Menu

Standing Still Isn’t an Option

The construction tool distribution industry is at an inflection point. Consolidation is reducing the number of independent distributors. Technology is changing how business gets done. Buying groups are being forced to reconsider their value. Trade associations are searching for new ways to remain relevant as a new generation enters an industry whose traditional methods don’t necessarily speak to them.

The question is no longer whether the industry is changing. It’s whether independent distribution can evolve without losing what makes it valuable.

Evergreen Supply Network’s decision to dissolve offers a clear warning. Consolidation reduced the pool of potential members while the distributors that remained became larger and more demanding in the services and supplier relationships they needed.

The cooperative’s closure demonstrates how quickly the economics supporting independent distribution can shift.

Standing still is not a strategy.

The fundamental proposition behind buying groups remains compelling: Independent distributors can band together to gain purchasing power, supplier access and resources that would otherwise be difficult to achieve alone.

But rebates and purchasing advantages aren’t enough. Long-term value increasingly comes from relationships, access to supplier executives, fellow distributors, education and business expertise. That makes collaboration more important, not less.

As seen on page 22, Erika Scherman’s vision for STAFDA offers an intriguing response to the industry’s fragmentation. Rather than competing with buying groups, she sees STAFDA potentially serving as neutral ground where distributors, manufacturers and industry organizations can find common interests.

That concept deserves attention.

Sphere 1, NetPlus Alliance, AD and STAFDA have different purposes. Buying groups focus on business resources, supplier relationships and purchasing advantages. Associations provide education, networking, advocacy and broader industry connections. There is no reason those functions cannot complement one another. In fact, the industry may increasingly need them to.

The answer isn’t simply putting traditional industry content on another digital platform. The industry needs to give younger professionals a reason to participate by showing them that STAFDA, associations and buying groups remain valuable tools for building relationships and businesses.

Independent distribution isn’t dying. But the organizations supporting it cannot afford to stand still.

The future will belong to those willing to preserve what matters, relationships, independence and customer service, while evolving the structure, services, and partnerships needed to make those strengths competitive in a rapidly changing market.

Ryan Whisner
rwhisner@directbusinessmedia.com 

This article originally appeared in the October/November 2026 issue of Contractor Supply magazine. Copyright, 2026 Direct Business Media.

SPONSORED ADS