Footnotes
Footnotes:
1. Valuation Multiples represent Enterprise Value to LTM Revenue and LTM EBITDA at 12/31/2023
Specialty Distribution Industry Update Q4 2023
Read more about M&A activity and trends in this sector
Specialty Distribution Industry Update
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U.S. Specialty Distribution Market Insights
The specialty distribution sector continues to be positively impacted by improved U.S. manufacturing activity, improved supply chain conditions and logistics activity, and a sustained increase in onshoring investment.
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Logistics Activity
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- Logistics Managers’ Index (LMI), which gauges the health of the logistics industry, slightly decreased to 49.4 in Nov-23
- The recent dip is attributed to a slowdown in warehousing and transportation utilization
- Further, decreased inventory levels due to Q4 holiday sales and higher inventory costs contributed to the decline
- The decline in Nov-23 is anticipated to be seasonal and temporary
Logistics Managers’ Index (LMI)
Manufacturing Activity
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- U.S. manufacturing activity remained resilient over the last year on account of new orders and backlog, and decreased prices
- The ISM Purchasing Mangers’ Index (PMI), which measures the manufacturing sector performance, slightly decreased to 46.7 in Nov-23, though is relative unchanged since Nov-22
- Stabilization of the PMI indicates positive momentum across the sector
Purchasing Managers’ Index (PMI)
Onshoring Activity
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- Onshoring investment is a leading indicator for distribution activity
- Companies continue to drive onshoring efforts to enhance domestic U.S. production
- Drivers of growth include supportive government initiatives and incentives (Inflation Reduction Act, CHIPS act, etc.) and uncertainties stemming from geopolitical tensions such as the Russia-Ukraine conflict and U.S.-China trade relations
Job Announcements (Reshoring & FDI)
Specialty Distribution Overview
Specialty distribution industry participants include distributors and suppliers of specialty products and parts covering a variety of end markets. Key public industry players are categorized by sub-sectors as follows:
Source:
Market statistics sourced from Capital IQ and based on 12/31/2023
Market statistics sourced from Capital IQ. Industry data sourced from publicly available information
We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below
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Specialty Distribution Industry Update Q4 2023
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Managing Director, KPMG Corporate Finance LLC