Chemical distributors' sales up in 2008 despite slow growth

05 November 2009 21:14  [Source: ICIS news]

NEW YORK (ICIS news)--Sales for North American chemical distributors were up in 2008, the National Association of Chemical Distributors (NACD) said on Thursday.

NACD members showed a 16.7% increase in sales in 2008 over the year before, according to the NACD’s Company Productivity Report (CPR), released Thursday. Adjusted for inflation, the increase was 14.5%.

NACD disclosed only the percentage change and not sales figures.

Companies also showed an increase on return on investment (ROI), said NACD.

Firms with 75.0% or more of sales from bulk or repackaged liquids showed a 15.2% increase in ROI, and companies with 75.0% or more of sales from factory-packaged products (FPP), either liquid or dry, increased ROI by 34.2%. Distributors providing a product mix balanced between the two had an ROI increase of 32.4%.

On the other hand, the NACD pointed out that growth by actual tonnage was flat or negative: -1.6% for liquids and -4.0% for FPP, with balanced products growing by less than 0.1%.

NACD president Chris Jahn said the ROI increase while fewer tonnes of chemicals were being sold “indicates a strong management culture, backed up by a commitment to the Responsible Distribution Process," the association's continuous improvement program for environment, health, safety, and security.

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By: Ivan Lerner
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