Business Services Industry

Sales cheers; cash flow fears. (industrial distributors)

Industrial Distribution, March, 1997

Study says distributors expect higher sales in 1997, but some foresee cash flow problems

If you're a power tool distributor, chances are the construction industry is one of your major markets. If so, there's good and bad news for construction distributors in 1997. According to the 1997 Construction Industry Forecast, published by the CIT Group, construction distributors expect sales to increase 21% in 1997, with profit growth of 22.2%. On the flip side, one-in-five distributors say cash flow difficulties are their top business concern this year, re-emphasizing the need to choose customers carefully.

The survey polled 451 distributors in the U.S. Twenty-three percent are classified as light equipment distributors, or those most likely to sell and...

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