.S., according to Industrial Market Information. These represent estimated purchases at the end-user level in U.S. dollars and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. This page was excerpted from the 2014 U.S. MRO Market Analysis: Estimated End-User Demand for MRO Products by Region & End-Market. Page 5
u.s. Market Jan-San regional market analysis The following data represent estimated consumption at the end-user level by U.S. region of Jan-San products in the U.S. based on the Jan-San market size of $xx billion. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. xx % xx % Pacific Northeast Central Total Market...$xxM xx % Total Market...$xxM northwest central New england xx % Total Market...$xxM xx % Total Market...$xxM Mountain Total Market...$xxM xx% xx % Mid-Atlantic Total Market...$xxM xx % South Atlantic Total Market...$xxM Southeast Central Total Market...$xxM xx % Southwest Central Total Market...$xxM 2014 Industrial Market Information Inc. STATES INCLUDED IN EACH OF THE NINE U.S. REGIONS, ACCORDING TO THE U.S. CENSUS BUREAU: NORTHEAST CENTRAL: Illinois, Indiana, Michigan, Ohio, Wisconsin SOUTH ATLANTIC: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia SOUTHWEST CENTRAL: Arkansas, Louisiana, Oklahoma, Texas PACIFIC: Alaska, California, Hawaii, Oregon, Washington MID-ATLANTIC: New Jersey, New York, Pennsylvania NORTHWEST CENTRAL: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota SOUTHEAST CENTRAL: Alabama, Kentucky, Mississippi, Tennessee MOUNTAIN: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming NEW ENGLAND: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont Page 6
U.S. Market Jan-San market by U.S. state The following shows the consumption of Jan-San products at the end-user level by state, including Washington DC, based on the $xx billion total. State Est. Demand ($millions) State Est. Demand ($millions) Page 7
u.s. Market Jan-San market: consumption by end-market (2-Digit naics) The following data provide a closer look at Jan-San consumption by U.S. end-market based on 2-digit NAICS. Total estimated Jan-san product END-MARKET consumption Health care & social assistance (62): $xx Million DATA METHODOLOGY NOTE: Retail (44-45): $xx Million $xx Billion 2014 Industrial Market Information Inc. Manufacturing (31-33): $xx million The data on this page and the following pages represent estimated total consumption at the end-user level of MRO products in the U.S., according to Industrial Market Information. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. other: $xx million ACCOMMODATION AND FOOD SERVICES EDUCATIONAL SERVICES PUBLIC ADMINISTRATION ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES OTHER SERVICES (EXCEPT PUBLIC ADMINISTRATION) FINANCE AND INSURANCE WHOLESALE TRADE* REAL ESTATE AND RENTAL AND LEASING TRANSPORTATION AND WARE- HOUSING INFORMATION ARTS, ENTERTAINMENT, AND RECREATION CONSTRUCTION UTILITIES AGRICULTURE, FORESTRY, FISH- ING AND HUNTING MANAGEMENT OF COMPANIES AND ENTERPRISES MINING, QUARRYING, AND OIL AND GAS EXTRACTION * Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities & not resale items/inventory. Page 8
u.s. Market Top 20 Health Care and Social Assistance end-markets consuming jan-san products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 20 Health Care and Social Assistance (NAICS 62) industries consuming Jan-San products in the U.S., according to Industrial Market Information estimates. These estimates represent purchases at the end-user level and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. NAICS End-Market Est. Demand ($millions) Page 9
u.s. Market top 20 retail end-markets consuming jan-san products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 20 Retail (NAICS 44-45) industries consuming Jan-San products in the U.S., according to Industrial Market Information estimates. These estimates represent purchases at the end-user level and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. NAICS End-Market Est. Demand ($millions) Page 10
u.s. Market top 20 Manufacturing end-markets consuming Jan-San products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 20 manufacturing (NAICS 31-33) industries consuming Jan-San products in the U.S., according to Industrial Market Information estimates. These estimates represent purchases at the end-user level and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. NAICS End-Market Est. Demand ($millions) Page 11
u.s. Market top 10 OTHER end-markets consuming Jan-san products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 10 other industries (excluding Health Care, Retail and Manufacturing) consuming Jan-San products in the U.S., according to Industrial Market Information estimates. These estimates represent purchases at the end-user level and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. NAICS End-Market Est. Demand ($millions) End-markets that fall under Other include: Construction Mining, Quarrying and Oil and Gas Extraction Utilities Transportation and Warehousing Professional, Scientific and Technical Services Wholesale Trade* Other Services Administrative and Support and Waste Management and Remediation Services Public Administration Agriculture, Forestry, Fishing and Hunting Information Educational Services Accommodation and Food Services Real Estate and Rental and Leasing Arts, Entertainment and Recreation Finance and Insurance Management of Companies * Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities & not resale items/inventory. Page 12
IMI is the leading market analytics firm for industrial and construction products in North America. Since 1987, IMI has helped clients reach their full market potential with data services, dashboards and sales force management tools to target highpotential customers and markets. IMI is an essential resource for clients seeking to: Looking for more information? Get a deeper Market Profile: If you d like market data at the MSA, county or postal code level or would like information about different products, please contact Industrial Market Information at 877-224- 9677 or email info@imidata.com and reference this report for your discounted quote. IMI reports are customizable to help you penetrate deeper into your market. develop a comprehensive view of their market segments; identify market penetration & untapped potential; target the highest potential geographic regions, customer segments & product categories; assess individual customer & prospect potential; more effectively deploy resources; and improve sales growth, margins and return on capital. IMI s capabilities are built on a team of seasoned professionals and a unique database delivering reliable market size and segmentation services for more than 200 MRO/OEM products. THOMAS P. GALE President (303) 440-3857 tom@imidata.com KRISTEN GAWALIS Project Manager (720) 204-4612 kristen@imidata.com Methodology The data in this MRO Market Analysis uses Industrial Market Information s proprietary predictive modeling, which starts with a public aggregate market size estimate by product category for a given geography. IMI then uses a combination of public and private databases to allocate estimated demand to deeper geographic levels and to specific customer segments, as defined at the six-digit North American Industry Classification System (NAICS). This approach provides a total market size estimate without regard to market channels. All estimates in this report are in U.S. dollars and represent the end-user market demand that includes an estimated average distributor margin by product category in the calculations. Defining MRO In this report, MRO is defined as: maintenance, repair and operations. MRO products are used in production and plant maintenance and may include maintenance supplies (such as cleaning materials), parts or consumables used during production (such as lubricants, safety equipment or tools). Traditionally, companies have not paid as much attention to the procurement of these materials as they have with OEM materials (original equipment manufacturing) or materials that go into the product itself. However, in part due to the Great Recession, customers are becoming increasingly more strategic about MRO purchases. Wholesaler-distributors are capitalizing on this shift to provide services that help customers save money and improve processes surrounding MRO procurement. Page 13