The fourth quarterBaird Industrial Distribution Surveyindicates the industrial economy is in recession. On average, respondents’ fourth quarter revenues were down significantly, with increased pricing offsetting unit volume declines. Expectations are for continued declines through 2009, though the trajectory should not be as severe as it was in recent weeks, which were negatively impacted by abnormal holiday closures.
Survey DetailsBaird’s Industrial Distribution Research Team, led by Senior Research AnalystDavid Manthey, CFA, collected feedback on fourth quarter results from nearly 300 independent and captive distributors with combined annual revenue in excess of $30 billion. Key survey findings include:
- Inventory decreased with revenue but is
to some extent seasonal;
- 73% of respondents reported seeing affects of the credit crisis vs. 54% last quarter.
For more information on the survey, e-mail MantheySurvey@rwbaird.com or call David Manthey at (813) 274-7630.