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The year 2001 lived up to many people's expectations — especially those in the industrial channel. As many predicted, the slowdown experienced by the industry's top firms at this time last year only worsened as the year progressed. Now that 2002 is in full swing, executives interviewed for our annual Top 100 Industrial Distributors report are optimistic about a turnaround, though they wish it would hurry up and get here.

'We don't want another one like last year. That was the deepest recession that we've ever endured in our history,' says Jack Cahill, president of Kaman Industrial Technologies, No. 17 in this year's Top 100. 'We saw the industrial environment come down dramatically throughout the year ... [and] we haven't seen it rebound yet.'

Those sentiments are echoed by other Top 100 distributors. Sixty-two percent of the companies in this year's list experienced a drop in sales last year; the average decline was 10.6 percent. That's a big change from last year's report, when the majority of firms posted healthy sales gains. Twenty-six percent of companies posted gains this year; most were due to acquisitions. (The remaining companies either had flat sales or were new to the list and did not provide 2000 sales information for comparison.)

Like others, Kaman focused much of its energies in 2001 on improving operations and positioning itself to take advantage of the expected turnaround. The acquisition of former Top 100 company A-C Supply and investments in national contracts and e-business are key parts of that effort.

Purchased Parts Group, No. 56, felt the tough times, too. Director of marketing Allen Heflin said his company's 15 percent sales drop parallels the decline in the manufacturing sector. To prepare for the future, the firm built up its Mexican operations, made two key executive appointments and increased its logistics services to U.S.-based Maquilodora firms.

Executives like Robert San Julian, president of Des Plaines, Ill.-based Kar Products, saw a slight pickup in the first quarter of 2002, but not a significant increase in business. Last year, sales declined slightly in all of Kar Products' geographic markets except the Western United States. Kar Products debuts at No. 37.

Reports from the industry's publicly traded companies showed that business was starting to improve in the first quarter, though sales and earnings were still down for many.

These are big changes from just a few years ago, when growth and prosperity were the norm for most companies.

The word change also characterizes this year's Top 100 report. In an effort to provide a list of the biggest industrial MRO distributors in North America, we've eliminated the electrical distributors that typically appear in our list. Combined with consolidation, a few newcomers, and the toll the economy took on some companies, that change makes the Top 100 look much different than it has in the past.

The elimination of electrical distributors is the biggest change to our report. We removed from our main listing companies for whom electrical, lighting, data-communication and related products make up more than 50 percent of revenues. Many of those companies — Graybar Electric and WESCO International, for example — round out the Top 100 by appearing in a separate list of the Top 10 Electrical Distributors on page 50.

To determine the top electrical companies, we turned to Electrical Wholesaling magazine, which publishes a list of the 250 largest electrical distributors in the United States each year. We took the top 10 companies from the magazine's September, 2001, listing and updated their sales figures to reflect year-end 2001 totals. In doing so, we omitted three companies that already appear in our main listing — W.W. Grainger, No.1; Hughes Supply, No.2; and Hagemeyer NA, No. 5. Those companies are big players in the electrical market, but are excluded because electrical sales comprise less than 50 percent of their overall revenues.*

There were other changes, as well. Integra Integrated Procurement Solutions, which pursued an aggressive roll-up strategy in 2000, has fallen from our list. Integra filed for Chapter 11 bankruptcy protection in March and auctioned off its assets in mid April. The company cited the slow integration of recent acquisitions, the economy, and its credit problems, but some analysts say Integra executives may have underestimated the difficulty of integrating acquired companies. In 2000 Integra reported $217 million in sales and had nearly 500 employees, which included well-respected acquired distributors like Ross-Willoughby Co. and J. Fegely & Sons.

In another change, Premier Farnell was dropped after selling its industrial business to Lawson Products, No. 19. Likewise, Sammons Distribution was omitted after selling its industrial division — Texas-based Briggs-Weaver — to Hagemeyer NA. The McGraw Group is gone, as well, having sold its assets to No. 34, Precision Industries. Wilmar Industries merged with Barnett Inc. and is operating under a new name, Interline Brands, No. 12. And Kaman's acquisition of A-C Supply accounts for the latter's omission from the list.

SunSource also disappeared. The former Top 50 company went private last year, spinning off its technology services/fluid power group, SunSource Technology Services, which refused to participate in this year's report. In March, the company's remaining operations were renamed The Hillman Companies, with a focus on the retail fastener/hardware industry. Hillman retained a minority ownership in newcomer Kar Products, a distributor of fasteners and provider of inventory management services.

Other newcomers include Edgen Corp., No. 30; Kinecor, No. 44; Ryan Herco Products, No. 48; National Welders Supply Co., No. 51; Meyer-Mercer/Westburne IPG, No. 68; Stauffer Glove & Safety, No. 72; Shively Brothers, No. 85; and Kimball Midwest, No. 87.

In addition to SunSource Technology Services, one other Top 50 company refused to share financial information and therefore is not listed: C&H Distributors, which debuted in last year's Top 100 at No. 35. Other companies that did not return to the list this year either refused to share financial information or did not meet the $45 million cutoff figure.

Information on publicly traded companies is obtained from annual reports, earnings statements and interviews with top executives. For the privately held firms — which make up the majority of the list — we rely on self-reported data. Figures represent North American sales for the 2001 calendar year, except where noted. Figures for Canadian and European firms are reported in U.S. dollars.

The 2002 Top 100 was compiled by ID staff editors Victoria Fraza, Ken Brack, Alison Lutes, Richard Trombly and Al Tuttle, and contributing editor Bridget McCrea.

* The percentage of electrical sales for Hagemeyer NA is based on estimates by ID editors.

NYSE: GWW

Headquarters: Lake Forest, Ill.

Richard L. Keyser, Chairman and CEO

2001 Sales: $4.75 billion

Branches: 574

Employees: 15,000+

www.grainger.com

2001 was a difficult year for everyone and Grainger was no exception, with sales down 4.5%. Still, the company continued its plan to improve operations and customer service. Company spokesman Michael McGrew says the focus is on developing 'one look, one feel' for the organization. The bottom line? Grainger must do what it does best: offer a multi-channel approach for purchasing MRO supplies. That means providing consistent service through its branches, service centers, Web sites and distribution centers. Investments in sales training and a revamped logistics/distribution network are at the heart of the strategy.

NYSE: HUG

Headquarters: Orlando, Fla.

David H. Hughes, Chairman

2001 Sales: $3.03 billion

Branches: 439

Employees: n/a

www.hughessupply.com

A sharp slowdown in construction activity caused a 5% decline in branch sales for the year and 9% during Hughes Supply's fourth quarter. The firm decided to close 30 facilities by year's end. CEO David Hughes says fourth-quarter earnings still exceeded expectations and that the company reduced its debt, which, along with new sales and marketing initiatives, should prepare it for renewed growth in 2002. Sales from Hughes Supply's industrial PVF and building materials' groups fell 14% to $623.7 million, compared to $687.8 million in 2001. Total revenues fell 8% and profits declined slightly.

NYSE: GPC

Headquarters: Birmingham, Ala.

William J. Stevens, President and CEO

2001 Sales: $2.24 billion

Branches: 539

Employees: 5,754

www.motionindustries.com

Motion converted all of its Motion Canada locations to the firm's main operating system in 2001 — a feat that puts all U.S. and Canadian locations on the same system. The company also continued implementation of its warehouse management software program, which will automate the entire logistics process across all of Motion's distribution centers, says senior vice president Ralph Buntyn. The warehouse management program will be rolled out to all North American locations by the end of 2002. Systems implementation and training continue to be significant investments in a slow sales year. Growth is expected as the economy improves in 2002.

NYSE: ARG

Headquarters: Radnor, Pa.

Peter McCausland, Chairman and CEO

2001 Sales: $1.64 billion

Branches: 800

Employees: 8,500

www.airgas.com

Sales reflect Airgas' 2002 fiscal year, which ended March 31. Sales were up slightly compared to last year's figure of $1.63 billion. In addition, fiscal fourth-quarter sales were up slightly, though total same-store sales declined 3% compared to the same quarter a year ago. In February, Airgas completed the acquisition of the majority of Air Products' U.S. packaged gas business. 'The integration of the Air Products business is on track and we are pleased with the efforts of our associates and the smooth transition for our customers, but there is still much work ahead,' CEO Peter McCausland said in May.

Headquarters: Atlanta, Ga.

David Gundling, President and CEO

2001 Sales: $1.53 billion

Branches: 150+

Employees: 5,394

www.hagemeyerna.com

Hagemeyer NA is a division of Dutch company Hagemeyer NV, a global distributor with sales of over $7 billion. In 2001, Hagemeyer continued its acquisition strategy, buying former Top 100 company Briggs-Weaver. With 18 locations throughout the South and Southwest, Briggs-Weaver was added to Hagemeyer's largest division, Cameron & Barkley. The deal came almost one year after Cambar announced the purchase (in conjunction with McJunkin Corp.) of several Fairmont Supply Co. locations. Both purchases helped Hagemeyer get closer to its goal of becoming a major player in North America. Value-added service and integrated supply are a large part of that strategy.

NYSE: AIT

Headquarters: Cleveland, Ohio

David L. Pugh, Chairman and CEO

2001 Sales: $1.52 billion

Branches: 406

Employees: 4,637

www.appliedindustrial.com

The recession affected Applied's sales figures, but CEO David Pugh says he's pleased with the firm's profitability and strong balance sheet. In 2001 Applied delved further into fluid power, introducing Fluid Power Connection, a 450-page fluid power components catalog. The book complements Maintenance America, Applied's 400-page MRO catalog. Though encouraged by positive economic signals earlier this year, Pugh said he expects to see slow growth industry-wide in 2002. Speaking of the overall economy, he says: 'At least we see that the bleeding has stopped,' adding that '[In 2002] it's going to be very slow growth.'

Headquarters: Houston, Texas

John Kennedy, President

2001 Sales: $1.1 billion

Branches: 150

Employees: 2,400

www.iwilson.com

In each of the last two years Wilson Industries, Inc. purchased a Top 100 company. It acquired Texas Mill Supply in 2000 and Van Leeuwen Pipe and Tube in early 2001. Wilson also made an additional, smaller acquisition: Mid-Valley Supply L.L.C. Wilson has invested in order entry and catalog management tools as well, says president John Kennedy. The company is a major player in integrated supply, he adds. 'In the current economy, we have had to really focus on the markets we serve,' says Kennedy. 'We targeted our sales efforts with existing customers and select customers for new contracts.'

NYSE: MSM

Headquarters: Melville, N.Y.

Mitchell Jacobsen, Chairman and CEO

2001 Sales: $869.2 million

Branches: 90

Employees: 2,940

www.mscdirect.com

Figures reflect MSC's fiscal year ended August 31, 2001. MSC concentrated on gaining market share last year — a goal aided by adding over 130 associates to its sales force, increasing its product offering, and other key initiatives. In addition, MSC's Web site, MSCdirect.com, has been praised by analysts and industry-watchers as one of the best in the business. The company hopes to reap the rewards of those efforts this year as the economic climate improves. 'We're looking for the turnaround,' says vice president of finance Shelley Boxer. 'We believe that we will see very, very strong performance out of the company.'

Headquarters: Charleston, W. Va.

H.B. Wehrle, III, President and CEO

2001 Sales: $830 million

Branches: 135

Employees: 1,800

www.mcjunkin.com

McJunkin continued growing in 2001 due to its acquisitions and integrated supply business. Sales grew 10.6%, which includes revenues from joint ventures. Integrated supply contracts now amount to about one third of total sales. 'A lot of our current customers have taken the next step into integrated supply and we've been fortunate to be the successful bidders,' says senior vice president of sales Steve Wehrle. 'We have a lot of experience and offer a good business model for it.' Chicago-based Joliet Valves, which McJunkin acquired last August, is expected to generate about $60 million in sales this year.

Nasdaq: FAST

Headquarters: Winona, Minn.

Robert Kierlin, CEO

2001 Sales: $818.3 million

Branches: 1,049

Employees: 4,411

www.fastenal.com

Fastenal's sales grew 8.3% while its net income dropped 13% following a blockbuster year. New branches contributed nearly $22 million or 2.6% of total revenues. Slight growth came from welding supplies, safety equipment and retail packaged products, while sales of threaded fasteners continue to account for about half of total revenues. In August Fastenal acquired the assets of two former Textron facilities — in Rockford, Ill., and near Nashville, Tenn. — that sell packaged fasteners to retailers. Fastenal restated its past two years' sales due to an accounting change that reclassifies shipping costs and sales incentives.

NYSE: WOS

Headquarters: Newport News, Va.

Claude Hornsby III, President

2001 Sales: $700 million

Branches: 600+

Employees: 10,000+

www.ferguson.com

Ferguson Enterprises' parent, Britain-based Wolseley PLC, began integrating Ferguson's operations with other North American industrial distributors such as Westburne, which it acquired in 2001. Wolseley said the weakest demand for PVF and heating products in the U.S. was in Northern California and the lower Midwest. U.S. operating profits, excluding Westburne, rose by 7.5% and net margins improved from 4.8% to 5.1% of sales — which includes Ferguson and a sister plumbing supplies distributor also owned by Wolseley, Familian Northwest. Ferguson's reported industrial sales this year do not include capital projects revenues.

Headquarters: Moorestown, N.J.

Michael Grebe, CEO

2001 Sales: $630 million

Branches: 78

Employees: 2,200

www.wilmar.com

Last year was a hallmark for Interline Brands, the new company formed by the consolidation of Wilmar Industries and Barnett, Inc., with Michael Grebe being named CEO. The company saw revenue grow about 4% last year, and CFO William Sanford expects to see 6% to 8% growth in 2002. With six integrated e-business sites, Interline Brands has invested heavily in technology. 'Technology is the only area where we increased staffing. We increased by 25 percent last year in IT. That staffing is integral toward building out logistics and supporting our supply chain,' Sanford says.

Headquarters: Kunzelsau, Germany

Mark Alexander, General Manager, Würth Industry Network of North America

2001 Sales: $570 million

Branches: 102

Employees: 2,240

www.würth.com

Würth U.S. is part of Germany's Würth Group. Its U.S. industrial division concentrates on OEM fastener sales, says general manager Mark Alexander. 'Even in the last year, North America has been a good market with growth opportunity and a strong bottom line,' says Alexander. 'Companies are looking for a global supplier who can supply their needs and has the standing to remain in that business. Würth is a 56-year-old company with solid financial backing.' He says the parent company is dedicated to utilizing IT to the fullest and has a tech team to keep its global businesses up to date.

NYSE: IDG

Headquarters: Atlanta, Ga.

Andrew B. Shearer, President and CEO

2001 Sales: $514.4 million

Branches: 57

Employees: 1,350

www.idglink.com

2001 was tough for IDG. Patrick O'Keefe resigned as president in the fall and was replaced by Andy Shearer, a founding member of the roll-up. Soon after Shearer took over, the company announced cost-cutting and restructuring strategies aimed at putting IDG back on track for growth. By the end of the year, corporate staff had been consolidated, debt paid down, and IDG's integrated supply business — Flexible Procurement Systems — was up 7.4%. CFO Jack Healey says things are looking up, noting that company morale is on the upswing. 'We know that this is going to be a tough year, but we're confident,' Healey says.

Headquarters: Newport News, Va.

Lloyd U. Noland, III, Chairman and CEO

2001 Sales: $477.9 million

Branches: 103

Employees: 1,415

www.noland.com

Sales declined but remained strong for Noland Co. in 2001. 'Noland's diverse product offerings, encompassing supplies needed for construction and remodeling as well as manufacturing, lessened the impact of recessionary conditions in the industrial segment,' says director of industrial sales and marketing Gary Combs. To sharpen its marketing focus and increase efficiency, the company is bringing the sales operations of certain territories under the control of its Richmond, Va., industrial distribution center. To grow new business, Noland added industrial sales to its Montgomery, Ala., electrical supply location and has introduced its Noland Electronic Managed Inventory System.

Headquarters: Santa Fe Springs, Calif.

Jim Ellison, Chairman and CEO

2001 Sales: $460 million

Branches: 30

Employees: 700

www.meritageinc.com

Ellison Machinery Co., The Robert E. Morris Co. and Hartwig, Inc., merged in 1998, a peak year for machine tools, to form the machine tool distributor Meritage. There was a troubled market for capital equipment in 2000 and 2001, but the company is weathering the storm by controlling costs and inventory, says Chairman and CEO Jim Ellison. Meritage acquired JRP in 2000 and Machine Tool Corp. in 2001. The company leveraged IT resources for aggressive cost containment and invested in a CRM package. 'In slow economies, you can devote time and resources to successfully implement IT enhancements,' says Ellison.

Nasdaq: KAMNA

Headquarters: Windsor, Conn.

T. Jack Cahill, President

2001 Sales: $453.7 million

Branches: 165

Employees: 1,500

www.kamandirect.com

Kaman kept its nose to the grindstone despite eroding sales. The company continued implementing 'lean manufacturing' concepts — a difficult but worthwhile task for a distributor, says president Jack Cahill. One result of those efforts: Kaman has decreased the time it takes to close the company's books on a monthly basis by 50%. The big news was Kaman's purchase of former Top 100 company A-C Supply, which increased its geographic coverage in the Midwest and added materials handling and fluid power products to the mix. Kaman also purchased stock in a Mexican distributorship to help penetrate that market.

Headquarters: Tulsa, Okla.

Craig Ketchum, President

2001 Sales: $402 million

Branches: 70

Employees: 780

www.red-man.com

Red Man Pipe & Supply purchased a pipe company last year as sales continued to look good despite the economy. The company had its best year ever in 2001, with a 25% increase over 2000. 'This year is not shaping up quite as good,' says CFO Dee Paige. 'But we're entering more integrated markets and are involved in more e-commerce ...' By way of inventory management, Red Man puts unmanned kiosks on-site for some customers. The kiosks are activated by touch screens and dispense inventory automatically. Paige says revenue due to oil and gas pipeline work was 'huge.'

Nasdaq: LAWS

Headquarters: Des Plaines, Ill.

Robert Washlow, Chairman and CEO

2001 Sales: $379.4 million

Branches: 16

Employees: 1,200

www.lawsonproducts.com

Lawson had record sales in 2001, a feat helped by last year's acquisition of the industrial division of electronics distributor Premier Farnell. The company experienced a decline in net income for the year, however, due in part to costs associated with the acquisition. With expansion plans underway at U.S. and Canadian facilities, the company is optimistic about 2002. '... The year 2001 saw significant investments in the future of the 'Lawson Family of Businesses.' We are confident the investments made and other initiatives undertaken in 2001 will provide an enhanced base for profitable growth,' CEO Robert Washlow said earlier this year.

Headquarters: Costa Mesa, Calif.

Greg Grosch, Chairman and CEO

2001 Sales: $370 million

Branches: 43

Employees: 1,250

www.whitecapdirect.com

White Cap reported flat sales last year and saw an overall drop in business. Most of Southern California, Nevada and Arizona remained relatively strong. 'January through April, to date, has continued to gain momentum. We expect to see continued improvement throughout the year,' CFO Brian Etter says. White Cap improved internal efficiencies with inventory management and added an operational database reporting system that provides sales, operations and other managers with daily information, which Etter says has improved the timing on key decisions. White Cap plans to offer new customer e-services, such as account history by invoice, job-site and account detail.

Headquarters: Burlington, Mass.

Jack Hester, President

2001 Sales: $350 million

Branches: 63

Employees: 1,050

www.fwwebb.com

2001 was a 'decent year' for F.W. Webb, says vice president of industrial sales Ernie Coutermarsh. Sales were up for the New England distributor, due to the success of its relatively new biopharm division, the addition of a pump line, and two acquisitions — one in Massachusetts and one in New York. Webb sells plumbing, heating and cooling products to customers throughout New England and Upstate New York. Adding the pump line was key, says Coutermarsh, allowing Webb to provide customers all their PVF, HVAC and plumbing needs. 'Now we have everything,' says Coutermarsh, 'from the pump right through the entire system.'

Headquarters: Grand Rapids, Mich.

Jay R. Troger, President and CEO

2001 Sales: $350 million

Branches: 5

Employees: 900

www.usflow.com

Sales were down 4% for USFlow, the PVF giant formed by a merger in late 1999. CEO Jay Troger joined the company last June. '[2001] was a soft year for us. We're not used to getting a little bit smaller instead of bigger,' Troger says. 'We're certainly hoping that 2002 picks up. Indicators are that that will happen.' The integration work from the original merger and subsequent acquisitions is complete, says Troger, and USFlow is now looking to capitalize on its size. 'There's a lot of opportunity to significantly increase service levels and really drive customer value,' he says.

Headquarters: Bensalem, Pa.

Ron Whitaker, President and CEO2001 Sales: $319.6 million

Branches: 100

Employees: 800

www.in-plantstore.com

While SDI faced challenges in 2001, restructuring, elimination of unprofitable business, and a focus on improving its value proposition has better positioned the company for an economic upturn. SDI provides on-site integrated MRO supply chain management services through its In-Plant Store® program. 2001 was a year of change for SDI. President and CEO Ron Whitaker says: 'We have spent the past twelve months focusing on developing a customer base that recognizes the value of the In-Plant Store® program. We are improving our customer communications regarding the value of our services, as well as attracting new customers to the In-Plant Store® program.'

NYSE: B

Headquarters: Cleveland, Ohio

A. Keith Drewett, President

2001 Sales: $274.2 million

Branches: 26

Employees: 2,000+

www.barnesdistribution.com

'Continued investment' is the theme at Barnes Distribution, says president Keith Drewett. Though affected by difficult business conditions worldwide, the company keeps investing in core business functions with the help of parent Barnes Group. Such actions are helping position Barnes Distribution for long-term growth, says Drewett. Heavy investments were made in IT and in reconfiguring the company's distribution network. Internationally, Barnes' sales were up from $291 million in 2000 to $298 million last year. Drewett says he's confident that an economic recovery is on the way, though the industry is probably 'in for a couple of tricky quarters.'

Headquarters: Livonia, Mich.

Michael Wessner, COO

2001 Sales: $260.2 million

Branches: 19

Employees: 606

www.jlindustrial.com

When JLK Direct was re-acquired by Kennametal in 2000, J&L was split off in early 2001 to focus on its catalog and showroom business. Kennametal separately re-integrated JLK and Full Service Supply and divested recently acquired distributors Strong Tool and ATS. Restructuring accounts for a large part of J&L's drop in sales. COO Michael Wessner says restructuring will bring growth in 2002, with a renewed focus on J&L's core abilities and ROI from technology investments. The company invested in a supply chain management system and state-of-the-art phone system, both of which have increased customer service and reduced costs.

Headquarters: Chatsworth, Calif.

Rob Ruck, CEO

2001 Sales: $259.4 million

Branches: 30

Employees: 565

www.pentacon.com

Formed in 1997, Pentacon sells fasteners and small, engineered parts to aerospace and industrial customers and provides inventory management services to a broad spectrum of customers. 'The company's objective is to differentiate itself from its competitors and to benefit from the consolidation of the fastener industry by leveraging its nationwide distribution network, critical mass, breadth of product line and sophisticated supply chain management capabilities,' says CEO Rob Ruck. Pentacon, and the general marketplace, were impacted by Sept.11. In November, Ruck announced a restructuring plan. 'We have had to take these measures to react to these extreme circumstances,' says Ruck.

Headquarters: Cleveland, Ohio

Dave Hooser, President

2001 Sales: $250 million

Branches: 122

Employees: 900

www.bdi-usa.com

Cleveland-based Bearing Distributors, Inc. acquired Industrial Bearing, a New York-based distributor in 2000. In July 2001, the company purchased Gönz, a distributor with 10 branches in Eastern Europe — specifically, Hungary, Rumania and the Czech Republic. BDI already had an Eastern European presence with locations in Hungary, Slovakia and Poland. 'The purchase of Gönz will increase our presence in emerging markets of Eastern Europe,' says president Dave Hooser. Hooser added that the weak economy in 2001 did not affect Bearing Distributors' foreign sales as much as it did the firm's domestic sales. Overall sales declined about 6% last year

Headquarters: Des Plaines, Ill.

Michael L. Wilkie, President and CEO

2001 Sales: $243 million

Branches: 64

Employees: 1,200

www.doall.com

Though sales were down 9% last year, DoAll saw continued growth in its integrated supply business. vice president of operations Stephen Stoppenbrink says integrated supply is by far the company's most rapidly growing service. It's picked up in the last year, especially, because of the slow manufacturing industry. 'They are all looking to save costs,' says Stoppenbrink, 'so customers of all kinds are looking for integrated supply services.' Stoppenbrink says overall business began to improve in the first quarter; he looks for solid performance from the company in 2002. DoAll distributes cutting tools and related products to customers throughout North America.

Headquarters: Warren, Mich.

Mark Kahn, President

2001 Sales: $211 million

Branches: 19

Employees: 505

www.ptsxpress.com

As a master distributor, nearly half of PTS' sales are to other distributors. Last year PTS rolled out ptsxpress, an e-commerce Web site. 'Internet sales are up and we continually update it and make it more user friendly,' says vice president Larry Wolf. 'Internet sales take costs out of the supply chain and save customers money.' Despite the economy, ERP and warehouse management systems have brought substantial savings to PTS. 'We were not impacted as severely as many of the thousands of small distributors we serve,' says Wolf. 'We have worked closely with them to keep them viable.'

Headquarters: Baton Rouge, La.

Jay Roccaforte, CEO

2001 Sales: $203 million

Branches: 22

Employees: 300

www.edgencorp.com

New to this year's list, Edgen supplies PVF, pipe, tubing and structural steel to the energy industries. It changed its name from TPS Holdings last year and grew with the acquisition of Pro Metals, a master distributor in Houston, and new branches. Some $174 million, or 86% of sales, is from PVF. Since its founding in 1996, Edgen's revenues have grown more than 275%, CEO Jay Roccaforte says. This spring it acquired Service Industrial Supply Co., a Houston distributor of pipeline specialty products. Edgen's other operating units include Bartow Steel, Bartow Steel Intl., Radnor Alloys, Resource Pipe, Thomas Pipe, and Thomas Steel.

Headquarters: Hoffman Estates, Ill.

Don Pannier, National Sales Manager

2001 Sales: $185 million

Branches: 9

Employees: 350

www.commercial.sears.com

Sears saw a slowdown, as did the rest of the hand and power tool sector, according to Don Pannier, national sales manager. The result put revenue at about 1999 levels, and 2002 is still soft, he adds. 'We put in a new enterprise management system that was a challenge but will carry great benefits into the future. We will also have a revamped Web site for complete e-commerce activity by the end of the year,' Pannier says. Sears Industrial plans a major campaign to strengthen its Craftsman brand this year, aimed at increasing market share in commercial and industrial sectors, he says.

Nasdaq: DXPE

Headquarters: Houston, Texas

David Little, President

2001 Sales: $174 million

Branches: 46

Employees: 510

www.dxpe.com

'What's unique about DXP Enterprises is our broad base of product categories,' says president David Little. Although DXP sold its electrical division last year, the company retains a resilience to economic downturns due to its wide product mix, including pumps, safety equipment and MRO supplies. DXP has acquired properties in the last five years and spent much of 2001 integrating computer systems. Now, Little expects an upturn in the economy to spur growth again. 'We were actually forecasting growth last year until the significantly soft fourth quarter,' he says. He expects a rebound as early as the summer.

Headquarters: Sunnyvale, Calif.

Robert McCollum, President

2001 Sales: $163 million

Branches: 36

Employees: 360

www.rshughes.com

Sales last year were down in all the company's main product categories including abrasives, adhesives, power tools and chemicals, says president Bob McCollum. 'We were down about 17 percent across the board,' he says. 'We are just now [end of March, 2002] beginning to see activity creeping back up.' R.S. Hughes did not acquire any companies last year, having felt the downturn since late 2000. 'I think it's interesting that all the buyouts and rollups [are] heading down quickly now,' he says. R.S. Hughes will launch an interactive, e-commerce Web site in the third quarter of this year.

Headquarters: Omaha, Neb.

Dennis P. Circo, President

2001 Sales: $150 million

Branches: 110

Employees: 550

www.precisionind.com

Precision Industries continued to grow, acquiring four businesses in 2001. While sales dropped somewhat from 2000, president Dennis Circo says the economic downturn hit his business early last year and that the company put stopgap measures in place to deal with it. Integrated supply is growing in 2002. 'We have two new contracts for integrated supply that will get us back to 2000 levels,' he says. Circo said the company's technology systems were upgraded in the last two years. In April it bought at auction some of the assets of Ross-Willoughby/ Integra, when Integra Integrated Procurement Solutions went bankrupt. The Ross Willoughby locations are in Lima and Canton, Ohio.

Headquarters: Schaumberg, Ill.

Steve Matsubara, President

2001 Sales: $150 million

Branches: 13

Employees: 210

www.yamazen.com

While Yamazen, Inc.'s commitment to machine tools remains strong, the company expanded into the plastics industry and began providing Surface Mount Technology placement equipment to the electronics industry. 'Unfortunately, the bottom dropped out of the industry and it is even weaker than the machine tool market,' says president Steve Matsubara. The company has restructured and changed its business model, now relying on associate distributors to act as sales reps so it can concentrate on importing machine tools, developing integrated supply programs and online efforts. To accommodate the new business model, Yamazen has closed many of its locations.

Headquarters: Chino, Calif.

Bill McCollum, Chairman and CEO

2001 Sales: $148 million

Branches: 40

Employees: 500

www.bdi-usa.com

A slow first half of the year and average second half amounted to a 6% sales decline for Harrington Industrial Plastics in 2001. A distributor of piping products and accessories, Harrington Industrial specializes in providing technical service to customers, with specialists on staff in their instrumentation, biopharm and filtration divisions. In addition to service, training is high on the company's list of priorities. An internal education program, University of Harrington, provides training to employees at all levels — from receptionist to salesperson to engineer. Though business conditions have been soft, the company remains focused on long-term growth.

Headquarters: Des Plaines, Ill.

Robert San Julian, President

2001 Sales: $145 million

Branches: 32

Employees: 1,400

www.karproducts.com

Kar Products' revenues fell 3.5%, as all but its Western U.S. region saw declines. Formerly a unit of SunSource, Kar Products specializes in 'expediter' inventory management systems, which account for about 86% of sales. Industrial and retail fastener sales make up the rest. Kar Products began adding and refilling first aid kits last year for automotive accounts, a service president Robert San Julian says will be expanded. The company is also targeting more government accounts with what he calls a balanced portfolio of fasteners, electrical, hydraulic and other products. Last August Kar Products acquired C&J Fasteners of Detroit.

Headquarters: St. Louis, Mo.

James Malkus, President

2001 Sales: $131 million

Branches: 400

Employees: 500

www.indoff.com

'Due to the economy and the loss of one major customer we were down quite a bit last year,' says Indoff president James Malkus. The company was somewhat affected by vendor consolidation in the last year, but did not expect much activity in that area for 2002. Malkus expects a 10% increase in business this year, a figure that was on track near the end of the first quarter. Technology is on the radar screen, as well. 'We began scaling back early in 2001, and have not increased our Internet activity appreciably. We will make incremental improvements [in technology]' he says.

Headquarters: Boca Raton, Fla.

Dominic Polimeni, Chairman and CEO

2001 Sales: $129 million

Branches: 33

Employees: 400

www.questrontechnology.com

Founded in 1995, Questron Technology Inc. acquired 12 other distributors in a rollup strategy. The company provides supply chain management solutions and inventory logistics management for small parts to OEMs. In February 2002, Questron filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Chairman and CEO Dominic Polimeni says the company provided customers with uninterrupted service through the sale process and thereafter. 'We plan to emerge from bankruptcy with a stronger balance sheet, greater capacity to service our customers and renewed growth,' says Polimeni. GE Supply acquired Questron in April 2002.

Headquarters: Raleigh, N.C.

Dean Wagoner, President

2001 Sales: $128 million

Branches: 22

Employees: 395

www.dillonsupply.com

Company president Dean Wagoner says 2001 was a 'very weak' year for Dillon Supply, but 2002 is turning out better than expected. 'From what we're hearing in our business, last year was not as bad for us as for some, and 2002 should have improvement,' Wagoner says. Diversity helped the company avoid worse economic hits than it experienced, he says. 'The material handling sector, which has a lot of capital equipment purchasing, was down more than any other last year,' he says. Dillon Supply is considering new central computer systems, which should be in place by the end of the year.

Headquarters: Portsmouth, N.H.

Peter Vogel, President and CEO

2001 Sales: $124 million

Branches: 29

Employees: 420

www.bossard.com

Switzerland-based Bossard AG is a global distributor with extensive European and Asian locations along with a growing North American presence with Bossard U.S, a newcomer to the Top 100 last year. President Peter Vogel says one of the company's strengths is that it can supply all of a customer's locations around the world. Technology is also a plus for this distributor of fasteners and related products. 'The Internet as a way of doing business has been more broadly adopted in Europe,' says Vogel. 'We have introduced BossShop, our online catalog, and expect online business to grow in the coming year.'

Headquarters: Merriam, Kan.

Stephen Cloud, President and CEO

2001 Sales: $124 million

Branches: 44

Employees: 410

www.ibtinc.com

IBT's sales were flat last year but early this spring president Stephen Cloud reported an upturn among key customers like private aerospace and food processing plants. IBT made two moves in 2001 that should boost sales. It acquired a small Kansas City distributor, Power Flow Systems, as a 'springboard' into the air tools and hydraulics business. IBT also forged a marketing alliance with a safety distributor, Day Star, adding safety equipment at its branches. The firms provide in-plant seminars on topics like cleaning out large vessels and rent out air quality monitoring gear. 'We're starting to see some positive trends,' Cloud says.

Headquarters: Omaha, Neb.

Don Carlson, President

2001 Sales: $117 million

Branches: 40

Employees: 370

www.csystems.com

Sales were down slightly last year for Carlson Systems, a company that focuses on the construction, product assembly, packaging and materials handling markets. The company does business in a 20-state area, primarily West of the Mississippi. Carlson Systems prides itself on being a problem solver for customers. Among its service offering, the firm has an engineering division that has designed and built hundreds of product assembly machines for customers in various industries. Toolbargains.com is another service, allowing customers to purchase discontinued and overstock construction tools online. Founded in 1947, Carlson Systems is celebrating its 55th anniversary this year.

Headquarters: St. Laurent, Quebec

Walter Fox, President

2001 Sales: $113 million

Branches: 80

Employees: 960

www.kinecor.com

Kinecor has grown through the merging of Wajax Motion Technologies, Wajax Process Technologies, National Bearings and Spencer Terris. The company can now offer specialized services and industrial products in automation, hydraulics, process pumps, bearings and power transmission to the diverse range of Canadian industry: from agriculture and marine to chemicals, metal shaping and more. Kinecor's 80 locations allow the company to offer its services from British Columbia to Newfoundland. The company expects to consolidate branch infrastructure and inventory while maintaining its highly specialized, product-specific sales forces. This is Kinecor's first year in the Top 100.

Headquarters: Brillion, Wis.

Bob Endries, President

2001 Sales: $108 million

Branches: 70

Employees: 480

www.endries.com

Endries International is one industrial distributor that had a sales increase last year — about 8%. The increase was due in part to its diversity of products and to opportunities that came from competitors who failed to live up to their agreements with customers. President Bob Endries says his company is looking to sustain growth this year, as well. 'We will increase integrated supply contracts and expect better results by the end of 2002 than last year,' he says. Endries International's product lines include PVF, mechanical components, fasteners and various other industrial supplies.

Headquarters: Broadview, Ill.

Jim Timble, President

2001 Sales: $107.5 million

Branches: 39

Employees: 364

www.bearingheadquarters.com

Bearing Headquarters had a down year, but president Jim Timble said the business climate allowed the company to pick up market share. 'We slowed down last year for obvious reasons, but we're a pretty strong regional distributor and we're able to get new customers,' he said. Industry consolidation had the same effect last year, providing opportunities to pick up new business. The first quarter of 2002 was up markedly. 'We've got a big investment coming in an MIS platform this year [and] we've got greater potential for Internet business,' he says.

Headquarters: Columbus, Ohio

Charles M. Simon, President and CEO

2001 Sales: $107 million

Branches: 22

Employees: 230

www.fcxperformance.com

FC^x Performance, Inc., a division of FC^x International plc, was formed in April 1999 through the merger of Simco Controls, Integrated Plant Services, Amsco Sales and J. H. Instrument. No further acquisitions are planned, says president and CEO Charles M. Simon. 'What we are doing is concentrating on our customers' needs,' says Simon. 'We hope to produce organic growth rather than expand through acquisition.' One of the ways the company is increasing its customer service is through technology enhancements: for instance, adopting a CRM system and investing in e-commerce.

Headquarters: Burbank, Calif.

Frank Gibbs, President

2001 Sales: $104.4 million

Branches: 21

Employees: 260

www.ryanherco.com

Ryan Herco Products specializes in products for clean and corrosive environments, including PVF, instrumentation and pumps. Sales fell 16% last year as plant expansions stalled, with electronics customers like semiconductor equipment makers especially hard hit. 'We started out the first quarter very strong and it softened to a point in August, and it was essentially as flat as a pancake' afterwards, says president Frank Gibbs. Through April he reported a slight pickup among OEMs. Ryan Herco recently added shipping software to more efficiently source products and identify preferred and low-cost trucking carriers for customers.

Headquarters: Aston, Pa.

Terry L. Taylor, President & CEO

2001 Sales: $100 million

Branches: 32

Employees: 420

www.goodallonline.com

2001 was a difficult year, primarily because of the economy, says president and CEO Terry Taylor. He expects 2002 to be better for a couple of reasons. First, Goodall is adding to its outside sales force to build a greater market presence. Second, Taylor predicts the economy will be much more cooperative during the second half of 2002. Taylor himself represents one of the biggest recent changes at Goodall. He started with the company in January, replacing longtime president Joe Mika, who resigned. Taylor most recently held the top post at Briggs-Weaver, which was acquired by Hagemeyer NA last year.

Headquarters: Portland, Me.

Thomas Mullen, President

2001 Sales: $95 million

Branches: 13

Employees: 245

www.redlon-johnson.com

Business was down at Redlon-Johnson last year due to several plant closings and layoffs, says president Thomas Mullen. Integrated supply is not part of the company's business plan, and the company did not acquire any companies last year. 'We have had to adjust [to the economy] with our own consolidation program,' Mullen says. 'I think things will be stable now and some growth is expected.' The first quarter of 2002 was up 10%. Redlon-Johnson has upgraded some computer systems but Mullen believes the Internet will continue to play the small role it has in the past for the company.

Headquarters: Charlotte, N.C.

Richard Lake, President

2001 Sales: $95 million

Branches: 45

Employees: 750-plus

www.nwsco.com

Headquarters: Burnaby, British Columbia

Robert MacPherson, President and CEO

2001 Sales: $94.2 million

Branches: 45

Employees: 325

www.bearings.com

Headquarters: Schaumburg, Ill.

Joseph Romanowski, President

2001 Sales: $83 million

Branches: 5

Employees: 110

www.machsys.com

Headquarters: Mississauga, Ontario

Farrokh Khalili, President and CEO

2001 Sales: $81.5 million

Branches: 32

Employees: 350

www.canadianbearings.com

Headquarters: San Antonio, Texas

Anthony H. Koch, President

2001 Sales: $80 million

Branches: 5

Employees: 400

www.aiwnet.com

Headquarters: Memphis, Tenn.

A. Lee Mulkey, President

2001 Sales: $80 million

Branches: 24

Employees: 300

www.purchasedparts.com

Headquarters: Sunnyvale, Calif.

Joseph Nettemeyer, President and CEO

2001 Sales: $79.8 million

Branches: 3

Employees: 79

www.valin.com

Headquarters: Saginaw, Mich.

Barbara Mahar Lincoln, CEO

2001 Sales: $79 million

Branches: 7

Employees: 130

www.mahartool.com

Headquarters: Louisville, Ky.

Jerry Nickter, President

2001 Sales: $79 million

Branches: 11

Employees: 251

www.orrsafety.com

Headquarters: Greensboro, N.C.

Pete Cross, President

2001 Sales: $77 million

Branches: 8

Employees: 220

www.crossco.com

Headquarters: Largo, Fla.

Chuck Losh, President

2001 Sales: $73.6 million

Branches: 10

Employees: 230

www.aimsupply.com

Headquarters: Menomonee Falls, Wis.

Rick Star, President

2001 Sales: $73.5 million

Branches: 6

Employees: 132

www.engman-taylor.com

Headquarters: Ann Arbor, Mich.

Dilip K. Mullick, President

2001 Sales: $72 million

Branches: 1

Employees: 105

www.ewie.com

Headquarters: Pittsburgh, Pa.

Andy Lewis, CEO

2001 Sales: $71.7 million

Branches: 12

Employees: 225

www.lewis-goetz.com

Headquarters: Windsor, Ontario

Wes Delnea, President

2001 Sales: $71 Million

Branches: 6

Employees: 190

www.wfsltd.com

Headquarters: Greensboro, N.C.

Rod Lee, President

2001 Sales: $65.2 million

Branches: 23

Employees: 203

www.tencarva.com

Headquarters: King of Prussia, Pa.

William S. Vail, CEO

2001 Sales: $65 million

Branches: 2

Employees: 108

www.deaconind.com

Headquarters: St. Thomas, Ontario

Paul La Chance, CEO

2001 Sales: $64.2 million

Branches: 23

Employees: 322

www.meyermercer.com

Headquarters: St. Paul, Minn.

Jim Landes, President & CEO

2001 Sales: $63.8 million

Branches: 9

Employees: 170

www.powermation.com

Headquarters: Macon, Ga.

Andrew H. Nations, President

2001 Sales: $63.7 million

Branches: 30

Employees: 340

www.bearingsdrives.com

Headquarters: Columbus, Ohio

Philip Derrow, President and CEO

2001 Sales: $63 million

Branches: 13

Employees: 256

www.otpnet.com

Headquarters: Red Hill, Pa.

Edgar L. Stauffer, President

2001 Sales: $62 million

Branches: 3

Employees: 115

www.stauffersafety.com

Headquarters: Oklahoma City, Okla.

David Ragland, CEO

2001 Sales: $60 million

Branches: 6

Employees: 150

www.deco.com

Headquarters: Farmington Hills, Mich.

Gary Zatkoff, President

2001 Sales: $57.5 million

Branches: 8

Employees: 168

www.zatkoff.com

Headquarters: Baltimore, Md.

Otis Dufrene, President and CEO

2001 Sales: $56.6 million

Branches: 14

Employees: 290

www.induscogroup.com

Headquarters: Sheffield, Ala.

Don Ruggles, CEO

2001 Sales: $56.2 million

Branches: 18

Employees: 205

www.martinsupply.com

Headquarters: Philadelphia, Pa.

Barry Bickman, President and CEO

2001 Sales: $56 million

Branches: 3

Employees: 200

www.arbill.com

Headquarters: St. Albans, W. Va.

Richard Sinclair, President

2001 Sales: $56 million

Branches: 10

Employees: 320

www.jefferds.com

Headquarters: Dallas, Texas

Terry W. Shaver, President

2001 Sales: $55 million

Branches: 7

Employees: 125

www.abatix.com

Headquarters: Tulsa, Okla.

David J. Hancin, President

2001 Sales: $55 million

Branches: 11

Employees: 230

www.samsonind.com

Headquarters: Dallas, Texas

R.C. Womack, Chairman

2001 Sales: $54 million

Branches: 4

Employees: 140

www.womack-machine.com

Headquarters: Marlboro, Mass.

Edward Kaufman, President and CEO

2001 Sales: $51.1 million

Branches: 15

Employees: 205

www.hardwarespecialty.com

Headquarters: South Bend, Ind.

Dennis Hulth, President

2001 Sales: $51 million

Branches: 16

Employees: 206

www.mittler.com

Headquarters: Port Arthur, Texas

Joseph P. Drago, President and CEO

2001 Sales: $50.5 million

Branches: 8

Employees: 190

www.dragosupply.com

Headquarters: Flint, Mich.

Scott Shively, President

2001 Sales: $47.6 million

Branches: 1

Employees: 78

www.shivelybros.com

Heatquarters: Wichita, Kans.

Nick Onofrio, President

2001 Sales: $47.2 million

Branches: 3

Employees: 150

www.gtmidwest.com

Headquarters: Columbus, Ohio

Patrick McCurdy, Jr., President

2001 Sales: $47 million

Branches: 2

Employees: 545

www.kimballmidwest.com

Headquarters: Houston, Texas

Gary Cartright, President

2001 Sales: $46 million

Branches: 8

Employees: 130

www.pipingequipment.com

Headquarters: Birmingham, Ala.

Howard Tinney, President

2001 Sales: $45 million

Branches: 7

Employees: 230

www.bhamfast.com

Headquarters: Charlotte, N.C.

Clifton B. Vann, President

2001 Sales: $45 million

Branches: 10

Employees: 150

www.lhtech.com

TOP 10 ELECTRICAL DISTRIBUTORS

Headquarters: St. Louis, Mo.

Robert A. Reynolds, Chairman

2001 Sales: $4.8 billion

Branches: 276

Employees: 9,400

www.graybar.com

NYSE: WCC Headquarters: Pittsburgh, Pa.

Roy Haley, Chairman and CEO

2001 Sales: $3.7 billion

Branches: 350

Employees: 5,677

www.wescodist.com

Headquarters: Skokie, Ill.

Robert Grubbs, CEO

2001 Sales: $3.1 billion

Branches: 103Employees: 5,000

www.anixter.com

Headquarters: Westlake Village, Calif.

Keith W. Colburn, Chairman and CEO

2001 Sales: N/A

Branches: 440+

Employees: 5,500

www.cedcareers.com

Headquarters: Saint-Laurent, Quebec

Dick Waterman, Senior VP, USA

Dominique Cateau, Senior VP, Canada

2001 Sales: $2.97 Billion

Branches: 1,039

Employees: 14,259

www.rexel.com

Headquarters: Shelton, Conn.

W.L. Meddaugh, President

2001 Sales: $2.4 billion

Branches: 150Employees: 2,200

www.gesupply.com

Headquarters: Berwyn, Pa.

Richard Worthy, President

2001 Sales: $1.4 billion

Branches: 156

Employees: 4,000

www.sonepar-us.com

James Etheredge, President

Headquarters: E. Dubuque, Ill.

2001 Sales: $609 million

Branches: 109

Employees: 1,450

www.cesco.com

Headquarters: Madison Heights, Mich.

David Beattie, President

2001 Sales: $500 million

Branches: 26

Employees: 930

www.mc-mc.com

Headquarters: Carol Stream, Ill.

S.J. Riordan, President

2001 Sales: N/A

Branches: 30Employees: 800+

www.gocsc.com

Industrial Distribution's Top 100 list, complete with contact information, is available on disc. For more information, call (617) 558-4504.

www.inddist.com