SUPPLIER  Industry Sales

4Q 2013, Year-End 2013 Industry Sales Report

Research by ASI

On January 10, 2014, ASI® commissioned an exclusive survey to estimate the direction of industry sales among suppliers for the fourth quarter of 2013, as well as for all of 2013. 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 2014 Sales Study Report will be published in April 2014.

Methodology:

A total of 198 supplier firms responded to the survey request out of 2,333 firms invited, resulting in an 8.5% response rate. An incentive of an annual drawing for $500 was offered.

Conclusions:

  • Over one-half (55.7%) of suppliers surveyed had greater sales in 2013 than 2012, indicating an increase in sales of 5.7% over 2013. The total amount for supplier revenue in 2013 was $13.4 billion.

  • Total industry sales for 2013 were $20.5 billion, up 5.3% from 2012. Over two-thirds (67.9%) of all distributors reported an increase in sales over 2012.

  • During the fourth quarter, there was a year-over-year increase in sales among ASI supplier members of 6.0%. This is the sixteenth consecutive increase in sales vs. the corresponding quarter in the previous year.

  • Total supplier sales for the fourth quarter were approximately $4.1 billion. The net increase over Q4 2012 was $233 million.

  • Sales for all of 2014 are expected to be higher than 2013 by 69.4% of suppliers, Larger suppliers, remain especially optimistic about 2014 as over three-quarters (76.7%) anticipate higher sales.

  • Overall, suppliers are somewhat less optimistic about 2014 sales than they were about 2013 sales at this time last year. In 2013, 74.4% of suppliers thought sales for the year would be higher than 2012 sales.

  • The ASI 2013 Fourth Quarter Distributor report shows that nearly three-quarters (74.2%) of all distributors feel sales in 2014 will be higher than sales in 2013, while 85.7% of distributors ships with at least $5 million in revenue expect an increase in sales.

Detailed Findings:

Annual Change in Sales

How did your sales for all of 2013 compare to your sales in 2012?

  • Over one-half (55.7%) of suppliers indicated they had greater sales in 2013 than in 2012. The number of firms reporting an increase in sales outnumbered those reporting a decrease by more than a 2:1 margin.

    • At the end of 2012, over two-thirds (68.3%) of suppliers indicated they had greater sales in 2012 than 2011, so the percentage reporting greater sales over the prior year is down.

2013 Sales vs. 2012 Sales

How did your sales for all of 2013 compare to your sales in 2012?

  • For all of 2013, suppliers reported a total sales increase of 5.7%. Suppliers with less than $10 million in annual revenue indicated they had the higher percentage increase, 6.7% vs. 5.0% for larger suppliers

Total 2013 Sales vs. 2012 Sales

Supplier vs. Distributor Sales

Fourth Quarter 2013

  • Supplier sales for the fourth quarter of 2013 increased by 6.0%, the sixteenth consecutive quarterly increase.

  • The increase in sales for suppliers was similar to that of distributors, who had a 5.7% increase.

Industry Sales Revenue

How did your fourth-quarter 2013 sales compare to your fourth-quarter 2012 sales?

  • More than one-half (54.4%) of respondents reported an increase in sales, while 19.0% reported a decrease. The majority of suppliers reported higher sales vs. the same quarter the prior year in each of the last three quarters of 2013.

Sales Results Quarterly Comparison

How did your fourth-quarter 2013 sales compare to your fourth-quarter 2012 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, with an increase of 5.3% and 7.3%, respectively. Throughout 2013, suppliers with sales under $10 million reported a greater increase in the percentage of revenue growth.

  • Total supplier sales for the fourth quarter were approximately $4.1 billion. The net increase over Q4 2012 was $233 million.

Current quarter Sales vs. Quarter Year Ago

Forecast for 2014

How do you feel your sales for all of 2014 will compare to your sales in 2013?

  • Over two-thirds (69.4%) feel sales for 2014 will be higher than in 2013. Larger suppliers were again more optimistic with their forecast for 2013; 76.7% feel sales in 2014 will be higher than in 2013, vs. 67.6% of smaller suppliers anticipating an increase.

  • At the conclusion of 2012, nearly three-quarters (74.4%) feel sales for 2013 will be higher than in 2012. The change this year is driven by smaller suppliers, when 73.2% looked for higher sales in 2013.

  • Interesting, smaller suppliers reported greater gains than larger suppliers throughout the year, yet are less enthusiastic about 2014.

  • Among those anticipating an increase in sales over 2013, the average increase is 11.6%, while the few anticipating a decrease estimated an average decline of 18.3 %.

Forecast 2014 Sales vs. 2013 Sales