Industrial Machinery Distributors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 20,100 Industrial machinery distributors in the US sell parts, tools, and machines produced by various manufacturers. They serve as a source of machinery products to manufacturing and institutional customers who need them for their own operations. Customers include industrial manufacturers, food processors, government entities, and energy companies.
Forward Integration By Manufacturers
Industrial machinery distributors typically carry a broad range of products from a variety of manufacturers.
Joint Ventures Support Expansion
Beyond increasing product offerings, large industrial machinery distributors are fueling growth primarily through acquiring or entering into joint ventures with small or regional companies.
Industry size & Structure
The average industrial machinery distributor generates $9-10 million in revenue and has about 17 employees.
- About 20,100 firms in the industry operate 27,200 establishments, employ 340,000 workers and generate $192 billion in annual revenue.
- 83% of firms have less than 20 employees.
- They must invest heavily in real estate to house inventory and may have facilities from 1,400 square feet to 1.5 million square feet for the largest distributors.
- The largest firms in the industry include Grainger, Veritiv, MSC Industrial Supply Company, Pentair, and Sumitomo Corporation.
Industry Forecast
Industrial Machinery Distributors Industry Growth
Recent Developments
Dec 30, 2024 - Rising Producer Prices
- Producer prices for machinery and supply wholesalers rose 3.7% in November compared to a year ago after posting a previous relatively flat November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. In November, the industry producer price index was just shy of its peak in October. Employment by industrial machinery distributors was relatively unchanged year over year in October, while average industry wages fell 3.8% over the same period to $35.28 per hour, BLS data show.
- Protectionist tariffs implemented under the second Trump administration would encourage businesses to onshore their supply chains where possible, creating opportunities for sellers of industrial goods to replace existing overseas suppliers, according to industrial marketing company BlackBean Marketing. While domestic suppliers would benefit as their products became more cost competitive, price advantage alone wouldn’t guarantee success. BlackBean warns that while competitive pricing may win a sales call, it won't close the deal. To prepare for tariffs and to win new business, a US distributor's B2B sales team should focus on brand marketing – by emphasizing what makes its products different and the best choice – and relationship management by providing excellent service to potential customers exploring their options. BlackBean Marketing advises performing market research now to identify potential opportunities and how to address them so that businesses choose the made-in-the-US option.
- Machinery and industrial equipment are on the list of products likely to see higher prices if President-elect Donald Trump makes good on his campaign promise to impose tariffs on Canada and Mexico, Newsweek reports. Canada and Mexico export heavy machinery, engines and industrial tools used in manufacturing and construction to the US. If Trump's tariffs are imposed, US industries would face higher costs for equipment, such as industrial machinery, boilers and electrical equipment, according to Newsweek. Moreover, the higher costs could slow down construction and manufacturing projects, which in turn could hit companies in those industries. “On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” said Trump in November.
- The National Association of Wholesaler-Distributors (NAW) in October filed an amicus brief with a US appeals court challenging the EPA’s Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3 rule. The EPA rule mandates stringent emissions reductions, which NAW argues effectively requires a rapid and costly transition to electric heavy-duty vehicles (HDVs). The trade association asserts the rule would have a severe economic impact of wholesale distributors and the broader supply chain as HDVs are a critical part of distributors’ fleets. “The exorbitant costs of acquiring and operating electric trucks, combined with their reduced payload capacities and longer charging times, will ripple through the entire supply chain,” and saddle the industry with crippling costs, according to a NAW press release. The organization filed the brief in support of the 24 Republican state attorneys general who are challenging the EPA rule. Oral arguments in the case have not yet been scheduled.
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