This has been a year that most distributors would like to forget. The year started off slowly and only got worse, especially after the tragic events of Sept. 11. This economic downturn wasn't supposed to last through the year, at least according to forecasts by most economists who had predicted a recovery by the summer or the fourth quarter.

All those forecasts were, of course, thrust aside after Sept. 11 due to the worst terrorist activities in the history of this country. We're still reeling from the personal and economic effects of that horrifying day. Unemployment has skyrocketed. Consumer confidence has eroded and earnings have been terrible for most publicly traded companies. All of this has taken place as manufacturing continues to be in the midst of a recession that has left thousands of people jobless.

Yet there are encouraging signs. Inventories are being depleted and soon, some experts say, ordering will begin. It can't come any time too soon.

With all these things happening in our industry, it has never been more important to look for ways to become more innovative and creative.

In this issue (p. 43) we're pleased to focus on several distributors we've singled out for their ability to survive — and even prosper — in this difficult year. All of these distributors were profiled in the pages of Industrial Distribution in 2001.

They are companies like Turner Supply, headquartered in Mobile, Ala., which has been on the acquisition trail and serves a large territory with personal, specialized services.

PRC Industrial Supply in Portland, Me., reduced its product line and became a super specialist by refocusing its expertise on the lines it kept. The result: sales have soared on those remaining products.

Other companies like Production Tool Supply in Detroit, Mich., and Bearing Belt Chain in Las Vegas, Nev., are using technology and the Web to enjoy an increase in sales and productivity. Other companies highlighted in this report include SJF Material Handling, Industrial Rubber and Mechanics, Pine Belt Industrial Supply, Gooding Rubber Co., and Windsor Factory Supply Ltd.

Each of these companies has found a way to meet its changing customer needs. Being flexible and adaptable is critical to the success of any company competing in this economic environment.