Why This Matters to Distributors: Industrial and contractor supply distributors continue to outperform broader economic expectations, with demand from data center construction and infrastructure projects offsetting higher energy costs and weather-related disruptions. The survey points to continued resilience across the sector entering the second half of the year.
Industrial and contractor supply distributors entered 2026 with solid sales momentum and expect growth to continue throughout the remainder of the year, according to a new quarterly survey from NetPlus Alliance.
The buying group’s first-quarter industry outlook found that purchases by member distributors from NetPlus suppliers and wholesalers increased nearly 20% compared with the first quarter of 2025, reflecting continued strength across industrial and contractor supply markets.
The survey of 122 distributor members, conducted in April, found that 65% reported first-quarter sales increased at least 3% from a year earlier. Within that group, 40% said sales rose 8% or more. Another 17% reported flat sales, while 18% said sales declined.
Distributor sentiment remained overwhelmingly positive for the balance of the year.
77% of respondents expect sales to increase at least 3% in 2026. Among those, 41% forecast growth of 8% or more, up 11 percentage points from the previous quarterly survey. Another 18% expect sales to remain in line with 2025, while just 4% anticipate lower sales.
Respondents cited several market trends influencing business conditions during the first half of the year. Data center construction projects continued to generate new sales opportunities as distributors supplied products supporting artificial intelligence infrastructure and power expansion projects.
At the same time, distributors said severe winter weather delayed construction activity in several regions, while higher oil and gas prices increased operating costs.
“The NetPlus community continues to make the most of the opportunities before them, collaborating strategically to open doors and grow together,” said Jennifer Murphy, president and chief executive officer of NetPlus Alliance.
In addition to sales expectations, the quarterly report examined distributors’ adoption of value-added services, enterprise resource planning systems and technology challenges, although NetPlus did not release detailed findings on those topics.
NetPlus Alliance represents approximately 400 industrial and contractor supply distributors and negotiates purchasing programs with more than 220 manufacturers.
The results suggest industrial distributors continue to benefit from healthy end-market demand despite lingering economic uncertainty. Continued investment in data centers, manufacturing and infrastructure projects is helping offset regional construction slowdowns and higher operating costs, positioning many distributors for another year of growth.
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