Must Read | Distributor Sales Volume The fear coming out of last year’s report was that smaller companies might not have been able to sustain the financial blow that 2020 had served the industry. The other side of that coin, however, is that the further the industry got from 2020's economic conditions, it would be the smaller companies that would benefit most, which they did, accounting for $11,945,196,520 in 2022. This was within $2 billion of large companies’ total sales. Both experienced positive growth. (See Figure 3.) A deeper look at the total sales volume broken down by company size actually suggests a return of the industry’s middle class. By far, the largest percentage of 2022 sales came from companies that report between $1 million and $2.5 million in annual sales, which accounted for nearly $6 billion in total sales, more than doubling every other company size range. Sales from companies in that size range saw a 67% increase compared to 2021, making up a large portion of the 2022 record year. (See Figure 4.) While the smallest companies still experienced some struggles, the sales average, or mean, for the under $2.5 million companies that the survey considers small was $519,000, a higher average than any in the past 10 years and more than a $100,000 increase over 2021. (See Figure 5.) Figure 3 Figure 4 Annual Estimate of U.S. Distributor Sales In 2022 vs. 2021 Segmenting Industry Sales By Company Size, 2017-2022 Distributor Company Size 2022 Sales Volume 2021 Sales Volume Total Difference % Increase/ Decrease In Sales Volume Over 2021 Under $2.5 Million $11,945,196,520 $9,423,672,556 $2,521,523,964 +26.76% $2.5 Million Or Over $,13,577,222,952 $12,654,262,859 $922,960,094 +7.29% Total $25,522,419,472 $22,07,935,415 $3,444,484,058 +15.60% Company Size 2017 2018 2019 2020 2021 2022 Change Over 2021 <$250K $1,697,870,003 $1,728,413,057 $1,978,883,063 $1,773,390,538 $1,750,167,778 $1,652,454,815 -5.6% $250K-$500K $1,753,476,883 $1,826,290,910 $2,009,047,831 $1,471,523,054 $1,796,178,054 $1,683,550,862 -6.3% $500K-$1M $2,520,331,255 $2,574,805,007 $2,272,053,820 $2,606,945,334 $2,429,955,200 $2,853,283,342 +17.4% $1M-$2.5M $3,820,451,352 $4,864,590,762 $4,329,090,085 $3,615,116,424 $3,44,371,505 $5,755,907,501 +67..0$ $2.5M+ $13,493,850,947 $13,752,479,103 $13,634,410,069 $10,150,136,798 $12,654,262,859 $1,642,282,680 +7.3% Total $23,285,980,409 $24,746,578,869 $24,223,484,868 $19,617,112,147 $22,077,935,415 $25,522,419,472 +15.6% Figure 5 Sales Average Mean By Under $2.5 Million Distributors, 2013-2022 2013 2016 2021 2014 2019 2017 2022 2015 2020 2018 $433,018 $449,835 $409,477 $430,563 $422,465 $430,912 $519,043 $417,846 $423,943 $469,833 68 • APRIL 2023 • PPAI
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