Thomas Index Report 2021 Q2 SOURCING ACTIVITY SNAPSHOT

Thomas Index Report

2021 Q2 SOURCINGACTIVITY SNAPSHOT

July 2021 Report

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In our weekly Thomas IndexTM Report, we look at what our data shows to uncover sourcing trends throughout industries. These trends are based on what our users are looking for from among the more than 70,000 industrial/commercial/MRO product and service categories at Thomasnet.com®.

This eBook recaps the top sourced categories in the Thomas Network at Thomasnet.com® for Q2 2021.


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These are the TOP 20 PRODUCTS buyers were sourcing at Thomasnet.com® in Q2 2021:

1. Adhesives2. Medical Equipment & Supplies3. Steel4. Packaging5. Printed Circuit Boards (PCB)6. Face Masks 7. Tools8. Labels9. Food Products

10. Lumber

11. Pumps12. Automation Equipment13. Lubricants14. Machinery15. Laboratory Equipment & Supplies16. Chemicals17. Hand Sanitizers18. Nitrile Gloves19. Pharmaceuticals

20. Prototypes






Here are the TOP 20 SERVICES buyers were sourcing at Thomasnet.com® in Q2 2021.

1. Machining2. Engineering Services3. CNC Machining4. Commercial Printing Services5. Plumbing Contractors6. Plastic Injection Molding Services7. Metal Fabrication8. Manufacturing Services9. Tube Fabrication & Bending Services

10. Third Party Logistics (3PL) Services

11. Sewing Contractors 12. Steel Fabrication13. Contract Manufacturing14. Civil Engineering Services15. Product Development16. Construction Contractors17. Warehouse & Distribution Services18. Electrical Contractors19. HVAC Contractors

20. Nutritional Supplement & Vitamin Contract Manufacturing






These categories saw the biggest increase in sourcing activity in Q2 2021, year-over-year, at Thomasnet.com®.1. CNC Turning: s1432.0%

2. Dry Ice: s1051.3%3. Oxygen Concentrators: s797.0%4. Vinyl Fences: s565.2%5. Pressure Pumps: s533.3%6. Design & Build Engineering Services: s527.0%7. Private Label Candles: s492.0%8. Wallpaper: s491.5%9. Software: s491.1%

10. Network Installation Services: s436.8%

11. Water Treatment Equipment: s435.0%12. Sealants: s430.4%13. Brakes: s413.7%14. Safety Gloves: s409.5%15. Building Products: s403.4%16. Herbs: s384.5%17. Inductors: s378.7%18. Wood Windows: s377.2%19. Utility Trailers: s368.6%

20. Printing Inks: s358.9%

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Revisiting Our Q2 PredictionsThomas IndexTM Sourcing Forecast Q2 2021

Last quarter we predicted a s 14-17% increase in sourcing for PCBs. While searches for PCBs dipped slightly over Q2 compared to Q1, sourcing activity for Printed Circuit Boards did jump s 109% YoY. Challenges associated with the global chip shortages have spread to affect the electronics sector in addition to automotive and other key areas.

• Printed Circuit Boards (PCBs): s14% - s17%






After predicting that sourcing for Aerospace, Aeronautical, & Aircraft Engineering Services would rise s 12-15% QoQ, we saw the category take a slight dip in Q2 while showing strong activity year over year with a s 102% increase. Related categories, however, did see notable short-term and long-term growth, including Aircraft & Aerospace Machining with a s 30.7% increase QoQ and a s 110.9% rise YoY, and Aerospace, Aircraft & Aviation Lubricants with a s 25% jump QoQ and s 50% growth YoY.

• Aerospace, Aeronautical, and Aircraft Engineering Services: s12% - s15%






As businesses reopened, construction and broader infrastructure projects resumed, and employees returned to work nationwide following COVID-19-related closures, we anticipated Manufacturing Services would see a s 10-13% increase. The general category saw a more cautious s 1% growth over Q2, but more specific categories like Engineering Services saw a major s 237% spike QoQ and s 301% jump YoY, indicating strong sourcing activity and opportunities across the broader manufacturing sector. Relatedly, categories like Food Contract Manufacturing, which was up s 59% QoQ and s 170% YoY, and Consumer Product Contract Manufacturing, which rose s 25% QoQ and s 85% YoY, illustrate a promising industrial Q3.

• Manufacturing Services: s10% - s13%






As predicted, Foodservice Equipment saw a substantial increase in sourcing activity over Q2. We had originally predicted a cautious s 8-11% growth over the quarter, but the category’s s 121% growth over the quarter and s 94% growth over the year highlights a notable (and likely growing) boom in the foodservice industry. Similar spikes in related foodservice categories, especially those like Individual Foodservice Packets (such as single-serving ketchup pouches), which is up s 131% QoQ and s 57% YoY, serve to highlight the surging interest in and growth opportunity of this sector.

• Foodservice Equipment: s8% - s11%





With the American Trucking Association warning of a nationwide shortage of truck drivers and a sizeable increase in e-Commerce purchases, particularly fueled by the restrictions associated with the pandemic over the past year, industrial companies will continue to struggle with timely, available shipping in the coming quarter. We expect to see a s 5-8% increase in sourcing for Shipping Services (alongside predicted growth in Trucking Services) over the next three months.

Thomas IndexTM Sourcing Forecast Q3 2021• Shipping Services: s5% - s8%





Still reeling from the impacts of COVID-19 and scrambling to address continued, long-term disruptions, the food supply chain has had a tumultuous first half of 2021. We expect related categories, specifically Food Contract Manufacturing, to see sustained sourcing growth over Q3 of s 8-11%.

Thomas IndexTM Sourcing Forecast Q3 2021• Food Contract Manufacturing: s8% - s11%





We anticipate substantial growth, at least an increase of between s 11-14%, in the Building Products (and Building Materials) category as home construction, infrastructure investments, and other building projects continue to gain momentum post-COVID-19. The National Association of Home Builders says that the recent price surges for key materials like lumber has slowed production, though with growing demand we expect to see a resurgence in building product sourcing through Q3 2021.

Thomas IndexTM Sourcing Forecast Q3 2021• Building Products: s11% - s14%





As manufacturers increasingly invest in digital transformation and adopt Industry 4.0 technology, we predict sourcing for 3D printers for use in a broad range of additive manufacturing applications industry-wide will increase over Q3 2021 by s 12-15%. The 3D printing sector is expected to quadruple by 2030, according to consulting firm Lux Research, which will fuel surging interest in printer investment even in the short-term.

Thomas IndexTM Sourcing Forecast Q3 2021• 3D Printers: s12% - s15%





65% Of Our Active Registered Users

Represent SMBs

1.3 Million+ Active Registered Users

on Thomasnet.com®

20,000+ New Registered Users

Added Every Month

1.6M+ Average Number of

Visits Per Month

93% Fortune 1000 Source Suppliers

on Thomasnet.com®

• Government & Military• Machinery• Manufacturing• Medical & Healthcare• Metals - Raw, Formed, Fabricated• Mining, Oil & Gas, Quarrying• Paper, Paper Products & Printing• Plastics & Rubber• Textiles, Apparel, Leather• Transportation & Logistics• Utilities & Telecommunications

These 30 top users alone average 322 supplier evaluations per day on Thomasnet.com®.

2.4 TrillionSERVING THE $2.4 TRILLION INDUSTRIAL MARKET

Our active registered users identify themselves from within the following industries:

• Aerospace & Defense• Agriculture & Forestry• Automotive• Business Services• Chemicals• Construction• Distribution, Wholesale, Retail• Education• Electrical Equipment• Electronics• Engineering & Technical Services• Food, Beverage, Tobacco

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BY COMPANY SIZE (EMPLOYEES)n Under 100 Small Business ........... 44%

n 100-999 Midsize Business ......... 21%

n 1000+ Large Business.................. 34%

1.3 Million+ Active Registered Users on Thomasnet.com®

By Age By Job Function

REVENUE

EMPLOYEE

44%

34%

21%

BY COMPANY SIZE (REVENUE)n <$50M Small Business .................. 54%

n $50M-$1B Midsize Business ...... 20%

n >$1B Large Business ...................... 26%


REVENUE

EMPLOYEE

26%

54%

20%

BY JOB FUNCTIONn Manufacturing (Business) ...............................33%

n General Management .........................................20%

n Supply Chain/Procurement/Logistics .....18%

n Engineering/Design .............................................18%

n MRO..............................................................................11%


REVENUE

EMPLOYEE

11%

33%

18%

18%

20%

BY AGE RANGEn 18-24 .............12%

n 25-34 ............30%

n 35-44............18%

n 45-54 ...........17%

n 55-64............15%

n 65+.................5%


REVENUE

EMPLOYEE

30%

12%

18%

17%

15%

5%





Stay up to date on industry news and trends, product announcements, and the latest innovations. Visit Thomasnet.com/updates to sign up for our daily Thomas Industry Update Newsletter, including our weekly Thomas IndexTM Report video.

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BY JOB FUNCTIONn Engineering/Design .............................................10%n General Management .........................................13%n Maintenance/Repair/Operations .................7%n General Manufacturing......................................63%n Supply Chain/Procurement/Logistics .....7%

TIU JOB FUNCTION

updated TIU JOB FUNCTION

TIU INDUSTRY

13%

10%7%

7%

63%




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1 sec Every second a buyer, engineer or other purchase

decision-maker visits Thomasnet.com® to source

products and services and find a supplier






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The Thomas Manufacturing Index (TMX) was created to reflect the fundamentals of industrial activity in the US and Canada. It illustrates the impact of supply chain sourcing activity, project planning, and commercial spending confidence on the economy. Visit the TMX page today to see Thomas Industrial Data in use and get the latest overview of activity in the industrial sector. Learn more >

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Thomas Index Report 2021 Q2 SOURCING ACTIVITY SNAPSHOT