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‘Top 3 in 5’ February Insights: Tariff Uncertainty, Sluggish Government Sector, and Demand Below Expectations

Posted in Industry News on March 11, 2025

In this episode of Top 3 in 5, Brendan and Evan discuss how the government sector started the year sluggishly, with distributors reporting the weakest demand since April 2022. Demand showed modest improvement in February but remains below expectations, with hopes for a March rebound.

Lastly, tariff-related uncertainty is limiting pre-buy activity, with businesses hesitant to take action due to unclear impacts on demand and pricing.

About Top 3 in 5:

Through our partnership with the Cleveland Research Company, a premier consulting market intelligence firm specializing in channel research, we’re able to bring ISA Members the results of a monthly survey of industrial distributors to get a pulse on what’s going on in our industry. This quantitative data, supplemented with qualitative data collected by conversations with industry professionals, provides a great benchmark of the market, allowing us to get into the drivers of why things are changing and helping us identify changes quicker than the PMI or ISM.

Contribute to this Report:

Participate in the Cleveland Research Company survey – it’s free and takes less than 15 minutes to complete. Those who participate will get the full detailed report sent to their inbox: https://www.surveymonkey.com/r/F7SNYZJ

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