The distribution industry remains an important sector in the U.S. economy, with a vast majority of the nation’s distributors being family-run businesses with fewer than 500 employees. The dynamics of the industry are changing rapidly due to many factors including: reduced fill rate times, warehouse technology, “build where you sell” mandates, outsourcing and globalization. With so much change, you need a dedicated advisory team to provide you with sound professional “value added” advice. Our team is focused on financial, operational, and supply chain issues facing the industry. We are confident that our professionals will exceed your expectations. Our firm represents more than 200 distribution-related suppliers nationally.
Some of the industry sub-segments we serve include:
Challenges facing the industry:
Strategies for success:
Financial strength–Focus on liquidity and strengthening of the balance sheet. Implementation of flexible budget reporting.
According to a new Standard & Poor’s report, there are two key indicators that will tell you what kind of shape the manufacturing industry is in.
The new 5G network is getting a lot of play in the press. The next generation of 5G networks will be 100 times faster than the current 4G networks. 5G networks do not have the latency issues of 4G networks and allow for a large amount of connections. The flexibility of this new technology has given many the hope that it can further support the Fourth Industrial Revolution.
Manufacturing has been through three industrial revolutions from the use of water and steam to electricity to automation. The next revolution involves connecting existing machines to one network. Appropriately, it has been dubbed the Fourth Industrial Revolution.
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According to a new Standard & Poor’s report, there are two key indicators that will tell you what kind of shape the manufacturing industry is in. The first is the Institute for Supply Management’s Purchasing Manager’s Index and the second is the Federal Reserve’s Capacity Utilization Index for motor vehicles and parts. A reading above 50 percent for the ISM index indicates that manufacturing is expanding in the US, and below 50 means that it is contracting. History shows that each time since 1983 that the index fell below 43 percent “speculative grade” automotive companies began to panic. Similarly any time the Fed’s utilization rate dropped below 72 percent during that period, it caused stress to automotive companies.