Fein: Distributors Sold $20.4 Billion in Fasteners in 2005
Fein: Distributors Sold $20.4 Billion in Fasteners in 2005
John Wolz
A total of 3,750 North American fastener distributors sold $16.5 billion of fasteners in 2005, according The 2006 Wholesale Distribution Economic Factbook. Other distributors sold another $3.9 billion in fasteners for a total of $20.4 billion.
Adam Fein of Pembroke Consulting Inc. estimated that last year’s distributor sales for the handtools & fasteners category increased 8.7% over 2004.
The 3,650 distributors received $21.7 billion in total revenue, with 76% from fasteners.
Fein told FastenerNews.com he compiled the Pembroke book because statistics are so difficult to find in the $3.6 trillion U.S. wholesale distribution industry. He provides data on revenue and employment, the number and size distributors, gross margins, wages, and other operating statistics for 111 sub-sectors of the wholesale distribution industry.
Total revenues of all wholesale distributors grew by 8.9% for the year, exceeding Pembrooke’s 2005 forecast of 7.7%. Fein attributed the growth primarily to higher-than-expected commodity prices.
Many distributors report higher revenues but shrinking employment due to increased productivity. Distribution employment growth was only 1% over 2004 “as wholesale distributors benefit from product price inflation and the application of technology to operations,” Fein explained.
Despite an uptick in consolidation activity in 2005, most distributors are small and medium-sized private companies, Fein found. Less than 1% of the country”s 270,000 wholesaler-distributors have annual revenues above $100 million.
The 128-page book is available from Pembroke Consulting for $1,250 ($990 until March 1). Web: PembrokeConsulting.com �2006 FastenerNews.com
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