O’Shaughnessey at NFDA: Bigger Distributors Have Fewer Suppliers
O’Shaughnessey at NFDA: Bigger Distributors Have Fewer Suppliers
John Wolz
The larger fastener distributorships have fewer vendors, according to National Fastener Distributor Association’s online benchmarking program.
Distributors with annual sales exceeding $15 million average 232 vendors, Mike O’Shaughnessey of iLumen Financial Information Network told the NFDA. Distributors will sales under $15 million average 460 vendors. Smaller distributorships report higher margins on fasteners, he noted. Overall gross margins average 35% with no participating distributors as high as 60% or as low as 20%.
Distributors’ operating profit generally ranges from 4% to 6%, O’Shaughnessey reported. For 2007 smaller distributorship revenue averaged a 7.4% increase vs. a 6.4% reduction for distributors will sales topping $15 million.
Thus far 30 NFDA member companies have participated on some level in the iLumen benchmarking. A total of 24 NFDA distributors provided fiscal 2007 information.
The NFDA unveiled the online financial analysis and benchmarking service for receivables, inventory turns and other company comparisons last fall. Additional benchmarking will be added, such as a compensation comparison in 2009.
iLumen measures 15 major industries, from manufacturing to construction and health care. More than 15,000 private companies participate.
For NFDA information contact executive vice president John Hausoul. Tel: 312 527-6671 Fax 312 673-6740 E-mail: nfda@nfda-fastener.org>nfda@nfda-fastener.org Web: nfda-fastener.org �2008 FastenerNews.com
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