The National Association of Chemical Distributors (NACD) has reported that its member firms continued to achieve profitability in 2007, though at slower levels than past years.
Statistics reflect a slowing in sales growth. Sales growth in 2007, when measured by actual physical throughput of pounds of chemicals moving through the warehouse (including third party), was a flat 1.6 percent for all respondents overall (as compared to 2006).
“Although our members reported a slower sales growth during 2007, their return on investment indicates a strong management culture backed up by a commitment to the Responsible Distribution Process, NACD’s management performance practice,” said Chris Jahn, NACD president. “Our member companies tell us that among the benefits they see in participating in RDP are reductions in insurance claims and costs, assistance with regulatory compliance, conservation of company resources, development of systematic employee training, and better documentation of company policies. In the Responsible Distribution process, the focus is on continuous improvement, which drives company management to look all aspects of how they run the business.”
The report is an annual financial ratio benchmarking analysis tool for member firms to evaluate their company’s operating results in order to pinpoint strengths and weaknesses, as well as improvement opportunities. Participating firms receive an overall 145-page industry-wide report as well as an individual report containing the firm’s own ratios calculated alongside the appropriate industry comparatives.