Wholesale Distribution Industry TREND DATA Measure Industry Revenues ($B), 2013:Q4 Industry Revenues ($B), 2013 Industry Revenues ($B), 2014 Forecast Growth

Value

% Change vs. Previous Year

Values Removed for Sample

Period Oct 2013 through Dec 2013 Jan 2013 through Dec 2013 Jan 2014 through Dec 2014

Industry Inventories ($B), Non-LIFO method Inventory-to-Sales Ratio, 3-Month Moving Average

Dec 2013 Oct 2013 through Dec 2013

Total Employment, 2013:Q4 Average Annual Revenues per Employee

Oct 2013 through Dec 2013 Jan 2013 through Dec 2013

Average Weekly Earnings

Jan 2013 through Dec 2013

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Wholesale Distribution Industry COMMENTARY

Values Removed for Sample

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Values Removed for Sample

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Wholesale Distribution Industry -- Major Sectors SECTOR SUMMARY

Major Sector (Largest to Smallest Sector Revenues) Oil and Gas Products Wholesale Distributors

2013 Revenues ($B)

% of Industry Revenues

No. of Companies

Avg. Gross Margin (2012)

Grocery and Foodservice Wholesale Distributors Pharmaceutical Wholesalers Industrial Distributors Electrical and Electronics Wholesalers

Values Removed for Sample

Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Computer Equipment and Software Wholesale Distributors Other Consumer Products Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Metal Service Centers Apparel and Piece Goods Wholesale Distributors Beer, Wine and Liquor Wholesalers Chemicals and Plastics Wholesale Distributors

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Building Material and Construction Wholesale Distributors

Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Office Product Wholesalers and Paper Merchants

Furniture and Home Furnishing Wholesale Distributors Total

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2014 WHOLESALE DISTRIBUTION ECONOMIC TRENDS REPORT © 2014 Modern Distribution Management

Wholesale Distribution Industry -- Major Sectors SUMMARY TREND DATA % change vs. previous year

Major Sector (Largest to Smallest Sector Revenues) Oil and Gas Products Wholesale Distributors

Actual Revenues (2013)

Real Revenues* Revenue Gap (2013) (Actual - Real)

Employment (2013: Q4)

Grocery and Foodservice Wholesale Distributors Pharmaceutical Wholesalers Industrial Distributors Electrical and Electronics Wholesalers Motor Vehicles and Motor Vehicle Parts Wholesale Distributors

Values Removed for Sample

Computer Equipment and Software Wholesale Distributors Other Consumer Products Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Metal Service Centers Apparel and Piece Goods Wholesale Distributors

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Beer, Wine and Liquor Wholesalers

Chemicals and Plastics Wholesale Distributors

Building Material and Construction Wholesale Distributors

Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Office Product Wholesalers and Paper Merchants

Furniture and Home Furnishing Wholesale Distributors Total

* Real revenues equal actual revenues adjusted for product inflation using sector-specific price deflators.

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2014 WHOLESALE DISTRIBUTION ECONOMIC TRENDS REPORT © 2014 Modern Distribution Management

Wholesale Distribution Industry -- Major Sectors REVENUE FORECAST SUMMARY % change in revenues vs. previous year 2013 Actual

2014 Forecast

2014 vs. 2013

Oil and Gas Products Wholesale Distributors Grocery and Foodservice Wholesale Distributors Pharmaceutical Wholesalers Industrial Distributors Electrical and Electronics Wholesalers

Values Removed for Sample

Motor Vehicles and Motor Vehicle Parts Wholesale Distributors Computer Equipment and Software Wholesale Distributors Other Consumer Products Wholesale Distributors Agricultural Products Wholesale Distributors Miscellaneous Durable Goods Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Metal Service Centers

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Apparel and Piece Goods Wholesale Distributors Beer, Wine and Liquor Wholesalers

Chemicals and Plastics Wholesale Distributors

Building Material and Construction Wholesale Distributors

Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Office Product Wholesalers and Paper Merchants

Furniture and Home Furnishing Wholesale Distributors Total

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2014 WHOLESALE DISTRIBUTION ECONOMIC TRENDS REPORT © 2014 Modern Distribution Management

Wholesale Distribution Industry -- Sector Growth vs. U.S. GDP Growth

Major Sector (Highest to Lowest Correlation)

Correlation of Real Revenue Growth with Real GDP Growth (2000: Q1 to 2013:Q4)

Hardware, Plumbing, and Heating Equipment/Supplies Wholesalers Furniture and Home Furnishing Wholesale Distributors Electrical and Electronics Wholesalers Motor Vehicles and Motor Vehicle Parts Wholesale Distributors

Values Removed for Sample

Building Material and Construction Wholesale Distributors Apparel and Piece Goods Wholesale Distributors Industrial Distributors Miscellaneous Durable Goods Wholesale Distributors Metal Service Centers Office Product Wholesalers and Paper Merchants Chemicals and Plastics Wholesale Distributors Commercial Equipment and Supplies Wholesale Distributors Beer, Wine and Liquor Wholesalers Computer Equipment and Software Wholesale Distributors Other Consumer Products Wholesale Distributors

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Pharmaceutical Wholesalers

Grocery and Foodservice Wholesale Distributors Oil and Gas Products Wholesale Distributors Agricultural Products Wholesale Distributors

Note: All calculations use real (inflation-adjusted) data. Correlation shows the empirical relationship between the quarterly, year-over-year changes in real U.S. GDP to each sector's inflation-adjusted revenues.

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Wholesale Distribution Industry -- Major Sectors EMPLOYMENT SIZE DISTRIBUTION OF WHOLESALE DISTRIBUTION COMPANIES

Major Sector (Largest to Smallest Sector Revenues)