Top 100

By Staff -- Industrial Distribution, 6/1/1998

1. W.W. Grainger $4.1 Billion 1

2. Graybar Electric $3.35 B 2

3. WESCO Distribution $2.6 B 3

4. G.E. Supply $1.9 B

5. Hughes Supply $1.88 B --

6. Motion Industries $1.86 B 4

7. Airgas, Inc. $1.44 B 6

8. Premier Farnell Corp. $1.2 B 8

9. Applied Industrial Technologies$1.16 B 7

10. Ferguson Enterprises, Inc. $755 Million --

11. McJunkin Corp. $700 M 9

12. SunSource $692 M 10

13. Sammons Distribution, Inc. $596 M 13

14. Cameron & Barkley $590 M 12

15. Kaman Industrial Technologies$480 M 11

16. Noland Co. $464.9 M 14

17. MSC Industrial $438 M 17

18. Fastenal, Inc. $397.9 M 19

19. Vallen Corp. $348 M 18

20. JLK Direct Distribution, Inc. $316.2 M 34

21. Fairmont Supply $291.1 M 20

22. Industrial Distribution Group $284.9 M --

23. Van Leeuwen Pipe & Tube Corp.$280 M --

24. Lawson Products, Inc. $278.1 M 21

25. DoAll Co. $267 M 22

26. Yamazen, Inc. $252 M 26

27. The Robert E. Morris Co. $242 M --

28. Branch Electric Supply $240 M 24

29. Stuart C. Irby Co. $238 M 23

30. Production Tool Supply $221 M 27

31. Bowman Distribution/ Barnes Group $220 M 25

32. The Gage Co. $213.7 M 28

33. F.W. Webb $203.1 M 31

34. Bearing Distributors, Inc. $202.75 M 30

35. White Cap Industries, Inc. $180 M --

36. Strategic Distribution, Inc. $170.8 M 36

37. DXP Enterprises, Inc./ Sepco Industries $169.7 M 40

38. Sears Industrial $168 M 35

39. Steiner Electric $152.5 M --

40. Turtle & Hughes, Inc. $150 M 37

41. Precision Industries, Inc. $147.1 M 41

42. R.S. Hughes Co., Inc. $147 M 38

43. Piping and Equipment $146.6 M 33

44. Harrington Industrial Plastics $146 M --

45. Texas Mill Supply Companies $130 M 39

46. Bearing Headquarters, Co. $126.8 M 42

47. IBT, Inc. $119.6 M 43

48. Gosiger, Inc. $115 M 46

49. Carlson Systems $112 M 45

50. Goodall Rubber Co. $105 M 62

51. Machinery Systems, Inc. $104 M 53

52. Purchased Parts Group, Inc. $100 M 47

53. Dillon Supply Co. $94.4 M 50

54. Argo International $91.4 M 54

55. The B.C. Bearing Group $87 M 44

56. Alamo Iron Works $83.8 M 51

57. Cross Sales & Engineering $81.7 M 59

58. Curtis Industries $81 M --

59. Indoff, Inc. $76 M 93

60. Service Supply Co., Inc. $76 M 56

61. Canadian Bearings, Ltd. $75 M 48

62. Bamal Fastener Corp. $72.5 M 58

63. Lewis-Goetz & Co., Inc. $72.1 M 61

64. Valin Corp. $72 M --

65. Power/mation division, inc. $71 M 60

66. Rero Distribution $66.8 M 63

67. Strong Tool Co. $64.9 M 69

68. Bearings & Drives inc. $63.5 M 67

69. Duncan Equipment Co. $63 M --

70. Windsor Factory Supply Ltd. $62.3 M 70

71. The Ross-Willoughby Co. $60.5 M 73

72. Prime Technology, Inc. $60 M 77

73. Orr Safety Corp. $60 M 66

74. Engman-Taylor Co., Inc. $57.5 M --

75. Ohio Transmission & Pump Co.$56.9 M 75

76. Womack Machine Supply $56.9 M 68

77. Endries International, Inc. $56 M 95

78. Safeco, Inc. $54 M 74

79. Iowa Industrial Products, Inc. $53.5 M 86

80. The McGraw Group, Inc. $51.1 M 65

81. Century Sales & Service Ltd. $51.4 M 82

82. A.I.M. Supply Co. $50.12 M 81

83. Zatkoff Seals & Packings $49.6 M 80

84. Apache Hose & Belting $49.2 M 78

85. Industrial Equipment Co. Ltd. $49 M 64

86. Standard Supply & Hardware Co. $46 M 79

87. RAM Industries $45 M 76

88. A-C Supply Co. $44.5 M 84

89. General Tool & Supply $43.8 M 91

90. Warner Industrial Supply $42.7 M 97

91. Samson Industrial Corp. $42.1 M 88

92. Moody-Price, Inc. $41.5 M 85

93. Reynolds Machine and Tool Corp. $41.5 M 87

94. J. Lee Hackett Co. $41 M 55

95. The Indusco Group $40 M 89

96. Associated Industrial Supply, Inc. $40 M 90

97. Bergen Industrial Supply Co., Inc. $39.2 M 96

98. Industrial Belting and Supply, Inc. $37.2 M 94

99. Cincinnati Belting & Transmission Co. $37 M 92

100.Century Fasteners Corp. $36.8 M 99

1 W.W. Grainger, Inc.

NYSE: GWW

Lincolnshire, Ill.Richard Keyser, Chairman and CEO 1997 Sales: $4.1 billion Branches: 522 Employees: 15,299

The beat goes on for Grainger, which leads ID's Top 100 for the eighth straight year. The firm recorded 17 percent growth last year. Internal growth was in the single digits, but overall growth was aided by the purchase of Acklands. "Our intrinsic growth rate is in the high single-digit range, and so far we've been maintaining that for some time," says Keyser. The firm holds lots of promise for its Web site, which accounts for nearly one percent of sales. 1998 got off to a good start, with first-quarter revenues up just over seven percent. The firm is currently expanding its branch and logistics networks, including the addition of 10 new branches.

2 Graybar Electric

St. Louis, Mo.

Carl L. Hall, President

1997 sales: $3.35 billion

Branches: 253 Employees: 7,000

A healthy economy and increased market share contributed to an 11 percent sales gain in 1997. Industrial sales account for just under $1 billion, or almost one-third, of sales. Hall anticipates a strong 1998, with first quarter sales "up well over double digits." The firm's major initiative in 1998 is rolling out a comprehensive logistics program nationwide that will improve customer service. The industrial market is a major focus for Graybar, which continues to grow business by targeting national accounts. The firm was founded 129 years ago, and is a member of the Solution Providers Alliance.

3 WESCO Distribution, Inc.

Warrendale, Pa.

Roy W. Haley, President

1997 Sales: $2.6 billion

Branches: 320 Employees: 4,705

Sales increased by 9.5 percent and earnings rose 12 percent in 1997 but the biggest news arrived in 1998. After filing for an initial public offering in December, WESCO -- the second largest electrical distributor in North America -- was approached with buyout offers. In April the company announced a leveraged buyout by management and an investor group for $1.1 billion. Haley and more than 190 other executives and key employees expect to double their ownership in the company. Haley says "modest, steady growth" led the way in 1997 "with lots of interest in expanded services, particularly integrated supply and national sourcing arrangements." Look for acquisitions on the horizon.

4 G.E. Supply

William Meddaugh, President

Shelton, Conn.

1997 sales: $1.9 billion

Branches: 140 Employees: 2,260

With revenue growth of 15 percent, or $250 million, G.E. Supply jumps into the fourth spot this year. Forty percent of G.E. Supply's business is contractor related, 40 percent is industrial. Utilities and the commercial industry make up the rest of its business. Industrial business grew fastest in 1997. "We had tremendous momentum coming out of '97," says Meddaugh, who says business rebounded nicely in March this year after a "terrible" January and February. Meddaugh won't rule out making acquisitions in 1998, and says that integrated supply continues to appeal to certain customers. Margins remain low in the industry. Acquisitions are a possibility in 1998.

5 Hughes Supply

NYSE: HUG

Orlando, Fla.

Stewart Hall, President & COO

1997 Sales: $1.88 billion

Branches: 400 Employees: 6,200

Orlando-based Hughes Supply Inc., with its aggressive acquisition strategy, has expanded to become one of the largest contractor-supply distributors in the United States. CFO Steve Zepf says Hughes has made more than 50 acquisitions since 1985, and shows no signs of slowing down. "We're very opportunistic when it comes to acquisitions. We look for profitable, established companies as opportunities for us to grow. As for 1998, we will continue to be very strong in our acquisitions," he says. Much of the growth has been with the company's expansion into new product groups including: water/sewer, pipe, valves and fittings, and industrial.

6 Motion Industries

Birmingham, Ala.

Bill Stevens, President

1997 Sales: $1.86 billion

Branches: 420 Employees: 5,353

After experiencing growth of just over 10 percent in 1997, MI will smash the $2 billion barrier in 1998. "Expansion, coupled with acquisitions, as well as ongoing market penetration [will help] us reach that [goal]," says Stevens. Last year the company opened 15 branches. Acquisitions brought in another 17 locations. MI intends to open 20 units in 1998, and is close to making several purchases. Operating margins continue to be a challenge for the distributor of bearings, PT, hose, fluid power and electrical equipment. MI expects to have its Mexican partnership running by the second quarter of '98. A division of publicly traded Genuine Parts, MI puts major emphasis on training.

7 Airgas, Inc.

NYSE: ARG

Radnor, Pa.

Peter McCausland, Chairman & CEO

1997 sales: $1.44 billion

Branches: 709 Employees: 7,250

Sales were up 25 percent, mostly the result of acquisitions. The internal growth rate was close to 4.5 percent, but Airgas has shown some difficulty managing its growth (138 acquisitions in the last five years). The company recently announced it would take a charge of approximately $25 million related to its repositioning program, and that earnings for its fourth quarter would be below projections. "The most important thing going on at Airgas today is the transition from a collection of acquisitions to a world-class operating company that can grow internally and continue to acquire," says McCausland.

8 Premier Farnell Corp.

Cleveland, Ohio

Terry L. Taylor, CEO

1997 Sales: $1.2 billion ($247.6 million, industrial)

Branches: 150 Employees: 5,600

Premier Farnell Corp. is the industrial MRO division of Premier Farnell plc. based in the United Kingdom. Company leaders expect 1998 to look much like 1997. Premier Farnell serves a wide range of customers and markets, and prides itself on providing superior customer service. "We provide a fast response to urgent needs -- a willingness to go to extremes to help our customers," says Taylor. "We've been problem-solvers for over 50 years. Our ISO 9001 credential and our A2LA Fastener Quality Lab capability make us unique in the MRO repair parts distribution business."

9 Applied Industrial Technologies, Inc.

NYSE: APZ

Cleveland, Ohio

Jack Dannemiller, Chairman & CEO

1997 sales: $1.16 billion

Branches: 450 Employees: 5,158

Applied continues to catch its breath following its purchase of Invetech, which Dannemiller expects will provide Applied with a major presence in the automotive industry and propel solid five-year growth. Applied has made five acquisitions this year, "but nothing the size of Invetech," says Dannemiller. It is targeting candidates with sales of $50 million or less. The firm expects to have 40 percent of its branches ISO certified within two years, and the other 60 percent ISO compliant. Integrated supply agreements continue to allow Applied to bring more products to its customers.

10 Ferguson Enterprises, Inc.

Newport News, Va.

Charles A. Banks, President & CEO

1997 Sales: $755 million

Branches: 280 Employees: 4,800

Ferguson continued to grow its industrial customer base in 1997, broadening its focus beyond the building contractor market. "The thing that has helped us the most is the movement of a lot of industrial customers to a wider range of services," says Fred Stapleford, manager of value added services. Ferguson offers its customers state-of-the-art technology and a highly educated, well-trained workforce that works well in technology-oriented situations. In 1998, Ferguson will focus on improving training capabilities and investing in technology. "The ability to link our technology more closely with our customers' will become very important in the future."

11 McJunkin Corp.

Charleston, W. Va.

H.B. Wehrle, III, President & CEO

1997 sales: $700 million

Branches: 85 Employees: 1,400

Sales grew by just 2.7 percent, or $19 million, at this family-owned firm that specializes in PVF and electrical supplies. However, vice president of sales Steve Wehrle says 1998 started strong. He looks for an overall gain of five percent this year. Electrical and oil/gas sales account for approximately $110 million, or almost 16 percent of sales. The firm continues to gain new contracts from its consortium with Cameron & Barkley and Applied Industrial Technologies. Separately, the firm operates seven joint McJunkin-Cambar units. McJunkin has opened two new branches in 1998, and may opt to increase growth via acquisitions. "We're always actively looking," says Wehrle.

12 SunSource

NYSE: SDP

Philadelphia, Pa.

Donald T. Marshall, Chairman & CEO

1997 sales: $692 million ($602 industrial)

Branches: 200 Employees: 3,900

Earnings grew by 14.7 percent last year, twice as fast as revenues. The company's name change from Sun Distribution reflects a shift toward its Industrial Services Division, which focuses on technical products and storeroom management. That division accounts for the majority of sales. Traditional distribution business now makes up only 40 percent of sales. "I'm on the acquisition trail," says Marshall, who anticipates earnings growing at 15-20 percent for the foreseeable future. The firm represents more than 100,000 products and 2,000 manufacturers. Non-industrial revenues from glass products total $90 million.

13 Sammons Distribution, Inc.

Dallas, Tex.

Rick Margerison, President & CEO

1997 sales: $596 million

Branches: 34 Employees: 601

Formerly Briggs-Weaver.Vinson, the firm, which includes Briggs-Weaver Supply, changed its corporate name in January in order to roll-in future acquisitions more effectively. Briggs-Weaver Supply has approximately $175 million in sales. "The strongest increase in sales was in our integrated supply business, where we had double digit growth," says Lee Mulkey, president of Briggs-Weaver. In order to continue its focus on traditional distribution, the company broke its integrated supply into a separate division. The move has increased sales in both areas. Acquisitions are a distinct possibility in 1998.

14 Cameron & Barkley Co.

Charleston, S.C.

James R. Warren, President

1997 sales: $590 million

Branches: 82 Employees: 1,532

Sales grew seven percent last year, but Cameron & Barkley experienced a record year for net earnings by focusing on internal productivity. Warren expects sales to grow in the 10 percent range this year. Integrated supply continues to be a real focus for the company, as does expansion. "We're looking to be a national company, so we're always looking for expansions," says Warren. "We'd like to acquire." The firm is looking to the Midwest and West, and will open new branches if buyout candidates don't exist. Sixteen full-service sites are ISO certified. The company has benefited by placing sales specialists in the field.

15 Kaman Industrial Technologies NASDAQ: KAMNA

Bloomfield, Conn.

T. Jack Cahill, President

1997 Sales: $480 million

Branches: 175 Employees: 1,700

Sales were up seven percent in 1997, a year that saw Kaman open nine new branches and five more via acquisitions. "We're penetrating more geographic markets, being pulled there primarily by customer relationships," says Cahill. "We see our customers being challenged for global supremacy." Most of the firm's expansion over the past two years has been in the southern and western regions. Kaman typically offers a PT-related product focus, but will focus more on a value-added, high-tech product mix in the future. Profitability was up in 1997. The company is keeping a close eye on the crisis in Asia, which could effect its customers.

16 Noland Co.

NASDAQ: NOLD

Newport News, Va.

Lloyd U. Noland, III, Chairman & CEO

1997 sales: $464.9 million

Branches: 107 Employees: 1,606

Flat sales caused a 5.5 percent earnings decline in 1997, "despite a measure of success in improving other aspects of our business, as well as stronger-than-expected fourth quarter results," says Noland. The plumbing and electrical divisions had higher revenues, but the air conditioning and industrial units were down. The firm opened one branch in 1997 and nine in late 1996. Start-up costs associated with those openings weren't the reason for the lower earnings. "Our problem stemmed from weaker sales in many of our older operations, despite intensive efforts to grow business." Gross margins improved in 1997.

17 MSC Industrial Supply

NYSE: MSM

Plainview, N.Y.

Mitchell Jacobson, President and CEO

1997 Sales: $438 million

Branches: 78 Employees: 2000

1997 was a great year for MSC, with sales up 44 percent and earnings up 26 percent. The company acquired five companies in fiscal 1997 (which ended Aug. 28), and continues its acquisition strategy. Earlier this year MSC made a major venture into traditional full-service distribution with the acquisition of cutting tools distributor Holloway Bros. Tools Inc. of Delaware. President and CEO Mitchell Jacobson looks for a great 1998, with analysts predicting a 32 percent increase in sales. "We are in a very strong position and expect to continue to grow significantly internally as well as through acquisition," Jacobson says.

18 Fastenal Co.

NASDAQ: FAST

Winona, Minn.

Robert A. Kierlin, Chairman and CEO

1997 sales: $397.9 million

Branches: 644 Employees: 2,676

Despite revenue gains of 38.3 percent in 1997, Fastenal experienced "growing pains" last year, according to its annual report. Fastenal opened 160 additional sites last year and introduced welding supplies (except gas and welding machines) and electrical supplies to the mix. No longer just a fastener house, 23 percent of 1997 sales came from the seven product lines added since 1993. The company experienced an excellent first quarter in 1998. Profit growth (41 percent) surpassed revenue growth (34 percent) for the first time in two years. Fastenal has lowered its planned store openings for 1998 from 200 to 180.

19 Vallen Corp.

NASDAQ: VALN

Houston, Tex.

Jim Thompson, President and CEO

1997 Sales: $348 million

Branches: 162 Employees: 960

Some of Vallen's 20 percent sales growth can be attributed to a couple of small acquisitions last year, but Thompson says it's mainly due to internal double-digit growth, especially in the company's Mexican and Canadian operations. Vallen continues to grow the business with its "total safety solution" concept, and its hybrid mill supplies strategy -- which involves furnishing large national accounts with general mill supplies in addition to safety products. Thompson says 1998 will look similar to '97, although he expects sales to slow by about three percent. He adds, "The most important thing is, we're having fun."

20 JLK Direct Distribution, Inc. NYSE: JLK

Livonia, Mich.

Michael Ruprich, President

1997 Sales: $316.2 million ($25 million European sales)

Branches: 50 Employees: 1,200-1,300

After forming last spring, JLK Direct, the distribution arm of Kennametal Inc., acquired four firms last year. The company went public in July and profits had exceeded Wall Street's expectations until reporting less than expected third quarter results in April. Among its subsidiaries are J&L Industrial Supply, which appeared on last year's Top 100. During the last six months of 1997 revenues reached nearly $190 million, up 35 percent. The rapid growth continued early in 1998 as JLK announced four more acquisitions. The company also opened a distribution center in Germany.

21Fairmont Supply

Washington, Pa.

Charles F. Whirlow, President

1997 Sales: $291.1 million

Branches: 31 Employees: 620

Fairmont had another solid year, with 5.4 percent sales growth, but fell short of the $300 million goal it set in last year's survey. Officials are cautious about making predictions this year, but eagerly boast their status as integrators -- 70 percent of revenue is from integrated supply. "We can cover 93 percent of a traditional plant's MRO usage through our programs," says Thomas Meacham, executive vice president for sales and marketing. The big news at Fairmont this year was the retirement of longtime president William T. Todd II. The succession was planned, however, enabling a smooth transition. "We're getting on with business," Meacham says.

22 Industrial Distribution Group NYSE: IDG

Tucker, Ga.

Douglass C. Smith, President

1997 Sales: $284.9 million

Branches: 41 Employees: 950

Big things are expected out of IDG, the firm that was formed in September of 1997 with the rollup of nine industrial distributors, and then went public. IDG recently acquired E.C. Blackstone, Continental Air Tools and Northern Tool & Supply. Pro forma sales increased 13.4 percent over 1996. IDG is expected to post sales of $485 million in 1998, and $1 billion by the end of 2000. "Certainly a piece of it will be due to acquisitions, but we anticipate the core business growing also," says Smith. Business from integrated supply was valued at $25 million last year and is expected to double in '98. In early May, IDG acquired REFCO and three other Northeast firms.

23 Van Leeuwen Pipe & Tube Corp.

Houston, Tex.

Roland Balkenende, President

1997 sales: $280 million

Branches: 18 Employees: 400

This global distributor of pipe, valves, fittings and couplings was founded in 1924 in the Netherlands, and began operations in the United States in 1975. Van Leeuwen North America has 13 regional centers strategically located throughout the U.S., Canada and Mexico, all of which carry extensive stock. The firm says its most valuable service is its Supply Chain Optimization Service, where Van Leeuwen and the customer jointly analyze the customer's PVF supply chain to develop a low cost efficient supply of PVF for the client. The company expects 1998 sales of $300 million.

24 Lawson Products

NASDAQ: LAWS

Des Plaines, Ill.

Bernard Kalish, CEO

1997 Sales: $278.1 million

Branches: 17 Employees: 1,007

1997 was another good year for Lawson Products, with sales up 11 percent. Among many projects, the company continues its plunge into warehouse automation. The Des Plaines, Addison, Ill., and Reno, Nev. facilities use state-of-the-art automation equipment to help speed up distribution functions. Plans to automate the Atlanta, Ga. facility this year are well underway, says Daniel Luber, vice president of corporate planning and development. Lawson looks for a sales gain of at least 10 percent in 1998. It anticipates no Y2K problems, either, as the company began working on the Year 2000 issue well over a year ago.

25 DoAll Co.

Des Plaines, Ill.

Michael L. Wilkie, Chairman and CEO

1997 Sales: $267 million

Branches: 71 Employees: 1,606

Sales were up nine percent in 1997, and company leaders predict the strong economy will allow DoAll to continue to prosper. They anticipate internal growth of between 11 and 15 percent this year. "The products and value-added services offered to our customers are new and exciting for 1998," says Wilkie. "In addition, direct mail programs targeting specific customers and products will be utilized to help increase awareness and grow market share." Plans include opening two new regional distribution centers to enhance logistics and customer service performance. "Superior customer service will always be a priority," Wilkie adds.

26 Yamazen

Shaumberg, Ill.

Thomas Yoshii, President

1997 Sales: $252 million

Branches: 16 Employees: 310

This machine tool distributor saw a 20 percent increase in sales last year, which senior executive vice president Steve Matsubara attributes to a strong economy and increased geographic coverage. Yamazen added three new offices in '97 -- in Des Moines, Seattle and Hartford, Conn. Matsubara expects another 20 percent increase this year, and hopes to add three more offices. Though the situation looks bright, Matsubara cautions there is always a negative side. "We do not have enough machines to deliver," he says. "Backlog is growing...trying to keep up with customer demands for machines is a challenge."

27 The Robert E. Morris Co.

Farmington, Conn.

Lee Morris, Chairman

1997 sales: $242 million

Branches: 7 Employees: 317

Founded in 1941, this machine tool distributor caters mostly to the aerospace industry from seven branches on the Eastern Seaboard. It also services the automotive industry and some job shops. Machine tools, engineering services and non-perishable tooling and accessories are Robert E. Morris Co.'s primary products. The firm employs about 65 outside salespeople. Morris expects sales to increase by 10 percent in 1998. The company grew sales by about $20 million last year, and has benefited from aggressive expansion in recent years.

28 Branch Electric Supply

Upper Marlboro, Md.

Charles M. Steiner, President

1997 Sales: $240 million ($60 million industrial)

Branches: 36 Employees: 580

Sales were up 16 percent over 1996 for this Maryland-based electrical distributorship. The privately held firm keeps a tight lid on operations, but CEO Charles Steiner did offer this assessment of his company's performance last year: "1997 was a very good year. I expect 1998 to be a good year, but probably not as great as 1997." Branch Electric sells electrical products to industrial and commercial customers throughout the United States and Canada. The company continued its pursuit of sole-sourcing contracts in those markets last year, and will focus on that strategy the remainder of '98 as well.

29 Stuart C. Irby Co.

Jackson, Miss.

Stuart M. Irby, President

1997 Sales: $238 million ($72 million industrial)

Branches: 30 Employees: 600

"We're in some relatively new markets," says Liles Williams, company vice president, "which puts us in a growing position." By new markets, Williams means geographical locations -- Northern Alabama, Tennessee, and Baton Rouge, La., specifically. Williams also says the strong economy has helped the Stuart C. Irby Co. sustain its growth of the last few years. The company predicts 10 to 12 percent growth this year. "[1997] was a very good year and I think we're going to make our 10 to 12 percent growth in sales -- and hopefully in profits. We're quite optimistic," Williams says.

30 Production Tool Supply Co.

Warren, Mich.

Mark Kahn, President

1997 Sales: $221 million

Branches:20 Employees: 635

Production Tool operates through a network of independent distributors, and continues to grow with their support. The addition of more customized catalog and flyer programs, along with one- to two-day delivery, has helped the company give those regional distributors the opportunity to compete effectively against national mail order companies, says Kahn. "In 1998 we will be introducing a totally redesigned catalog as well as an exciting new Internet service that will allow our distributors direct access to our computer for online ordering," he says. A new warehouse management software package is on the agenda as well.

31 Bowman Distribution/Barnes Group

NYSE: B

Bristol, Conn.

Leonard M. Carlucci, President

1997 Sales: $220 million

Branches:19 Employees:1100

This MRO distributor headquartered in Cleveland, Ohio, is a division of the Barnes Group, which makes its home in Connecticut. The company's main operations and markets are in North America, but there are key locations in Europe as well. In 1997, Bowman North America continued to implement its strategy of penetrating targeted markets such as railroad, aerospace, public utilities and waste management companies. A major part of that effort continues to be the pursuit of integrated supply contracts. Overall sales for 1997 were up three percent. Sales in Europe were flat. Operating income was up 22 percent.

32 The Gage Co.

Pittsburgh, Pa.

Robert A. Chute, Chairman and CEO

1997 Sales: $213.7 million

Branches: 38 Employees:600

Sales were up about six percent for the Gage Co. last year. Chute characterizes 1997 as "a good solid year" and says he looks for more of the same in 1998. "Manufacturing is strong, housing is strong, mechanical contractors seem to be busy, so things are good," Chute explains. While his company has a number of new programs in store for the coming year, Chute isn't giving any of that information up. The Gage Co. -- which achieved ISO 9000 certification last year -- sells PVF and general industrial supplies to customers in the Northeast, into Indiana and Ohio, as well as to the Mid-Atlantic region.

33 F.W. Webb

Burlington, Mass.

Jack Hester, President

1997 Sales: $203.1 million

Branches: 55 Employees: 800

This New England-based distributor claims to be one of the oldest private companies in the United States -- it was founded in 1866, according to Ernie Coutermarsh, vice president of industrial sales. "The reason we've been around so long, we've adapted to change a lot better than most companies," Countermarsh says. One way to adapt is to diversify your product offering. Primarily a PVF, plumbing and HVAC distributor, Webb also supplies a range of general MRO products. A slew of acquisitions last year helped expand the company's product offering. Coutermarsh says more acquisitions are on tap for this year.

34 Bearing Distributors, Inc.

Cleveland, Ohio

Dave Hooser, President

1997 Sales: $202.7 million

Branches: 72 Employees: 670

Three key acquisitions highlighted 1997. Allied Bearing and Supply of Tennessee, Bearings and Power Transmissions of Gastonia, N.C., and Plastik Belt of Newfoundland were all added to Bearing Distributors' ranks. The acquisitions account for much of the nearly 10 percent growth in sales, though Hooser says there was "decent growth" in same-store sales, as well. Continued price pressure and increased demand for value-added services remained key challenges in 1997, and Hooser expects more of the same in 1998. He also expects more on the acquisitions front this year. "We're talking to some people," he says.

35 White Cap Industries, Inc. NASDAQ: WHCP

Costa, Mesa., Calif.

Greg Grosche, President

1997 Sales: $180 million

Branches: 28 Employees: 850

In 1997 White Cap Industries made spectacular growth as a major specialty construction tools and materials distributor across the West. Sales doubled and third-quarter earnings tripled over 1996. White Cap acquired three companies with combined sales topping $65 million: Viking Industrial Supply in San Francisco; Stop Supply in Fresno, Calif., and Burke Concrete Accessories, which operates across the West and the Northwest. The firm made an initial public stock offering in the fall and by the spring of 1998 acquired two distributors in Denver, Col. and Reno, Nev. plus struck agreements to buy three more.

36 Strategic Distribution, Inc. NASDAQ: STRD

Bensalem, Pa.

John M. Sergey, President & CEO

1997 Sales: $170.8 million

Branches: 101 Employees: 850

SDI set revenue records including a 76 percent increase from in-plant store sales while shedding its traditional distribution business. Its acquisition of INTERMAT®, which operates as a subsidiary, provides proprietary MRO catalog services. SDI took a one-time $8 million accounting charge and is now focused on its core in-plant store and enabling technology business. SDI also streamlined its operations and signed a commitment letter to a $50 million revolving credit line. "We intend to make money in 1998,'' Sergey says. "We are extremely optimistic about the new business we have booked to date.''

37 DXP Enterprises, Inc./Sepco Industries

NASDAQ: DXPE

Houston, Tex.

David Little, CEO

1997 Sales: $169.7 million

Branches: 56 Employees: 625

DXP Enterprises increased its sales 36 percent and tripled earnings over 1996 as a result of acquisitions and internal growth. Integrated supply contracts, cross selling and a strong economy were the key, Little says. The company made two acquisitions to expand its general mill, engine and safety supply lines -- Pelican State Supply Co., Inc. of Baton Rouge, La. and Strategic Supply Inc. in Houston -- and in March announced two more acquisitions. "We believe in 'customers for life' and to accomplish this, we provide services they need better than our competition can,'' he says.

38 Sears Industrial

Hoffman Estates, Ill.

Bill Maines, Vice President

1997 Sales: $168 million

Branches: N/A Employees: N/A

Despite the UPS strike last summer, Sears Industrial enjoyed double-digit sales growth in its hand tools, storage and other MRO supplies. The company added air-powered tools, compressors and abrasives and opened a telesales operation that vice president Bill Maines calls "one of our stronger growth areas.'' Telesales focus primarily on the lodging industry and smaller MRO customers, an effort Maines describes as a compromise between face-to-face selling and electronic commerce. In January, Sears Industrial launched a Web site, which later this year will be used for ordering.The Craftsman name accounts for a majority of sales.

39 Steiner Electric Co.

Elk Grove, Ill.

Richard A. Kerman, President

1997 sales: $152.5 million ($10-12 million industrial)

Branches: 6 Employees: 460

Sales were up around 11.5 percent for this distributor of traditional electrical supplies. The firm continues to venture into MRO industrial equipment like hand and power tools and ladders. Steiner Electric was the first Midwest electrical distributor to achieve ISO certification, doing so in 1984. The company places a high emphasis on technology, and expects sales in 1998 to grow by 15 percent or more. "We're gaining market share and we expect a record year," says Kerman. The company places a major emphasis on technology, and has made a major investment in vendor managed inventory.

40 Turtle & Hughes, Inc.

Linden, N.J.

Suzanne Millard, President

1997 Sales: $150 million (Industrial sales: $50 million)

Branches: 10 Employees: 300

1996 was a record year for this industrial MRO and electrical supply house with net earnings overall rising by 12.5 percent. Most of the growth sprang from single-source or integrated supply contracts, says executive vice president Frank Millard, but margins on competitive IS contracts continue to tighten. As a result, the company focused more on mid- and smaller-sized IS accounts, rather than large national contracts, according to industrial division president J.J. Drummond. Both divisions performed well early in 1998, showing revenue gains of nearly 10 percent combined through March.

41 Precision Industries, Inc.

Omaha, Nebr.

Dennis Circo, President

1997 Sales: $147.1 million

Branches: 75 Employees: 650

Landing major integrated supply contracts propelled Precision Industries to a record 1997, during which Circo says sales grew 15 percent and profits more than doubled. New customers include steel mills, a large chemical company and Hallmark. By adding electrical supplies to its core lineup, about 95 percent of PI's products are now available from the first-tier. PI has also added services such as storeroom management linked to customers' accounting systems and preventive plant maintenance packages. "We've probably had as much growth in integrated supply as anybody and we're positioned today to be a leader,'' he says.

42 R.S. Hughes, Co. Inc.

Sunnyvale, Calif.

Robert McCollum, President

1997 Sales: $147 million

Branches: 33 Employees: 400

As in 1996, R.S. Hughes' growth was tied to a strong economy, "pretty steady across the board in both products and industries,'' McCollum says. The adhesives and safety products distributor reached 12 percent sales growth and the pace appears to be continuing in 1998. McCollum says the financial crises in the Far East will dampen his firm's sales to electronics companies. "We're seeing a little impact but not huge,'' he explains. The biggest obstacle to more growth is a lack of qualified employees -- which he expects will limit the opening of new branches to two instead of five this year.

43 Piping and Equipment

Conyers, Ga. and Houston, Tex.

Rick Mousa, Gary Cartright, Presidents

1997 Sales: $146.6 million

Branches: 28 Employees: 357

A drop of nearly $5 million in sales in 1997 followed a sharper $10 million slump in 1996, led once again by declines in the pulp and paper industry, Mousa says. Net earnings were flat but Mousa expects better results this year as the company focuses on cutting business costs through new technology and a continuous improvement program. The company is also evaluating its integrated supply contracts and other customers more closely. "We're running reports and seeing how we can streamline,'' he says. " If it turns out we can't be profitable we have to either raise the price or walk away.''

44 Harrington Industrial Plastics

Chino, Calif.

Bill McCollum, Chairman

1997 sales: $146 million

Branches: 43 Employees: 700

This distributor of industrial PVF products, pumps and filters expects sales to expand by 34 percent this year due to opening new branches. Sales were up by about $15 million in 1997. The firm's major customers operate in the semiconductor, petrochemical, biotech and pharmaceutical industries. "We hire young intelligent people, train them well and promote from within," says McCollum. The firm spends about $700,000 annually on training, and all employees are educated at its on-site University of Harrington training center. Harrington will open two new branches this spring.

45 Texas Mill Supply Companies

Galena Park, Texas

Monte K. Legro, President

1997 Sales: $130 million

Branches: 21 Employees: 550

Texas Mill increased overall revenues by more than seven percent but sales of industry products measured by the Top 100 survey increased only slightly. Legro expects stronger growth this year, saying that in 1997 the company entered numerous integrated supply contracts that did not initially produce large inventory turns. Many customers in heavy processing, manufacturing and transportation continue to expand as well. "We're pretty much in more of the service business than just the distribution business,'' he says. The company opened a new distribution center in Decatur, Ala.

46 Bearing Headquarters, Co.

Broadview, Ill.

Jim Timble, President and CEO

1997 Sales: $126.8 million

Branches: 43 (plus 7 job shops) Employees: 568

Sales increased by nearly $4 million and net profits surged by 38 percent mainly due to internal growth and enhanced job shop operations. Bearing Headquarters opened a new branch in Topeka, Kans., formed a new division to manage the storerooms of a dozen companies, and created a new division for janitorial supplies. The company also established a metallic hose welding and fabrication center in Kansas City and expanded servicing of its national accounts. In 1998 Timble sees opportunities in shop acquisitions and beefing up the storeroom management division.

47 IBT, Inc.

Merriam, Kans.

Stephen R. Cloud, President

1997 Sales: $119.6 million

Branches: 46 Employees: 450

IBT more than doubled its profits in 1997 while sales rose by $2 million. This bearings and power transmission house also opened new branches in Liberal, Kans. and Russellville, Ark., opting to use its own personnel to start franchises rather than acquire existing ones. President Stephen Cloud says many of his customers such as food processing plants and the beef industry in the Texas panhandle continue to expand. This year IBT is considering adding radio frequency bar coding at its Kansas City corporate distribution center. Overall, "We see clear sailing ahead,'' Cloud says. The company is focusing on selling more to existing accounts.

48 Gosiger, Inc.

Dayton, Ohio

Jane Haley, President

1997 Sales: $115 million

Branches: 8 Employees: 180

Sales grew 20 percent in 1997 for this 76-year-old machine tool house. Gosiger's products and services include CNC lathes, machining centers and grinders, systems integration and automation, plus financing, installation, service and support. Its import division markets products for the screw machine industry, which includes multi-spindle turning machines, automatic bar loaders, parts washing equipment and tooling. Sixty percent of sales are from MRO customers, while 40 percent come from OEM orders. The company focuses on maximizing machine tool performance with innovative solutions from its business segments such as the Indacon automation group.

49 Carlson Systems

Omaha, Neb.

Don Carlson, President

1997 Sales: $112 million

Branches: 45 Employees: 400

Sales grew by $6 million and Carlson says the growth was keyed by continued focus on direct sales and resales of industrial and construction products. "I guess it really boils down to the fact that we've got our game plan in place,'' he says. "There's no magic to it. We focus on what we see is most important and number two, we try to service our customers...If anything we're trying to work more diligently with our largest customers and not be distracted by seeking a lot of new customers.'' The company's primary market is the residential construction sector.

50 Goodall Rubber Co.

Ewing, N.J.

Joseph Mika, President & CEO

1997 Sales: $105 million

Branches: 43 Employees: 525

In 1997, Goodall Rubber watched its sales jump from $65.1 million to $105 million as a result of its 1996 acquisition of Snowden Rubber and Anderson Rubber. In addition to increased market share, Mika attributes the sales growth to the company's "effort to keep ourselves focused and not try to be everything to everybody. We stick with our market program and know our products well." Mika has already initiated 1998 plans for expansion: in January, Goodall acquired the assets of SRG-Bevco and the company is in the middle of a multi-million-dollar computer upgrade. The company's 61 percent sales gain in 1997 made it one of the fastest growers in this year's study.

51 Machinery Systems, Inc.

Schaumburg, Ill.

Joe Romanowski, President & CEO

1997 sales: $104 million

Branches: 3 Employees:100

52 Purchased Parts Group, Inc.

Livonia, Mich.

Michael L. Turnbull, President and CEO

1997 Sales: $100 million

Branches: 30 Employees: 350

53 Dillon Supply Co.

Raleigh, N.C.

Robert L. McCann, President & CEO

1997 Sales: $94.4 million

Branches: 17 Employees: 320

54 Argo International

New York, N.Y.

John Calicchio

1997 Sales: $91.4 million

Branches: 26 Employees: 220

55 The B.C. Bearing Group

Burnaby, British Columbia

Robert S. MacPherson, President

Wendy B. McDonald, Chairman and CEO

1997 Sales: $87 million

Branches: 50 Employees: 300

56 Alamo Iron Works, Inc.

San Antonio, Texas

Anthony H. Koch, President

1997 Sales: $83.8 million

Branches: 7 Employees: 515

57 Cross Sales & Engineering

Greensboro, N.C.

Pete Cross, President

1997 Sales: $81.7 million

Branches: 18 Employees: 325

58 Curtis Industries

Mayfield Heights, Ohio

Maurice Andrien, President and CEO

1997 Sales: $81 million

Branches: 5 Employees: 960

59 Indoff, Inc.

St. Louis, Mo.

John M. Temple, President

1997 Sales: $76.3 million

Branches: 100 Employees: 300

60 Service Supply Co., Inc.

Indianapolis, Ind.

Jim Snider, President & CEO

1997 Sales: $76 million

Branches: 39 Employees: 460

61 Canadian Bearings, Ltd.

Mississauga, Ontario

Farrokh Khalili, President and CEO

1997 Sales: $75 million

Branches: 29 Employees: 300

62 Bamal Fastener Corp.

Detroit, Mich.

Mikel Miller, President

1997 Sales: $72.5 million

Branches: N/A Employees: N/A

63 Lewis-Goetz & Co., Inc.

Pittsburgh, Pa.

David R. Goetz, President

1997 Sales: $72.1 million

Branches: 12 Employees: 270

64 Valin Corp.

Sunnyvale, Calif.

Alan Vidinsky, Chairman

1997 Sales: $72 million

Branches: 2 Employees: 140

65 Power/mation division, inc.

St. Paul, Minn.

Chris Reed, President

1997 Sales: $71 million

Branches: 9 Employees: 190

66 Rero Distribution Companies, Inc.

Rochester, NY

J. Richard Wilson, Chairman

Peter B. Roby, President

1997 Sales: $66.8 million

Branches: 5 Employees: 210

67 Strong Tool Co.

Cleveland, Ohio

Robert Kraisner, President

1997 Sales: $64.9 million

Branches: 9 Employees: 160

68 Bearings & Drives Inc.

Macon, Ga.

Andrew H. Nations, President

1997 Sales: $63.5 million

Branches: 36 Employees: 300

69 Duncan Equipment Co.

Tulsa, Okla.

David Ragland, CEO

1997 Sales: $63 million

Branches: 6 Employees: 180

70 Windsor Factory Supply Ltd.

Windsor, Ontario

Wes Delnea, President

1997 Sales: $62.3 million

Branches: 7 Employees: 160

71 The Ross-Willoughby Co.

Columbus, Ohio

Ronald J. Cory, President

1997 Sales: $60.5 million

Branches: 7 Employees: 270

72 Prime Technology, Inc.

Grand Rapids, Mich.

Lynn Calhoun, President

1997 Sales: $60 million

Branches: 3 Employees: 64

73 Orr Safety Corp.

Louisville, Ky.

Clark "Bud" Orr, President

1997 Sales: $60 million

Branches: 8 Employees: 240

74 Engman-Taylor Co., Inc.

Menomonee Falls, Wisc.

Richard W. Star, President

1997 Sales: $57.5 million

Branches: 3 Employees: 142

75 Ohio Transmission & Pump Co.

Columbus, Ohio

David D. Derrow, President

1997 Sales: $56.9 million

Branches: 14 Employees: 221

76 Womack Machine Supply

Dallas, Tex.

R.C. Womack, President

1997 Sales: $56.9 million

Branches: 14 Employees: 145

77 Endries International, Inc.

Brillion, Wisc.

Bob Endries, President

1997 Sales: $56 million

Branches: 50 Employees: 350

78 Safeco, Inc.

Kingsport, Tenn.

Bodie Scott, President

1997 Sales: $54 million

Branches: 18 Employees: 140

79 Iowa Industrial Products, Inc.

Des Moines, Iowa

Daniel L. McIlhon, Chairman

Edward J. McIlhon, President

1997 Sales: $53.5 million

Branches: 4 Employees: 150

80 Century Sales & Service Ltd.

Edmonton, Alberta

Ron Pearson, President

1997 Sales: $51.4 million

Branches: 12 Employees: 215

81 The McGraw Group, Inc.

Richmond, Va.

George Sydnor, President

1997 Sales: $51.1 million

Branches: 20 Employees: 225

82 A.I.M. Supply Co.

Largo, Fla.

Brian Nestor, President

1997 Sales: $50.12 million

Branches: 7 Employees: N/A

83 Zatkoff Seals & Packings

Farmington Hills, Mich.

Gary Zatkoff, President

1997 Sales: $49.6 million

Branches: 8 Employees: 165

84 Apache Hose & Belting

Cedar Rapids, Iowa

Bill Nissen, President

1997 Sales: $49.2 million

Branches: 6 Employees: 250

I85 ndustrial Equipment Co. Ltd.

Delta, British Columbia

Gordon Lindemere, President

1997 Sales:$49 million

Branches: 22 Employees: 230

86 Standard Supply & Hardware Co.

New Orleans, La.

President: Mac Hadden

1997 Sales: $46 million

Branches: 9 Employees: 202

87 RAM Industries, Inc.

Leesport, Pa.

David Walton, President

1997 Sales: $45 million

Branches: 1 Employees: 70

88 A-C Supply Co.

Milwaukee, Wisc.

Thomas G. Schuster, President

1997 Sales: $44.5 million

Branches: 12 Employees: 160

89 General Tool & Supply

Portland, Oreg.

Bill Derville, President

1997 Sales: $43.8 million

Branches: 1 Employees: 125

90 Warner Industrial Supply

Minneapolis, Minn.

Jim Zechmann, President

1997 Sales: $42.7 million

Branches: 9 Employees: 140

91 Samson Industrial Corp.

Tulsa, Okla.

David Hancin, President

1997 Sales: $42.1 million

Branches: 11 Employees: 190

921 Moody-Price, Inc.

Baton Rouge, La.

Danny A. Daniel, Sr., President & CEO

1997 Sales: $41.5 million

Branches: 8 Employees: 100

93 Reynolds Machine and Tool Corp.

Melrose Park, Ill.

James P. Reynolds, President

1997 Sales: $41.5 million

Branches: 2 Employees: 132

94 J. Lee Hackett Co.

Farmington, Mich.

J. Lee Juett, President

1997 Sales: $41 million

Branches: N/A Employees: N/A

95 The Indusco Group

Baltimore, Md

Henry Schloss, President

1997 Sales: $40 million

Branches: 14 Employees: 280

96 Associated Industrial Supply, Inc.

Columbia, S.C.

Bob D. McBeth, President

1997 Sales: $40 million

Branches: 11 Employees: 165

97 Bergen Industrial Supply Co., Inc.

Elmwood Park, N.J.

James LaPorte, President

1997 Sales: $39.2 million

Branches: 0 Employees: 98

98 Industrial Belting and Supply Inc.

Grand Rapids, Mich.

Ronald E. Yob, President

1997 Sales: $37.2 million

Branches: 10 Employees: 168

99 Cincinnati Belting & Transmission Co.

Cincinnati, Ohio

James E. Stahl, President

1997 Sales: $37 million

Branches: 2 Employees: 95

100 Century Fasteners Corp.

Elmhurst, N.Y.

Evan Stieglitz, President

1997 Sales: $36.8 million

Branches: 10 Employees: 180

TOP 100 ON DISC

Industrial Distribution's Top 100, complete with addresses and phone numbers, is available on disc for $235.00. For more information, call (617) 558-4504.

TOP 100 BY PRODUCT CATEGORY

POWER TRANSMISSION

Motion Industries $1.86 B

Applied Industrial Technologies $1.16B

Kaman Industrial Technologies $480 M

Bearing Distributors $202.7 M

Precision Industries $147.1 M

FASTENERS

Fastenal $397.9 M

Carlson Systems $112 M

Purchased Parts Group $100 M

Service Supply Co. $76 M

Bamal Fastener Corp. $72.5 M

MACHINE TOOLS

Yamazen $252 M

The Robert E. Morris Co. $242 M

Gosiger $115 M

Machine Systems $104 M

Lewis Goetz & Co. $77.1 M

ELECTRICAL

Graybar Electric $3.35 B

WESCO Distribution $2.6 B

GE Supply $1.9 B

Branch Electric $240 M

Stuart C. Irby Co. $238 M

Publicly Traded Companies

W.W. Grainger $4.1 B

Hughes Supply $1.88 B

Airgas, Inc. $1.44 B

Applied Industrial Technologies $1.16 B

SunSource $692 M

Kaman Industrial Technologies $480 M

Noland Co. $464.9 M

MSC Industrial Supply $438 M

Fastenal $397.9 M

Vallen Corp. $348 M

JLK Direct Distribution, Inc. $316.2 M

Industrial Distribution Group $284.9 M

Lawson Products $278.1 M

Bowman Distribution/ Barnes Group $220 M

White Cap Industries $180 M

Strategic Distribution, Inc. $170.8 M

DXP Enterprises, Inc./ Sepco Industries $169.7 M