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IRAQ WAR VET WINS ISA BUFFINGTON MEMORIAL SCHOLARSHIP
University of Nebraska at Kearney
student Lewis Hyatt was chosen as the recipient of the 2007-08 Gary L.
Buffington Memorial Scholarship, a $10,000 award. A National Guard
sergeant, Hyatt was deployed to Iraq in 2003-2004 as a military police
officer. "Lewis is a very impressive young man, having served our
country in Iraq, working his way through school, paying for his own
education and his wife's education," said Tim Tevens, chairman of ISA's
scholarship selection committee. The scholarship program was created as
a memorial to former IDA Executive Vice President Gary Buffington and is
awarded each year to a rising senior in a qualified undergraduate
industrial distribution program. More ...
The new ISA eBusiness guidelines
are now available on CD, along with ISA EDI Maps for the Purchase Order,
Invoice, Company Information, Price Sales Catalog and PO
Acknowledgement. The license agreement covers an unlimited number of
seats within the company purchasing the guidelines, so you will probably
only need to order one CD. The CD also includes a PowerPoint
presentation explaining the new Custom Industrial Supply Number, which
can be used to globally, uniquely identify made-to-order custom MROP
items. More ...
ISA's monthly report on
the price movements of commodity products used in the manufacture of
products made and distributed in the channel continues to be a popular
member service. Over 700 member locations are downloading this report
every month. Download your copy today. More ....
What to know how business
was in April for manufacturers, distributors and the purchasing agents
of our customers? This month's Economic Conditions Report is now
available for download. This report tracks activity through 10 economic
measures including overall business conditions, inventory levels,
shipments and sales. More ....
More than half of distributors
who try to automate their sales force fail, according to some estimates.
Take the advice of the distributors profiled in this article: Develop a
good sales process before adopting technology, and keep your sales force
involved from the start. All articles more than six months old in Modern
Distribution Management's online archives are
available free to ISA members. More ....
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MDM NEWS UPDATE: May 10, 2007
According to the latest Institute
for Supply Management report, manufacturing purchasing and supply
executives are optimistic, with 62% predicting revenues to be greater in
2007 than in 2006. To support the growth, manufacturers expect to
increase capital expenditures 5.8% for the year despite a lower current
operating rate of 82.8%. Other figures: Production capacity is expected
to increase 4% in 2007. Prices paid increased 2.8% through the end of
April, and are expected to increase an additional 0.7% in 2007. Overall,
ISM says, manufacturing is growing at a slower but sustainable rate.
More ....
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IndustryWeek reports that
more than 80% of industrial manufacturers recently surveyed are
optimistic about the global economy; but fewer are optimistic about the
U.S. economy. Just 57% expressed optimism for the domestic economy. More
than half of executives surveyed are increasing international sales, and
expect more than a third of overall revenues to come from abroad in the
next quarter. More than half have plans for major new investments of
capital over the next 12 months. Nearly half (44%) of all industrial
manufacturers are investing in geographic and facilities expansion.
More ....
Metals traders anticipate that copper, nickel and lead
prices may fall by year-end due to oversupply and lower demand. Demand
is weakening partly due to a slowing U.S. economy and consumer-driven
pursuit of alternatives to copper and nickel, according to one economist
quoted by Bloomberg. Bloomberg reports that copper is forecast fall 30%
by the fourth quarter 2007, while nickel and lead will drop about 50%
from record prices reached on May 4. Bloomberg however does say that
forecasters have been wrong about metals prices in the recent past. But
one analyst says "prices are unsustainable" at current levels so will
likely fall.
More ....
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Mergers and acquisitions in
wholesale distribution have ramped back up in recent years. Whether
distributors are looking for an exit strategy, looking to grow by
acquisition or just wanting to get a better grasp of coming competitive
pressures, it is important to understand this increasingly complex
landscape.
In this synopsis of MDM's 2006 M&A audio conference, learn the most
common mistakes distributors looking to grow by acquisition make as well
as what financial buyers are looking for when they invest. On May 17,
2007, MDM presents "Distribution M&A 2007 Update: More Buyers, New
Drivers in U.S. and Overseas." Register
now for this timely and informative update on the distribution
M&A market. More ....
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Each stage of a company's growth
has its challenges. As this article in Forbes says, for the unprepared,
growth can be as much a curse as a blessing. What works at $5 million in
sales doesn't necessarily work at $25 million, Forbes writes. The
article recommends the following, based on company size: $500,000 to $5
million – chart a financial course, and mind your cash. Focus your
energy toward building a solid reputation. Drum up capital if you need
it.
The next step: Getting from $5 million to $25 million –
Establish smart systems. Predict growth. Back-office systems are
critical at this stage, especially systems that can keep you on track
with financial growth. Hire professional management. And getting from
$25 million to $100 million – Cut loose underperforming lines and
reinvest in stronger ones. If you need cash to invest to get to $100
million, consider selling share to the public. Or sell to a strategic
buyer or bring in a private investor. Do your research if you go this
direction.
More ....
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RONA, Canadian retailer and
distributor of home improvement products, reported its first-quarter
profit dropped 45% in the first quarter 2007 as the economies of Ontario
and Quebec cooled. The company has aggressively grown in the past five
years to compete with rival Home Depot Canada (and soon Lowe's), cutting
costs, promoting private-label products and revamping its
customer-loyalty program, Canada's National Post reports. It hopes to
reach sales of $7 billion by the end of fiscal 2007. The Canadian
construction sector declined for the first time in eight months in
February due in part to unusually cold temperatures in Eastern Canada.
Home starts fell to their lowest level in three months in April,
according to Canada Mortgage & Housing Corp. Nevertheless, sales in
categories including plumbing, electricity, and heating, ventilation and
air conditioning did well in first quarter, RONA reported. More ....
Wal-Mart Stores Inc., Bentonville, AR, has added RFID
capability to more facilities. It plans to add 400 stores by the end of
fiscal 2007, IndustryWeek reports. “Through RFID technology,
Wal-Mart is providing value to customers, working with our suppliers to
deliver collaborative benefits that allow people to save money and lead
better lives,” says Wal-Mart's CIO. “We have only gotten
started, and we are continuing to rollout to more stores at the same
rate as the last two years.” Wal-Mart touted benefits that include
a 30% reduction of out-of-stocks, reduction of excess inventory, and
sustainability. Through pallet locators in Sam's Club locations,
Wal-Mart reports it has increased inventory accuracy and reduced waiting
time. It expects future benefits in pharmacy accuracy, grocery
freshness, software, CD and DVD authentication and 30-second store
checkouts. More ....
A closer look at product pricing
trends for 16 industrial- and construction-related product groups in the
first quarter 2007. Data includes inflation trends for: abrasives,
adhesives & sealants, cutting tools & accessories, hand & edge tools,
fasteners, power-driven hand tools, ball & roller bearings, mech. power
transmission equipment, electrical mach/equipment, material handling
equipment, industrial gases, welding mach/equipment, valves, pumps,
compressors & equipment, fluid power equipment, and plumbing fixtures &
fittings. Purchase the data as
presented in the latest issue of MDM, or subscribe to MDM's twice-monthly
print newsletter. More ....
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