On the Move - Supply House Times
Transcription
On the Move - Supply House Times
Supply House Times 125 2013 PREMIER On the Move Annual PHCP survey shows another year of positive industry growth. >> By John McNally [email protected] T he trek back up the mountain continues. For the third-straight year, the PHCP industry saw an overall total sales increase according to companies responding to Supply House Times’ Premier 125 survey. The annual survey, conducted by Supply House Times and BNP Media Market Research, ranks the top 125 PHCP wholesalers by their reported sales for the past year. The survey is based on sales for fiscal 2012 and individual company sales are not disclosed. The 2013 survey shows 81% of companies reported an increase in sales, a slight increase from 2012 (80%). This fell short of the 90% of wholesalers who responded in 2012 that they expected to increase sales in 2013. Distributors reported a total just under $51 billion in sales during 2012, up from nearly $43 billion in 2011. 18 SUPPLYHOUSE TIMES May 2013 “2012 was good and I see 2013 as being a little better,” stated Greg Brown, vice president of Pontiac, Mich.-based Hodges Supply. Winston-Salem, N.C-based Murray Supply, featured in the May 2012 issue of Supply House Times as part of the 2012 Premier 125 presentation, reported another strong year and sees more prosperous opportunities in its marketplace during 2013. “We anticipate 2013 being another up year for us and we expect to outperform the local market,” CEO Charlie Murray said. “Many of the initiatives we’ve been working very hard on the past few years are starting to bear fruit and we’re seeing nice growth opportunities. Commercial construction in North Carolina is still pretty flat, but we seem to be growing market share.” Sales Trends The Rankings For Premier 125 (Year-To-Year Comparison And Projection) 2011 vs. 2012 Sales (Projected) 3% 8% 90% Decreased sales in 2012 Flat sales in 2012 Increased sales in 2012 (Due to some companies not responding to this question and internal data rounding, this number does not equal 100%.) 2011 vs. 2012 Sales (Actual) 9% 9% 81% Decreased sales in 2012 Flat sales in 2012 Increased sales in 2012 (does not add to 100% due to rounding) 2012 vs. 2013 Sales (Projected) 1% 8% 88% Decreased sales in 2013 Flat sales in 2013 Increased sales in 2013 Don’t know (does not add to 100% due to rounding) Source: Supply House Times/ BNP Media Market Research 2013 $500 million or more $50 million - $99.9 million $100 million - $499.9 million $49.9 million and under % of Business Showrooms Employees P&H PVF HVACR Newport News State/ Province Branches VA 1300 275 18000 48% 12% Rank Company City 1 Ferguson Enterprises 25% 2 *HD Supply Atlanta GA NA NA NA NA NA NA 3 MRC Global Houston TX 400 0 4750 0% 85% 0% 4 Watsco Coconut Grove FL 573 0 4600 0% 0% 100% 5 *Wilson Houston TX NA NA NA NA NA NA 10% 6 WinWholesale Dayton OH 531 131 4212 52% 14% 7 *Interline Brands Jacksonville FL NA NA NA NA NA NA 8 *Emco London Ontario NA NA NA NA NA NA 9 Johnstone Supply Portland OR 371 371 3300 4% 0% 96% 10 *Hajoca Ardmore PA NA NA NA NA NA NA NA 11 *Edgen Murray Baton Rouge LA NA NA NA NA NA 12 F.W. Webb Bedford MA 78 35 1600 30% 30% 30% 13 R.E. Michel Glen Burnie MD 243 0 1712 11% 0% 87% 14 Morrison Supply Fort Worth TX 84 31 1143 65% 2% 15% 15 *Groupe Deschenes N/A Quebec 0 0 0 NA NA NA 16 Kelly Pipe Santa Fe Springs CA 17 0 295 0% 100% 0% 17 Industrial Piping Specialists Tulsa OK 11 0 285 0% 100% 0% 18 Coburn Supply Beaumont TX 49 24 920 38% 28% 27% 19 Keller Supply Seattle WA 69 24 N/A 65% 20% 15% 100% 20 Mingledorff’s Norcoss GA 34 34 400 0% 0% 21 *Bartle & Gibson Edmonton Alberta NA NA NA NA NA NA 22 Famous Enterprises Akron OH 33 10 600 25% 15% 50% 12% 23 First Supply Madison WI 29 13 500 52% 25% 24 N.B. Handy Lynchburg VA 17 0 334 0% 0% 51% 25 Gustave A Larson Pewaukee WI 45 43 375 2% 0% 98% 26 Columbia Pipe & Supply Chicago IL 22 0 367 11% 80% 8% 27 *Pace Supply Rohnert Park CA 0 0 0 NA NA NA 94% 28 Temperature Equipment Lansing IL 31 0 330 5% 1% 29 Slakey Brothers Elk Grove CA 24 3 306 38% 0% 62% 30 Thos. Somerville Upper Marlboro MD 22 9 381 55% 27% 18% 31 Standard Plumbing Supply Sandy UT 0 0 0 NA NA NA 32 *Bakersfield Pipe & Supply Bakersfield CA 0 0 0 NA NA NA 1% 33 Etna Supply Grand Rapids MI 16 0 287 53% 1% 34 Goodin Company Minneapolis MN 12 12 399 55% 20% 20% 35 Consolidated Supply Portland OR 18 11 300 70% 30% 0% 36 Peirce-Phelps Philadelphia PA 16 0 250 0% 0% 95% 37 Sid Harvey’s Garden City NY 79 79 400 0% 0% 100% 38 GW Berkheimer Portage IN 27 1 340 0% 0% 100% 39 Koch Air Evansville IN 7 7 185 0% 0% 100% 40 The Granite Group Concord NH 26 13 340 73% 15% 11% 41 Trumbull Industries Warren OH 6 4 250 45% 40% 0% 42 The Macomb Group Sterling Heights MI 15 0 270 5% 95% 0% 43 Century A/C Supply and Air Management Supply Houston TX 22 21 216 2% 0% 97% 44 *Irr Supply Centers N. Tonawanda NY 0 0 0 NA NA NA 45 Northeastern Supply Baltmore MD 32 3 0 70% 0% 30% 46 City Pipe & Supply Odessa TX 5 0 84 0% 90% 10% 47 Aces A/C Supply Houston TX 19 19 165 0% 0% 100% 48 *Century Holdings Houston TX 0 0 0 NA NA NA 49 Johnson Supply Houston TX 23 0 250 0% 0% 100% Keys To Rankings: P&H = plumbing and hydronics PVF = pipe, valves and fittings; municipal waterworks; PVF controls HVACR = heating, air conditioning, refrigeration and controls NA = Not Available * Editors’ estimate All sales ranked in U.S. dollars Source: Supply House Times/BNP Media Market Research 2013 www.supplyht.com 19 2013 Premier 125 The Rankings $500 million or more $50 million - $99.9 million $100 million - $499.9 million $49.9 million and under % of Business Rank Company City State/ Province Branches Showrooms Employees P&H PVF HVACR 50 Auer Steel & Heating Supply Milwaukee WI 0 176 0% 79% 6 51 Hirsch Pipe & Supply Van Nuys CA 15 2 247 90% 5% 0% 52 Cregger Company Columbia SC 29 12 196 70% 0% 30% 53 Central Supply Indianapolis IN 4 3 165 45% 30% 0% 54 Connor Co. Peoria IL 23 13 230 55% 5% 35% 55 Express Pipe & Supply Santa Monica CA 13 1 200 95% 5% 0% 56 General Plumbing Supply Edison NJ 13 8 220 75% 5% 20% 57 Plumb Supply Co. Des Moines IA 17 11 226 43% 29% 28% 58 Behler-Young Grand Rapids MI 15 0 184 5% 0% 95% 59 American Refrigeration Supplies Phoenix AZ 31 31 185 0% 0% 100% 60 Robertson Heating Supply Alliance OH 29 5 249 48% 5% 44% 61 The Portland Group North Billerica MA 12 4 177 69% 14% 14% 3% 62 JH Larson Co. Plymouth MS 8 4 220 15% 2% 63 O’Connor Company Lenexa KS 6 0 128 0% 0% 100% 64 Munch’s Supply New Lenox IL 7 0 170 5% 0% 95% 65 Puget Sound Pipe and Supply Kent WA 8 0 115 0% 100% 0% 66 Farnsworth Wholesale Mesa AZ 4 1 175 60% 20% 20% 95% 67 Refrigeration Sales Valley View OH 1 12 136 0% 0% 68 *Colonial Commerical Hawthorne NJ NA NA NA NA NA NA 69 Robert-James Sales Buffalo NY 9 0 140 0% 100% 0% 70 Young Supply Chesterfield MI 17 17 164 0% 0% 95% 71 Crawford Supply Morton Grove IL 19 10 162 68% 0% 7% 72 Independent Pipe & Supply Canton MA 7 0 104 10% 85% 5% 73 All-Tex Pipe & Supply Dallas TX 6 0 122 0% 100% 0% 74 Rampart Supply Colorado Springs CO 3 2 185 79% 21% 0% 75 Kenny Pipe & Supply Nashville TN 9 2 175 85% 15% 0% 76 APR Supply Lebanon PA 29 7 241 32% 12% 56% 77 Pacific Plumbing Supply Seattle WA 17 4 150 95% 5% 0% 30% 78 Aaron & Company Piscataway NJ 7 4 177 50% 19% 79 S.W. Anderson Sales Farmingdale NY 9 0 120 3% 0% 95% 80 Apex Supply Dallas TX 15 8 128 60% 20% 10% 81 Harry Cooper Supply Springfield MO 3 3 154 39% 5% 7% 82 Eastern Industrial Supplies Greenville SC 13 0 185 15% 85% 0% 83 Plumbing Distributors Lawrenceville GA 7 6 136 95% 0% 0% 84 Porter Pipe and Supply Addison IL 3 1 110 12% 82% 3% 85 Todd Pipe & Supply Anaheim CA 4 0 110 100% 0% 0% 86 Vinita OK 10 3 110 15% 0% 35% Waterbury CT 12 7 135 80% 10% 10% 88 C&L Supply Torrco (formerly Torrington Supply) Supply New England Attleboro MA 16 7 131 60% 10% 15% 89 Lee Supply Indianapolis IN 12 9 160 81% 0% 19% 87 90 Security Supply Selkirk NY 12 7 140 73% 17% 8% 91 Gateway Supply Columbia SC 13 8 132 60% 5% 30% 92 Hinkle Metals & Supply Birmingham AL 11 11 98 0% 0% 95% 93 American Metals Springfield IL 7 0 80 0% 0% 100% 94 Wool Plumbing Supply Sunrise FL 7 7 110 100% 0% 0% 95 WM F. Meyer Aurora IL 7 3 93 100% 0% 0% 96 Lute Supply Portsmouth OH 14 3 106 10% 5% 80% 97 AC Pro (formerly MSI HVAC) Fontana CA 5 5 170 0% 0% 100% 98 Murray Supply Winston-Salem NC 6 1 103 35% 50% 5% 99 Western Water Works Supply Chino Hills CA 6 0 57 0% 100% 0% Keys To Rankings: P&H = plumbing and hydronics PVF = pipe, valves and fittings; municipal waterworks; PVF controls HVACR = heating, air conditioning, refrigeration and controls NA = Not Available Source: Supply House Times/BNP Media Market Research 2013 20 16% SUPPLYHOUSE TIMES May 2013 * Editors’ estimate All sales ranked in U.S. dollars Specialty group performance There were no major changes in the Top 20 companies, but sales increased for each of those 20 companies. In terms of market sector, HVACR saw the biggest improvement. In 2011, the survey showed nearly $6.5 billion in total HVACR sales, but in 2012 the survey reveals that number rocketed to $10.5 billion. Some companies noted HVACR was a primary focus throughout the year. “We achieved in excess of 10% growth in 2012 from the prior year,” said Tony LoRosso, general manager of Spring Valley, N.Y.-based Ramapo Wholesalers. “Recently, we have taken a much more aggressive approach in the development of our HVAC business. We are anticipating a minimum growth of 15% for 2013.” The Premier 125 survey shows the plumbing and hydronics market experienced a slight downturn in sales to $7.1 billion in 2012 from just more than $7.3 billion in 2011. Also, the PVF industry saw a decrease in 2012 with responding companies registering $12.5 billion in total sales, down from $13.9 billion. “There was a large lack of commercial activity through Q3 and Q4 of 2012,” said Rogers Earl Jr., president and CEO of Elkins, W.Va.-based Valley Supply Co. “We have seen it break free in one market area (Q1) and expect more commercial starts in late Q2 and early Q3.” Survey results show a slight increase in companies with total annual sales that range from $50 million to $99.9 million (rising from 35 to 38). The was a decrease in the number of smaller scale distributors ($34.9 million & under), going from 19 companies in 2011 to 11 companies in 2012. Large-scale companies with sales of $500 million or more rose to 15 in 2012, up from 14 in 2011. Sales for companies in that volume range were more robust in 2012. “We experienced another double-digit growth year of 12% and have expectations for a double-digit growth expansion in 2013,” Cregger Co. President Morris Cregger said. The Rankings $500 million or more $50 million - $99.9 million $100 million - $499.9 million More of the same in 2013 The streak of sales increases is expected to continue when this survey comes out again in 2014. Distributors are excited for another strong year in 2013. This time, 88% of survey responders expect sales to increase in 2013, while another 8% say sales will stay flat. In 2012, wholesalers worried about how business would be shaped by November elections. This year, distributors did not note any major red flags. “Our 2012 was up over 2011 and we are expecting our 2013 to be up over 2012 in all three divisions,” says Jack Stapley, a vice president partner of Mesa, Ariz.-based Farnsworth Wholesale. “We are encouraged by the signs we see in the economy. Goodbye to the past five years. Hello and welcome to the next five years.” Major news from 2012 • Respected industry veteran Morris Beschloss joined Supply House Times as a columnist and was honored with the 2012 Fred V. Keenan Lifetime Achievement Award at NetworkASA 2012 in October. • HD Supply sold its industrial PVF business to Shale-Inland Holdings, an affiliate of investment firms Tower-Brook Capital Partners and The Stephens Group. • Ferguson acquired New York City-based Davis & Warshow in a stock transaction. • American Standard named Jay D. Gould as its new president and CEO. • Briggs Plumbing Products management team, led by Bob Robison and Chuck Dockery, purchased the company from its Chile-based parent company Cisa. Briggs is now a fully-owned American company. •Affiliated Distributors promoted Jack Templin to president of its industrial supply division. Jeffrey S. Beall was appointed president of PHCP divisions. • WinWholesale acquired Kansas City, Kan.-based Midwest Industrial Sales and rebranded it Kansas City Winfastener Co. The company also opened a new facility in Bismarck, N.D., called Bismarck Winnelson. It’s the company’s fourth location in North Dakota. Distribution centers also were opened in Middletown, Conn., and Aurora, Colo. $49.9 million and under % of Business Rank Company City State/ Province Branches Showrooms Employees P&H PVF HVACR 100 Acme Refrigeration & Kaiser Supply Baton Rouge LA 17 0 107 0% 0% 100% 101 Wholesale Supply Group Cleveland TN 35 35 250 53% 0% 13% 102 Central States Group Omaha NE 4 0 71 0% 100% 0% 103 George T.Sanders Company Wheat Ridge CO 14 1 130 85% 10% 5% 104 Republic Plumbing Supply Norwood MA 9 5 120 60% 10% 30% 105 Robinson Supply Fall River MA 7 4 98 10% 0% 90% 106 Riback Supply Columbia MO 21 3 160 41% 5% 35% 107 *VAMAC Richmond VA 0 0 0 NA NA NA 108 Metropolitan Pipe & Supply Cambridge MA 1 1 68 50% 50% 0% 109 Worly Plumbing Supply Columbus OH 4 4 85 95% 4% 1% 0% 110 Collins Pipe & Supply East Windsor CT 7 0 65 0% 100% 111 WSM Industries Wichita KS 6 0 176 0% 0% 75% 112 Dealers Supply Forest Park GA 15 5 130 0% 0% 100% 113 Illco Aurora IL 8 8 90 15% 20% 65% 114 Best Plumbing Tile & Stone Somers NY 4 4 90 5% 5% 10% 115 M Cooper Supply Mokena IL 1 1 68 45% 45% 5% 116 JABO Supply Huntington WV 4 2 82 20% 70% 10% 117 Central Plumbing Specialties/ Grande Central Showrooms of NY Yonkers NY 4 4 70 50% 20% 20% 118 City Plumbing & Electric Supply Gainesville GA 8 7 110 60% 0% 0% NA 119 *A&M Industrial Rathway NJ 0 0 0 NA NA 120 Eastern Pennsylvania Supply Wilkes Barre PA 10 4 103 30% 17% 24% 121 Columbia Specialty Long Beach CA 5 1 85 10% 90% 0% 122 Bergen Industrial Supply Elmwood Park NJ 1 0 58 0% 90% 0% 123 Mid-City Supply Elkhart IN 6 6 73 30% 25% 40% 124 Consumers Pipe & Supply Fontana CA 4 0 48 0% 100% 0% 125 Reeves-Wiedeman Kansas City MO 18 0 75 80% 20% 0% Keys To Rankings: P&H = plumbing and hydronics PVF = pipe, valves and fittings; municipal waterworks; PVF controls HVACR = heating, air conditioning, refrigeration and controls NA = Not Available * Editors’ estimate All sales ranked in U.S. dollars Source: Supply House Times/BNP Media Market Research 2013 Premier 125 NOTES Some interesting numbers from the 2013 Premier 125 survey results: • The state with the most Premier 125 companies? It’s a tie between Texas and California with 11 each. Illinois was next with 10. • Ferguson leads the way with the most branches (1,300) and employees (18,000). No.3 Watsco has the second-most branches with 573 and MRC Global reports the second-most employees at 4,750. • Ferguson is the total sales leader in the Plumbing & Hydronics market followed by WinWholesale. • MRC Global is the top sales leader in the PVF market followed closely by Ferguson. • Watsco leads the way in total sales among HVACR companies for 2012, followed by Portland, Ore.based Johnstone Supply. www.supplyht.com 21 2013 Premier 125 Segment Leaders Plumbing & Hydronics Pipe-Valves-Fittings HVACR 1 Ferguson Enterprises 1 MRC Global 1 Watsco 2 WinWholesale 2 Ferguson Enterprises 2 Johnstone Supply 3 Morrison Supply 3 Kelly Pipe 3 Ferguson Enterprises 4 F.W.Webb 4 Industrial Piping Specialists 4 R.E. Michel 5 Coburn Supply 5 WinWholesale Inc. 5 Mingledorff’s 6 First Supply 6 F.W.Webb 6 F.W.Webb 7 Consolidated Supply 7 Columbia Pipe & Supply 7 WinWholesale 8 The Granite Group 8 The Macomb Group 8 Gustave A Larson 9 Express Pipe & Supply 9 City Pipe & Supply 9 Temperature Equipment 10 Thos. Somerville 10 Coburn Supply Company 10 Sid Harvey’s 11 Hirsch Pipe & Supply 11 Puget Sound Pipe and Supply 11 GW Berkheimer 12 Northeastern Supply 12 Robert-James Sales 12 Koch Air 13 Goodin Company 13 All-Tex Pipe & Supply 13 Peirce-Phelps 14 Etna Supply 14 Independent Pipe & Supply 14 Famous Enterprises 15 General Plumbing 15 First Supply 15 16 Cregger Company 16 Eastern Industrial Supplies Century A/C Supply and Air Management Supply 17 Pacific Plumbing Supply 17 Trumbull Industries 16 Aces A/C Supply 18 R.E. Michel 18 Porter Pipe and Supply 17 Johnson Supply 19 Slakey Brothers 19 Thos. Somerville 18 N. B. Handy 20 The Portland Group 20 Western Water Works Supply 19 Slakey Brothers 21 Kenny Pipe & Supply 21 Central States Group 20 American Refrigeration Supplies 22 Trumbull Industries 22 Consolidated Supply 21 Morrison Supply 23 Todd Pipe & Supply 23 Collins Pipe & Supply 22 Behler-Young 24 Famous Enterprises 24 Famous Enterprises 23 O’Connor Company 25 Rampart Supply 25 Central Supply 24 Coburn Supply 26 Plumbing Distributors 26 Goodin Company 25 Auer Steel & Heating Supply 27 Johnstone Supply 27 Plumb Supply 26 Munch’s Supply 28 Connor Co. 28 Consumers Pipe & Supply 27 Refrigeration Sales 29 Crawford Supply 29 Young Supply 30 Wool Plumbing Supply Columbia Specialty Company 28 29 S.W. Anderson Sales 31 WM. F. Meyer 30 Bergen Industrial Supply 30 Hinkle Metals & Supply 32 Farnsworth Wholesale 31 JABO Supply 31 AC Pro 33 Torrco (formerly Torrington Supply) 32 Murray Supply 32 Acme Refrigeration & Kaiser Supply 33 Metropolitan Pipe & Supply 33 APR Supply 34 Central Supply 34 The Granite Group 34 Robertson Heating Supply 35 Lee Supply 35 Raritan Group 35 Dealers Supply 36 Robertson Heating Supply 36 Farnsworth Wholesale 36 Lute Supply 37 Plumb Supply 37 Rampart Supply 37 Robinson Supply 38 Security Supply 38 M Cooper Supply 38 Connor Co. 39 Apex Supply 39 Industrial Piping Systems 39 Northeastern Supply 40 Worly Plumbing Supply 40 Cooney Brothers 40 Cregger Company 41 George T.Sanders 41 Aaron & Company 41 Thos. Somerville 42 Supply New England 42 Apex Supply 42 WSM Industries 43 Aaron & Company 43 The Portland Group 43 Goodin Company 44 Gateway Supply 44 Morrison Supply 44 Plumb Supply 45 Republic Plumbing Supply 45 Kenny Pipe & Supply 45 First Supply 46 Harry Cooper Supply 46 Barry Company 46 Illco 47 Wholesale Supply Group 47 Security Supply 47 Thrifty Supply 48 APR Supply 48 APR Supply 48 C&L Supply 49 Metropolitan Pipe & Supply 49 Illco 49 Aaron & Company 50 Columbia Pipe & Supply 50 Interstate Pipe & Supply 50 General Plumbing Supply * Editors’ estimate All sales ranked in U.S. dollars Source: Supply House Times/BNP Media Market Research 2013 22 SUPPLYHOUSE TIMES May 2013 • Uponor named Bill Gray president of Uponor North America. • MRC Global opened a new distribution center in Cheyenne, Wy. The facility has a 12-acre pipe yard, an 80,000-sq.-ft. warehouse, 5,000 sq. ft. of office space and a 4,000-sq.-ft. automation shop. • Northwest Pipe Co. started expansion on its manufacturing facility in Saginaw, Texas, which included improvements to its mill and the opening of two new buildings. • Wisconsin-based distributor W.A. Roosevelt joined forces with Dakota Supply Group. • The Forte Buying Group announced its own private-label fixture line and a new software program for members’ virtual showrooms. • F.W. Webb President Jeff Pope and Columbia Pipe & Supply President Tim Arenberg were added to the Affiliated Distributors Board of Directors. • Central States Industrial Supply named Todd Ford its new president and CEO. • M. Cooper Supply appointed Greg Goode CEO. • Wisconsin-based First Supply opened the first Kohler Signature Store in the Minneapolis-St. Paul suburb of Edina. The store is the first to be solely owned and operated by an independent wholesaler. • Your ‘other’ Warehouse relocated its business operations to Atlanta from Baton Rouge, La. • PVF Outlook, a new publication sponsored by the American Supply Association, debuted in June with a total circulation of 20,000. • A.Y. McDonald appointed Rob McDonald president and CEO. • MRC Global and Shell agreed to a five-year global enterprising framework agreement for distribution of valves and automation services. • Ihrie Supply named David Price president. • Global Pipe Supply broke ground on a new, 62-acre pipe yard near the company’s Houston headquarters. • Cooney Brothers President and CEO Marion Cooney Valaro retired and President of Sales Gerry Cooney was selected to succeed Valaro. • Texas Pipe & Supply opened a new 40,000-sq.-ft. warehouse and 18-acre pipe yard in Charlotte, N.C. • Richard Blackman, chairman of Blackman Plumbing Supply, died Sept. 19, 2012. • Beaumont, Texas-based Coburn Supply was honored as Supply House Times’ 2012 Supply House of the Year. • Morrison Supply acquired the showroom assets of Shreveport, La.-based Kitchen Design Group, EnidOkla.-based Enid Supply and Dixie Utility Supply of Texarkana, Texas. << 2013 Premier 125 Combined Sales For Premier 125 (in billions of dollars) $49.1 $42.9 $41.7 $51.0 $35 2008 2009 Voices in the industry (Note: 2008-2010 surveys considered 150 companies. Starting in 2011, the survey now lists the top 125 companies. Average per company in 2012 was $406 million). 2010 2011 COMBINED SALES thoughts from wholesalers Some other FOR THE PREMIER 150 regarding the 2012 fiscal year and expectations in (IN2013. BILLIONS OF DOLLARS) Some survey responders chose to remain anonymous, but their comments are included to $53.5 add additional insight into the current state of the $41.2 $39.8 industry. $35.1 2012 Source: Supply House Times/BNP Media Market Research 2013 All sales in U.S. dollars $29.6 Consolidation Update 14 13 2008 2009 2010 2011 $100 to $199.9 Number of Premier Companies Number of Premier Companies 15 15 14 2012 38 29 2008 0 2008 1 0 2009 2010 2011 Number of Premier Companies Number of Premier Companies 1 53 2008 2012 27 2010 2011 2 2009 1 2010 2011 Number of Premier Companies 2 2009 2008 2012 38 2012 “2012 started out strong and ended on somewhat of a downturn. 2013 will be a crapshoot. We have high hopes and continue to position ourselves for growth.” – Industry source. 2009 23 22 2010 2011 9 8 5 2009 2010 2011 6 2012 12 7 2008 Source: Supply House Times/BNP Media Market Research 2013 SUPPLYHOUSE TIMES “We feel like we’ve bounced off the bottom and that our certain strategic efforts over the last five years are beginning to pay off. We plan to further optimize and fine-tune our operation again this year and intend to build on a good 2012.” – Industry source. 20 2012 2003 2006 2007 “The 2005 past fiscal year was interesting. Sales increased overall, but there were large swings in Source: Supply House Times/Clear Seassales. Research/BNP 2007to be a month-to-month MarginsMedia continue 19 challenge and we were fortunate enough to keep ours about even. So much (for 2013) is going to hinge on when money is released by the state 11 and local governments to fund the projects on the books and how comfortable the banks will be lending to private investors.” – Industry source $34.9 & under Number of Premier Companies Number of Premier Companies 35 2010 2011 27 24 “Last year continued to be a second healthy year of recovery from the economic fall, but we anticipate the pace of growth will slow and/or we may see some additional economic obstacles challenge growth later in 2013.” – Industry source. 52 23 $200 to 299.9 2008 (IN BILLIONS OF DOLLARS) 32 1 9 “The Southeast continued its climb from the downturn in 2009 and growth is projected to continue in the first half of 2013.” – Kip Miller, 2012 2008 2009 2010 2011 2012 MARKET SHAREEastern Industrial Supplies president and CEO. U.S. AND CANADA $35 to $49.9 6 Number of Premier Companies 31 44 $300 to $399.9 2008 2009 Source: Supply House Times/Clear Seas Research/ BNP Media 2007 Note: All dollars converted to U.S. 32 $50 to $99.9 $400 to $499.9 2 “2012 was a tough year on margins. Industrial business is on the rise. 2013 will see more industrial growth and some mid-rise $51.0 construction $49.1 $42.9 $41.7 in Chicago.” – Jim Porter, and Supply 2003 2004 2005 Porter 2006 Pipe2007 $35 president. (by millions of dollars) $500 & over May 2013 $72.8 R 2009 2010 2011 2012 2004