NetPlus Alliance distributor members remain optimistic about 2024 full-year revenue. But despite favorable activity, some distributors report tempered outlooks due to election uncertainty, poor economy, high interest rates, inflation and a general slowing of business, according to the latest NetPlus Alliance Industry Outlook, a quarterly report based on a survey of NetPlus members.
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“The future is always uncertain,” said NetPlus Alliance President and CEO Jennifer Murphy. “However, our members are hard at work growing their businesses, reorganizing sales teams, improving operations and expanding geographically.”
The NetPlus Alliance Industry Outlook tracks business results and industrial and contractor supply market trends. The latest quarterly survey was completed in July 2024, and the outlook was based on 2024 second-quarter results.
The survey results indicated overall marketplace optimism, including 26% of NetPlus Alliance distributors reported 8% or higher gains in the second quarter of 2024 compared to the same period in 2023 and 28% reported moderate gains of 3 to 7%.
Two-thirds of respondents expect full-year sales gains in 2024. For the quarter, distributor purchases from NetPlus suppliers were up 13.1%, and year-to-date purchases were up by more than 10%.
Members reported their top three opportunities over the next 12 months include:
- Product diversification (38%)
- New talent (32%)
- Operational improvements (32%)
NetPlus Alliance negotiates improved pricing, rebates and terms with more than 200 manufacturers on behalf of 415 industrial and contractor supplies distributor members.
