Wholesale distribution channels have been generally challenged and consolidating for years, but the distributor-to-industry sector has been sorely tested by a prolonged slump for the past 18+ months. Manufacturing America, which these distributors serve, was the first sector of the economy to go into recession and it may be the last to emerge. Global excess capacity continues to expand, especially in China which now can make ALL goods of equally excellent quality for 5% of the cost in the US and Japan. The chronic high dollar sucks in imports and gives US manufacturers zero pricing power.
Economists, who are paid to see positive news, predict that a US recovery is underway as of March 1, 2002. However, independent analysts see uninterrupted, debt-financed consumer spending and ...
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Wholesale distribution channels have been generally challenged and consolidating for years, but the distributor-to-industry sector has been sorely tested by a prolonged slump for the past 18+ months. Manufacturing America, which these distributors serve, was the first sector of the economy to go into recession and it may be the last to emerge. Global excess capacity continues to expand, especially in China which now can make ALL goods of equally excellent quality for 5% of the cost in the US and Japan. The chronic high dollar sucks in imports and gives US manufacturers zero pricing power.
Economists, who are paid to see positive news, predict that a US recovery is underway as of March 1, 2002. However, independent analysts see uninterrupted, debt-financed consumer spending and ...
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