SUPPLIER  Industry Sales

4Q 2009 Industry Sales Report: Industry Sales Decline 14.2%

Research by Larry Basinait

On January 29, 2010, ASI commissioned an exclusive survey to estimate the direction of industry sales for the forth quarter among suppliers, as well as the outlook for 2010. Invitations went to ASI supplier members who were the primary contact with their company. The results of this survey will be published at www.asicentral.com.

The 1Q 2010 Sales Study Report will be published in April 2010.

Conclusions:

  • During the forth quarter, there was a year-over-year decline in sales among ASI supplier members of 14.2%. The trend throughout 2009 was smaller declining sales when compared to the same quarter prior year.

  • For the year, total industry sales fell $3.9 billion, from $19.8 billion in 2008 to 15.9 billion in 2009. Supplier revenue declined $2.4 billion.

  • Throughout the year, suppliers reported worse business results than distributors. There may be more pressure on suppliers on margin.

Detailed Findings:

Supplier vs. Distributor Sales

  • For year-to-date 2009, suppliers have consistently reported greater declines in sales than distributors when compared to the same quarter prior year

  • Suppliers reported a greater decline in sales (14.2%) vs. the same quarter prior year than distributors (9.6%).

2013 Sales vs. 2012 Sales

How did your forth quarter 2009 sales compare to your forth quarter 2008 sales?

  • Sales for the forth quarter of 2009 decreased by 14.2%.

  • Nearly one-half (48%) of respondents reported a decrease in sales, the smallest proportion in 2009, and part of a three quarter trend of smaller declines.

  • One third reported an increase in sales for the forth quarter 2009 vs. one year ago, also part of a three quarter trend. That’s up 15 percentage points from the second quarter 2009 findings (18%).

2013 Sales vs. 2012 Sales

How did your forth quarter 2009 sales compare to your forth quarter 2008 sales? (Continued)

  • Both larger (more than $10 million in sales) and smaller (less than $10 million in sales) suppliers reported smaller declines in sales as compared to the second quarter.

2013 Sales vs. 2012 Sales By company size

How do you feel your sales for all of 2010 will compare to your sales in 2009?

  • Larger and smaller suppliers were very consistent in their forecast for 2010. Nearly three-quarters (72%) felt sales in 2010 will be higher than sales in 2009.

2013 Sales vs. 2012 Sales

Methodology:

A total of 191 supplier firms responded to the survey request out of 2,350 firms invited, resulting in a 7.8% response rate. An incentive of a drawing for $250 was offered.

Larger suppliers were over-sampled in order to estimate total industry revenue and trends.