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Quarterly MDM-Baird Distribution Survey

Survey: How Will Supplier Pricing Impact Distributors’ Gross Margin in 2024?

Distributors won't be able to pass along price increases in 2024 at nearly the rate of 2021-2023. So, the 4Q23 Baird-MDM Survey asked distributors how they see supplier pricing impacting gross margin.

February 9, 2024

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Distributors were happy to ride the inflation wave in 2021, 2022 and well into 2023 — pacing on supplier price increases to customers who were more than willing to pay the upcharges to get product amid supply chain constraints.  But those benefits waned in the second half of 2023 as supply chains kept improving and inflation flattened, resulting in the largely flat to modest sales declines recorded in publicly-traded companies' October-December financials, which were reported in January and February.

Data: Distributors’ 2024 Sales Growth Outlook by End Market (Feb. 7)

Nearly across the…

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