John Ruth John Ruth President, President, BDI BDI- -USA USA - PowerPoint PPT Presentation

BSA Annual Distributor Report BSA Annual Distributor Report John Ruth John Ruth President, President, BDI BDI- -USA USA Vice President, Vice President, Bearing Specialists Association Bearing Specialists Association

Distributor Sales Distributor Sales Participating Distributors Participating Distributors Participating Distributors Participating Distributors • 26 in 2016 26 in 2016 • 22 in 2015 22 in 2015 • 14 distributors used for some year over 14 distributors used for some year over y year comparisons year comparisons

Distributor Sales Distributor Sales Sales Update Sales Update Sales Update Sales Update • Participating Distributor Sales Participating Distributor Sales $ 12,553,318,823 $ 12,553,318,823 • Bearing Only Sales Bearing Only Sales g g y y $ 2,597,637,907 $ 2,597,637,907

Distributor Sales Distributor Sales Sales Detail Sales Detail Sales Detail Sales Detail • Bearings % of Total Sales Bearings % of Total Sales 21.6 % in 2015 21.6 % in 2015 20.7 % in 2016 20.7 % in 2016

Distributor Sales Distributor Sales Sales Detail Sales Detail • • Private Label (Response Inaccurate) Private Label (Response Inaccurate) Private Label (Response Inaccurate) Private Label (Response Inaccurate) 26.6 % in 2015 26.6 % in 2015 0 % 0 % in in 2016 2016 • Median Number of Bearing Suppliers Median Number of Bearing Suppliers g g pp pp 45.0 in 2016 45.0 in 2016 42 5 in 2015 42 5 in 2015 42.5 in 2015 42.5 in 2015

Distributor Workforce Distributor Workforce Number of Branch and Head Office Number of Branch and Head Office Number of Branch and Head Office Number of Branch and Head Office Employees (Data Employees (Data F From 14 Common rom 14 Common Distributors) Distributors) Distributors) Distributors) No meaningful change from 2015 to 2016 No meaningful change from 2015 to 2016

Distributor Workforce Distributor Workforce Planned Change in Workforce Planned Change in Workforce Planned Change in Workforce Planned Change in Workforce (next 12 Months) (next 12 Months) • 57.1% Planned to Add People in 2015 57.1% Planned to Add People in 2015 57.1% Planned to Add People in 2015 57.1% Planned to Add People in 2015 • 75.0% Planned to Add People in 2016 75.0% Planned to Add People in 2016

Distributor Workforce Distributor Workforce Training Training Training Training • Average Training Hours Average Training Hours 2.8 hours/employee 2015 2.8 hours/employee 2015 6.0 hours/employee 2016 6.0 hours/employee 2016 p y p y

Distributor Workforce Distributor Workforce Source of Training Source of Training Source of Training Source of Training • Internal Internal 56% in 2015 56% in 2015 58% in 2016 58% in 2016

Distributor Workforce Distributor Workforce Median Age of Workforce Median Age of Workforce • • < 20 Years Old < 20 Years Old < 20 Years Old < 20 Years Old 0.4 % in 2015 0.4 % in 2015 1.5 % in 2016 1.5 % in 2016 • 20 20- -34 Years Old (Big Change) 34 Years Old (Big Change) ( ( g g g ) g ) 15.5 % in 2015 15.5 % in 2015 24 1 % in 2016 24 1 % in 2016 24.1 % in 2016 24.1 % in 2016

Distributor Workforce Distributor Workforce Median Age of Workforce Median Age of Workforce • • 35 35 50 Years Old 35 35-50 Years Old 50 Years Old 50 Years Old 32.9 % in 2015 32.9 % in 2015 33.5 % in 2016 33.5 % in 2016 • >50 Years Old (Big Change) >50 Years Old (Big Change) ( ( g g g ) g ) 51.2 % in 2015 51.2 % in 2015 40 9 % in 2016 40 9 % in 2016 40.9 % in 2016 40.9 % in 2016

Distributor Workforce Distributor Workforce Retiring Next 3 Retiring Next 3 5 Years Retiring Next 3 Retiring Next 3-5 Years 5 Years 5 Years • 12.0% in 2015 12.0% in 2015 • 10.0% in 2016 10.0% in 2016

Distributor Operations Distributor Operations Selling on Amazon Selling on Amazon • • 14 3 % in 2015 14 3 % in 2015 14.3 % in 2015 14.3 % in 2015 • 15.0 % in 2016 15.0 % in 2016 Selling on E- Selling on E g -Bay Bay y • 7.1 % in 2015 7.1 % in 2015 • • 10 0 % in 2016 10 0 % in 2016 10.0 % in 2016 10.0 % in 2016

Distributor Operations Distributor Operations Methods of Order Entry Methods of Order Entry • • EDI EDI EDI EDI 7.9% in 2015 7.9% in 2015 6.0% in 2016 6.0% in 2016 • Online Online 1.6% in 2015 1.6% in 2015 1 0% in 2016 1 0% in 2016 1.0% in 2016 1.0% in 2016

Distributor Operations Distributor Operations Methods of Order Entry Methods of Order Entry • • Phone Phone Phone Phone 35.0 % in 2015 35.0 % in 2015 34.0 % in 2016 34.0 % in 2016 • Fax Fax 10.0 % in 2015 10.0 % in 2015 10 0 % in 2016 10 0 % in 2016 10.0 % in 2016 10.0 % in 2016

Distributor Operations Distributor Operations Methods of Order Entry Methods of Order Entry • • Email Email Email Email 40.0 % in 2015 40.0 % in 2015 35.5 % in 2016 35.5 % in 2016 • Punch Punch- -out (Response Inaccurate) out (Response Inaccurate) ( ( p p ) ) 0 % in 2015 0 % in 2015 0 % in 2016 0 % in 2016 0 % in 2016 0 % in 2016

Distributor Operations Distributor Operations Request for Conflict Minerals Information Request for Conflict Minerals Information • • Weekly Weekly Weekly Weekly 23.1 % in 2015 23.1 % in 2015 11.8 % in 2016 11.8 % in 2016 • Monthly Monthly 15.4 % in 2015 15.4 % in 2015 17 6 % in 2016 17 6 % in 2016 17.6 % in 2016 17.6 % in 2016

Distributor Operations Distributor Operations Request for Conflict Minerals Information Request for Conflict Minerals Information • • 1-2 Times Per Year 1-2 Times Per Year 2 Times Per Year 2 Times Per Year 38.4 % in 2015 38.4 % in 2015 29.4 % in 2016 29.4 % in 2016 • Several Times Per Year Several Times Per Year 23.1 % in 2015 23.1 % in 2015 41 2 % in 2016 41 2 % in 2016 41.2 % in 2016 41.2 % in 2016

Distributor Operations Distributor Operations Pricing Pricing • • Distributors Using Pricing Analytics Distributors Using Pricing Analytics Distributors Using Pricing Analytics, Distributors Using Pricing Analytics, Software or Consulting Software or Consulting 35.7 % in 2015 35.7 % in 2015 35 7 % in 2015 35 7 % in 2015 15.0 % in 2016 15.0 % in 2016 • • Distributors Satisfied with Pricing Results Distributors Satisfied with Pricing Results Distributors Satisfied with Pricing Results Distributors Satisfied with Pricing Results 60.0 % in 2015 60.0 % in 2015 15 0 % in 2016 15 0 % in 2016 15.0 % in 2016 15.0 % in 2016

Distributor Operations Distributor Operations CRM CRM • • Distributors Using CRM Distributors Using CRM Distributors Using CRM Distributors Using CRM 42.9 % in 2015 42.9 % in 2015 80.0 % in 2016 80 0 % in 2016 80.0 % in 2016 80 0 % in 2016 • Distributors Using Salesforce.com Distributors Using Salesforce.com 33 3 % i 33 3 % i 33.3 % in 2015 33.3 % in 2015 2015 2015 10.0 % in 2016 10.0 % in 2016

Distributor Operations Distributor Operations Freight Recovery Freight Recovery Freight Recovery Freight Recovery • Median Median 78.0 % in 2015 78.0 % in 2015 78.6 % in 2016 78.6 % in 2016

Distributor Forecast Distributor Forecast Expected Change in Total Sales Expected Change in Total Sales 6 5 % in 2015 6 5 % in 2015 6.5 % in 2015 6.5 % in 2015 6.0 % in 2016 6.0 % in 2016 Expected Change in Bearing Sales Expected Change in Bearing Sales p p g g g g 8.3 % in 2015 8.3 % in 2015 4 0 % in 2016 4 0 % in 2016 4.0 % in 2016 4.0 % in 2016

Distributor Forecast Distributor Forecast Expected Change in Number of Employees Expected Change in Number of Employees 5 0 % in 2015 5 0 % in 2015 5.0 % in 2015 5.0 % in 2015 2.0 % in 2016 .0 % in 2016 Considering Adding Brick and Mortar Considering Adding Brick and Mortar 50.0% in 2015 50.0% in 2015 35.0 % in 2016 35.0 % in 2016 35.0 % in 2016 35.0 % in 2016

Distributor Forecast Distributor Forecast Business Outlook (1 down (1 down- - 5 up) 5 up) Business Outlook • • Direct OEM Sales by Manufacturer Direct OEM Sales by Manufacturer Direct OEM Sales by Manufacturer Direct OEM Sales by Manufacturer 3.1 in 2015 3.1 in 2015 3.3 in 2016 3.3 in 2016 • Direct MRO Sales by Manufacturer Direct MRO Sales by Manufacturer y 3.5 in 2015 3.5 in 2015 3 4 in 2016 3 4 in 2016 3.4 in 2016 3.4 in 2016

Distributor Forecast Distributor Forecast Business Outlook (1 down (1 down- - 5 up) 5 up) Business Outlook • • Integrated Contract Business Integrated Contract Business Integrated Contract Business Integrated Contract Business 3.6 in 2015 3.6 in 2015 3.4 in 2016 3.4 in 2016 • Vending Vending g 3.6 in 2015 3.6 in 2015 3 3 in 2016 3 3 in 2016 3.3 in 2016 3.3 in 2016

Distributor Forecast Distributor Forecast Business Outlook (1 down (1 down- - 5 up) 5 up) Business Outlook • • VMI VMI VMI VMI 3.6 in 2015 3.6 in 2015 3.6 in 2016 3.6 in 2016 • OEM Business OEM Business 3.9 in 2015 3.9 in 2015 3 7 in 2016 3 7 in 2016 3.7 in 2016 3.7 in 2016