The Parts Nobody Wants to Hold — and Why You Need Someone Who Will Surplus houses exist because the industrial supply chain produces inventory nobody can afford to keep — and everybody eventually needs. Every Shelf Charges Rent Holding inventory in any industry costs 20–30% of its value, annualized. Capital, storage, insurance, shrinkage, labor — the meter runs whether … [Read more...] about The Parts Nobody Wants to Hold
Distribution Strategy
Grainger Grows – High‑Touch Momentum, Tariff Rebates, and the Demand Cycle
Grainger, considered the industrial supply industry’s leading distributor, or at least bellwether as it relates to offered services and products, reported 2Q 2026 results on August 4, with sales of $5 billion, up 10.3%, or 13.7% on a daily, organic constant currency basis). Grainger achieved operating margin of 16.1% on a reported basis, up 120 basis points y-o-y. Growth was … [Read more...] about Grainger Grows – High‑Touch Momentum, Tariff Rebates, and the Demand Cycle
Motion, DSG – Two Different Approaches to The Distribution Market
Genuine Auto Parts Company (GPC), and Distributor Solutions Group (DSG), are choosing two different ownership paths going forward. Both transactions make sense as each respective entity operates in the distribution space – GPC as part of a larger company, so a spin-off is logical. GPC Spins Off Motion GPC is splitting into two stand-alone companies, with Motion … [Read more...] about Motion, DSG – Two Different Approaches to The Distribution Market
Fastenal Delivers Strong Growth But Exhibits Margin Pressure
Fastenal, best known as the industry’s national distributor of fasteners, announced 2Q26 earnings on July 14. The company delivered another quarter of top-line double-digit growth, but underlying a familiar tension for industrial distributors - can you keep winning share at scale without giving back too much margin? The answer thus far has been “mostly yes,” but with caveats … [Read more...] about Fastenal Delivers Strong Growth But Exhibits Margin Pressure
The Death of “Trust Me” Selling
How One Distributor Turned a Top Performer's Instinct into a Methodology Their Whole Sales Team Could Use Recently I was talking to Susan Merlo from The Digital Distributor, and we were discussing the industrial distribution market and distributor challenges. One of the topics was how distributors need to adjust their sales techniques in order to differentiate themselves to … [Read more...] about The Death of “Trust Me” Selling
Are You a Market Maker or a Market Server?
With this article we're introducing a new contributor - Frank Hurtte from River Heights Consulting. Frank is known for his industrial sales expertise and has written two books on industrial sales - The Distributor Specialist: Customer Champion, Profit Generator and The New Sales Guy Project. Frank and I talk regularly, and we've collaborated on some projects together. Now … [Read more...] about Are You a Market Maker or a Market Server?
Fastenal’s May Outperforms. The Market?
Last month Fastenal reported sales of $751.5 million, putting them on track for around $9 billion (or slightly more at their growth rate) at the end of the year. May’s corporate sales were up nearly 15%. Looking at it from customer market perspective: From a customer base perspective, sales to OEM customers were up 16% and MRO sales increased 14.5%. Fastenal … [Read more...] about Fastenal’s May Outperforms. The Market?
The 2-for-1 Trap: Converting Dead-Stock into Liquidity
In the industrial supply industry, where organic growth is there but slugg(ish), distributors are increasingly aggressive about “buying support”. This is especially true in unseating competition that operate MRO storerooms or are doing “vendor managed inventory” initiatives for industrial accounts. Market share for distributors isn't just earned like it used to be—it’s bought. … [Read more...] about The 2-for-1 Trap: Converting Dead-Stock into Liquidity
Grainger Outperforms Industry Due to eCommerce
Grainger reported 1Q 2026 results on May 7, with sales of $4.7 billion, up 10.1%, or 12.2% on a daily, organic constant currency basis. They achieved an operating margin of 16.7%, up 110 basis points, reversing last quarter’s decline. Volume growth and higher customer demand drove Endless Assortment sales up 19.6%, and High Touch sales were up 10.5%. Grainger passed through … [Read more...] about Grainger Outperforms Industry Due to eCommerce
4 Reasons Why Industrial Supply Manufacturers Need Amazon Business
Industrial buyers have been in the midst of change, much of it precipitated since Covid. Generational change in the workplace; utilizing digital tools to buy and manage projects; channel fragmentation. Manufacturers, seemingly always seeking to "meet the quarter" have adapted with website upgrades, product content attribution development, personnel changes, online training … [Read more...] about 4 Reasons Why Industrial Supply Manufacturers Need Amazon Business
