SAMPLE REPORT. Competitive Landscape for Wholesale Distribution $1, RESEARCHED & PRODUCED BY:

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1 $1, Competitive Landscape for Wholesale Distribution ANNUAL MARKET DATA, TRENDS AND ANALYSIS FOR THE NORTH AMERICAN WHOLESALE DISTRIBUTION INDUSTRY 2015 by Gale Media, Inc. All rights reserved. Material may not be reproduced in whole or in part in any form whatsoever without permission from the publisher. To request permission to copy, republish, or quote material, please call RESEARCHED & PRODUCED BY:

2 Overview 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Executive Summary This report provides a comprehensive analysis of the $5.4-trillion wholesale distribution industry in the U.S., including economic benchmarks and segmentation of vertical product channels, as well as key trends in It includes on these first two pages a high-level look at the industry, including key data and two-year growth forecasts for the industry and each of the 19 major sectors that define it. Wholesale Distribution Share of U.S. GDP (2014) Source: 2015 Economic Benchmarks for Wholesale Distribution 2015 Key Insights for Wholesale Distribution Page 2

3 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Overview ABOUT THE DATA IN THIS REPORT Modern Distribution Management compiles the data included in this report from a number of sources, including public databases, private/ proprietary databases and company-provided information. These numbers represent different aspects of the wholesale distribution industry and, as a result, are not necessarily directly comparable. The size of the wholesale distribution industry is based on sales data provided to the U.S. government from businesses that sell to retailers, contractors or other types of businesses, but not to the general public in any significant amount. It excludes revenue from manufacturers sales branches and offices. (Source: 2015 Economic Benchmarks for Wholesale Distribution) Market size estimates, as provided in the sector breakouts, are based on end-user consumption for a selection of product categories, primarily consumable products which vary by sector. These product categories are defined on page 52 and in the individual sector breakouts. These figures are inclusive of all sales channels, not limited to wholesale distribution. (Source: MDM Analytics) While these numbers may overlap, they are not directly comparable because of differences in product definitions and sales channels, as shown in the figure below. Sales Channel: Wholesale distributors Products: Durable and nondurable goods Data Source: Revenues as reported by wholesale distributors Wholesale Distribution Industry $5,400 B Source: 2015 Economic Benchmarks for Wholesale Distribution Total MDM Analytics Demand $750 B Source: MDM Analytics Total manufactured products Sales Channel: Any channel Products: 200+ MRO and OEM product classes, including industrial, safety, janitorial, electrical and construction Data Source: Estimates of end-user demand $7,400 B Source: U.S. Census Bureau Annual Wholesale Trade Report Sales Channel: Any channel Products: Durable and nondurable goods Data Source: Reported revenue Page 3

4 Overview 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Wholesale Distribution Industry Actual Year-Over-Year Revenue Growth, Source: 2015 Economic Benchmarks for Wholesale Distribution (/2015ebwd) Revenue Actual Growth and Forecast Summary - Major Sectors Source: 2015 Economic Benchmarks for Wholesale Distribution (/2015ebwd) Bolded sectors are profiled in depth later in this report. Oil and Gas Products Wholesale Distributors Grocery and Foodservice Wholesale Distributors Pharmaceutical Wholesalers Industrial Distributors (see p. 6) Electrical and Electronics Wholesalers (see p. 31) Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Computer Equipment and Software Wholesale Distributors Other Consumer Products Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Metal Service Centers Apparel and Piece Goods Wholesale Distributors Chemicals and Plastics Wholesale Distributors (see p. 44) Beer, Wine and Liquor Wholesalers Building Material and Construction Wholesale Distributors (see p. 35) Hardware, Plumbing & Heating Eqmt/Supplies Wholesalers (see p. 36) Office Product Wholesalers and Paper Merchants Furniture and Home Furnishing Wholesale Distributors Total 2014 Actual 2015 Forecast 2016 Forecast 2014 vs Page 4

5 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Overview Distribution Sector Breakouts This section includes: Trends by distribution sector The largest distributors in each sector End-market size estimates in the U.S. End-markets that consume those product groups in the U.S. Sectors covered in this section include: Sector Est. Market Demand Industrial (see note on p. 6) p. 6 Power Transmission/Bearing p. 12 Hose & Accessories p. 16 Fluid Power p. 19 Fasteners p. 22 Industrial PVF p. 25 Safety p. 28 Electrical p. 31 Building Materials/Construction p. 35 HVACR/Plumbing p. 36 Gases & Welding Equipment p. 41 Plastics p. 44 Jan-San p. 47 Electronics p. 50 About the Data in this Section Market size estimates are provided by MDM Analytics. MDM Analytics estimates market size for each of the following sectors by aggregating market data for specific product groups that fall under each sector. The product groups included are noted on each sector page. For questions on this data or MDM Analytics methodology, please call MDM Analytics at or visit www. mdm.com/analytics. The lists of the largest distributors in each sector are researched and reported as part of Modern Distribution Management s annual Market Leaders report. The 2015 Market Leaders are ranked in order of 2014 revenue size alone; no other factors were used to compile these lists. The lists reflect North American revenues where they are clearly broken out or provided by global distributors. Data for the Market Leaders lists was submitted by companies or aggregated by MDM editors using publicly available sources, including annual filings with the SEC. For companies that do not share revenue figures, MDM estimated their placements on these lists using past reported revenues, average revenue increases within sectors, data from economic reports and conversations with industry experts. Questions regarding MDM s top distributor lists can be directed to info@mdm.com or call The data and analysis on these pages are copyrighted by MDM Analytics and Modern Distribution Management, and all references to the data should cite: 2015 Competitive Landscape for Wholesale Distribution, published by Modern Distribution Management. Data should not be reproduced without written permission from the publisher. Page 5

6 Industrial 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Industrial Distribution Sector Overview Defining industrial distribution is difficult because of the diverse product categories that make up this sector. For the purpose of this report, MDM Analytics defines the market size for the following product classes*: Abrasives Chemicals Cutting Tools Fasteners MRO Fluid Power Hand Tools HVACR Industrial PVF Janitorial Supplies Machine Tool Accessories Plumbing Products Power Tools Power Transmission Rubber Products Safety Saws Welding Equipment & Gases *These products are a subsection of those included in MDM s 2015 Economic Benchmarks for Wholesale Distribution. The Industrial Sector, as defined in the EBWD, includes additional product categories not captured by the data provided by the MDM Analytics model, including capital equipment. Page 6

7 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Industrial The Top 40 Industrial Distributors Source: 2015 Market Leaders (/marketleaders) Rank Company Name 2014 REVENUE (US$ MILLIONS) 1 Wolseley Industrial Group $11,893 2 W.W. Grainger $9,965 3 HD Supply $8,882 4 Airgas $5,073 5 MRC Global Corp. $5,060 6 Motion Industries $4,771 7 The Fastenal Company $3,734 8 DistributionNOW $3,462 9 Sonepar Industrial N/A 10 MSC Industrial Supply $2, Applied Industrial Technologies* $2, WinWholesale $2, McMaster-Carr N/A 14 Edgen Murray N/A 15 Wurth Group $1, Interline Brands $1, DXP Enterprises $1, Kaman Industrial Technologies $1, ERIKS North America $ F.W. Webb $908 Rank Company Name 2014 REVENUE (US$ MILLIONS) 21 Bearing Distributors Inc. (BDI) $ The United Distribution Group $ Global Industrial $ SunSource N/A 25 Turtle & Hughes N/A 26 Wajax Industrial Components $ BlackHawk Industrial $ SBP Holdings Inc. $ AWC Inc. $ Gas And Supply Co. $ DGI Supply $ FCX Performance $ RS Hughes Co. $ Lawson Products $ Hisco $ Ryan Herco Flow Solutions $ Hydradyne N/A 38 OTP Industrial Solutions N/A 39 Kimball Midwest $ Womack Machine Supply $185 * Calendar year Total 2014 Revenues of Top 40: $ Average Growth of Top 40 in 2014: Share of Top 40 Industrial Distributor Revenues Source: 2015 Market Leaders (/marketleaders) Top 5 Industrial Distributors Top 10 Industrial Distributors Page 7

8 Industrial 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION 2015 Key Trends in Industrial Distribution Source: 2015 Market Leaders (/marketleaders) Industrial Distributor Actual Revenue Growth, Source: 2015 Economic Benchmarks for Wholesale Distribution (/2015ebwd) 10-Q1 10-Q2 10-Q3 10-Q4 11-Q1 11-Q2 11-Q3 11-Q4 12-Q1 12-Q2 12-Q3 12-Q4 13-Q1 13-Q2 13-Q3 13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 Page 8

9 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Industrial PRODUCT CATEGORY & DEFINITION The industrial product market as defined in this report is made up of the following product categories: Power Transmission Controls Gen-Indst Eqpt MRO Controls Gen-Indst PLCs MRO Controls Motor and Drive MRO Controls Variable Speed Drives MRO Bearings Ball MRO Bearings Mounted MRO Bearings Roller MRO Chain Link MRO Chain Roller MRO Clutches & Brakes MRO Couplings Flexible MRO Gear Drives & Speed Reducers MRO Linear Accessories MRO Linear Act & Positnrs MRO Sprockets MRO HVACR HVACR Maintenance/MRO HVACR New Construction Refrigeration Comml/Ind Maint Refrigeration Comml/Ind New Chemicals Adhesives MRO Paint Maintenance MRO Petro Hydraulic Oils Petro Industrial Oil & Grease Petro Metal Cutting Petro Metal Forming Petro Refined Lubricants Petro Surface Coatings Sealants MRO Fluid Power Gauges Industrial Instrument MRO Hydraulic Cylinders MRO Hydraulic Pumps-Motors MRO Hydraulic Valves-Filters-Misc MRO Pneumatic Cylinders MRO Pneumatic Valves-FRLs MRO Pumps Industrial MRO Seals Mechanical-Industrial MRO Janitorial Supplies Brushes General Maintenance Janitorial Supplies Industrial PVF PVF Metal MRO Plumbing Plumbing Maintenance/MRO Plumbing New Construction Rubber Products Pneumatic Tube & Ftgs Sheaves MRO Belting Conveyor Flat MRO Belts Transmission MRO Gaskets & Packings MRO Hose Hydraulic MRO Hose Industrial MRO O-Rings MRO Safety Safety PPE Safety Test-Eqpt and Respirators Welding Equipment and Gases Gases Industrial Welding Welding Eqp Cstn&Maint MRO Cutting Tools Tools Cutting-Carbide Tools Cutting-High Speed Steel Abrasives Abrasives Bonded Abrasives Coated Abrasives Grain Grit Shot Abrasives Super Power Tools Tools Assembly-Electrical/Electronic Tools Power-Air Tools Power-Electric Fasteners Fasteners Non-Threaded MRO Fasteners Threaded MRO Machine Tool Accessories Machine Tool Accessories Saws Saw Blades Hand Tools Tools Files Tools General Hand Tools Hand-Precision Measurement Tools Storage Page 9

10 Industrial 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Industrial Products Regional Market Analysis Source: MDM Analytics (/analytics) U.S. Industrial Product Market: $ Pacific Coastal Northwest Central Northeast Central New England Mid-Atlantic mdm.com/analytics Mountain Southwest Central Southeast Central South Atlantic States included in each of the nine U.S. regions, according to the U.S. Census Bureau: NORTHEAST CENTRAL: Illinois, Indiana, Michigan, Ohio, Wisconsin SOUTH ATLANTIC: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia SOUTHWEST CENTRAL: Arkansas, Louisiana, Oklahoma, Texas PACIFIC COASTAL: Alaska, California, Hawaii, Oregon, Washington MID-ATLANTIC: New Jersey, New York, Pennsylvania NORTHWEST CENTRAL: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota SOUTHEAST CENTRAL: Alabama, Kentucky, Mississippi, Tennessee MOUNTAIN: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming NEW ENGLAND: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont Page 10

11 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Industrial Industrial Product Consumption by 2-Digit NAICS Source: MDM Analytics (/analytics) Products are defined on page 6. NAICS2 Definition Manufacturing 23 Construction 62 Health Care and Social Assistance Retail Trade 72 Accommodation and Food Services 92 Public Administration 61 Educational Services 21 Mining, Quarrying, and Oil and Gas Extraction 54 Professional, Scientific, and Technical Services 56 Administrative and Support and Waste Management and Remediation Services 81 Other Services (except Public Administration) 42 Wholesale Trade 22 Utilities Transportation and Warehousing 53 Real Estate and Rental and Leasing 52 Finance and Insurance 51 Information 11 Agriculture, Forestry, Fishing and Hunting 71 Arts, Entertainment, and Recreation 55 Management of Companies and Enterprises Est. Consumption Top 10 U.S. End-Markets for Industrial Products (6-digit NAICS) Source: MDM Analytics (/analytics) Products are defined on page 6. NAICS6 Definition Est. Consumption Page 11

12 PT/Bearing 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Power Transmission/Bearing Sector Overview Current Trends Shaping This Sector: Source: 2015 Market Leaders (/marketleaders) The Top 10 Power Transmission/Bearing Distributors Source: 2015 Market Leaders (/marketleaders) Rank Company Name 2014 REVENUE (US$ MILLIONS) 1 Motion Industries $4,771 2 Applied Industrial Technologies $2,670 3 Kaman Industrial Technologies $1,162 4 Bearing Distributors Inc. (BDI) $672 5 Wajax Industrial Components $412 6 W.W. Grainger (Power Transmission/Motors Products) $399 7 OTP Industrial Solutions N/A 8 DXP Enterprises (Power Transmission) $210 9 IBT Industrial Solutions $ CB (formerly Canadian Bearings) N/A Page 12

13 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION PT/Bearing PRODUCT CATEGORY & DEFINITION The power transmission/bearing OEM/MRO market as defined in this report is made up of the following product categories: Power Transmission MRO Adhesives MRO Sealants MRO Controls Gen-Indst Eqpt MRO Controls Gen-Indst PLCs MRO Controls Motor & Drive MRO Controls Specialty Indst MRO Controls Variable Speed Drives MRO Gauges Industrial Instrument MRO Hydraulic Cylinders MRO Hydraulic Pumps-Motors MRO Hydraulic Valves-Filters-Misc MRO Pneumatic Cylinders MRO Pneumatic Valves-FRLs MRO Bearings Ball MRO Bearings Mounted MRO Bearings Roller MRO Chain Link MRO Chain Roller MRO Clutches & Brakes MRO Couplings Flexible MRO Gear Drives & Speed Reducers MRO Linear Accessories MRO Linear_Act &_Positnrs MRO Motors Fractional HP MRO Motors Integral HP MRO Sheaves MRO Sprockets MRO Belting Conveyor Flat MRO Belts Transmission MRO Gaskets & Packings MRO Hose Hydraulic MRO Hose Industrial MRO O-Rings MRO Seals Mechanical-Automotive MRO Seals Mechanical-Industrial MRO Power Transmission OEM Adhesives OEM Sealants OEM Controls Gen-Indst Eqpt OEM Controls Motor & Drive OEM Controls Specialty Indst OEM Controls Variable Speed Drives OEM Gauges Industrial Instrument OEM Hydraulic Cylinders OEM Hydraulic Pumps-Motors OEM Hydraulic Valves-Filters-Misc OEM Pneumatic Cylinders OEM Pneumatic Valves-FRLS OEM Bearings Ball MRO Bearings Ball OEM Bearings Mounted OEM Bearings Roller OEM Chain Roller OEM Clutches & Brakes OEM Couplings Flexible OEM Gear Drives & Speed Reducers OEM Linear_Act &_Positnrs OEM Motors Fractional HP OEM Motors Integral HP OEM Sheaves OEM Sprockets OEM Belting Conveyor Flat OEM Belts Transmission OEM Gaskets & Packings OEM Hose Hydraulic OEM Hose Industrial OEM O-Rings OEM Seals Mechanical-Automotive OEM Seals Mechanical-Industrial OEM Page 13

14 PT/Bearing 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Power Transmission/Bearing OEM/MRO Regional Market Analysis Source: MDM Analytics (/analytics) U.S. Power Transmission/Bearing OEM/MRO Market: $ Pacific Coastal Northwest Central Northeast Central New England Mid-Atlantic mdm.com/analytics Mountain Southwest Central Southeast Central South Atlantic States included in each of the nine U.S. regions, according to the U.S. Census Bureau: NORTHEAST CENTRAL: Illinois, Indiana, Michigan, Ohio, Wisconsin SOUTH ATLANTIC: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia SOUTHWEST CENTRAL: Arkansas, Louisiana, Oklahoma, Texas PACIFIC COASTAL: Alaska, California, Hawaii, Oregon, Washington MID-ATLANTIC: New Jersey, New York, Pennsylvania NORTHWEST CENTRAL: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota SOUTHEAST CENTRAL: Alabama, Kentucky, Mississippi, Tennessee MOUNTAIN: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming NEW ENGLAND: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont Page 14

15 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION PT/Bearing Power Transmission/Bearing OEM/MRO Product Consumption by 2-Digit NAICS Source: MDM Analytics (/analytics) NAICS2 Definition Manufacturing Est. Consumption 23 Construction 21 Mining, Quarrying, and Oil and Gas Extraction 22 Utilities Transportation and Warehousing 54 Professional, Scientific, and Technical Services Retail Trade 42 Wholesale Trade 92 Public Administration 81 Other Services (except Public Administration) 51 Information 56 Administrative and Support and Waste Management and Remediation Services 11 Agriculture, Forestry, Fishing and Hunting 62 Health Care and Social Assistance 61 Educational Services 53 Real Estate and Rental and Leasing 72 Accommodation and Food Services 71 Arts, Entertainment, and Recreation 52 Finance and Insurance 55 Management of Companies and Enterprises Top 10 U.S. End-Markets for Power Transmission/Bearing OEM/MRO Products (6-digit NAICS) Source: MDM Analytics (/analytics) NAICS6 End User Est. Consumption Page 15

16 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Sample Note The Power Transmission/Bearing sector sample is a general representation of how the rest of the sectors included in the full report appear. There may be variations in how the data is displayed sector to sector. *The Building Materials/Construction sector does not include estimated market demand in the U.S. or the Top 10 end markets for each product group in the U.S.

17 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Appendix MDM Analytics Product Profile Products Included in This Analysis Below are all of the products profiled by MDM Analytics. Chemicals Adhesives MRO Adhesives OEM Paint Maintenance MRO Paint OEM Paint Spray Equipment MRO Paint Spray Equipment OEM Petro Hydraulic Oils Petro Industrial Oil & Grease Petro Metal Cutting Petro Metal Forming Petro Refined Lubricants Petro Surface Coatings Sealants MRO Sealants OEM Construction Adhesives MRO Adhesives OEM Paint Maintenance MRO Paint OEM Paint Spray Equipment MRO Paint Spray Equipment OEM Petro Hydraulic Oils Petro Industrial Oil & Grease Petro Metal Cutting Petro Metal Forming Petro Refined Lubricants Petro Surface Coatings Sealants MRO Sealants OEM Controls Controls Gen-Indst Eqpt MRO Controls Gen-Indst Eqpt OEM Controls Gen-Indst PLCs MRO Controls Motor & Drive MRO Controls Motor & Drive OEM Controls Process Instruments MRO Controls Specialty Indst MRO Controls Specialty Indst OEM Controls Variable Speed Drives MRO Controls Variable Speed Drives OEM Gauges Industrial Instrument MRO Gauges Industrial Instrument OEM Monitoring Panel Equipment MRO Datacomm Computers & Peripherals OEM Computers Business MRO Computers Processing MRO DataComm Equipment MRO DataComm Equipment OEM Wire DataComm MRO Wire DataComm OEM Wire Small Diameter MRO Wire Small Diameter OEM Electrical Circuit Protection Devices MRO Circuit Protection Devices OEM Components Modules MRO Components Modules OEM Generator Set-Power Supply MRO Generator Set-Power Supply OEM Light Bulbs MRO Light Bulbs OEM Light Bulbs Transprtn MRO Light Bulbs Transprtn OEM Light Fixtures MRO Light Fixtures OEM Light-Fxtr Transprtn MRO Light-Fxtr Transprtn OEM Switchgear Equipment MRO Switchgear Equipment OEM Test Instruments Prtbl/Bench Tools Assembly-Electrical/Electronic Transformers Power MRO Page 53

18 Appendix 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION Transformers Power OEM Wire & Cable MRO Wire & Cable OEM Wire Magnet OEM Wiring Devices Current MRO Wiring Devices Current OEM Wiring Devices Non-Current MRO Wiring Devices Non-Current OEM Fluid Power Hydraulic Cylinders MRO Hydraulic Cylinders OEM Hydraulic Pumps-Motors MRO Hydraulic Pumps-Motors OEM Hydraulic Valves-Filters-Misc MRO Hydraulic Valves-Filters-Misc OEM Pneumatic Cylinders MRO Pneumatic Cylinders OEM Pneumatic Tube & Ftgs Pneumatic Valves-FRLs MRO Pneumatic Valves-FRLS OEM Material Handling Casters Industrial MRO Conveyors-Conveying Equipment Hoists Cranes & Monorails Hoists (subset of 22) Shelving Racks-Lockers-Benches Wire Rope and Slings MROP Abrasives Bonded Abrasives Coated Abrasives Grain Grit Shot Abrasives Super Brushes General Maintenance Brushes Industrial Brushes Painting/Prep Compressors Industrial All Janitorial Supplies Lubricating Equipment Machine Tool Accessories Pumps Industrial MRO Safety PPE Safety Test-Eqpt and Respirators Saw Blades Tools Cutting-Carbide Tools Cutting-High Speed Steel Tools Files Tools Hand-Precision Measurement Tools General Hand Tools Mechanics Hand (subset of 7) Tools Power-Air Tools Power-Electric Tools Storage Valves Control Valves Industrial Packaging Packaging-Adhesives Packaging-Bags Industrial Packaging-Bottles Cans&Drums All Packaging-Containers Paper Packaging-Containers Paper Specialty Packaging-Containers Plastic Packaging-Plastic Film&Sht Tape Packaging-Tape (subset of 84) Plastics Plastic Flex-Film&Sht MRO Plastic Flex-Film&Sht OEM Plastic Flex-Tube MRO Plastic Flex-Tube OEM Plastic Rigid-Sht&Plate MRO Plastic Rigid-Sht&Plate OEM Plastic Rigid-Sht&Plate Pkg Plastic Shapes-Special OEM&Pkg Plastic Shapes-Tube_Rod_Bar MRO Plastic Shapes-Tube_Rod_Bar OEM Plastic Shapes-Tube_Rod_Bar Pkg Power Transmission Bearings Ball MRO Bearings Ball OEM Bearings Mounted MRO Page 54

19 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION About Bearings Mounted OEM Bearings Roller MRO Bearings Roller OEM Chain Link MRO Chain Roller MRO Chain Roller OEM Clutches & Brakes MRO Clutches & Brakes OEM Couplings Flexible MRO Couplings Flexible OEM Gear Drives & Speed Reducers MRO Gear Drives & Speed Reducers OEM Linear Accessories MRO Linear Accessories OEM Linear_Act &_Positnrs MRO Linear_Act &_Positnrs OEM Motors Fractional HP MRO Motors Fractional HP OEM Motors Integral HP MRO Motors Integral HP OEM Sheaves MRO Sheaves OEM Sprockets MRO Sprockets OEM Rubber Products Belting Conveyor Flat MRO Belting Conveyor Flat OEM Belts Transmission MRO Belts Transmission OEM Gaskets & Packings MRO Gaskets & Packings OEM Hose Hydraulic MRO Hose Hydraulic OEM Hose Industrial MRO Hose Industrial OEM O-Rings MRO O-Rings OEM Seals Mechanical-Automotive MRO Seals Mechanical-Automotive OEM Seals Mechanical-Industrial MRO Seals Mechanical-Industrial OEM Steel Steel Alloy MRO Steel Alloy OEM Steel Carbon Bars MRO Steel Carbon Bars OEM Steel Carbon Pipe MRO Steel Carbon Pipe OEM Steel Carbon Plate MRO Steel Carbon Plate OEM Steel Carbon Sheet MRO Steel Carbon Sheet OEM Steel Carbon Tube MRO Steel Carbon Tube OEM Steel Carbon-Strctl MRO Steel Carbon-Strctl OEM Steel Stainless MRO Steel Stainless OEM Welding/Gases Gases Industrial Non-Welding Gases Industrial Welding Welding Eqp Cstn&Maint MRO Welding Eqp Production OEM MDM Analytics offers deeper levels of data on more than 200 MRO/ OEM product profiles. For more information or additional data, visit /analytics. /analytics Page 55

20 About 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION About This Report Due to slight variations in product groups included, as well as updates to the U.S. government database, data previously published by MDM on the size of the MRO market are not directly comparable to the data in this report. Market size estimates use MDM Analytics proprietary predictive modeling, which starts with a public aggregate market size estimate by product category for a given geography. MDM Analytics then uses a combination of public and private databases to allocate estimated demand to deeper geographic levels and to specific customer segments, as defined by the 6-digit North American Industry Classification System (NAICS). This approach provides a total market size estimate without regard to market channels. All estimates in this report are in U.S. dollars and represent the end-user market demand that includes an estimated average distributor margin by product category in the calculations. MDM Analytics is the data division of Modern Distribution Management. Both are owned by Gale Media, Inc. About MDM Market Leaders /marketleaders The MDM Market Leaders includes lists of the top distributors in 15 sectors. The 2015 lists are ranked in order of 2014 revenue size alone; no other factors were used to compile these lists. These lists reflect North American revenues where they are clearly broken out by the global distributors. For specific sectors, such as jan-san or safety, where applicable, the revenue shown is just for those segments if that breakout is available. About the 2015 Distribution Trends Special Issue /2015-Distribution-Trends-Special-Issue The 2015 Wholesale Distribution Trends Special Issue was researched and written by MDM editors based on interviews with dozens of wholesaler-distributors, as well as industry experts and manufacturers. MDM also conducted a survey of its readers to uncover the trends outlined in this report. About the 2015 Economic Benchmarks for Wholesale Distribution /EBWD The MDM Economic Benchmarks for Wholesale Distribution is the best source for accurate statistics on the distribution industry, including segment and overall industry revenue trends, inventory levels, sales forecasts and other critical benchmark data on distribution. Page 56

21 2015 COMPETITIVE LANDSCAPE FOR WHOLESALE DISTRIBUTION About COPYRIGHT AND TERMS OF USE Copyright 2015 by Modern Distribution Management and MDM Analytics/Gale Media, Inc. All rights reserved. This report is protected by copyright law and may not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, in whole or in part, in any form or manner or by any means whatsoever, by any person without prior written consent from Gale Media, Inc. This report may not be used in commercial documents without the written permission of the copyright holder. You may make one machine readable copy and/or one print copy for your personal use. You may also include limited excerpts of this content in printed memos, reports and presentations for non-commercial use. We ask that you attribute this information by including Source: 2015 Competitive Landscape for Wholesale Distribution 2015 Gale Media, Inc. All rights reserved. Gale Media, Inc., 2569 Park Lane, Suite 200, Lafayette, CO Modern Distribution Management Wholesale Distribution News, Expert Analysis & Market Research Modern Distribution Management is the only specialized information business that provides high-level in-depth resources to executives who are in or serve the wholesale distribution industry. With MDM s information services, you ll find fresh analysis, accurate reporting and good ideas to practice across many lines of trade. We provide original, in-depth thinking - and you won t find MDM s content anywhere else. MDM s editors have received several Editorial Excellence Awards from the Specialized Information Publishers Association and are regularly recognized by industry groups as content leaders in wholesale distribution. MDM Analytics is the leading market analytics firm for industrial and construction products in North America. Since 1987, MDM Analytics has helped clients reach their full market potential with data services, dashboards and sales force management tools to target high-potential customers and markets. MDM Analytics is an essential resource for clients seeking to: identify market penetration & untapped potential; target the highest potential geographic regions, customer segments & product categories; assess individual customer & prospect potential; more effectively deploy resources; and improve sales growth, margins and return on capital. MDM Analytics capabilities are built on a team of seasoned professionals and a unique database delivering reliable market size and segmentation services for more than 200 MRO/OEM products. Page 57