Supplier INDUSTRY SALES

1Q 2014 Industry Sales Report: Industry Sales Increase 4.8%

Research by Nathaniel Kucsma

In April 2014, ASI® commissioned an exclusive survey to estimate industry sales for Q1 2014. The industry outlook for 2014 was also included in the study. Invitations went to ASI distributor members who were the primary contact with their firms and had been in business at least one year. The results of this survey will be published in Counselor PromoGram®, on ASICentral.com and in multiple external media outlets.

A total of 122 supplier firms responded to the survey. The response numbers were likely negatively impacted as the Counselor State of the Industry survey was conducted the week before.

Key Findings:

  • More than half of suppliers (54%) reported a year-over-year increase (Q1 2014 vs. Q1 2013) in sales.

    • About one in five reported a decline (21%), with the remaining (25%) reporting that sales were about the same.

  • The average growth was at 4.8%, which is down from Q4 2013 (6.0%), but equal to Q2 2013.

    • After a very strong second half of the year in 2013, the Q1 2014 growth rate appeared to be more in-line with historical trends.

    • Growth rates for suppliers were lower than for distributors in Q1 2014, after being greater than them in the previous two quarters, indicating that supplier strength in the 2nd half of 2013 may have been a leading indicator for distributor growth in the first quarter of 2014.

  • Seven in ten suppliers expect their 2014 full-year sales to be greater than their 2013 full-year sales.

    • In contrast to distributors, smaller revenue distributors with $10 million or less in annual sales are even more bullish about 2014, with over 74% expecting an increase in sales.

    • Only 55% of suppliers with over $10 million in sales are expecting 2014 to be better than 2013. Most of the others are expecting sales to remain about the same.

Q1 2014 Sales vs. Q1 2013 Sales

  • In total, more than half of suppliers reported a year-over-year increase in first-quarter sales.

  • Larger revenue suppliers reported somewhat more positive results than smaller ones.

Q1 2014 Sales vs. Q1 2013 Sales

Q1 2014 Sales vs. Q1 2013 Sales

  • More than one-half of suppliers report an increase in year-over-year sales, with about one in five reporting a decline in Q1 2014 sales compared to Q1 2013 sales.

Industry Sales Revenue - Suppliers

  • Growth rates in Q1 for suppliers were at 4.8%, below that of the last two quarters, but similar to the first two quarters of 2013.

  • Despite the down quarter, the moving average for supplier year-over-year growth is on a slight uptick, and is over 5%.

  • Suppliers with $10 million or less in annual sales are growing at a faster rate than are those with over $10 million in sales.

Industry Sales Revenue - Suppliers

  • Growth rates in Q1 for suppliers were at 4.8%, below that of distributors and down from the last two quarters.

Industry Sales Revenue - Distributors and Suppliers

 

  • Suppliers with $10 million or less in annual revenues are expecting a somewhat better year than those with more than $10 million in revenues.

  • Larger suppliers are much more likely to report that they expect their 2014 sales to remain about the same as 2013.

Forecast of 2014 sales vs. 2013 sales