More than two-thirds of distributors in the NetPlus Alliance buying group reported sales growth in the first half of the year, and nearly half posted year-over-year gains of at least 8%, according to the group’s second-quarter Industry Outlook report.
NetPlus officials said Thursday that of the 121 distributors participating in the July survey, 69% reported at least 3% increases in first-half sales year-over-year, and 47% reported growth of 8% or higher over that span. Just over one-fifth reported “steady” first-half sales, and 10% indicated that sales had declined in the first six months.
The report pointed to data center projects, which are “driving business for several members,” and other construction initiatives getting “back on track after previously reported delays” as bright spots in recent months.
And despite the challenges posed by rising oil and gas prices — and their impact on goods and freight costs — NetPlus members overwhelmingly expect their annual sales to be up this year: 84% believed their sales would be up at least 3% for the full year, and of those, 45% anticipated year-over-year sales growth of at least 8%. Roughly 13% of respondents expected “steady” sales between last year and this year, and 4% forecasted a decline in sales; just one distributor, the group noted, anticipated a drop of 8% or more.
Member purchases from NetPlus suppliers and wholesalers were also up 20% year-over-year in the second quarter, the group said.
“In a quickly evolving industry and economic landscape, NetPlus Alliance members continue to focus on the fundamentals of relationship building, accountability and collaborative growth,” NetPlus Alliance President and CEO Jennifer Murphy said in a statement.
