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
Jan 30, 2025 - Record High Prices
- Producer prices for machinery and supply wholesalers rose 4.8% in December compared to a year ago after falling 0.8% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices were up almost 6% in December versus January to close out 2024 at a record high amid rising sales. Employment by industrial machinery distributors was flat year over year in November, while average industry wages were unchanged over the same period at $36.26 per hour, BLS data show.
- Getting paid is easier when wholesaler-distributors migrate from manual, paper-based order-to-cash workflows to fully digital A/R Automation, according to a case study cited by the National Association of Wholesaler-Distributors (NAW). Facing increasing competition and already thin margins, Duncan-Parnell, a North Carolina-based supplier to construction contractors, engineers, and surveyors, turned to B2B payment software provider Unified A/R with two objectives: reduce hard dollar A/R expenses related to customer payments by email or phone, and reduce the drain on personnel resources due to manual workflows for invoices, checks and payment reconciliation. After integrating A/R Automation the company reported realizing a 94% reduction in card acceptance fees, an 87% decline in A/R processing expenses, a 30% jump in A/R team productivity, and an 84% migration from customer card payments to ACH/eCheck payments, according to the NAW case study.
- Protectionist tariffs implemented under the second Trump administration would encourage businesses to onshore their supply chains where possible, creating opportunities for distributors 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.
- 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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