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U.S. MRO Market SnapshotEstimated end-user demand by region & end market 2017 by Gale Media, Inc. All rights reserved. Material may not be reproduced in whole or in part in any formwhatsoever without written permission from the publisher. To request permission to copy, republish or quotematerial, please call 303-443-5060.

U.S. MRO Market SnapshotThis analysis of the U.S. market for MRO product consumption is being made available exclusivelyto MDM Premium subscribers as a bonus in partnership with MDM’s data division, MDM Analytics.Read more about MDM Analytics and its capabilities on page 8 of this report.About this ReportThe U.S. market size for 122 MRO product groups in 2016 is estimated at 477 billion, according to MDM and MDM Analytics’annual analysis of MRO markets. This is a broad calculation thatincludes product categories that fall outside the typical spectrumof what most industrial distributors sell. The total list of productsincluded in this analysis appears on page 6 of this report.On page 3, this report breaks down the total U.S. market figureinto four macro categories to provide more perspective: Total Estimated MROProduct Consumptionin U.S. 477 BillionIndustrial MROElectrical MROConstruction/Facility MROOtherEditor’s note: Due to slight variations in product groups included, as well as updates to the U.S. governmentdatabase, data previously published by MDM on the size of the MRO market may not be directly comparableto the data in this report.The data in this MRO Market Snapshot uses MDM Analytics’ proprietary predictive modeling, which startswith a public aggregate market size estimate by product category for a given geography. MDM Analyticsthen uses a combination of public and private databases to allocate estimated demand to deeper geographiclevels and to specific customer segments, as defined by the six-digit North American Industry ClassificationSystem (NAICS). This approach provides a total market size estimate without regard to market channels.All market size segmentations in this report represent estimated annual demand in U.S. dollars at the end-usermarket level or “street price,” with an average distributor margin calculated at the product category level.MDM Analytics is the data division of Modern Distribution Management. Both are owned by Gale Media, Inc.Copyright and terms of use 2017 by Modern Distribution Management and MDM Analytics/Gale Media, Inc. All rights reserved. This report is protected bycopyright law and may not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, in whole or in part, in any form or manner or by any means whatsoever, by any person without prior written consentfrom Gale Media, Inc. This report may not be used in commercial documents without the written permission of the copyright holder.You may make one machine readable copy and/or one print copy for your personal use. You may also include limited excerpts of thiscontent in printed memos, reports and presentations for non-commercial use. We ask that you attribute this information by including“Source: U.S. MRO Market Snapshot 2017 Gale Media, Inc. All rights reserved.”Gale Media, Inc., 2569 Park Lane, Suite 200, Lafayette, CO 80026 2017 Gale Media, Inc.2

U.S. MRO Market SnapshotEstimated Consumption of MRO Products by Product CategoryThe following data provide an overview of MRO product categories and their share in U.S. dollars of the totalMRO market in the U.S.Total Estimated MRO Product Consumption in U.S.: 477 BillionCore IndustrialDistribution Products 244 BillionIndustrial MRO 186 BillionAbrasivesBrushesChemicalsControlsCutting ToolsFastenersFluid PowerHand ToolsIndustrial PVFMachine Tool AccessoriesMaterial HandlingPower ToolsPower TransmissionRubber ProductsSafetySawsWelding Equipment & GasesElectrical MRO 57 BillionOther: 233 BillionConstruction/Facility MRO 48 BillionContractor SuppliesHVACRJanitorial SuppliesPlumbing SuppliesIndustrial MRO39%Other MRO39%Other MRO 185 sSteelElectrical MRO12%Construction/Facility MRO10%Data Methodology Note:The data on this page and the following pages represent estimated total consumption at the end-user level of MRO products inNorth America, according to MDM Analytics. These estimates represent purchases at the end-user level in U.S. dollars and include thedistributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and acombination of government, private and industry databases. 2017 Gale Media, Inc.3

U.S. MRO Market SnapshotEstimated Consumption of MRO Products by RegionThe following data represent estimated consumption at the end-user level of MRO products in the U.S. basedon the total market size of 477 billion, according to MDM Analytics. These estimates represent purchases atthe end-user level in U.S. dollars and include the distributor margin. MDM Analytics estimates market demandat the end-user level using its proprietary predictive market model and a combination of government, privateand industry databases.U.S. Total MRO Market: 477 BillionPacific Coastal14% 68BNorthwest Central8% 37BNortheast Central18% 86BNew England5% 25BMid-Atlantic13% 62BMountain6% 29BSouthwest Central12% 56BSoutheast Central6% 28BSouth Atlantic18% 86BStates included in each of the nine U.S. regions, according to the U.S. Census Bureau:Northeast Central: Illinois, Indiana, Michigan, Ohio, WisconsinPacific Coastal: Alaska, California, Hawaii,Oregon, WashingtonSoutheast Central: Alabama, Kentucky,Mississippi, TennesseeSouth Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, NorthCarolina, South Carolina, Virginia, WestVirginiaMid-Atlantic: New Jersey, New York,PennsylvaniaMountain: Arizona, Colorado, Idaho,Montana, Nevada, New Mexico, Utah,WyomingSouthwest Central: Arkansas, Louisiana,Oklahoma, Texas 2017 Gale Media, Inc.Northwest Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota,South DakotaNew England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island,Vermont4

U.S. MRO Market SnapshotThis page represents the top 10 products consumed in the three largest end-markets by two-digit NAICScodes in the U.S. and are ranked by demand. These estimates represent purchases at the end-user level andinclude the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.Top 10 Products Consumed byManufacturing End Markets(NAICS 31-33)RankProductTop 10 Products Consumed byConstruction End Markets(NAICS 23)RankProduct1Packaging MRO1Electrical MRO2Power Transmission MRO2Electronics MRO3Chemicals MRO3Power Transmission MRO4Electrical MRO4Plastics MRO5Fluid Power MRO5Chemicals MRO6Plastics MRO6Industrial Pipes, Valves, Fittingsl MRO7Electronics MRO7Packaging MRO8Industrial Pipes, Valves, Fittingsl MRO8Safety MRO9Material Handling MRO9Steel MRO10Computer/Telecom MRO10Material Handling MROTop 10 Products Consumed byOther End MarketsRankProduct1Packaging MRO2Computer/Telecom MRO3Janitorial Supplies4HVACR MRO5Electrical MRO6Plumbing Maintenance/MRO7Plastics MRO8Welding Equipment MRO9Power Transmission MRO10Material Handling MRO 2017 Gale Media, Inc.2-digit NAICS codes that comprise the Other End MarketsNAICS 371Wholesale TradeUtilitiesMining, Quarrying, and Oil and Gas ExtractionRetail TradeAgriculture, Forestry, Fishing and HuntingProfessional, Scientific, and Technical ServicesAdministrative and Support and Waste Management and Remediation ServicesTransportation and WarehousingAccommodation and Food ServicesHealth Care and Social AssistanceInformationFinance and InsuranceEducational ServicesOther Services (except Public Administration)Public AdministrationManagement of Companies and EnterprisesReal Estate and Rental and LeasingArts, Entertainment, and Recreation5

U.S. MRO Market SnapshotMRO Products Included in this ReportHow big is the market for MRO products? The answer depends on what is included in the market basket.MDM Analytics provided the data for this report based on 122 MRO products.Products included in this snapshot:Construction/FacilityFluid PowerContractor SuppliesHydraulic Pumps-Motors MROHVACRHydraulic Cylinders MROHVACR Maintenance/MROHydraulic Valves-Filters-Misc MRORefrigeration Comml/Ind MaintPneumatic Cylinders MROJanitorial SuppliesPneumatic Valves-FRLs MROPlumbing ProductsPumps Industrial MROPlumbing Maintenance/MROHand ToolsIndustrial MarketsTools FilesAbrasivesTools General HandAbrasives Grain-Grit-ShotAbrasives CoatedAbrasives SuperAbrasives BondedBrushesTools Hand-Precision MeasurementIndustrial Pipes, Valves, FittingsPVF Metal MROMachine Tool AccessoriesMaterial HandlingBrushes General MaintenanceConveyors-Conveying EquipmentBrushes IndustrialCasters Industrial MROBrushes Painting/PrepShelving Racks-Lockers-BenchesChemicalsAdhesives MROWire Rope and SlingsPower ToolsPackaging-AdhesivesCompressors Industrial AllPaint Maintenance MROTools Power-AirPaint Spray Equipment MROTools Power-ElectricPetro Refined LubricantsPower TransmissionPetro Hydraulic OilsBearings Ball MROPetro Industrial Oil & GreaseBearings Mounted MROPetro Metal CuttingBearings Roller MROPetro Metal FormingChain Link MROPetro Surface CoatingsChain Roller MROSealants MROClutches & Brakes MROControlsControls Process Instruments MROCutting ToolsControls Gen-Indst Eqpt MROControls Gen-Indst PLCs MROControls Specialty Indst MROTools Cutting-CarbideControls Motor & Drive MROTools Cutting-High Speed SteelControls Variable Speed Drives MROFastenersCouplings Flexible MROFasteners Non-Threaded MROGauges Industrial Instrument MROFasteners Threaded MROGear Drives & Speed Reducers MROLinear Accessories MRO 2017 Gale Media, Inc.6

U.S. MRO Market SnapshotPower Transmission Cont.Motors Fractional HP MROOther MROComputer/TelecomMotors Integral HP MROComputers Business MROSprockets MROComputers Processing MRORubber ProductsDataComm Equipment MROBelting Conveyor Flat MROElectronicsGaskets & Packings MROComponents Modules MROHose Hydraulic MROTools Assembly-Electrical/ElectronicHose Industrial MROPackagingO-Rings MROPackaging-Bags IndustrialPneumatic Tube & FtgsPackaging-Bottles Cans&Drums AllSeals Mechanical-Automotive MROPackaging-Containers PlasticSeals Mechanical-Industrial MROPackaging-Containers PaperSheaves MROPackaging-Containers Paper SpecialtyBelts Transmission MROTapeSafetyPlasticsSafety PPEPlastic Flex-Film&Sht MROSafety Test-Eqpt and RespiratorsPackaging-Plastic Film&ShtSawsSaw BladesWelding Equipment & GasesPlastic Flex-Tube MROPVF Plastic Maintenance/MROPlastic Rigid-Sht&Plate MROGases Industrial Non-WeldingPlastic Rigid-Sht&Plate PkgGases Industrial WeldingPlastic Shapes-Tube Rod Bar MROWelding Eqp Cstn&Maint MROPlastic Shapes-Tube Rod Bar PkgElectricalSteelSteel Alloy MROCircuit Protection Devices MROSteel Carbon Bars MROGenerator Set-Power Supply MROSteel Carbon Pipe MROLight Bulbs MROSteel Carbon Plate MROLight Bulbs Transprtn MROSteel Carbon Sheet MROLight-Fxtr Transprtn MROSteel Carbon Tube MROLight Fixtures MROSteel Carbon-Strctl MROSwitchgear Equipment MROSteel Stainless MROTest Instruments Prtbl/BenchTransformers Power MROWire DataComm MROMDM Analytics offers data on more than 200 MRO/OEMWire & Cable MROproduct profiles. For a full list, visit www.mdm.com/analytics.Wire Small Diameter MROWiring Devices Current MROWiring Devices Non-Current MRO 2017 Gale Media, Inc.www.mdm.com/analytics7