A. Daigger - Competitors

A. Daigger Competition

Now Viewing A. Daigger's competition in: Industrial Supply Wholesalers (primary)

Recent Developments

Distributors Identify Trends - In a recent survey by Industrial Distribution magazine of 400 US distribution company executives, 40 percent believe the US is in recession; another 24 percent say that a recession will come before year-end 2008. Of respondents, 32 percent are using private-label products from China, and 20 percent report having to lay off employees in the last several months. Offering "green" products, the study shows, is of interest primarily to large distributors.

Durable Goods Orders, Shipments Decrease - US durable goods manufacturer new orders and shipments, both demand indicators for industrial supply wholesalers, dropped in the first eight months of 2008 compared to a year earlier. Shipments fell 0.6 percent; new orders decreased 1.6 percent. New orders in August 2008 were down 4.5 percent compared to the previous month; a 3.5 percent drop in shipments for August 2008 was the largest monthly decline since December 2002.

Manufacturing Sector Remains Stagnant - A survey of supply executives by the Institute of Supply Management suggests that the manufacturing sector failed to grow in August 2008 compared to July 2008. New orders grew slightly in August, but supplier deliveries continued to decline. Industries growing in August 2008 included paper products, chemicals, computers and electronics, miscellaneous manufacturing, and apparel, leather, and allied products. Industries posting declines were wood products, plastic and rubber products, fabricated metal products, transportation equipment, furniture, machinery, and primary metals.

Competitive Landscape

Demand is closely tied to the level of US manufacturing production. Because many operating costs are fixed, profitability depends on operational efficiency, particularly inventory management. Smaller companies can compete effectively by providing specialized supplies or superior service (delivery service and product expertise). Large distributors with a network of warehouses and outlets can maintain a lower inventory/sales ratio. The industry is highly automated: average annual revenue per worker is close to $500,000.

Full Industry Overview For Industrial Supply Wholesalers

Industrial Supply Wholesalers Industry Forecast

from Hoover's/D&B subsidiary First Research

The domestic demand for the US manufacturing sector, a driver for industrial supply wholesalers, is forecast to grow at an annual compounded rate of 4.5 percent between 2008 and 2013.

Manufacturing Demand Growth Dips and Recovers

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.