Independent distribution is getting larger, not disappearing.

AD reported member sales of $89.6 billion during the first nine months of 2026, up 15% year over year. Distribution Strategy Group reports AD's latest results

Same store sales increased 12%.

Supplier Purchases Increased Even Faster

Purchases from participating AD suppliers increased 25%.

Distributions back to members increased 35%.

AD operates across multiple trade categories including:

HVAC,

plumbing,

pipe and valves,

and electrical.

Independent Distributors Are Fighting Scale With Scale

National distributors have been consolidating aggressively.

Independent wholesalers cannot individually match the size of companies like Watsco or Graybar.

Buying groups allow independent businesses to combine purchasing volume while maintaining local ownership.

That can improve:

supplier terms,

product access,

rebates,

and purchasing leverage.

Local Independence Still Has Value

Many contractors prefer local distributors because of:

technical knowledge,

relationships,

local inventory,

and flexibility.

AD's growth suggests independent distribution still has considerable market power when those businesses cooperate.

The Takeaway

HVAC distribution may be consolidating, but independent wholesalers remain a major force.

AD members generated nearly $90 billion in sales through only nine months of 2026.

The local distributor is not disappearing. It is finding new ways to compete at national scale.