90 years strong

Industrial Distribution celebrates its 90th anniversary with a look back through time

By -- Industrial Distribution, 1/1/2001

For 90 years, Industrial Distribution has delivered constant, reliable coverage of the industrial distribution industry.

As ID celebrates this milestone, the industry is beginning a new century that is sure to bring changes that will forever alter the distribution landscape. Rest assured, ID will be right here throughout those changes, offering you key industry perspectives and practical tips for meeting the challenges ahead.

"ID has always been a how-to magazine, offering readers tips for meeting the challenges taking place in the distribution environment," says editor/associate publisher Jack Keough, who has been with the publication since 1987. "We've always tried to offer readers answers to questions like 'How do you set up an inside sales force?' 'How do you choose the right computer system' or 'Do you have to specialize?'... We're trying to serve the needs of the industrial distributor by providing him with the information necessary to make timely and intelligent decisions that will affect his profitability."

Here's a look at just a few of the issues and industry developments that ID-in its various manifestations-has covered over the years:

1911-20: With great fanfare, Mill Supplies Magazine, now Industrial Distribution, was launched. The magazine billed itself "devoted to the interests of jobbers and manufacturers of the mill, steam, mine and machinery supplies." The first editions of Mill Supplies mention issues that will continue to plague the industry: nationwide political, commercial, domestic and racial unrest; imports and world markets; suppliers selling direct to the end user; price discrimination and more. What truly marks this period are the great late-19 ^th century technological developments that give birth to the 20th century's Golden Age of Technology: There is no shortage of products for distributors to sell as new inventions and improved products pour into the marketplace.

1921-30: The magazine covered the effort of distributors and manufacturers to settle their differences by setting sail in 1927 on a four-day "Peace Cruise" of the Great Lakes aboard the SS Noronic. The Triple Convention-a joint meeting of the National and Southern Industrial Distributors Assns. and the American Supply & Machinery Manufacturer's Assn.-had been cancelled the previous year due to disagreements between distributors and manufacturers. The magazine also covered the effect of the stock market crash in 1929 on the distribution industry, which reported only receiving 35 percent of industrial supply purchases.

1931-40: With the ensuing Great Depression, Mill Supplies reported in 1933 that distributors' sales had plummeted to a new low of 31.4 percent and expense ratios jumped from 20.77 percent in 1929 to 32.26 percent in 1932. Despite the demise of many supply houses, the magazine reported an interesting phenomenon: since manufacturers could not afford to sell direct, distributors began to capture a favored position and earn increased recognition from manufacturers.

1941-50: In December of 1941, Japan bombs Pearl Harbor, and U.S. enters WWII, which puts pressure on distributors to meet the increased need for products. Mill Supplies releases its 1st Annual Survey of Distributor Operations in 1947. The report shows that in 1947 total sales exceeded $2.8 billion-a 20 percent increase from 1946 and nearly 3.5 times more than national sales reported in prewar 1939. Mill Supplies is renamed Industrial Distribution in 1949. The war years create a fervent market for industrial supplies. During the war years, Mill Supplies averages anywhere from 160 to well over 200 advertisers per issue.

1951-60: The distribution industry continues its staggering growth during the 1950s. Industrial Distribution reports on trends in the industry including the classification of distributors by four distinct service concepts, the increased importance of sales training, the wide acceptance of incentive pay for salesmen, the formation of new national distribution associations, and the establishment of industrial distribution as a major academic discipline.

1961-70: The term "high tech" first appears in the pages of ID when, as early as mid-1961, the magazine examines installations of primitive computers in distributorships. Trends such as reduced inventories, volume prices and stockless purchasing mark the continued growth and consolidation of distribution as the industry matures. ID notes the considerable concern displayed over the spread of foreign competition among distributor-sold goods. The industry continues to grow, with sales topping $14 billion by 1970.

1971-80: In 1974, ID's 28th Annual Survey of Distributor Operations reveals that nearly 70 percent of survey respondents are already using computers, either in-house or through external service centers. The economy sags in the 1970s, which ID reports puts pressure on sales and profits. As a result of the turmoil in the economy, new industry associations continue to appear. In addition, ID gives considerable coverage to the issue of lower-priced imports flooding the American market.

1981-90: Computers and operations advancements in telecommunications, telemarketing, electronic order processing, bar coding, just-in-time, robotics and more become reality for distributors. Distributors also become fixtures on Wall Street, with 83 publicly held American distributors being reported in 1983. ID reports that the cost of the typical industrial sales call zoomed to a new high of $204 in the mid-80s, causing distributors to opt for more in-house sellers. Mergers and acquisitions ramp up in the mid-80s, creating new super-distributors expanding sales across traditional boundaries.

1991-2000: ID covers industry trends including integrated supply, mergers, the Internet and technology gains. At the end of the decade, distributors nervously prepare for the effects of the Year 2000 computer bug-resulting in limited stock piling of inventory-which, in turn, has little effect on the industry. A torrid stock market and high distributor valuations spark rapid consolidation during the mid 90s, but that trend slows at the end of the decade as stock prices and valuations dive. The strong national economy has distributors scrambling to attract and retain quality employees at the end of the decade. In 1995, ID launched its Web site, www.inddist.com, to provide distributors with breaking news and interactive opportunities.

Throughout the past 90 years, the challenges faced by industrial distributors have been covered by Industrial Distribution with one emphasis, according to former chief editor George Berkwitt: to help the distributor increase his productivity and profit. "The distributor is a very, very astute guy and he's not going to read what's not helpful for him ... It's always been a matter of profit: how to improve your operation to make sure you're going to make a profit, how to outsell your competition."

ID's long-standing tradition of helping its readers improve business practices will continue, Keough says, just as the basic goals and functions of many third-generation distributorships remain unchanged.

"Distribution is still a small community and we consider the magazine to be like a small-town newspaper," Keough says. "We strive to be an outlet for distributors to learn from one another as well as to learn from experts in the field. Through readership studies and contact with readers at industry conventions, we'll continue to make sure we're meeting the needs of our readers."