January 2007 - Page 3 of 3 - Modern Distribution Management

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January 2007

Construction to Moderate in 2007

Leave a Comment / Economic Trends, Research & Analytics, Top Distributor Sectors, Building Materials/Construction, Subscriber Only /


Overall U.S. construction in 2007 is forecast to slow from previous levels, thanks to a downturn in residential building, according to recent reports. But nonresidential construction should stay relatively strong in the new year, with institutional and commercial building leading the way.


McGraw-Hill Construction reports total construction starts will drop 1 percent in 2007. Housing starts will fall 5 percent, with both single and multifamily housing taking a hit.


A large backlog in unsold homes suggests home construction may be slow to turn around, but most analysts expect declines to moderate in 2007, according to the Fed. Housing demand may also improve in 2007.


McGraw-Hill reports that retail construction will decline as housing starts slow. Retail ...

Construction to Moderate in 2007 Read More »

Single-Sourcing on a Smaller Scale

Leave a Comment / Research & Analytics, Strategy, Subscriber Only /


1sourcesupplies is an alliance of distributors who want to offer single-sourcing programs to smaller customers, including inventory management, supply chain automation, streamlined billing and information analysis.


Mark Hill's cutting tool distributorship, I.M.C. Supply Co., Memphis, TN, lost its biggest customer in 1997. The customer we lost really wanted us to have their business, but we didn't have the programs they needed, Hill says.


Instead of folding, or scrambling to make ends meet, Hill pushed forward with a plan to find a way to offer single-sourcing solutions to his customers. Since that year, his business has doubled. About 65 percent of his business is now single-source.


Hill has decided to pass on his newfound knowledge in the form of a ...

Single-Sourcing on a Smaller Scale Read More »

Technology Case Study: Routing Costs

Leave a Comment / Technology, Top Distributor Sectors, Subscriber Only /


Beacon Electric Supply in Southern California implemented a fleet management system to increase the number of deliveries drivers could make in a day. The system has also helped Beacon improve customer service levels and keep salespeople apprised of issues at the delivery site.


At Beacon Electric Supply Inc., San Diego, CA, the burden of making deliveries on time used to lay on the drivers. They would get a pile of orders and it would be up to the drivers to best determine the routes, says CFO Dan Vivier. They supposedly knew their areas better than anyone else."


While that was true, fingers were inevitably pointed at the driver whenever something went wrong with a delivery.


So Beacon implemented a fleet management software package from RouteView a ...

Technology Case Study: Routing Costs Read More »

Private Label Use to Grow

Leave a Comment / Research & Analytics, Strategy, Management, Subscriber Only /

Private label products—products branded by a wholesaler-distributor—represent a break from the more traditional wholesale distribution approach of reselling manufacturers' branded products. In our new research study, Facing the Forces of Change®: Lead the Way in the Supply Chain, we found that private label strategies by wholesaler-distributors will expand substantially over the next five years.

Private labels will strengthen wholesaler-distributors' relationships with their customers. However, they will strain distributors' relationships with their suppliers by challenging the wholesale distribution channel's traditional ...

Private Label Use to Grow Read More »

HD Supply to Buy Sioux Pipe

Leave a Comment / Finance, Mergers & Acquisitions, Free, Companies, Top Distributor Sectors, News, Subscriber Only /

HD Supply Waterworks, a subsidiary of The Home Depot, has agreed to acquire Sioux Pipe, Inc., a water and sewer distributor with two locations in South Dakota.


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With the addition of Sioux Pipe, HD Supply Waterworks creates a presence in South Dakota.


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HD Supply Waterworks supplies products in building, repairing and maintaining water and wastewater systems. It is part of HD Supply, Home Depot's wholesale division.


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Related Links:
Home Depot CEO Nardelli Resigns
HD Supply Sales Increase 159% in Third Quarter

HD Supply to Buy Sioux Pipe Read More »

Hagemeyer Acquires Belgian Distributor

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, Electrical, News, Subscriber Only /

Hagemeyer has acquired BREVA, an electrical wholesaler-distributor of MRO products in Belgium. About 70% of BREVA's sales go to industrial customers.


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The acquisition provides Hagemeyer an entrance to the Belgian market and will allow Hagemeyer to serve the Belgian subsidiaries of its large global industrial customers.


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BREVA is headquartered in Zonhoven, Belgium.


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Hagemeyer has had revenues of &nbsp ; 4.6 billion in the first nine months of 2006. More than 90% of Hagemeyer's total revenue is generated by its core Professional Products and Services, which focuses on the value-added business-to-business distribution of electrical parts and supplies, safety and other Maintenance, Repair and Operations products in ...

Hagemeyer Acquires Belgian Distributor Read More »

Strategic Distribution to Go Private

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Strategic Distribution, Inc., Bristol, PA, has agreed to be bought out by Platinum Equity for $30 million.


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The transaction is expected to be complete by the end of March. The deal stipulates that Strategic Distribution will merge with Project Eagle Holding Corp. and Project Eagle Merger Corp., each a Platinum Equity portfolio company.


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The MRO distributor reported revenues of $136.9 million in 2005 and a net loss of $3.4 million. Its numbers haven't improved much in fiscal 2006, with the company recording losses in the first and second quarter, and a slight gain of $0.2 million in the third.


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In November, Strategic announced its board of directors had received a letter from the board's Chairman William R. Berkley, ...

Strategic Distribution to Go Private Read More »

Air Products to Buy European Gases Supplier for $481M

Leave a Comment / Finance, Mergers & Acquisitions, Free, Gases & Welding Equipment, Top Distributor Sectors, News, Subscriber Only /

Air Products, Lehigh Valley, PA, has agreed to acquire the industrial gas business of Central Europe-based BOC Gazy Sp z o.o. from Linde Gas for 370 million euros (US$481 million).&nbsp ;


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For regulatory purposes, BOC Gazy was required to be sold by Linde as a result of its purchase of The BOC Group plc in September 2006.


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The BOC Gazy business had fiscal year 2006 sales of 126 million euros ($164&nbsp ; million).&nbsp ; The business has 750&nbsp ; employees, five industrial gas plants and six cylinder transfills serving customers across a diverse range of industries, including chemicals, steel and base metals, among others.


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"We're taking advantage of a unique opportunity to become the number one industrial ...

Air Products to Buy European Gases Supplier for $481M Read More »

Sonepar Acquires Crawford Electric Supply

Leave a Comment / Finance, Mergers & Acquisitions, Free, Companies, Top Distributor Sectors, Electrical, News, Subscriber Only /

Sonepar USA, Philadelphia, PA, has acquired Dallas, TX-based Crawford Electric Supply Company, Ltd. Crawford Electric had sales of $175 million in 2005, according to Electrical Wholesaling's 2006 top 200 issue.


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The acquisition extends Sonepar USA's reach into the fast-growing Texas market.


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Crawford has locations in Dallas, Fort Worth, Houston and San Antonio. The company offers electrical and lighting products to commercial and residential contractors.


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The purchase is Sonepar USA's seventh acquisition in less than two years. Consistent with all Sonepar USA acquisitions, CESCO will retain its brand identity and autonomy.


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Sonepar USA is a member of the Sonepar group - a global ...

Sonepar Acquires Crawford Electric Supply Read More »

Border States Buys Minnesota Electric Supply

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, Electrical, News, Subscriber Only /

Border States, Fargo, ND, has agreed to buy Minnesota Electric Supply Company, a full line provider of electrical products with eight locations in Minnesota and more than 3,000 customers.


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According to Electrical Wholesaling's top 200, Border States had 2005 revenues of $601 million, and Minnesota Electric had sales of $78.3 million.


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Border States provides products and services to the construction, industrial, utility and data communications markets. The combined organization will have more than 1,200 employees and 51 branch operations in 11 states and Mexico.


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More Breaking News


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Border States Buys Minnesota Electric Supply Read More »

Cooper Electric Buys Fairview Electrical Supply

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, Electrical, News, Subscriber Only /

Cooper Electric Supply Co., Tinton Falls, NJ, has acquired Fairview Electrical Supply Corp., Fairview, NJ.


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Cooper Electric serves the New Jersey, New York and Pennsylvania markets. This acquisition increases its presence to 30 locations in the tri-state area.


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Fairview Electrical Supply Co. is in Northern New Jersey with a customer footprint in both New Jersey and New York.

More Breaking ...

Cooper Electric Buys Fairview Electrical Supply Read More »

Airgas Buys Refrigerant Supplier

Leave a Comment / Finance, Mergers & Acquisitions, Free, Gases & Welding Equipment, Companies, Top Distributor Sectors, News, Subscriber Only /

Airgas, Inc., Radnor, PA, has acquired CFC Refimax, LLC, a full-service refrigerant supplier and reclamation company based in Atlanta, GA.&nbsp ; The business, which has about 50 employees, had about $21 million in annual sales in 2006.


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Refimax has been integrated into Airgas Specialty Products, national distributor of ammonia products and services, various process chemicals, and refrigerants. Airgas Specialty Products is part of the Gas Operations Division, which also includes Airgas Carbonic and Dry Ice, and Airgas Nitrous Oxide.&nbsp ;


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Refimax has operations in Atlanta and Houston, and five third-party distribution warehouse locations in York, PA; Reno, NV; Indianapolis, IN; New Orleans, LA; and Dallas, TX. ...

Airgas Buys Refrigerant Supplier Read More »

Construction Spending Generally Flat Oct.-Nov.

Leave a Comment / Economic Trends, Research & Analytics, Free, Top Distributor Sectors, Building Materials/Construction, News, Subscriber Only /

Construction spending during November 2006 was estimated at a seasonally adjusted annual rate of $1,184.1 billion, 0.2 percent below the revised October estimate of $1,186.7 billion. The November figure is 0.1 percent above the November 2005 estimate of $1,183.1 billion.


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During the first 11 months of this year, construction spending amounted to $1,110.5 billion, 5.4 percent above the $1,053.4 billion for the same period in 2005.


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Private Construction


Spending on private construction was at a seasonally adjusted annual rate of $905.8 billion, 0.6 percent below the revised October estimate of $911.0 billion. Residential construction was at a seasonally adjusted annual rate of $589.3 billion in November, 1.6 percent ...

Construction Spending Generally Flat Oct.-Nov. Read More »

Ellison Technologies Acquires Jackson Machinery

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, News, Subscriber Only /

Ellison Technologies, Inc., Cleveland, OH, provider of engineered systems and industrial equipment to metal-working and metal-cutting manufacturers, has acquired Jackson Machinery Company, a privately held distributor based outside of Cleveland.The acquisition provides Ellison a stronger position in northern Ohio, a strong manufacturing base. The area includes major industrial markets such as Cleveland, Akron-Canton, Mansfield, Youngstown and Toledo. Industries represented include aerospace, automotive, agricultural, medical, and energy. Processes used include high-speed and multi-axis machining, robotic automation, continuous flow, and setup reduction. Until being acquired, Jackson Machinery was an exclusive dealer of Mori Seiki products and sub-dealer to Mori Mid-America Sales, ...

Ellison Technologies Acquires Jackson Machinery Read More »

Canadian Industrial Price Index Unchanged in November

Leave a Comment / Economic Trends, Research & Analytics, Free, News, Subscriber Only /

Prices for manufactured goods in Canada remained unchanged for a second consecutive month in November, while prices for raw materials increased after three months of significant declines.


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Prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), were unchanged from October to November, as downward pressure from declining petroleum prices eased. Lower prices for primary metal products and petroleum products were offset by higher prices for chemical products, fruit, vegetables and feed products and pulp and paper products.


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The 12-month change in the IPPI was up&nbsp ; 1.9%, a higher rate of growth compared to the year-over-year increase of&nbsp ; 1.2% in October. Upward pressure came mainly from higher ...

Canadian Industrial Price Index Unchanged in November Read More »

MSC Industrial Sales Grow 35.9% in 1Q

Leave a Comment / Free, Companies, Top Distributor Sectors, News, Subscriber Only /

MSC Industrial Direct Inc., Melville, NY, distributor of MRO supplies to industrial customers, reported sales of $402 million for the first quarter 2007, an increase of 35.9% from the same period in fiscal 2006. Profit increased 26.2% to $40.3 million from the year-ago period.


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J & L Industrial Supply, purchased from Kennametal last year, accounted for two-thirds of the growth. CEO David Sandler said the integration of J & L is going as planned, and that MSC should be able to generate the forecasted $20 million in margin improvements and cost savings that was originally anticipated.


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A conference call regarding the first quarter results and current operations is available at&nbsp ;

MSC Industrial Sales Grow 35.9% in 1Q Read More »

Kennametal to Buy Federal Signal’s Cutting Tool Business

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, News, Subscriber Only /

Kennametal Inc., Latrobe, PA, has agreed to acquire Federal Signal Corporation's cutting tool business comprised of Manchester Tool Company, ClappDiCO Corporation and On Time Machine, Inc. for $67 million.


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With annual sales of about $40 million, Federal Signal Corporation's cutting tool business produces, markets and services super hard polycrystalline diamond and cubic boron nitride cutting tools, tool holding systems and certain specialized turning tools which are complementary to Kennametal's product range.


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Kennametal says the acquisition is consistent with its growth strategy and with the company's previously stated intentions for the use of cash.


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We ...

Kennametal to Buy Federal Signal’s Cutting Tool Business Read More »

Manufacturing Expands in December

Leave a Comment / Economic Trends, Research & Analytics, Free, News, Subscriber Only /

Economic activity in the manufacturing sector expanded in December following a one-month decline, while the overall economy grew for the 62nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.


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ISM reported that manufacturing proved resilient in December, as the PMI returned to growth registering 51.4 percent after a decline (under 50 percent) in November. Both New Orders and Production made significant gains to drive the PMI back above the breakeven point. Manufacturing employment remained relatively unchanged as the Employment Index shows a negligible change for the second consecutive month.


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The Prices Index is trending downward, relieving some of the inflationary pressure that ...

Manufacturing Expands in December Read More »

Praxair Buys Blue Rhino Assets in Canada

Leave a Comment / Finance, Mergers & Acquisitions, Free, Gases & Welding Equipment, Top Distributor Sectors, News, Subscriber Only /

Praxair Distribution, Danbury, CT, a division of Praxair Canada Inc., has acquired the Canadian propane tank-exchange business of Blue Rhino, a Ferrellgas Partners L.P. company.

Under the agreement, Praxair acquired more than 900 propane tank-exchange display cages at retail locations across Canada. In addition, it will take over the contract to supply more than 300 retail gasoline stations belonging to Shell Canada Products with 20-pound propane tanks for their exchange program. In conjunction with this transaction, Praxair also signed a distributor agreement with Superior Tank Incorporated. Superior Tank will serve Praxair's propane tank-exchange customers in the Atlantic Provinces.

Previously, Praxair provided propane ...

Praxair Buys Blue Rhino Assets in Canada Read More »

Home Depot CEO Nardelli Resigns

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The Home Depot's Bob Nardelli has resigned from his posts as president, CEO and chairman of the board as of Jan. 2, 2007. Frank Blake, the company's executive vice president, succeeds him.


The move comes amid criticism from investors over Nardelli's pay and slow stock gains during his reign.


The board also announced that CFO Carol Tome and head of the wholesale division, Joe DeAngelo, will be assuming additional responsibilities. Tome will be assuming responsibility for mergers and acquisitions, credit services and additional strategic responsibilities. DeAngelo was appointed to the newly created position of Chief Operating Officer. In this position, DeAngelo will continue to oversee HD Supply and will assume additional responsibilities for the retail ...

Home Depot CEO Nardelli Resigns Read More »

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