Industrial Distribution - November/December 2014

Distribution

INDUSTRIAL

[EDI TORIAL] ANNA WELLS
Positive Notes to Close Out the Year

With all of the bad stuff in the news these days, it’s no surprise Forbes recently said that the majority of Americans report unhealthy stress levels. From ISIS and Ebola to more business-specific concerns like wage stagnation and employment issues, Americans are mentally juggling more variables than ever.

And stress doesn’t simply live in a vacuum — its existence has many damaging effects. According to Forbes, 70 percent of individuals who are stressed experience physical symptoms, lower productivity at work, and disruptions in their family and social lives.

While we can’t do anything about Ebola, the good news is that much of the industrial distribution marketplace is exhibiting something of a healthy glow.

In this issue we take a look at Lawson Products (page 18), a Big 50 distributor with an eye towards organic growth.

Lawson has spent the last few years building a foundation towards expansion and is now ready to hit the ground running. This means hiring more sales reps, growing business in existing territories, and perhaps even examining acquisition opportunities.

Lawson isn’t the only company that’s showing signs of success. On our website ( IndDist.com), Jack Keough recently reported on Fastenal’s latest earnings.

This powerhouse distributor had a few in the industry scratching their heads when they announced earlier this year they’d be closing 45 stores in the second half of

2014. The company says that these stores
were profitable but believed there was a
“better approach to growing our business
profitability.”
A few months hence, it appears
Fastenal already has some positive news
to share. “We’re positioned really well
going into 2015,” Fastenal CFO Dan
Florness said in an earnings call with
financial analysts. “Our trends year-to-
date, our daily gains in overall business,
in the fastener and non-fastener business
are quite strong as we approach 2015.”
In addition to the company’s U.S. and
Canadian business, international business
in Europe and Asia grew 50 percent in the
third quarter compared to the same quar-
ter last year.

It appears the independents have been busy as well. The AD Industrial Supply Division (ISD) recently hosted their largest North American Meeting in the history of the Division, with 712 attendees representing 131 AD member companies and 134 Supplier Partner companies. Likewise, NetPlus Alliance says it’s on a steady and upward path of growth this year, with group purchases in the second quarter up year-over-year by 13. 4 percent. For more from independents, check out page 30, where Mike Hockett talks to several independent distributors about the role customer service plays in their growth strategies.

While it's unrealistic to think that everyone will be ahead, all the time, it's important to shine a light on the success stories in order to learn from our peers and replace some of the stress with hope, potential, and ambition. What better time than now to start fresh?