SUPPLIER  Industry Sales

4Q 2012, Year-End 2012 Industry Sales Report

Research by ASI

On January 10, 2013, ASI® commissioned an exclusive survey to estimate the direction of industry sales among suppliers for the fourth quarter of 2012, as well as for all of 2012. 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 results of this survey will be published in Counselor® PromoGram® and on ASICentral.com.

The 1Q 2013 Sales Study Report will be published in April 2013.

Methodology:

A total of 203 supplier firms responded to the survey request out of 2,339 firms invited, resulting in an 8.7% response rate. An incentive of an annual drawing for $500 was offered.  

Conclusions:

  • Over two-thirds (68.3%) of suppliers surveyed had greater sales in 2012 than 2011, indicating an increase in sales of 4.9% over 2011. The total amount for supplier revenue in 2012 was $12.8 billion.

    • Total industry sales for 2012 were $19.4 billion, up 5.2% from 2011. Two-thirds (65.8%) of all distributors reported an increase in sales over 2011.

  • During the fourth quarter, there was a year-over-year increase in sales among ASI supplier members of 4.8%. This is the twelfth consecutive increase in sales vs. the corresponding quarter in the previous year.

  • Distributors are fairly optimistic about sales for 2013, particularly the largest distributors. More than two-thirds (67.1%) of all distributors feel sales for 2013 will be higher than sales in 2012. The largest distributors were the most bullish on 2013, with 72.1% anticipating increased sales.

  • Total supplier sales for the fourth quarter were approximately $3.9 billion. The net increase over Q4 2011 was $176 million.

  • Sales for all of 2013 are expected to be higher than 2012 by 74.4% of suppliers. Larger suppliers, who have fared the best over the last two years, remain especially optimistic about 2013.

    • Overall, suppliers are more optimistic about 2013 sales than they were about 2012 sales at this time last year. In 2012, only 62.1% of suppliers thought sales for the year would be higher than 2011 sales.

    • Distributors were also fairly optimistic about sales for 2013. More than two-thirds (67.1%) of all distributors feel sales for 2013 will be higher than sales in 2012. The largest distributors were the most bullish on 2013, with 72.1% anticipating increased sales.

  • Detailed Findings:

    How did your sales for all of 2012 compare to your sales in 2011?

    • Over two-thirds (68.3%) of suppliers indicated they had greater sales in 2012 than 2011. The number of firms reporting an increase in sales outnumbered those reporting a decrease by almost a 3:1 margin.

    2013 Sales vs. 2012 Sales

    How did your sales for all of 2012 compare to your sales in 2011?

    • For all of 2012, suppliers reported a total sales increase of 4.9%. Suppliers with less than $10 million in annual revenue indicated they had the higher percentage increase, 7.2% vs. 3.3% for larger suppliers.

    2013 Sales vs. 2012 Sales By company size

    Supplier vs. Distributor Sales
     Fourth Quarter 2012

    • Supplier sales for the fourth quarter of 2012 increased by 4.8%, the twelfth consecutive quarterly increase.

    • The increase in sales for suppliers was similar to that of distributors, who had a 5.1% increase.  

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

    How did your fourth-quarter 2012 sales compare to your fourth-quarter 2011 sales?

    • Fewer than one-half (47.5%) of respondents reported an increase in sales, while 25.1% reported a decrease. The proportion of suppliers reporting an increase fell three straight quarters in 2012, down from 58.8% in the second quarter and 53.5% in the third quarter.

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How did your fourth-quarter 2012 sales compare to your fourth-quarter 2011 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. However, during the fourth quarter, larger suppliers reported a greater increase in sales (5.2%) than smaller suppliers (4.2%). For the first three quarters of 2012, smaller suppliers reported higher revenue percentage increases.

  • Total supplier sales for the fourth quarter were approximately $3.9 billion. The net increase over Q4 2011 was $176 million.

2013 Sales vs. 2012 Sales

How do you feel your sales for all of 2013 will compare to your sales in 2012?

  • Nearly three-quarters (74.4%) feel sales for 2013 will be higher than in 2012. Larger suppliers were again more optimistic with their forecast for 2013; 78.6% feel sales in 2013 will be higher than in 2012, vs. 73.2% of smaller suppliers anticipating an increase.

  • Overall, suppliers are more optimistic about 2013 sales than they were about 2012 sales at this time last year. Only 62.1% of suppliers thought sales for 2012 would be higher than 2011 sales, with only 59.0% of smaller suppliers forecasting increased yearly sales.

  • Among those anticipating an increase in sales over 2012, the average increase is 11.6%, while the minority anticipating a decrease estimated an average decline of 13.7%.

2013 Sales vs. 2012 Sales