MSM
#Thanks, <UNK>.
I think the biggest thing I would call out with respect to end markets is the distinction that we drew in the prepared remarks.
Specifically around metalworking related, which is our core business, and you're seeing it.
We talked about the fact that our core growth rates, while we're confident are above market, are actually below Company average.
That's really being driven off of what we're seeing in metalworking related end markets that have been particularly hard hit.
And I think the best proof point there would be the MBI, which is a sentiment index specifically geared towards metalworking shops which has gone negative now for three straight months.
So that's probably the single biggest highlight that would also be influencing our results.
Sure.
Good morning.
Morning.
Yes.
So we're actually really pleased with despite the overall top line being influenced by the macro environment and being lower than where we'd like to see it in a normalized environment, we are pleased with the cross-selling traction.
So we mentioned 300 to 400 basis points in growth.
I think that's important because what we've been highlighting is three big growth initiatives for CCSG.
Sales force transformation and expansion being one, service improvements to the business being two, and then cross-selling being the big one.
And I think we've shared that out of the gate, cross-selling has taken more time than we had initially anticipated to gain traction.
That we saw the ultimate opportunity as being as large as we had sized out from the start, but it was taking a little more time.
That was in fact the case.
There was a significant ramp this past quarter.
We're pleased with progress, and I think that was the result of a lot of actions that the team has been taking over the past number of months to increase the traction.
Going forward, look, I certainly would like to think that we're building momentum here.
I don't see a reason why that traction shouldn't continue.
And the exciting part about that growth program is we're leveraging the entire base of the hundreds and hundreds of salespeople that we have.
So there's a lot of leverage in that program.
Thank you.
Hey, Peyton, how are you.
Sure, Peyton.
I would say in general, we are seeing a continuation of what we pointed to last quarter.
Which is that the larger businesses are faring better than the small guys, and we are seeing that play out in a continued differentiation in the growth rates between the large accounts and the core or the smaller accounts.
So really, no surprise there, no dramatic change from the last quarter.
I think what we wanted to point out though is that, that growth delta is producing at an ongoing ---+ in an ongoing way a gross margin headwind.
That fortunately, I'm pleased with how we're making up for that headwind with some of the counter measures that we've implemented.
Thank you, Peyton.
Thanks again, everyone, for your continued interest.
Our next earnings date is set for October 27th where we'll cover our fiscal fourth-quarter results.
So we look forward to speaking to you over the coming months, and thanks again for joining us today.
