The North American Building Material Distribution Association (NBMDA), Chicago, Illinois, this week released the results of the NBMDA Quarterly Sales Trend Survey for the second quarter of 2020.
The research and benchmarking tool collects data from industry distributors on sales results from the prior quarter along with forecasts for the upcoming quarter. Profitability trends are also tracked while being compared to the prior quarter results and year-over-year results.
Additionally, the survey collects insights on a rotating number of relevant subjects, including the impact of COVID-19 on their distribution businesses.
A sampling of highlights from the Q2 report include:
- 2Q sales growth was down year-over-year by 6.8% during the quarter
- 3Q forecasts are 10 points higher than 2Q results
- Full year 2020 forecasts are now up 5.2 points from 1Q’s estimates
- Negative sales impact due to COVID-19 have eased since 1Q
- Warehouses/distribution centers now 100% fully functional and able to fulfill orders
- Members seeing less slowdown in sales activity in 2Q
- 58% of distributors are still seeing issues with product delivery and sourcing
- 53% of distributors had orders cancelled in the quarter due to COVID-19
“Our distributor members continue to see growth in their business’ each consecutive month and we are hopeful that the worst is behind us,” said Kevin Gammonley, NBMDA executive vice president. “Thankfully, the negative impact of the shutdown has not been as severe as initially expected by the majority of our members.”
The post NBMDA Distributors Report Q2 Sales Decline, Optimism for 3Q appeared first on Modern Distribution Management.
