Posted January 21, 2010
ISA members see signs of growth
A recent survey conducted by the Industrial Supply Association shows that companies in the industrial supply industry are beginning to see an increase in business.
More than half of the respondents in a survey of distributors, manufacturers and independent manufacturer representatives conducted in early January said their business has increased in the past 30 days. Respondents differ on how to interpret the uptick in business, however.
Asked if the increase in activity is a sign the recession is ending or a result of inventory replenishment, 28.5% of the respondents said the increase is a sign the recession is ending, while 36.8% attributed the increase to replenishment of depleted inventories. The remaining respondents did not experience an increase in business activity.
“I believe the recession is ending, but we still have a long road until business is fully back,” according to one distributor.
“The increase is a small step moving forward, but I think 2010 will have months that go up and months that go down. Most of my customers do not see a major change until 2011,” said another distributor respondent.
The increase in business activity is more prevalent among manufacturing companies than among distributors or manufacturer reps. 61.4% of manufacturers report an increase in the past 30 days, compared to 47.2% for distributors and 25% for manufacturer reps.
“While there has been an increase in activity and I believe the recession is ending, we are going to move very cautiously when it comes to increasing inventories or personnel. Just because the recession has ended doesn't indicate we are in for big growth,” said a manufacturer.
