Steady Optimism, Slower Growth
The Solomon Coyle 2025-Q1 to Q2 Dealer Market Outlook Report is now available. While Q1 results came in slightly below forecasted expectations, distributors remain optimistic heading into Q2 and Q3. Backlogs remain strong and pipeline activity is still trending positive, even as overall growth rates have softened across most categories.
“While growth expectations for this Quarter were a bit lower than forecasted, projections for upcoming bookings look optimistic for the next quarters. This trend corresponds with signs of an improving economy in the latter half of 2025 and into 2026.” said Shelley Rosetta, Principal at Solomon Coyle.
John Joseph, Director of Business Analytics, echoed this sentiment: “There is a lot to like about dealer sentiment this quarter. Although Q1 billings were down and we’re starting to see some unsurprising softening in the Government sector, distributors, on net, remain cautiously optimistic.”
Highlights from the Report:
On the Positive Side:
• Q1 bookings grew by 2.8%, slightly below the 3.8% forecast from the previous quarter,
but still ahead of projections made last October.
• Distributors expect 4% bookings growth in Q2 and 1.7% in Q3.
• The Bookings Index rose to 91.2, up from 88.7 the previous quarter.
• Backlogs held strong, with the Backlog Index increasing to 114.3, up from 111.3 in Q4.
Signals of Caution:
• Billings fell by 5.1% in Q1, with the Billings Index dropping to 85.0, down from 89.6 in the previous quarter.
• Pipeline activity remains positive, but the Pipeline Activity Index dipped to +0.40, down from +0.52 last quarter.
• Pipeline growth rates slowed across all regions, sectors, and product categories, with the steepest declines seen in the Government and Technology sectors.
Still, 84.9% of distributors reported stable or improving pipelines, and pipeline activity remains positive in 6 of 7 sectors and all product categories.
Solomon Coyle’s quarterly Dealer Market Outlook survey provides data-driven insights based on frontline distributor perspectives from across North America.
To view the current report, visit: www.solomoncoyle.com/dealer-market-outlook-report/. For inquiries regarding participation, email support@solomoncoyle.com