Why It Matters to Distributors: Distributors said they are focusing on a mix of traditional and emerging strategies to improve profitability.
Industrial and contractor supply distributors finished 2025 with positive results and are entering 2026 with expectations for continued growth, according to a new survey from NetPlus Alliance.
The group’s quarterly Industry Outlook, based on a January 2026 survey of members reflecting fourth-quarter 2025 performance, shows gains in both purchasing activity and sales across much of the sector.
Member purchases from NetPlus suppliers and wholesalers rose 8% in the fourth quarter and 9.4% for the full year, exceeding $600 million, the organization said.
Sales results were mixed but skewed positively. About 25% of respondents reported fourth-quarter sales increases of 3% to 7% compared with a year earlier, while 38% reported gains of 8% or more. Another 25% said sales were flat, within 2% of the prior year. Just under 12% reported declines of 3% or more.
Most distributors expect those trends to continue. The survey found that 81% of respondents anticipate sales will increase by at least 3% in 2026, including 30% projecting gains of 8% or more. Another 16% expect sales to remain in line with 2025, while fewer than 2% forecast declines.
The report also includes benchmarking data on gross margin, operating expenses, inventory turnover, average collection period and sales per employee, based on self-reported results from members.
Distributors said they are focusing on a mix of traditional and emerging strategies to improve profitability. Those include adding sales staff, expanding into new markets and product categories, and growing existing customer relationships. Some respondents also cited investments in digital self-service capabilities and internship programs.
“NetPlus distributor members continue to demonstrate their commitment to strategic growth with our supplier partners year over year,” said Jennifer Murphy, president and chief executive of NetPlus Alliance. “I’m looking forward to supporting our members as they work toward their 2026 goals, now equipped with updated benchmarking tools.”
The results point to a distribution sector that is stabilizing after several years of disruption tied to inflation, supply chain constraints, and uneven demand.
Most distributors are planning for moderate growth rather than rapid expansion, with an increased emphasis on managing margins, improving productivity, and using data to guide decision-making. At the same time, continued investment in digital tools and customer self-service reflects ongoing changes in how buyers interact with distributors.
The outlook suggests that execution — not just growth — will be the primary focus for distributors in 2026.
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