Lockport, NY — NetPlus Alliance, a North American industrial and contractor supplies buying group, reports continued optimism among its members for 2018 in its quarterly Industry Outlook, based on second-quarter results. Thirty-nine percent of distributor members expect sales growth of more than 8 percent for the rest of 2018, and another third expect growth of at least 3 percent.
Members’ optimism for the year is reflected in NetPlus’s growth in purchases between distributors and suppliers in the first half of the year of 31 percent, with particular strength in the second quarter. Purchases growth was 37 percent in the second quarter. This surge in growth comes after a strong year in 2017, where the group saw a year-over-year increase of 10.7 percent.
While the general strength of the economy is contributing to the growth, NetPlus members also reported making strategic moves that are giving them an edge.
“Distributors cited several recurring themes including taking on a new product line, adding a new salesperson, increased activity with nearly all customers, strength of the oil, manufacturing and construction segments, and landing new accounts,” said Dan Judge, NetPlus Alliance founder and author of the quarterly NetPlus Industry Outlook report.
About a third of NetPlus members cited product diversification as the reason for their optimism in 2018. NetPlus continues to add new suppliers to help distributor members diversify their offering to sell more to existing customers and expand into new markets. In addition, at NetPlus’s Annual Meeting in Arizona in October, distributors will strengthen these channel relationships and uncover new opportunities by meeting face to face with NetPlus preferred suppliers.