AD Independents Grow Above Market Rate

In the first six months of 2012, AD members hired 1,226 new employees and opened 41 new branches . . .

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Following this sales release is a Q&A with Bill Weisberg, CEO of Affiliated Distributors, and Jack Templin, President of the Industrial Supply Division.

Sales for AD Affiliates grew by 12% in the first half of 2012 to $12.8 billion.

“AD independents continue to take market share in each of our industries,” says Bill Weisberg, Affiliated Distributors’ Chairman & CEO. “We outpaced general industry growth by an average of three points and by as much as 5 points.  We are proud of the value our members bring to their customers, suppliers and communities.  It’s clear that the market continues to reward them for it.” 

In the first six months of 2012, AD members hired 1,226 new employees on top of the 2,250 employees they hired in 2011.  Plus, they opened 41 new branches in addition to the 99 new branches opened last year. 

  • AD U.S. Electrical sales grew 11% in the first half of 2012 on a same store basis from $5.6B to $6.2B. 
  • AD Canadian Electrical sales grew 3.3% in the first half of 2012 on a same store basis from $372M to $385M.
  • AD Industrial sales grew 13% in the first half of 2012 on a same store basis from $2.2B to $2.4B. 
  • AD Plumbing & PVF sales grew 13% in the first half of 2012 on a same store basis from $2.8B to $3.1B.
  • AD HVAC sales grew 10% in the first half of 2012 on a same store basis from $1.6B to $1.8B. 

Congratulations to all independent market leaders’ growth.

This release originally appeard at http://www.adhq.com/ad-independents-grow-above-market.


Industrial Distribution: For the Industrial sector (and the PVF), growth was 13% - a fabulous number.  And this comes on the heels of Jack Templin stepping into the role of Industrial Division President earlier this year.  Are these numbers affirming of both Jack’s selection as the president?  What kinds of improvements has he made to the division since taking over the role?

Bill Weisberg: The addition of Jack Templin to the team has been positive in many ways. His passion and energy for the business is evident and his ability to build a solid team around him makes AD, and the Industrial Supply Division stronger.  One improvement Jack made, was to bring on Tom Blue as his VP of Marketing and Affiliate Relations. Tom’s decades of experience in the industry is a huge win for the AD members and suppliers.

ID: A 12% growth rate in this economy is fantastic: what major factors do you think contribute to this number for AD? What is something you are doing that is really propelling you forward?

Weisberg: The performance is largely attributable to the quality of our members and supplier partners.  AD Independents have historically outperformed the market. All of our member companies are growth oriented, this is an important part of our membership strategy and contributes to our above average growth.  Aligning ourselves with industry leading suppliers that have innovative and solutions oriented products, also contributes to our success.

Industrial Distribution: It looks like the numbers north of the border are a little off compared to those from the US proper. To what can this be attributed?

Jack Templin: The Canadian performance you reference is from our Electrical Supply Division.  AD’s VP of Canada, Electrical Division, Chris Scott, shared with me that the Canadian economy right now is being driven by oil and gas and natural resources in Western Canada, while the majority of our members are located in Central and Eastern Canada. However, we expect our Clean Energy Program to help bolster the sales of Canadian Electrical Affiliates this year.  While the Industrial Supply Division doesn’t report out separately on Canada, our growth numbers are roughly the same for both countries.

ID: In light of this success, what will AD continue doing well and what do you plan to do even better in the next six months?

Templin: There is always a lot going on at AD and the next 6 months are no different! We will continue to focus on the things that have always made AD successful; Improving the profitability of our members and supplier partners, and providing opportunities for our members and suppliers to network and share best practices.  These represent core elements of our organization and are never more evident than at our North American Meeting (which will be held October 14-17 in Las Vegas).  A tremendous amount of effort goes into making the North American Meeting as productive as possible for our members and suppliers.  In addition, we will be investing in relationships with our members and supplier partners. Developing stronger relationships with our members and suppliers allows us to better understand their opportunities and challenges. This enables us to work together to create plans and strategies to capitalize on the opportunities and overcome the challenges.

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