Black & Decker/Stanley Works Targeting Emerging Markets

By Jenel Stelton-Holtmeier

February 5, 2010

More about: Asia, China, Economy, Europe, Latin America, MDM Blog, South America

Recent study shows emerging economies may be a step ahead on the road to recovery.

While some hesitation still exists to declare that we've entered a recovery phase (see recent MDM blog: Some Distributors Not So Quick to Declare Recovery.), data indicate the worst is likely behind us. Now the question is: How quickly will the global economy recover?

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While often the answer to that question depends on which region you're looking at, according to a recent assessment by MAPI/Manufacturers Alliance, "The manufacturing rebound appears to be moving in step in all five jurisdictions." (Read "Taking Stock of the Manufacturing Recovery in Selected Regions of the World," a MAPI/Manufacturers Alliance Issues in Brief).

The biggest difference between geographic regions is the newly industrialized economies (NIE) of Eastern Asia - Taiwan, Hong Kong, Singapore, and South Korea. Industrial production in these emerging economies remained well above their counterparts in the industrial world.

Emerging markets indeed may provide a wealth of opportunities as other markets are still clawing their way back to positive territory.

And while the NIEs don't specifically include the countries of China or India, these countries are being eyed as growth opportunities for several manufacturers, including Black & Decker and The Stanley Works, who said in a recent earnings call that the two companies have seen rapid growth on their own in these areas. They expect that to continue after they merge. Black & Decker also has a strong presence in Latin America. (Read an update on the planned merger in the next premium issue.)

The author of the MAPI/Manufacturers Alliance report does caution that recovery in the manufacturing sector in general is lagging behind others in recovery.

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