Thriving Amid Consolidation: Opportunities for Independent Distributors
In the fast-evolving wholesale distribution sector—spanning electrical, plumbing, HVAC, and industrial supplies—mergers and acquisitions (M&A) have surged, yet independent distributors thrive through agile, people-driven strategies. While nationals chase EBITDA multiples, independents chase contractors’ deadlines, turning agility and relationships into competitive advantages. Here are five high-impact strategies, backed by real-world successes, to help independents outperform in 2025 and beyond, with a focus on how people drive success.
A Snapshot of the Independent Landscape
M&A activity in 2025 saw global deal values rise 15%, with wholesale megadeals exceeding $5 billion fueling consolidation. The U.S. has ~4,000-5,000 independents, down 10-15% since 2022, but bolstered by buying groups like Affiliated Distributors (AD). AD’s H1 2025 merger with IMARK Electrical added 590+ members, pushing sales past $100 billion across 1,400+ independents. Today’s announced intent to merge with The Commonwealth Group (TCG), adding 349 plumbing/HVAC members, strengthens this powerhouse of top tier independent distributor organizations.
Key Areas Where People Capitalize-
Personalized Service Builds Loyalty
Independent employees deliver tailored expertise, cutting project times with custom kits and on-site support. Like independent grocers stocking local products, they foster loyalty chains can’t match, turning one-off sales into lifelong partnerships. As an AD member noted, “Daily huddles keep us ahead of local needs, creating value nationals envy.”
Agility Outpaces Chains
Unhindered by bureaucracy, staff provide same-day delivery extremely well, navigating supply chain issues like copper shortages. Local crews are able to communicate and execute quickly.
Buying Groups Boost Power
Through AD, member companies leverage $100B+ in buying power for substantial margin gains, matching chain pricing while staying independent. The AD-TCG merger empowers distributors to negotiate better terms, mirroring food distribution’s success, with unified strategies enhancing service focus.
Lean Innovation Drives Growth
Without corporate overhead, organizations adopt tech like AI audits and offer free contractor training, fostering loyalty.
Recruiting Top Talent for People Success
Independent distributors’ strength lies in their workforce, making recruitment critical. They attract top talent by offering autonomy, local impact, and growth opportunities absent in rigid chains. AD’s training programs, shared post-TCG merger, upskill new hires in niche areas like sustainable HVAC. By recruiting locally and emphasizing collaboration, independents build cohesive groups that drive innovation and customer trust, ensuring a competitive edge. At GRN Coastal, we frequently hear from candidates seeking less bureaucracy and a workplace that prioritizes their needs and families. For example, a candidate we recently placed with an electrical distributor emphasized the exceptional care and training they received, which set them up for success. We often hear from past placements about the strong “family feel” within their organizations and branches. This sense of care and appreciation makes a significant impact, as valued employees contribute immense value to their companies. Our recruiters consistently praise independent organizations for fostering these environments and believe there are compelling stories to share with candidates.
Looking Ahead: People as the Superpower
Consolidation catalyzes independents to shine, with their employees leveraging alliances like AD, niche expertise, and agility to gain ground. For 2026, prioritize workforce relationships, tech investment, and targeted recruitment. Independents, with your people’s relational and innovative edge, your era of outperformance is now.
Tim Salvadore
GRN Coastal
Director – Wholesale Distribution & Manufacturing Recruitment
