Wholesalers enhance profile with service functions

The firms in German wholesaling have assessed their current business situation as positive on the whole and are also confident regarding the business outlook. These results of the Ifo Business Survey show that wholesaling will continue its upward development. Already in the first quarter of 2006 turnover grew nominally by 7.2% (4.4% in real terms). Industrial B2B trade, especially the wholesale market for machines and equipment, will benefit from the accelerated investment in plant and equipment and clearly increase its turnover this year. Already in 2005 nominal turnover increased by 6.5% (2.8% in real terms). A continuation of the upward trend is also expected for wholesalers of consumer goods. In 2005 turnover increased nominally by 3.3% (2.6% in real terms). Wholesalers of food and beverages were able to effect price increases. Discussions about food quality might have induced some wholesalers to place more demands on product quality as well as on the supply chain. Quality and traceability of the products as well as a consumer-proximate supply might have contributed to the acceptance of higher prices also from retail customers and from the restaurant trade.