Kevin JohnsonW. Grainger, aka Grainger, is a Fortune 500 industrial supply company based in Lake Forest, Illinois. The company was founded in 1927 by William W. Grainger to supply motors to consumers. By 1936, Grainger had 15 branches across the US.
The company expanded its offering to include lighting, material handling, fasteners, plumbing, and safety supplies. It also offers inventory management services and technical support.
The company operates worldwide through 598 branches, online channels, and 33 distribution centers. In 2022, Grainger had 26,000 employees and more than 4.5 million customers. [1]
Grainger is a leading broad-line distributor in North America, Japan, and the UK. The company operates through two segments: High-Touch Solutions and an Endless Assortment. Both segments have different business models. The High-Touch Solutions segment offers over 2 million MRO (maintenance, repair, and operating) products and services via grainger.com, while the Endless Assortment segment serves small businesses, with over 11 million items under Zoro.com and 20 million solutions through MonotaRO.com.
In 2022, Grainger posted a 16.9% year-over-year increase in revenue, but it faces stiff competition from WESCO, MSC Direct, Fastenal, Graybar, Mouser Electronics, MRC Global, and SupplyHouse.com. [2]
Here is an in-depth analysis of Grainger’s top 15 competitors and alternatives:
1. WESCO International, Inc.
Year founded: 1922
Headquarter: Pittsburgh, Pennsylvania
WESCO is a publicly traded Fortune 500 company that offers B2B distribution, logistics, and supply chain services. It operates three business segments: Electrical and Electronic Solutions (EES), Communications and Security Solutions (CSS), and Utility and Broadband Solutions (UBS). In 2022, WESCO had around 20,000 employees.
The main competitive advantage for WESCO over Grainger is its expansive global network. As of Feb 2023, WESCO operates 800 branches, warehouses, and sales offices in over 50 countries.
WESCO also partners with industry-leading suppliers and provides millions of products and end-to-end supply chain services to thousands of customers globally, making it the top Grainger competitor and alternative. [3]
2. MSC Industrial Direct Co
Year founded: 1941
Headquarter: Melville, New York
MSC Industrial Direct is a large industrial equipment distributor in the US and sells over one million metalworking and MRO products. In 2022, the company made 61.6% of its annual revenue via e-commerce channels.
MSC improved its website and entire digital offering in 2022 to cater to a surge in consumer demand. In Aug 2022, the business also acquired Tower Fasteners to expand into equipment fasteners and components. Tower Fasteners now operates under MSC’s All Integrated Solutions subsidiary.
MSC Industrial is one of the top Grainger competitors in metalworking and MRO product distribution. [4]
3. Fastenal
Year founded: 1967
Headquarter: Winona, Minnesota
Fastenal is a Fortune 500 distribution company with around 3,200 in-market locations. It is also a component of the S&P 500 and Nasdaq 100 stock market indices. In 2022, Fastenal had over 22,000 employees.
Fastenal offers products in three categories: Fasteners, Safety Supplies, and Other Product Lines. The main competitive advantage of Fastenal is its cutting-edge FMI Technology that combines FASTStock fulfillment processing with FASTBin (infrared, RFID, and scaled bins) and FASTVend (vending devices).
In 2022, Fastenal signed 356 new onsite locations, hired 1,520 full-time employees, and opened 12 branches. The company’s onsite signings target in 2023 is between 375 and 400, making Fastenal a formidable Grainger competitor. [5]
4. Graybar
Year founded: 1869
Headquarter: St. Louis, Missouri
Graybar is one of the largest employee-owned companies in North America. This Fortune 500 distributor specializes in electrical, communications, and data networking products. In 2022, Graybar had 300 distribution facilities across North America. [6]
Graybar sources and sells products from thousands of manufacturers. It also offers supply chain management and logistics services to help customers network, automate, and secure their facilities. Graybar is a worthy alternative to Grainger.
5. Mouser Electronics
Year founded: 1964
Headquarter: Mansfield, Texas
Mouser Electronics is a global semiconductor and electronics distributor owned by Berkshire Hathaway. The mouser.com website is available in multiple languages and features over 6.8 million products from 1,200 brands. In 2022, the company had about 3,700 employees across 27 locations globally.
Mouser Electronics specializes in new product introductions from leading manufacturers. It ships to over 650,000 customers in 223 countries from its one-million-square-foot distribution facility in Dallas, Texas.
In Feb 2023, Diotec Semiconductor named Mouser Electronics the Top Sales Performer. Mouser Electronics is one of the best alternatives to Grainger for semiconductors and electronic components. [7]
6. MRC Global
Year founded: 1921
Headquarter: Houston, Texas
MRC Global is a leading pipe, valve, and fitting (PVF) product distributor. It caters to companies in the energy and industrial sectors. In 2022, MRC was ranked #10 on the ID Big 50 list. [8]
MRC Global and Grainger distribute products for partner manufacturers and vendors, but MRC specializes in pipes, valves, and fittings. In 2022, MRC’s upstream, chemicals, and energy transition end markets outperformed expectations.
The company attributes the growth to its new diversification strategy in the gas utilities and DIET (Downstream, Industrial, and Energy Transition) sectors, making MRC Global one of the fastest-growing Grainger competitors.
7. SupplyHouse.com
Year founded: 2004
Headquarter: Melville, New York
SupplyHouse.com is a leading online plumbing, HVAC, and electrical distributor. It offers 1-day and 2-day shipping across 95% of the US. In 2022, SupplyHouse.com operated four fulfillment centers in Ohio, New Jersey, Texas, and Nevada.
SupplyHouse.com operates TradeMaster, a free membership program with a customer service phone line, free shipping, and discounts on items. This program serves over 100,000 trade professionals. In Dec 2022, the company donated $75,000 to support the skilled trades sector. SupplyHouse.com is one of the best alternatives to Grainger. [9]
8. McMaster-Carr Supply Company
Year founded: 1901
Headquarter: Elmhurst, Illinois
McMaster-Carr is a distribution company that supplies hardware, tools, industrial materials, and maintenance equipment. Its website, mcmaster.com, provides SOLIDWORKS add-ins to help customers assemble parts. In 2022, McMaster-Carr had around 3,000 employees. [10]
McMaster-Carr distributes equipment parts with next-day shipping. Most fabricators order several components to create custom solutions for their companies. To streamline the design process, McMaster-Carr provides a comprehensive SOLIDWORKS database with native part files.
Customers go through installer instructions on the website and click Finish to launch the SOLIDWORKS add-in for the product. McMaster-Carr is one of the best alternatives to Grainger for professional fabricators and designers.
9. Arrow Electronics, Inc.
Year founded: 1935
Headquarter: Centennial, Colorado
Arrow Electronics is a Fortune 500 distribution and value-added service company. It specializes in electronic components and computer products. In Dec 2022, Arrow Electronics had 22,300 employees.
Arrow Electronics develops and distributes tech solutions that improve business and daily life. The company also collaborates with over 220,000 technology manufacturers and service providers.
In 2022, Arrow Technologies reported its best third quarter ever with a 9% surge in sales. The company will transition to IT-as-a-Service in 2023 to exploit increased global demand for enterprise IT solutions and is one of the best alternatives to Grainger. [11]
10. Wesco Anixter
Year founded: 1957
Headquarter: Glenview, Illinois
Wesco Anixter is a distribution business owned by WESCO International. WESCO acquired Anixter International Inc. in 2020 and rebranded it to Wesco Anixter in Feb 2023. [12]
Anixter supplies communications, security, networking, industrial control, and audio-visual products across CALA, EMEA, and APAC regions. Its security solutions include surveillance cameras, biometric scanners, door lock systems, access panels, and turnstiles.
In 2022, the company had around 6,000 employees globally. As a subsidiary of WESCO International, Wesco Anixter has enough resources to compete against Grainger.
11. Ingram Micro
Year founded: 1979
Headquarter: Irvine, California
Ingram Micro is a distribution company that offers IT products and services. The company has around 29,000 employees. In 2021, Platinum Equity acquired Ingram Micro at a $7.2 billion valuation.
Ingram Micro specializes in electronic products. The company recently sold its commerce and lifecycle services business to French shipping company CMA CGM Group for $3 billion.
In Sep 2022, Ingram Micro filed for a US initial public offering, but the California-based company did not provide details about the planned IPO. Ingram Micro is one of the best alternatives to Grainger for IT product distribution. [13]
12. Rexel
Year founded: 1967
Headquarter: Paris, France
Rexel is a French distribution company specializing in electrical, heating, lighting, and plumbing equipment. It also offers renewable energy products and energy-efficient solutions. In 2022, Rexel had around 26,000 employees at 19,000 branches in 24 nations.
Rexel distributes products and services globally. In Jan 2023, the company reinforced its portfolio and local footprint in North America with two strategic acquisitions.
Rexel acquired a regional industrial automation distributor, Buckles Smith Electric Company, with six branches and 153 employees in the US, and Rexel’s Canadian subsidiary bought Lineman’s Testing Laboratories. Both acquisitions have expanded Rexel’s footprint in Grainger’s domestic market. [14]
13. HD Supply
Year founded: 1974
Headquarter: Atlanta, Georgia
HD Supply is an industrial distributor owned by Home Depot, US home improvement retail giant. The company spun off from Home Depot in 2007, but in 2020, Home Depot acquired HD Supply for $8 billion to reunite the two entities.
HD Supply provides products and value-added services to about 500,000 professionals in MRO, infrastructure, power, and specialty construction sectors. In Aug 2020, HD Supply sold its White Cap Unit and downsized its operations by half.
The company also closed its Cobb County office in Georgia in Dec 2022 and relocated 57 employees to other states. As a subsidiary of Home Depot, HD Supply can poach some customers from Grainger. [15]
14. Wajax Corp
Year founded: 2010
Headquarter: Mississauga, Ontario, Canada
Wajax Corp is a Canadian distributor of industrial components. It offers equipment parts and service support across North America. In 2022, Wajax was ranked #31 on ID’s Big 50. [16]
Wajax is a multi-line distributor that collaborates with several leading global manufacturers. In 2022, the company expanded its distribution partnership with Japanese industrial giant Hitachi.
This move boosted its equipment sales by 31% and industrial parts operations by 21% in Q3 2022, making Wajax a fast-growing Grainger competitor.
15. Rockwell Automation, Inc.
Year founded: 1903
Headquarter: Milwaukee, Wisconsin
Rockwell Automation is a market leader in industrial automation and digital transformation. It owns several top-selling brands, including Allen-Bradley, FactoryTalk, and LifecycleIQ. In 2022, Rockwell had around 26,000 employees serving customers in over 100 countries. [17]
Rockwell Automation operates via three business segments: Intelligent Devices, Software and Control, and Lifecycle Services. Unlike Grainger, Rockwell Automation doesn’t rely on partner vendors and manufacturers but develops and distributes its own products.
In 2023, the company will execute a more resilient operating model to deliver double-digit profit growth. Rockwell Automation is a worthy alternative to Grainger.
References & more information
- W. Grainger, Inc. (2023, Feb 2). Grainger reports results for the fourth quarter and full year of 2022. PRNewswire
- Demery, P. (2023, Feb 2). Grainger surpasses $15 billion in 2022 sales. DigitalCommerce360
- WESCO (2023, Feb 14). WESCO International Reports Fourth Quarter and Full Year 2022 Results. Business Wire
- Demery, P. (2022, Oct 20). MSC Industrial pushes e-commerce to 63% of total sales. DigitalCommerce360
- Fastenal Company (2023, Jan 19). Fastenal Company Reports 2022 Annual and Fourth Quarter Earnings. Business Wire
- Graybar (2022, Oct 24). Graybar Reports Record Net Sales in the Third Quarter. PRNewswire
- Mouser Electronics (2023, Feb 20). Mouser Electronics Named Top Sales Performer of 2022 by Diotec Semiconductor. Business Wire
- Szal, A. (2023, Feb 14). MRC Global Reports $3.4B in 2022 Sales, Record Adjusted Profit. Industrial Distribution
- com (2022, Dec 14). SupplyHouse.com makes a $75,000 contribution to support the Skilled Trades. PRNewswire
- Ifft, J. (2022, Dec 22). McMaster-Carr SOLIDWORKS Add-in for Increased Productivity. TriMech
- Arrow Electronics, Inc. (2022, Nov 03). Arrow Electronics Reports Third-Quarter 2022 Results Business Wire
- IFSEC Global (2023, Feb 14). Wesco Anixter unified brand unveiled by Wesco International. ifsecglobal.com
- Nishant, N. (2022, Sep 19). Ingram Micro Confidentially Files for US IPO Even as Markets Remain Dull. US News
- Rexel (2023, Feb 16). Rexel Reports Fourth-Quarter Sales & Full-Year 2022 Results. TED Magazine
- Fuhrmeister, C. (2022, Dec 16). HD Supply to close Cobb County office, move jobs to other states. Atlanta Business Chronicle
- ID Staff (2022, Nov 8). Wajax Posts Revenue Increase. Industrial Distribution
- Rockwell Automation, Inc. (2022, Nov 2). Rockwell Automation Reports Fourth Quarter and Full Year 2022 Results. Business Wire
- Featured Image by Jelleke Vanooteghem
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