Middle-market distributors are growing, but that growth – and the optimism that accompanies it – is tempered by a number of influences including faltering economies in Europe and elsewhere, rising commodity prices, competition from low-cost-country vendors, the continued housing crisis, health care law and uncertainties over which administration will lead the country following the November election. These are the findings from a newly released Distribution Monitor report, sponsored by the NAW Institute for Distribution Excellence and McGladrey, the nation’s fifth largest provider of assurance, tax and consulting services. The NAW Institute is the research arm of the National Association of Wholesaler-Distributors.
“Despite their concerns, distributors are generally optimistic about their own business prospects in the next 12 months, with 95 percent reporting that their organizations are thriving or holding steady,” said Karen Kurek, distribution lead for McGladrey. “Distributor sales generally are growing (81 percent increased sales over the past 12 months), although they are expected to grow at a much slower rate in the coming year.” (…)