SUPPLIER  Industry Sales

4Q 2011 Industry Sales Report: Industry Sales Increase 5.4%

Research by Larry Basinait

On January 11, 2012, ASI commissioned an exclusive survey to estimate the direction of industry sales among suppliers for the fourth quarter of 2011, as well as for all of 2011. Invitations went to ASI supplier members who were the primary contact with their company. A panel was set up that included large suppliers in the industry.

The 1Q 2012 Sales Study Report will be published in April 2012.

Methodology:

A total of 167 supplier firms responded to the survey request out of 2,350 firms invited, resulting in a 7.1% response rate. An incentive of an annual drawing for a $500 gift card was offered.

Conclusions:

  • During the fourth quarter, there was a year-over-year increase in sales among ASI supplier members of 5.4%. This is the eighth consecutive quarterly year-over-year increase in sales (measuring each quarter’s sales against its corresponding quarter the previous year).

  • Total supplier sales for the fourth quarter were approximately $3.6 billion, up $185 million over sales in the fourth quarter of 2010.

  • Over two-thirds (68%) of suppliers surveyed had greater sales in 2011 than 2010, indicating an increase in sales of 7.1% over 2010. The total amount for supplier revenue in 2011 was $12.2 billion.

  • Sales for all of 2012 are expected to be higher than 2011 by three-quarters (75%) of suppliers.

Detailed Findings:

Supplier vs. Distributor Sales

  • Supplier sales for the fourth quarter of 2011 increased by 5.4%, the eighth consecutive increase.

  • The increase in sales for suppliers was smaller than for distributors, who had a 6.5% increase in the quarter. This was a change, as suppliers have reported marginally higher increases in revenue than distributors for the prior seven quarters.

2013 Sales vs. 2012 Sales

How did your fourth-quarter 2011 sales compare to your fourth-quarter 2010 sales?

  • Over one-half (56%) of respondents reported an increase in sales, while 24% reported a decrease. This suggests a net increase in industry sales for the quarter.

2013 Sales vs. 2012 Sales By company size

How did your fourth-quarter 2011 sales compare to your fourth-quarter 2010 sales? (Continued)

  • Both larger (more than $10 million in sales) and smaller (less than $10 million in sales) suppliers reported increases in sales as compared to the corresponding quarter from the prior year. Smaller suppliers posted a greater increase in sales.

  • Total supplier sales for the fourth quarter were approximately $3.6 billion, up $185 million over sales in the fourth quarter of 2010.  

4Q '13 Sales vs. 4Q '12 Sales

How did your sales for all of 2011 compare to your sales in 2010?

  • Over two-thirds (68%) of suppliers indicated they had greater sales in 2011 than 2010. The number of firms reporting an increase in sales outnumbered those reporting a decrease by almost a 3:1 margin.

 alt=

How did your sales for all of 2011 compare to your sales in 2010? (Continued)

    • For all of 2011, suppliers reported a total sales increase of 7.1%. Suppliers with less than $10 million in annual revenue indicated they had the higher percentage increase, 8.7% vs. 6.1%.

2013 Sales vs. 2012 Sales

How do you feel your sales for 2012 will compare to your sales for all of 2011?

      • Three-quarters (75%) of supplier respondents feel their sales revenue in 2012 will surpass their sales revenue of 2011.

2013 Sales vs. 2012 Sales