SAFETY MRO DATA ESTIMATED END-USER DEMAND BY REGION & END-MARKET
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1 $1, U.S. MARKET ANALYSIS: SAFETY MRO DATA ESTIMATED END-USER DEMAND BY REGION & END-MARKET researched & produced by: 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
2 COPYRIGHT AND TERMS OF USE Copyright 2014 by Modern Distribution Management and Industrial Market Information Inc./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: 2014 MRO Market Analysis 2014 Industrial Market Information. All rights reserved. DISCLAIMER This report is for informational purposes only and is provided as is without any express or implied warranty. The analyses in this report are based solely on information and data that is in the public domain. Any conclusions, findings, opinions, or recommendations are based on our own experienced and professional judgment and interpretations given the information available. While all information is believed to be reliable at the time of writing, the information provided here is for reference use only and does not constitute the rendering of legal, financial, commercial, or other professional advice by Gale Media Inc. or the authors. Any reliance upon the information is at your own risk, and Gale Media Inc. and the authors shall not be responsible for any liability arising from or related to the use or accuracy of the information in any way. Gale Media Inc. does not make investment recommendations, in this report or otherwise. Nothing in this report should be interpreted as an opinion by Gale Media Inc. or the authors on the investment prospects of specific companies.
3 About the Authors Data and trend analysis were produced by Modern Distribution Management ( and Industrial Market Information ( Modern Distribution Management and Industrial Market Information are divisions of Gale Media Inc. IMI is the leading market analytics firm for industrial and construction products in North America. Since 1987, IMI has helped clients reach their full market potential with data services, dashboards and sales force management tools to target highpotential customers and markets. IMI helps industrial products manufacturers, distributors and others make data-based decisions for market planning, product analysis, territory management, strategic planning, account management and potential analysis, joint distributor/vendor planning, and competitive analysis. IMI provides market demand estimates, account potential reports and prospect lists based on estimated usage for 150+ MRO/OEM product groups. Learn more about Industrial Market Information: Thomas P. Gale, President Modern Distribution Management is the only specialized information business that provides high-level in-depth resources for 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. 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. Learn more about Modern Distribution Management: Jenel Stelton-Holtmeier, Editor jenel@mdm.com
4 executive summary According to Industrial Market Information s annual analysis of Safety MRO markets, the U.S. market size for safety products in 2014 is estimated at $xx billion, based on end-of-year 2013 data. This calculation includes two categories: Personal Protective Equipment and Test Equipment & Respirators. Find the methodology and a definition of MRO on page 13 of this report. This report provides a high-level view of the total market demand for safety products by providing the estimated end-market consumption of these products. This does not represent the amount sold by wholesalerdistributors. A percentage of the total estimated demand is sold direct from manufacturers to end-user. Safety profile Est. demand: $xx Billion Safety MRO This report breaks down the total estimated U.S. market demand into two segments for more detailed perspective: Safety Personal Protective Equipment (PPE) Safety Test Equipment and Respirators Other Industrial MRO Total Industrial MRO Market Size: $xx Billion Executive Summary, trends and market leadears removed for Sample MDM.COM Page 4
5 defining the market Executive Summary, trends and market leadears removed for Sample Estimated overall market demand: Estimated market demand for Safety from 2008 to 2013 has been... Billions $8.5 $8.0 $7.5 $7.8 $7.8 $7.5 $7.5 $7.0 $7.2 $6.5 $6.9 Line Graph $6.0 removed for Sample $5.5 $5.0 $4.5 $ Industrial Market Information Inc. MDM.COM Page 5
6 Safety MRO market by product category (%) The following data provide an overview of Safety MRO product categories and their share of the total Safety MRO market in the U.S. by percentage. Test-Eqpt and Respirators Total Estimated Market: $xx billion PPE Pie-chart removed for Sample Safety MRO market by product category ($M) The following data provide an overview of Safety MRO product categories and their share of the total Safety MRO market in the U.S. in millions of dollars. Test-Eqpt & Respirators $2,095.1 Bar Graph removed for Sample PPE $5,440.3 $0.0 $1,000.0 $2,000.0 $3,000.0 $4,000.0 $5,000.0 $6, Industrial Market Information Inc. MDM.COM Page 6
7 safety regional market analysis The following data represent estimated consumption at the end-user level by U.S. region of Safety products in the U.S. based on the Safety market size of $xx billion. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. Pacific northwest central Northeast Central New england Mid-Atlantic South Atlantic Total Market...$xxx.xx Mountain Southeast Central Southwest Central 2014 Industrial Market Information Inc. 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: 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 MDM.COM Page 7
8 Safety market by u.s. state The following shows the consumption of Safety products at the end-user level by state based on the $xx billion total. State Est. Demand ($millions) State Est. Demand ($millions) MDM.COM Page 8
9 Safety market: consumption by end-market (2-Digit naics) The following data provide a closer look at Safety MRO consumption by U.S. end-market based on 2-digit NAICS. Total estimated Safety mro product END-MARKET consumption manufacturing (31-33): $XX Million DATA METHODOLOGY NOTE: $XX Billion construction (23): $XX Million 2014 Industrial Market Information Inc. The data on this page and the following pages represent estimated total consumption at the end-user level of MRO products in the U.S., according to Industrial Market Information. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. other: $XX million HEALTH CARE AND SOCIAL ASSISTANCE MINING, QUARRYING AND OIL AND GAS EXTRACTION UTILITIES TRANSPORTATION AND WAREHOUSING RETAIL TRADE PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES WHOLESALE TRADE* OTHER SERVICES ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIA- TION SERVICES PUBLIC ADMINISTRATION AGRICULTURE, FORESTRY, FISHING AND HUNTING INFORMATION EDUCATIONAL SERVICES ACCOMMODATION AND FOOD SERVICES REAL ESTATE AND RENTAL AND LEAS- ING ARTS, ENTERTAINMENT AND RECREATION FINANCE AND INSURANCE MANAGEMENT OF COMPANIES * Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities & not resale items/inventory. MDM.COM Page 9
10 top 20 manufacturing end-markets consuming Safety products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 20 manufacturing (NAICS 31-33) industries consuming Safety products in the U.S., according to Industrial Market Information estimates. These estimates represent purchases at the end-user level and include the distributor margin. IMI estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases. NAICS End-Market Est. Demand ($millions) MDM.COM Page 10
11 top 20 construction end-markets consuming safety products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 20 construction (NAICS 23) industries consuming Safety products in the U.S., according to Industrial Market Information estimates. These estimates represent purchases at the end-user level and include the distributor margin. NAICS End-Market Est. Demand ($millions) MDM.COM Page 11
12 top 10 OTHER end-markets consuming safety products (6-Digit naics) The following data represent consumption at the 6-digit NAICS end-user level for the top 10 other industries (excluding manufacturing and construction) consuming Safety products in the U.S., according to Industrial Market Information estimates. These estimates represent purchases at the end-user level and include the distributor margin. NAICS End-Market Est. Demand ($millions) End-markets that fall under Other include: Health Care and Social Assistance Mining, Quarrying and Oil and Gas Extraction Utilities Transportation and Warehousing Retail Trade Professional, Scientific and Technical Services Wholesale Trade* Other Services Administrative and Support and Waste Management and Remediation Services Public Administration Agriculture, Forestry, Fishing and Hunting Information Educational Services Accommodation and Food Services Real Estate and Rental and Leasing Arts, Entertainment and Recreation Finance and Insurance Management of Companies * Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities & not resale items/inventory. MDM.COM Page 12
13 IMI is the leading market analytics firm for industrial and construction products in North America. Since 1987, IMI has helped clients reach their full market potential with data services, dashboards and sales force management tools to target highpotential customers and markets. IMI is an essential resource for clients seeking to: Looking for more information? Get a deeper Market Profile: If you d like market data at the MSA, county, postal code level or would like information about different products, please contact Industrial Market Information at or info@imidata.com and reference this report for your discounted quote. IMI reports are customizable to help you penetrate deeper into your market. develop a comprehensive view of their market segments; 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. IMI s 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. THOMAS P. GALE President (303) tom@imidata.com KRISTEN GAWALIS Project Manager (720) kristen@imidata.com Methodology The data in this MRO Market Analysis uses Industrial Market Information s proprietary predictive modeling, which starts with a public aggregate market size estimate by product category for a given geography. IMI then uses a combination of public and private databases to allocate estimated demand to deeper geographic levels and to specific customer segments, as defined at the six-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. Defining MRO In this report, MRO is defined as: maintenance, repair and operations. MRO products are used in production and plant maintenance and may include maintenance supplies (such as cleaning materials), parts or consumables used during production (such as lubricants, safety equipment or tools). Traditionally, companies have not paid as much attention to the procurement of these materials as they have with OEM materials, original equipment manufacturing, or materials that go into the product itself. However, in part due to the Great Recession, customers are becoming increasingly more strategic about MRO purchases. Wholesaler-distributors are capitalizing on this shift to provide services that help customers save money and improve processes surrounding MRO procurement. MDM.COM Page 13
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