Distributor Outlook – Human Connection is Welcome

by Diane M. Calabrese | Published January 2025

 

 

The future looks bright. The future looks bleak. History repeats itself. Or choose another cliché.

We tap pithy summations to express hope, worry, certitude, or equilibrium when we have no idea what will unfold. And current economic conditions have many reaching for solace in a platitude.

Is there any certainty for distributors? Yes, one. Whatever turbulence there is in the economy, end users of products welcome human connection. There’s a reason YouTube videos on how to service a machine or use a chemical continue to multiply: A person-to-person, or video-to-person, contact is highly valued.

True, anyone can submit an AI query and get instructions on finding what’s disrupting a machine’s performance and learn how to fix the machine. But the most honest brokers among the YouTube contributors state firmly when a repair is not do-it-yourself (DIY).

As 2026 begins, perhaps one of the most sought-after entities is a service center that does repairs, completing them in an expeditious way. The distributorship with a service center is a highly valued place.

Even better are distributors that send service team members to jobsites, but in many parts of the country, traveling service technicians have become a fantasy.

The outlook for distributors tightly linked to their customers ought to be excellent. Besides repairs, such distributors provide customization of equipment and ancillaries, quick turnaround on parts, speedy repairs, and routine maintenance. And yes, those that can offer service calls to sites get top marks.

Some of the turbulence being experienced across the economy can be explained by the speed at which change is happening. Among the actions that enable distributors to keep pace is an openness to new products (and equipment).

“As with most industries, it is very important to diversify your service or product for the industry you work in,” says Aaron Raymond, owner of Deco Products Inc. in Denver, CO. “Most industries are not recession proof and need to have a backup plan just in case.”

In many instances a backup plan coincides with a growth plan. That’s because both consider what can be done next given the context of what’s happening in the present.

“Our R&D department is continuously evaluating new products and working with our suppliers for markets to expand into,” says Raymond. “Currently we are working with one of our distributors on a specialty coating for the direct-to-metal industry as well as a coating for TPO [thermoplastic polyolefin] tapes in the oil industry.

Besides being durable, TPO has many properties that make it a welcome addition to environmentally sustainable practices. As such, it fits well with a significant societal initiative, sustainability.

TPO is just one of many forward-looking endeavors in the works. “We also plan on releasing a new 1K [one-coat] garage floor coating in 2026 to expand our customer reach to the homeowner or commercial building industry,” explains Raymond.

New products and innovative products are essential to bolstering a positive outlook for distributors. In the case of the 1K coating, the single application—with no mixing—meets one of the criteria that may customers use when evaluating a product. And that is ease of use.

 

Keep Moving

Adjust for, move along with, or get ahead of one change, and another will soon emerge. “Nothing stays the same and will change again soon enough, so just do what you can and move forward,” says Linda Chambers, brand and sales manager at GCE/Soap Warehouse Brand in Norcross, GA.

Is there one key to thriving in the 2026 economy? “Not really since no one has a crystal ball,” says Chambers.

“We just look at past sales numbers and try to order soon enough in large enough quantities to hopefully meet our customers’ needs,” explains Chambers. “We have had to pivot to different vendors from past years due to their own issues in keeping inventories stable, and some customers have had to change to other brands or slightly different versions of items when the ones they have been used to getting become unavailable.”

The sales numbers inform the changes that enable a company to successfully maneuver across rough patches. “Adapting is the only way to move forward,” explains Chambers.

That adaptation includes being ready to act on new opportunities in 2026. Preparation includes keeping the focus on customers. That means retaining a firm commitment to quality.

“We look for and use alternative vendors and products that can still fulfill our customers’ needs even if it most likely will be at a higher price point right now due to tariffs,” says Chambers. “But we also are switching to other vendors, including new ones, to get the lowest price we can while still offering only high-quality products.”

Although the business climate at the beginning of a new year might seem less than hospitable, there are reasons for optimism. “There are still new contractors coming in to fill the places of those that are retiring or just getting out for their own reasons,” says Chambers.

“At one point this summer we got an order of 20 cold-water units in and sold 12 in just one week—most to single, new guys just starting out,” says Chambers. “There are still plenty of jobs for those who want to do the available work, but some are realizing they must be willing to change lanes to be where the work is.”

The shifts that contractors make serve as indicators to distributors regarding how they should reconfigure or add to their product lines. That means evaluating the broad range of services cleaning contractors now provide.

“Whether it be doing holiday lights for the season or moving inside and working at night for exhaust cleaning, what is needed by contractors in every area can change for many reasons,” explains Chambers. One of the reasons is the local economic climate.

Not every region is the same. Contractors know they must understand the service needs of their area. And distributors, in turn, must know what the contractors’ needs are.

“We constantly watch what the industry is coming out with and what customers are looking for and talking about online,” says Chambers. “We try and have what is hot that contractors are looking for.”

The snapshot of what contractors want is just that, an instant captured in time. “It is always changing,” says Chambers.

“The great new shooter tip or gun that comes out and everyone wants this month may just end up sitting on the shelf less than six months from now; so you need to be sure you do not purchase too much, or you may be stuck with money sitting on a rack,” explains Chambers.

 

Best Practices

Never abandon what has been working just because of an uncertain outlook. Review and refine instead.

“I think the best thing that dealerships can do is run their businesses in good times like they would in bad times,” says Greg Sprunk, president of Superior Cleaning Equipment Inc. in Phoenix, AZ. “Becoming more efficient, watching costs, having a good stock of inventory, and making sure that you have a great team of people is the best way to get prepared for the future.”

The basics remain constant. “Understanding cash flow, having reserves, and being personally fiscally responsible so that whatever comes at you, you can handle,” are always essential, says Sprunk.

Experience helps distributors maintain a positive outlook, explains Sprunk. “Almost 35 years of running a business and making a lot of mistakes, unfortunately or fortunately, gives you a lot of wisdom to hopefully not make the same ones.”

The wisdom gained applies to new tools. “This is a great business,” says Sprunk, who sees a bright future and has no concerns about the ascendence of AI.

“AI will only help us; it is not a competition for us, and the customer base that we serve needs us,” explains Sprunk. “Technology will only help us solve internal and customer issues faster.”

Internal alignment of team members may change, along with products. And expenditures may have to be modified.

“But the good operators will always do well like in any business, and the ones who don’t adhere to good business principles, or have good ethics as well as understanding of their numbers, will not prosper,” says Sprunk. He adds that this is an “exciting time” to be a business owner.

“We are constantly looking at new technologies, software, and innovation to help us do more with less,” says Sprunk. At every juncture the crucial bridge that distributors build between manufacturer and end user remains foremost.

“A strong focus on service and investing in your service techs and having a good ecosystem, including competent parts managers and CSRs to support them, is essential so you in turn can give the customer the best experience possible,” says Sprunk.

“I think the current administration is doing many things well,” says Sprunk. “Some things need to be rectified, like tariffs, but from a business standpoint we are in much better shape than we were before in terms of business climate, lower interest rates coming, immigration policy, and more fiscal responsibility.”

Emphasize the human connection, roll with the punches and keep moving forward, and review and refine your business procedures. All these practices point to a positive outlook.