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Industry Overview

 

Like most people, you’re probably wondering, what is industrial distribution? 

 

It’s all about business—partnering with multiple manufacturers to sell products to clients and providing solutions to those clients.  

 

And clients are everywhere—from your local pizza place to a jet engine manufacturer.  They all depend on distributors for products, services, solutions and technology to help them improve their businesses. 

 

Industrial parts are used:

 

  • For natural resource extraction and processing in agriculture, forestry, petroleum and mining.
  • To process and package food and beverages.
  • As components in equipment manufactured for businesses and consumers.
  • To maintain and repair machinery used in production processes.
  • In commercial and residential construction and facilities maintenance.
  • At public utilities and in heating, ventilation and air conditioning systems.

 

 

The Facts

 

Industrial distribution is a fast growing segment of the economy.  It’s is an $825 billion industry that generates millions of jobs in the United States and Canada.  Industrial distributors:

 

  • Are found in every major city and most small ones, as well as near major agricultural and natural resource production centers.
  • Sell a broad range of products for use in almost every industry.
  • Range in size from single-location firms that sell less than $2 million annually to multi-billion, multinational companies with hundreds of locations.
  • Primarily include privately-held corporations, many family-owned and operated.

 

In the United States alone, industrial distributors:

 

  • Represent over 5% of total gross domestic product ($750 billion).
  • Operate almost 83,000 companies, with over 113,000 branch locations.
  • Employ 1.4 million workers, almost 1% of total employment.


 

Who Are Distributors and What Do They Do?

 

Industrial distributors are trained professionals that stock, sell and deliver billions of products and services every day to customers all over the world.

 

Industrial distributors are warehouse employees, inside sales and customer service representatives, outside sales associates, product and marketing specialists, purchasing associates and buyers, and upper level management in IT, marketing, operations, finance, human resources and purchasing.

 

They help manufacturers get their products into the hands of the clients who need to keep their businesses productive and profitable.

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