While national chains reported strong growth in Q1, and independents performed comparably based upon our 2026 Q1 Pulse of Industrial Supply report, aided by increased pricing tied to tariffs, commodity price increases that supported manufacture price increases, and industrial end-user performance, the challenge for distributors is that their operating costs continue to rise … [Read more...] about Who Has Margin Responsibility in Your Company?
Profitability
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
Shedding Light on an Industrial Supply Distributor Problem (or Opportunity)
I come from Ireland, a country better known for its golf, Gaelic, and Guinness than for its distributors. So when Matt Rojas, my dormmate at Stanford, started telling me about his father’s work in distribution, I was fascinated. It was an industry I had never thought about, yet the more I learned, the more it became clear: the U.S. economy quietly depends on … [Read more...] about Shedding Light on an Industrial Supply Distributor Problem (or Opportunity)
Stop the SPA Leak: Don’t Let Margin Slips Away – Free Webinar
Scott Sinning from MarginMax Partners has been sharing ideas to help industrial supply distributors improve their profitability this year with his articles on plugging leaks, using SPAs, and more. Now he's offering a webinar on SPAs next week. The Cost of a Broken SPA If you are involved in sales management, purchasing, finance, SPA administration or have anything to … [Read more...] about Stop the SPA Leak: Don’t Let Margin Slips Away – Free Webinar
Full Warehouse, Empty Wallet – The Surplus Inventory Trap
What can an inventory holder do with excess inventory, why does it happen? In MRO & Industrial, inventory is a double-edged sword; it’s the lifeblood and the weight. With gross margins around 30%, it is pretty attractive, but all distributors have experienced a "just-in-case" order for a critical part turning into five years of dust-collecting deadstock. Looking into … [Read more...] about Full Warehouse, Empty Wallet – The Surplus Inventory Trap
Unlock Margin and Cash Flow Through SPA Enterprise Governance
SPAs, whether you define them as special pricing agreements or ship and debit initiatives, are a way to simultaneously capture business and ensure, perhaps improve, gross margin ... if you manage them right. But like most things, the devil is in the details and, with SPAs, because the administrative process touches so many people within a distributor, many distributors do … [Read more...] about Unlock Margin and Cash Flow Through SPA Enterprise Governance
New Research: Rebates Ensure Profitability
In the industrial supply industry, we often talk about "backside dollars", or rebates, as a necessary part of the business. But are they a strategic asset or just a "tax" on doing business? Earlier this year we (Channel Marketing Group) conducted research, sponsored by Enable, a leading rebate management reporting system. on volume rebates and are releasing a new research … [Read more...] about New Research: Rebates Ensure Profitability
It’s year-end Inventory Planning and Adjustment Season
As we enter the final stretch of 2025, I am having daily conversations with many distributors and manufacturers about their in-stock inventory positions. Industrial and Construction Channel growth rates have slowed fand now are slightly down to at best flat in 2025. Inflation and price increases have continued to climb since early 2023. So, that slow/no market combined with … [Read more...] about It’s year-end Inventory Planning and Adjustment Season
2026 Industrial Planning Season – Finance team leadership is crucial to great outcomes
Yesterday, I was writing a planning season column for a series that I am writing. I was multi-tasking and listening to an ISA webinar hosted by Brendan Breen and Mark Gilham from Enable titled Finance for Future Leaders. As I was writing and listening, I realized in my outline notes that I had not accounted enough on the role of Finance in Annual Planning Meetings. Your … [Read more...] about 2026 Industrial Planning Season – Finance team leadership is crucial to great outcomes
Finance Training is often overlooked by Industrial Channel leaders
This week, I had a webinar announcement caught my eye from ISA and Mark Gilham. It reminded me of how valuable basic finance training was when I first got started in my career at Crescent Electric Supply Company. All the sales and marketing type newbies had to attend a new manager training finance session that was in-depth, that was led by our CEO - Jim Etheredge (he was … [Read more...] about Finance Training is often overlooked by Industrial Channel leaders
