In a departure from tradition, Industrial Distribution is not presenting its annual 50 Outstanding Small Distributors listing this year. Instead, this issue is dedicated to reporting on the concerns facing small distributors and what these distributors are doing to cope with this challenging and changing environment.

At the close of the last century, disintermediation, e-commerce and integrated supply were all the buzz and some forecasters presaged the end of small distributors. Conversely, many small distributors are thriving by developing niches for themselves and by providing unmatched innovative service.

Small distributors are facing many challenges today including the current state of the economy and the challenge presented by larger distributors — but even the largest national distributors couldn't absorb all of the business represented by this sector.

Our cover story features PRC Industrial Supply, Inc., a small distributor of hose and industrial belting which has made its own niche in the coastal regions of Maine. Despite the cooling industrial climate in that area, PRC president Dick Hall says the company's position is stronger than it was 20 years ago.

In April 2001, INDUSTRIAL DISTRIBUTION conducted a survey of small distributors. In this special report, we present the results from that survey. We also conducted interviews with small distributors on their three biggest concerns and include highlights from those interviews.

Finally, we have an address from W. Scott Parrish, president of the Industrial Distribution Assn., with his perspective on the role of small distributors in today's industry.