Magazine Survey Results Mirror
Hope Group Management’s Views
Northboro, MA - (8-10-2005) Tony Cantone, VP Sales, today reacted to the recently published results of Industrial Distribution magazine’s 59th Annual Survey of Distributor Operations with his observations of where its findings coincided or contradicted its current experience as one of the leading independent industrial distributors in the New England region. “For the most part the results are not surprising and in some cases confirm our specific experiences here at The Hope Group,” said Cantone.
Impact of Internet
“It’s my observation that some of the principal findings of this published report confirm trends we have been experiencing during the past 10 years at The Hope Group,” said Cantone. “For example, instead of the internet diminishing our relationships with current customers, it has instead expanded to be an important selling tool and information sharing source, even if we haven’t experienced the sort of on-line selling phenomenon that some retailers have found,” added Cantone.
One of the survey’s most interesting findings, according to Cantone, was that among the 776 Distributor Executives who participated in the survey, only 10 percent of their sales were via the internet. A full 40 percent reported they had no sales over the internet. “We are not currently using the internet as a place for our customers to place component or systems orders and while it may serve the purposes of some of our customers in the future, it is not something that we are directing a lot of effort at right now,” he added.
Distributor role increasing
According to the published report in the August 2005 issue of Industrial Distribution, contrary to early predictions of the internet replacing the distributor role, in fact, the “distributor’s role is even more important today than it’s been in the past. Distributors have become an integral part of their customer’s operations and are specifying brands and serving in a consultative role for those end users.” The internet supports this for many of the survey respondents who said they use the internet as a communications tool, “both on the customer side of the business and also on the supplier portal side.”
The Hope Group recently created a “customer login” portal on its web site for selected customers so that they may expedite orders, track shipments and initiate quote requests. “This new feature is an exciting way for us to streamline our customer service process and it’s a virtue of the internet that it can be done inexpensively and securely, according to Cantone. The survey pointed out that customer service “reigns supreme.” “In the last decade, distributors have moved from being product providers to service providers. Today, distributors say they are providing technical support (82%); faster delivery (69%); employee training (68%); and cost reduction assistance (67%) to customers.”
Industrial sectors changing
It’s no real surprise that there has been a continuing shift in the targeted business sectors for industrial distributors. Some of the traditional sector leaders, such as chemical and aerospace have diminished recently. “Distributors are selling their products to an increasingly wide variety of business sectors. Topping the list is machine shop or job shop (64%); followed by automotive (55%); construction (53%) and the food industry (52%). One area of growth is the electronics sector.
“In the New England region we have experienced changes in the business sectors as well,” said Cantone. “We have seen plastics recede and mobile and marine opportunities increase, which has meant that we must adjust our sights to meet the needs of the changing manufacturing marketplace,” said Cantone. The authors of the study indicated that most distributors, despite discouraging news in some areas, remain optimistic about the future for their own businesses and industry in general. “I would agree that we are cautiously optimistic about our ability to grow the business and continue to provide leadership in the region as a distributor/fabricator,” concluded Cantone.
The Hope Group is a leading independent industrial distributor in New England. It has locations in Maine, New Hampshire, Massachusetts and Rhode Island. Its principal headquarters and stocking location is in Northboro, MA. The Hope Group companies include Hope Air Systems, Sorensen Systems, The Leen Company and Bosworth Fluid Connectors. It operates five Parker Stores in Bangor ME, Portland ME, Manchester NH, Fitchburg MA and Cranston RI. The Hope Group features motion control products and systems from Parker, Enerpac, Kaeser Compressors, Curtis Compressors, GE Fanuc, Wago, Cutler-Hammer and many other manufacturers. Its principal product lines include hydraulic, pneumatic, automation, fluid connector, fluid power, instrumentation, air compressors, nitrogen generators, seals and o-rings for industry.
