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Workshop on How to Improve Profitability of Distributors – Strategies to Thrive in the Changing Mechanical Power Transmission Market

At the Bearing & Power Transmission World Meetings in Istanbul, Jean-Marie Fink of JMF Consulting led a workshop on a question every distributor eventually has to face: how do you actually improve profitability in the mechanical power transmission market?

The session opens with a clear-eyed map of the worldwide MPT market, roughly €116 billion in production, of which around a third is aftermarket, giving a sell-out volume of some €57 billion split between Asia, Europe and the US. Bearings and linear motion alone account for 45% of the product mix. Jean-Marie then turns to the structural reality behind those numbers: despite the presence of giants like Grainger, Motion Industries and Amazon Business, distribution remains deeply fragmented on both continents. In the US, 80% of distributors employ fewer than 20 people; in Europe, 63% of companies turn over less than €25 million, and the largest players together hold under 3% of the market.

From there, the workshop moves from market context to the balance sheet. Using a typical distributor income statement, 35% gross margin, 30% costs, 5% profit, Jean-Marie explains the two measurements every owner should calculate every year: return on sales and return on assets. He sets out why 5% return on sales is a survival threshold rather than a target, why 10% profit before tax is the real benchmark of a well-run distribution business, and why knowing your breakeven point (typically a 14% tolerance to falling sales) matters more than fearing a downturn.

The final section is practical: six levers distributors can pull to move the needle, growing sales without adding fixed cost, buying better, selling higher through genuine differentiation rather than a “me too” offer, reducing fixed cost, cutting investment and inventory, and collecting receivables faster. As Jean-Marie demonstrates, even a 3% improvement in purchase price can lift profit by nearly 40% — but only if you bring your supplier something of value in return.

Essential viewing for distributor owners, managers and manufacturers who want to understand how their partners really make money.

Continue the conversation on reliability, maintenance excellence, and industry best practices at the Bearing & Power Transmission World Meetings 2027 in Belgrade. Join global experts, manufacturers, and distributors to explore the strategies shaping the future of our industry. Visit www.bearing-power.com and secure your place.