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

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

Nov 25, 2023 343 likes •758 views

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

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SLIDE 1

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

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SLIDE 2

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

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SLIDE 3

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 y g y $ 2,597,637,907 $ 2,597,637,907

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SLIDE 4

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

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SLIDE 5

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 pp g 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

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SLIDE 6

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

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SLIDE 7

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

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SLIDE 8

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

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SLIDE 9

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

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SLIDE 10

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

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SLIDE 11

Distributor Workforce Distributor Workforce

Median Age of Workforce Median Age of Workforce

  • 35

35 50 Years Old 50 Years Old

  • 35

35-50 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

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SLIDE 12

Distributor Workforce Distributor Workforce

Retiring Next 3 Retiring Next 3 5 Years 5 Years Retiring Next 3 Retiring Next 3-5 Years 5 Years

  • 12.0% in 2015

12.0% in 2015

  • 10.0% in 2016

10.0% in 2016

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SLIDE 13

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-

  • Bay

Bay g 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

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SLIDE 14

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

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SLIDE 15

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

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SLIDE 16

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)
  • ut (Response Inaccurate)

( p ) ( p ) 0 % in 2015 0 % in 2015 0 % in 2016 0 % in 2016 0 % in 2016 0 % in 2016

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SLIDE 17

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

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SLIDE 18

Distributor Operations Distributor Operations

Request for Conflict Minerals Information Request for Conflict Minerals Information

  • 1-2 Times Per Year

2 Times Per Year

  • 1-2 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

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SLIDE 19

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

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SLIDE 20

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 2015 33 3 % i 2015 33.3 % in 2015 33.3 % in 2015 10.0 % in 2016 10.0 % in 2016

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SLIDE 21

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

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SLIDE 22

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 g g p 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

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SLIDE 23

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

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SLIDE 24

Distributor Forecast Distributor Forecast

Business Outlook Business Outlook (1 down (1 down-

  • 5 up)

5 up)

  • 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

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SLIDE 25

Distributor Forecast Distributor Forecast

Business Outlook Business Outlook (1 down (1 down-

  • 5 up)

5 up)

  • 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

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SLIDE 26

Distributor Forecast Distributor Forecast

Business Outlook Business Outlook (1 down (1 down-

  • 5 up)

5 up)

  • 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

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SLIDE 27

Product Sales Mix Product Sales Mix

Un Un-

  • Mounted Ball Bearings

Mounted Ball Bearings (% of Total Bearings) (% of Total Bearings) (% of Total Bearings) (% of Total Bearings) 30.5 % in 2015 30.5 % in 2015 23 7 % in 2016 23 7 % in 2016 23.7 % in 2016 23.7 % in 2016 Un Un-

  • Mounted Spherical Roller Bearings

Mounted Spherical Roller Bearings 12 % i 201 12 % i 201 12.5 % in 2015 12.5 % in 2015 13.8 % in 2016 13.8 % in 2016

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SLIDE 28

Product Sales Mix Product Sales Mix

Un Un-

  • Mounted Cylindrical Roller Bearings

Mounted Cylindrical Roller Bearings

8 4 % in 2015 8 4 % in 2015 8.4 % in 2015 8.4 % in 2015 8.5 % in 2016 8.5 % in 2016

Un Un-

  • Mounted Tapered Roller Bearings

Mounted Tapered Roller Bearings

12.3 % in 2015 12.3 % in 2015 12 4 % in 2016 12 4 % in 2016 12.4 % in 2016 12.4 % in 2016

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SLIDE 29

Product Sales Mix Product Sales Mix

Mounted Ball Bearings Mounted Ball Bearings 12 0 % in 2015 12 0 % in 2015 12.0 % in 2015 12.0 % in 2015 16.6 % in 2016 16.6 % in 2016 Mounted Roller Bearings Mounted Roller Bearings g 10.0 % in 2015 10.0 % in 2015 10 8 % in 2016 10 8 % in 2016 10.8 % in 2016 10.8 % in 2016

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SLIDE 30

Product Sales Mix Product Sales Mix

Linear Bearings Linear Bearings 2 6 % in 2015 2 6 % in 2015 2.6 % in 2015 2.6 % in 2015 4.1 % in 2016 4.1 % in 2016 All Other All Other 11.7 % in 2015 11.7 % in 2015 10 1 % in 2016 10 1 % in 2016 10.1 % in 2016 10.1 % in 2016

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SLIDE 31

Customer Sales Mix Customer Sales Mix

Cash/Counter Sales Cash/Counter Sales 1 3 % in 2015 1 3 % in 2015 1.3 % in 2015 1.3 % in 2015 0.7 % in 2016 0.7 % in 2016 Automotive Automotive 1.9 % in 2015 1.9 % in 2015 2 6 % in 2016 2 6 % in 2016 2.6 % in 2016 2.6 % in 2016

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SLIDE 32

Customer Customer Sales Mix Sales Mix

Mining Mining 2 9 % in 2015 2 9 % in 2015 2.9 % in 2015 2.9 % in 2015 3.9 % in 2016 3.9 % in 2016 Forest Products Forest Products 7.3 % in 2015 7.3 % in 2015 9 7 % in 2016 9 7 % in 2016 9.7 % in 2016 9.7 % in 2016

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SLIDE 33

Customer Customer Sales Mix Sales Mix

Primary Metals Primary Metals 6 6 % in 2015 6 6 % in 2015 6.6 % in 2015 6.6 % in 2015 7.4 % in 2016 7.4 % in 2016 Food & Beverage Food & Beverage g 9.6 % in 2015 9.6 % in 2015 7 0 % in 2016 7 0 % in 2016 7.0 % in 2016 7.0 % in 2016

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SLIDE 34

Customer Customer Sales Mix Sales Mix

Aerospace Aerospace 6 6 % in 2015 6 6 % in 2015 6.6 % in 2015 6.6 % in 2015 4.1 % in 2016 4.1 % in 2016 Railroad Railroad 2.0 % in 2015 2.0 % in 2015 2 2 % in 2016 2 2 % in 2016 2.2 % in 2016 2.2 % in 2016

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SLIDE 35

Customer Customer Sales Mix Sales Mix

Agriculture Agriculture 1 6 % in 2015 6 % in 2015 1.6 % in 2015 .6 % in 2015 2.8 % in 2016 2.8 % in 2016 Government Government 1.6 % in 2015 1.6 % in 2015 2 1 % in 2016 2 1 % in 2016 2.1 % in 2016 2.1 % in 2016

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SLIDE 36

Customer Customer Sales Mix Sales Mix

Resellers Resellers 4 8 % in 2015 4 8 % in 2015 4.8 % in 2015 4.8 % in 2015 5.2 % in 2016 5.2 % in 2016 Aggregate Aggregate gg g gg g 2.2 % in 2015 2.2 % in 2015 2 9 % in 2016 2 9 % in 2016 2.9 % in 2016 2.9 % in 2016

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SLIDE 37

Customer Customer Sales Mix Sales Mix

Oil and Gas Oil and Gas 1 3 % in 2015 1 3 % in 2015 1.3 % in 2015 1.3 % in 2015 9.4 % in 2016 9.4 % in 2016 Manufacturing Manufacturing 31.1 % in 2015 31.1 % in 2015 22 5 % in 2016 22 5 % in 2016 22.5 % in 2016 22.5 % in 2016

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SLIDE 38

Customer Customer Sales Mix Sales Mix

All Other All Other All Other All Other 19.2 % in 2015 19.2 % in 2015 17.6 % in 2016 17.6 % in 2016

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SLIDE 39

Summary Summary

Positives: Positives:

  • Our Workforce is Getting Younger

Our Workforce is Getting Younger

  • Our Workforce is Getting Younger

Our Workforce is Getting Younger

  • Our Workforce is Better Trained

Our Workforce is Better Trained

  • 75% of Distributors Plan to Add People

75% of Distributors Plan to Add People

  • Challenged Industries (Oil & Gas, Mining)

Challenged Industries (Oil & Gas, Mining) g ( , g) g ( , g) are Expected to Grow are Expected to Grow

  • Less Frequent Requests for Conflict

Less Frequent Requests for Conflict Less Frequent Requests for Conflict Less Frequent Requests for Conflict Mineral Information Mineral Information

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SLIDE 40

Summary Summary

Challenges: Challenges:

  • Bearings Make up Less of Our Business

Bearings Make up Less of Our Business

  • Bearings Make up Less of Our Business

Bearings Make up Less of Our Business Every Year Every Year 6 H f T i i P E l S 6 H f T i i P E l S

  • 6 Hours of Training Per Employee Seems

6 Hours of Training Per Employee Seems Light ight

  • Age and Pending Retirement of Our

Age and Pending Retirement of Our Workforce Workforce