DXP Enterprises, Inc., together with its subsidiaries, engages in the business of distributing maintenance, repair and operating (MRO) products, and service to customers serving a variety of end markets.
Additionally, the company provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to energy and industrial customers.
Business Segments
The company operates through three business segments: Service Centers (‘SC’), Innovative Pumping So...
DXP Enterprises, Inc., together with its subsidiaries, engages in the business of distributing maintenance, repair and operating (MRO) products, and service to customers serving a variety of end markets.
Additionally, the company provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to energy and industrial customers.
Business Segments
The company operates through three business segments: Service Centers (‘SC’), Innovative Pumping Solutions (‘IPS’), and Supply Chain Services (‘SCS’).
Service Centers
The Service Centers (SC) are engaged in providing MRO products, equipment and services, including technical expertise and logistics capabilities, to a variety of customers serving varied end markets with the ability to provide same day delivery.
The company offers its customers a single source of supply on an efficient and competitive basis by being a first-tier distributor that can purchase products directly from manufacturers. As a first-tier distributor, the company is able to reduce its customers' costs and improve efficiencies in the supply chain. The company offers a wide range of industrial MRO products, equipment, and services through a continuum of customized and efficient MRO solutions. The company also provides services, such as field safety supervision, in-house and field repair, and predictive maintenance.
A majority of the company’s Service Center segment sales are derived from customer purchase orders for products. Sales are directly solicited from customers by the company’s sales force. The company's Service Centers are stocked and staffed with knowledgeable sales associates and backed by a centralized customer service team of experienced industry professionals. At December 31, 2024, the company’s Service Centers’ products and services were distributed from 157 service centers and 4 distribution centers. The company’s Service Centers provide a wide range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, industrial supply and safety product and service categories. The company serves as a first-tier distributor of more than 1,000,000 items of which more than 60,000 are stock keeping units (SKUs) for use primarily by customers engaged in the oil and gas, general industrial, manufacturing, chemical, food and beverage, refining, water & wastewater, fabrication & construction and other industries.
The Service Centers segment’s long-lived assets are located in the U.S., Canada and Dubai. Approximately 6.1% of the Service Centers segment’s revenues were in Canada and the remainder was virtually all in the U.S.
Innovative Pumping Solutions
The company's Innovative Pumping Solutions (IPS) segment provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps to meet the capital equipment needs of the company’s global customer base.
Additionally, the company’s IPS segment provides project solutions and capital equipment to the water and wastewater treatment markets including potable water, bio-solid and residual management and wastewater treatment. The company’s IPS segment provides a single source for design, engineering, project management and systems design and fabrication for unique customer specifications.
The company’s sales of integrated pump packages, remanufactured pumps or branded private label pumps are generally derived from customer purchase orders containing the customers’ unique specifications. Sales are directly solicited from customers by its dedicated sales force.
The company's engineering staff can design a complete custom pump package to meet its customers’ project specifications. Drafting programs such as SolidWorks and AutoCAD allow the company’s engineering team to verify the design and layout of packages with its customers prior to the start of fabrication. Finite Elemental Analysis programs such as Cosmos Professional are used to design the package to meet all normal and future loads and forces. This process helps maximize the pump packages’ life and minimizes any impact to the environment.
With over 100 years of fabrication experience, the company has acquired the technical expertise to ensure that its pumps and pump packages are built to meet the highest standards. The company utilizes manufacturer authorized equipment and manufacturer certified personnel. Pump packages require MRO products and original equipment manufacturers’ (OEM) equipment, such as pumps, motors, valves, and consumable products such as welding supplies. The company leverages its MRO product inventories and breadth of authorized products to lower the total cost and maintain the quality of the company’s pump packages.
At December 31, 2024, the Innovative Pumping Solutions segment operated out of 32 facilities, 28 of which are located in the U.S. and two in Canada. All of the IPS segment’s long-lived assets are located in the U.S.
Supply Chain Services
Supply Chain Services (SCS) segment manages all or part of its customers’ supply chains, including procurement and inventory management.
The SCS segment enters into long-term contracts with its customers that can be canceled on little or no notice under certain circumstances. The SCS segment provides fully outsourced MRO solutions for sourcing MRO products including, but not limited to, the following: inventory optimization and management; store-room management; transaction consolidation and control; vendor oversight and procurement cost optimization; productivity improvement services; and customized reporting.
The company has developed assessment tools and master plan templates aimed at taking cost out of supply chain processes, streamlining operations and boosting productivity. This multi-faceted approach allows the company to manage the entire MRO products channel for maximum efficiency and optimal control, which ultimately provides the company’s customers with a low-cost solution.
The company takes a consultative approach to determine the strengths and opportunities for improvement within a customer’s MRO products supply chain. This assessment determines if and how the company can best streamline operations, drive value within the procurement process, and increase control in storeroom management.
Decades of supply chain inventory management experience and comprehensive research, as well as a thorough understanding of the company’s customers’ businesses and industries have allowed the company to design standardized programs that are flexible enough to be fully adaptable to address the company’s customers’ unique MRO products supply chain challenges. These standardized programs include:
SmartAgreement, a planned, pro-active MRO products procurement solution leveraging DXP’s local Service Centers.
SmartBuy, DXP’s on-site or centralized MRO procurement solution.
SmartSource, DXP’s on-site procurement and storeroom management by DXP personnel.
SmartStore, DXP’s customized e-Catalog solution.
SmartVend, DXP’s industrial dispensing solution, which allows for inventory-level optimization, user accountability and item usage reduction by an initial 20-40%.
SmartServ, DXP’s integrated service pump solution. It provides a more efficient way to manage the entire life cycle of pumping systems and rotating equipment.
The company’s SmartSolutions programs listed above help customers to cut product costs, improve supply chain efficiencies and obtain expert technical support. The company represents manufacturers of up to 90% of all the maintenance, repair and operating products of the company’s customers. Unlike many other distributors who buy products from second-tier sources, the company takes customers to the source of the products they need.
At December 31, 2024, the SCS segment operated supply chain installations in 86 of the company’s customers’ sites.
All of the SCS segment’s long-lived assets are in the U.S. and Mexico. The majority of the SCS segment’s 2024 revenues were recognized in the U.S.
Products
Most industrial customers currently purchase their MRO products through local or national distribution companies that are focused on single or unique product categories. As a first-tier distributor, the company’s network of service and distribution centers stock more than 60,000 SKUs and provide customers with access to more than 1,000,000 items. The company tailors its inventory and leverages product experts to meet the needs of its local customers.
Given the company’s breadth of product and its industrial distribution customers’ focus around specific product categories, it has become customer driven experts in the following five key product categories: rotating equipment; bearings & power transmission; industrial supplies; metal working; and safety products & services.
Rotating Equipment: The company’s rotating equipment products include a full line of centrifugal pumps for transfer and process service applications, such as petrochemicals, refining and crude oil production; rotary gear pumps for low- to- medium pressure service applications, such as pumping lubricating oils and other viscous liquids; plunger and piston pumps for high-pressure service applications such as disposal of produced water and crude oil pipeline service; and air-operated diaphragm pumps. The company also provides a large variety of pump accessories.
Bearings & Power Transmission: The company’s bearing products include several types of mounted and unmounted bearings for a variety of applications. The power transmission products the company distributes include speed reducers, flexible-coupling drives, chain drives, sprockets, gears, conveyors, clutches, brakes and hoses.
Industrial Supplies: The company offers a broad range of industrial supplies, such as abrasives, tapes and adhesive products, coatings and lubricants, fasteners, hand tools, janitorial products, pneumatic tools, welding supplies and welding equipment.
Metal Working. The company’s metal working products include a broad range of cutting tools, abrasives, coolants, gauges, industrial tools and machine shop supplies.
Safety Products & Services: The company sells a broad range of safety products including eye and face protection, first aid, hand protection, hazardous material handling, instrumentation and respiratory protection products. Additionally, the company provides safety services including hydrogen sulfide (H2S) gas protection and safety, specialized and standby fire protection, safety supervision, training, monitoring, equipment rental and consulting. The company’s safety services include safety supervision, medic services, safety audits, instrument repair and calibration, training, monitoring, equipment rental and consulting.
The company acquires its products through numerous OEMs. The company is authorized to distribute certain manufacturers' products only in specific geographic areas. All of the company’s distribution authorizations are subject to cancellation by the manufacturer, some upon little or no notice.
The company has operations in the U.S., Canada, Mexico, and the U.A.E.
Acquisitions
During the first quarter of 2024, the company acquired three businesses to expand its water & wastewater end-market, enhance the company’s aftermarket and services capabilities, as well as expand into new geographic territories.
During the second quarter of 2024, the company acquired a pump and rotating equipment distribution company. The company acquired this business as part of its growth strategy and to maintain its leading position as the largest distributor of rotating equipment in North America.
During the third quarter of 2024, the company acquired a rotating equipment distribution company. The company acquired this business to expand its water & wastewater end-market.
During the fourth quarter of 2024, the company acquired two businesses. The company acquired these two businesses to expand its water & wastewater end-market and the company’s product categories.
Government Regulation and Environmental Matters
The company is subject to various laws and regulations relating to its business and operations and various health and safety regulations including those established by the Occupational Safety and Health Administration and Canadian Occupational Health and Safety.
History
The company was founded in 1908. The company was incorporated in 1996. The company was formerly known as INDEX INC and changed its name to DXP Enterprises, Inc. in May 1997.