The majority of distribution industry companies spent 2022 enjoying a tidal wave of business as the economy rebounded on post-pandemic pent-up demand.
For many, double-digit growth was the inevitable result of high volumes and the price increases that followed inflationary pressures. Fast forward one year, and the 2023 numbers are in: did distributors fare as well?
It’s clear that the Big 50 List this year, in which we rank industrial distributors based on their 2023 performances, is a bit more varied. Many maneuvered through uneven end markets: costs continued to rise, while customers reached a breaking point on price increases.
The escalator may have stopped, but there was still a set of stairs to climb. We saw many companies incrementally grow, with a few who actually blew 2022 out of the water. Perhaps most importantly, we saw just a handful of them go backwards.
Tellingly, the companies on our Big 50 List are moving forward despite any short-term roadblocks they may have encountered last year. Instead of retreating with the soft categories that supported them, we heard from many a story of growth: heavy acquisition activity, product line expansions, new branches, executive hires – all the things that change the tenor to create the exact right kind of “humming along” for each business.
Although many saw big years without major acquisitions, dozens of other distributors on this year’s list have also been active on the mergers and acquisitions front — with some exciting developments that will alter the shape of Big 50 lists to come.
