US Manufacturing Accelerates at Fastest Pace in 6.5 Years

#TuesdayTidbit: In November, US Manufacturing accelerated at its fastest pace in 6.5 years, with the Institute for Supply Management's Manufacturing Purchasing Managers' Index reaching 63.9.

 

http://www.shopfloor.org/2017/12/ism-manufacturing-remained-robust-november-production-fastest-pace-6%C2%BD-years/?utm_medium=NAMSocial&utm_source=LinkedIn&utm_campaign=EconNews

 

B2B Customer Acquisition Costs Could Be 25x Customer Retention Costs

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industrial distributors could see profits increase by up to 95% with just a 5% increase in customer retention

Because B2B organizations have relatively few customers compared to B2C companies, customer retention is a critical component of growth and profitability. Recent research by Bain & Company indicates an increase in customer retention of 5% could increase an industrial distributor's profits by 25% to a whopping 95%.

To wit, Harvard Business Review says it costs up to 25 times more to acquire a new B2B customer than to retain one.

This begs the question--what is your distributorship doing about customer acquisition? Does it have a formal program whereby it is actively attracting the most profitable customer types? Do you even know what your most profitable customer type is?

Which further begs, what are you doing to retain the customers you've already acquired? Do you have formal customer satisfaction surveys? Do you maintain a pulse on the single-most important business your distributorship has, your customers? Do you spend time with your most important customers asking questions about future needs instead of simply putting out fires? Do you lead them in areas where you know they need help, but they haven't given it proper consideration? Have you made your company invaluable to theirs?

https://www.entrepreneur.com/article/298606
https://hbr.org/2014/10/the-value-of-keeping-the-right-customers

US Manufacturing Technology Orders up 5% Year-to-Date

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TUESDAY TIDBIT: Manufacturing technology orders continue to rise. According to the latest US Manufacturing Technology Orders Report (where do they come up with these names!), as of September, orders are up 5% year-to-date.

The report says key leading indicators are positive and suggests an acceleration in order activity at the close of 2017.

http://www.amtonline.org/article_display.cfm?article_id=197574

Industrial Distributors Show 3.9% Growth in 3rd Quarter

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Despite the setbacks of Hurricanes Harvey & Irma, industrial distributors reported growth of 3.9% in the 3rd quarter. While expectations were 4.5%, this is still a strong showing in the face of such devastation.

https://www.mdm.com/articles/37893-mdm-baird-distribution-survey-storms-stunt-distributor-growth?utm_source=Real+Magnet&utm_medium=email&utm_term=6804%253A%2520Grainger%2520Dominates%2520GSA%2520Sales%2520Again&utm_content=3031051653&utm_campaign=119038414

MNI Chicago Business Barometer Hits 6.5-year High at 66.2 in October

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TUESDAY TIDBIT--SPECIAL THURSDAY EDITION!

Great economic news continues to pour in. This time, the Institute for Supply Management announces that the MNI Chicago Business Barometer rose to a 6.5-year high, hitting 66.2 in October. 

This is the highest level it has reached since March of 2011. What's more, factory order backlogs hit their highest level in 43 years--even after setting a 29-year high last month.

https://s3.amazonaws.com/images.chaptermanager.com/chapters/b742ccc3-ff70-8eca-4cf5-ab93a6c8ab97/files/mni-chicago-press-release-2017-10.pdf

Wholesale Revenues up 7.2%

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Wholesale Revenues in August climbed to $473.1 billion, up 7.2% over 2016, according to the US Census Bureau--continuing the trend of good economic news for industrial distributors.

This was after a July that showed a 5.9% increase over 2016.  Most distributors we work with are experiencing a YTD increase of 3 to 5 percent, and have seen even more growth the last few months--but not quite mirroring these numbers. It's easily the most robust industrial economy we've experienced in a decade. 

ITR forecasts call for less robust growth next year and in 2019, then buckle up! These next two years will be the time to grab market share, then take it with you for the ride up!