The 2020 Mid-Year Economic Update_long

Day: November 10, 2006

Closing the Growth Gap

quarterly revenue growth averaged a healthy 6.8 percent from 2002 through mid-2006. However, the average growth rate drops to only 1.9 percent after adjusting for inflation. The wholesale distribution industry has experienced limited real growth in the past two years despite historically comparable top-line revenue growth. The revenue-enhancing benefit of product price inflation will dissipate …

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Housing Slowdown Hits Building Materials Distributors

building products, reported a drop of 17 percent to $1.2 billion for the third quarter. Profit was $2.3 million, compared with $13.9 million in the year-ago period.The revenue decline reflects a 26.8 percent drop in structural product sales and a 1.1 percent sales decline in specialty products. About two-thirds of the decline in structural product …

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Case Study: Training Makes the Difference

The following case study is excerpted from Driving Growth and Shareholder Value: The Distribution Value Map," by Neil Gholson and Mark Schloegel of Deloitte Consulting LLP and published by the National Association of Wholesaler-Distributors. A distributor of electrical products recognized the need to be more agile and efficient in distributing 1.5 million SKUs from multiple …

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Commentary: Without Price Inflation, Where Would You Be?

The second half of 2006 is staying strong. Distributors across many product sectors are reporting monthly year-to-year sales increases, many higher than 15 percent. Most economic projections pointed to a downturn by now, fueled by inflation pressures, high energy costs, and slower production rates. Except for the building materials sector, the economy is still firing, …

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MDM News Digest 3621

Ferguson, Newport News, VA, has acquired Gulf Refrigeration Supply Inc. Gulf is a distributor of HVAC equipment, parts and supplies based in Tampa, Florida. In the year ended June 30, 2006, Gulf had revenue of $54.9 million. Ferguson has also acquired Kandall Fabricating & Supply Corporation KF Industries, LLC. Kandall, Passaic, NJ, is a fabricator …

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MDM Inflation Index: September 2006

Modern Distribution Management’s September Inflation Index, which measures a cross-section of industrial supplies, was up 0.12% from the previous month, and up 4.43% from September 2005. Summary of MDM Inflation Index for the past 12 months: September 2006 Index 265.6August 2006 Index 265.2July 2006 Index 264.0June 2006 Index 263.0May 2006 Index 262.1April 2006 Index 262.1March 2006 …

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MDM November 10, 2006

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