The “go-go” days of post-Covid are gone. We’re back to pre-pandemic industry growth rates. Maintaining, and improving, net profitability in the face of slowing growth, increased cost structure, and stagnant (if not decreasing) margins, requires improved operational efficiency, inventory management, strategic price management, appropriate implementation and utilization of … [Read more...] about Driving Distributor Profitability Through Operational Efficiency
Market Analysis
HVACR Combinations – AD & IMARK, Continuum & Moblico
In the last week two combinations in the distribution space caught my eye. The first was a partnership of two service providers that has immediate impact for HVACR distributors. The 2nd was the announcement of a proposed Affiliated Distributors (AD) and IMARK merger for electrical distributors is worth watching to see if that is the start of bigger combinations between AD and … [Read more...] about HVACR Combinations – AD & IMARK, Continuum & Moblico
Mingledorff Communicates Via Caffeine and Coils
Earlier this year, I had a chance to visit a Mingledorff's HVACR distribution branch location in the Atlanta area close to my home. I reached out to do an interview because I started following a podcast called Caffeine and Coils from Mingledorff's hosted by Jenny Brown and Deanna Lassiter. https://podcasts.apple.com/us/podcast/caffeine-and-coils/id1701491521 This podcast … [Read more...] about Mingledorff Communicates Via Caffeine and Coils
Structuring Acquisitions
Acquisitions continue to transform the HVACR industry. PE (private equity) are expanding their portfolio companies and others are seeking to enter the market. National distributors are expanding into new territories and also acquiring smaller companies as "fill-ins" or, in some cases, are diversifying their businesses and building new divisions. Regionals, and even some "local" … [Read more...] about Structuring Acquisitions
Opinion: Update on the future of Rebates and SPAs for HVACR Distributors and Manufacturers?
Rebates, Backsides, and Special Pricing Agreements (SPAs) continue to grow in importance every year for the Channel. At the Enable Catalyze Conference earlier this month - I was asked to present a channel focused session. I was excited about presenting, because this is the only industry event that I know of where you spend two days with B2B Distribution leaders just focusing … [Read more...] about Opinion: Update on the future of Rebates and SPAs for HVACR Distributors and Manufacturers?
Opinion- WATSCO Results show a continued focus on digital programs
WATSCO highlighted their continued commitment to digital enablement on May 8th in their 1Q24 investor presentations. In the world of distribution many private or PE companies do not report results, and many public companies do not release detailed strategic initiatives that have more depth than what is provided in the 10K. I eagerly await the annual WATSCO investor … [Read more...] about Opinion- WATSCO Results show a continued focus on digital programs
AI According to Mike Marks on Driven by DCKAP
AI is all the rage in trade publications, on LinkedIn, for industry conferences (and standalone conferences targeted at distribution) and will probably be a topic at this year's HARDI conference in one-on-one conversations between distributors and manufacturers. The questions that will be asked are: What are you doing? Oh, you’re not doing anything? What are you … [Read more...] about AI According to Mike Marks on Driven by DCKAP
