Selling to the energy sector, a surge in international sales, growth through acquisition and a strong economy helped this year's Big 50 distributors achieve some remarkable revenue increases in 2006.

As our special report on page 32 shows, any distributor who sold to oil rigs or the petrochemical industry saw some excellent returns and they expect another strong year in 2007.

In addition, many distributors set the stage for increased sales with major purchases in 2006 and late 2005. Hose distributor Lewis-Goetz, for example, celebrated the first full year of its Goodall Rubber acquisition, as did WinWholesale with Noland Co. Both Big 50 companies said the acquisitions far exceeded their expectations in terms of sales gains.

Motion Industries expanded its product offering and geographic reach with the purchase of Lewis Supply, while Kaman Industrial Technologies continued its branch expansion program with new outlets in Canada and Mexico. Fastenal, meanwhile, opened an astounding 245 locations in 2006 and said it will continue that expansion in 2007.

W.W. Grainger increased sales through its branch expansion initiative in the United States and continues to roll out the program. Grainger also celebrated the opening of its master branch in Shanghai, and the company is looking for continued growth overseas.

Another Big 50 executive told us he intends to make five or six acquisitions this year and in early 2008 as his company looks to expand its product lines.

“There are plenty of opportunities out there and we see some definite purchases for us,” he said.

One of the big questions surrounding this year's Big 50 is the future of HD Supply. Will it be sold? Several suitors are reportedly waiting in the wings, although HD executives say they still haven't decided whether to sell. Here's betting it will be.

We're also hearing reports that overseas investors are looking to buy U.S. distribution businesses.

We've been doing our Big 50 report for many years, and each year there has been a 15 percent to 20 percent turnover due to industry consolidation. Time will tell if that trend will continue next year.

jkeough@reedbusiness.com