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Home » Blogs » Economy » MDM Reader Survey: How Global Trends Are Affecting Distributors

MDM Reader Survey: How Global Trends Are Affecting Distributors

By    Lindsay  Young 
December 10, 2008
More about:  Economy
In MDM's recent Reader Survey, we asked respondents to tell us about the trends they are seeing in markets here and abroad. As one respondent said: The world is one large business market, and you have to watch the entire global regularly -and not just the home market."

In response to the survey question on how global issues are affecting their companies, some respondents said they weren't seeing any impact. Other respondents said:
 
·         Security, compliance and new freight charges are making domestic products more affordable to produce and purchase.
·         Stronger dollar is improving the cost position on ...
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In MDM's recent Reader Survey, we asked respondents to tell us about the trends they are seeing in markets here and abroad. As one respondent said: The world is one large business market, and you have to watch the entire global regularly -and not just the home market."

In response to the survey question on how global issues are affecting their companies, some respondents said they weren't seeing any impact. Other respondents said:
 
·         Security, compliance and new freight charges are making domestic products more affordable to produce and purchase.
·         Stronger dollar is improving the cost position on imports.
·         Costs are going up and staying up, even after oil prices and currency translations improve.
·         Global sources are selling through the same channels.
·         Opportunities exist for "near-shoring"acquisition of commodities.
·         More manufacturers (customers of distributors) are moving production out of the U.S.
·         Overseas product inconsistencies.
·         Private label and counterfeit parts are "eating margins."
·         Many suppliers and customers are owned by foreign companies, many of whom have business philosophies based on the global market, and not just what happens in the U.S.
·         The cost of transportation and energy.
·         Manufacturers are looking for global suppliers, which makes it harder for independents.
·         Communication gaps between U.S. and foreign buyers.
·         Exports remain positive.
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