NetPlus Alliance, one of the fastest growing buying groups in the industrial distribution business, is celebrating its fifth anniversary. Founded in September 2002, the Lockport, N.Y.-based group has 345 industrial and contractor supply members throughout the United States and Canada that generate more than $4 billion in annual sales. More than 130 manufacturers and wholesalers support the distributor members of NetPlus.

Last year, distributor members received more than $1 million in rebates, according to NetPlus officials, and suppliers saw sales grow by 18 percent, even after subtracting growth from the addition of new distributors during the year.

The founder and head of the group, Dan Judge, has 30 years' experience as both the owner of an industrial supply company and manager of several smaller buying groups. He says NetPlus Alliance is filling a void in the marketplace.

“It was obvious to me that there was a fairly large segment of the industrial supply market that was unable, for one reason or another, to take advantage of a buying group,” Judge said. “I wanted to develop a business model that allowed them to maintain control of their business, but still deliver a strong value to them—and do it at a fair price so that they would give it a try.

“I think in the end, everyone is pleasantly surprised with the results.”

A one-time registration fee is required to join NetPlus Alliance and there are no annual fees or dues.

The buying group recently expanded its operations and moved into its new office space, which is 50 percent larger than its previous location. Upgrades to both its computer infrastructure and Web site are planned for early next year.