The 2020 Mid-Year Economic Update_long

Day: May 25, 2007

Schneider Electric Agrees to Buy German Firm

Schneider Electric has agreed to acquire Ritto GmbH & Co Kg, a German firm that manufactures door entry and intercom systems for the residential and small tertiary buildings markets. Ritto had revenue of nearly 25 million euro in 2006.
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The company will be added to Schneider's offerings in Installation Systems and Control, which includes wiring devices, installation material, control products and VDI.
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Schneider has operations in 190 ...

MDM Inflation Index: April 2007

Modern Distribution Management's April Inflation Index, which measures a cross-section of industrial supplies, was up 0.42% from the previous month, and up 3.3% from April 2006.

Summary of&nbsp ; MDM Inflation Index for the past 12 months:

April 2007 Index 270.8
March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0
June 2006 Index 263.0
May 2006 Index 262.1
April 2006 Index 262.1

Please click below to view a print-ready pdf of the&nbsp ; MDM Inflation Index for April 2007, listing the ten individual product categories that ...

MDM News Digest 3710

The Home Depot, Atlanta, GA, reported first-quarter profit of $1 billion, compared with $1.5 billion in the same period in fiscal 2006. Sales for the first quarter totaled $21.6 billion, a 0.6 percent increase from the first quarter of fiscal 2006. Total sales in the retail segment declined 4.3 percent to $18.5 billion, and comparable store sales declined 7.6 percent. Total sales in the HD Supply segment grew by 46 percent to $3.1 billion, reflecting sales from acquired businesses. Organic sales were down 6.5 percent. More & hellip;
HeidelbergCement AG, Heidelberg, Germany, has agreed to buy Hanson plc for about & pound; 8 billion (US$15.8 billion). HeidelbergCement is one of the top ...

Commentary: Prepare for Market Turns With Better Visibility

The mainstream media is poised to shout recession" from the rooftops, particularly as June tends to be a slow news month. We have heard consistent reports of flat to slowth growth, but no one is talking about cliff diving in manufacturing sectors. Some markets have stayed strong into May.

Even distributors into the tough automotive sectors are not exactly surprised, and have seen strong orders in other areas such as heavy equipment and aerospace. And while residential markets remain bleak, those distributors with commercial or industrial construction customers have seen those markets stay strong.

No one likes volatile market conditions, but if there is any consistency, it is that while some traditional markets are down, others are emerging to temper the damage. And ...

Legal Risks in Health Care Plans


Employer spending on health care continues to grow so many employers are focusing on hiring healthier employees. This article looks at some of the federal and state laws that affect decisions regarding who to hire based on health considerations.


In recent years most employer provided health plans have significantly raised employees'co-payments so that the amount of money employers spend on prescription medication has decreased. Nevertheless, employer spending on total health care still exceeds the rates of general inflation. Indeed, such spending increased 7.7% in 2006.
Given the continuing increase in employer spending it's not surprising that employers are focusing on hiring healthy employees, wellness programs and on employer provided drug programs. Doing so is ...

Trends in Canada’s Wholesale Industry

Canada's wholesalers had a third consecutive year of strong growth, with much of the impetus coming from the two westernmost provinces.

A combination of continued strong sales of machinery and electronic equipment and high demand for consumer-related goods propelled the industry to another record high, according to Wholesale Trade: The Year 2006 in Review," a recently released report from Statistics Canada.

Nationally, wholesale sales increased by 6.3 percent to $497.4 billion (in current dollars) in 2006, slightly better than the previous year's 5.2 percent increase. The gain in overall wholesale sales contributed to another profitable year for wholesalers, as industry profits rose 15.1 percent to a new record high of $16.6 billion.

This ...

Grainger President: M& A Shifts Market

The competitive landscape has shifted thanks to growing consolidation, Grainger President and COO Jim Ryan said recently.

Small regional and local distributors still command the overwhelming share of this market," he said. "But they're under attack from larger regional and national players. The billion-dollar plus players are growing at a disproportionate rate to the market and to their smaller competitors.

"...There is going to be a need for specialist distributors, and there is absolutely a place for large-scale distributors. The ones who will find it more difficult are the generalists in the middle."

Ryan was addressing analysts attending the annual meeting of the Electrical Products Group of New York. Grainger is a $5.9 billion broad-line supplier of ...

Beyond the HD Supply Factor


The volume of mergers and acquisitions activity in distribution has increased substantially over the past 12 months. Along with a continued increase in interest from private equity firms, strategic buyers have reentered the fray, both in the U.S. and overseas. The market will likely plateau or even soften in the next year or so, especially in sectors affected by the downturn in residential construction. Right now though, the market is hot -maybe even too hot, according to some industry experts. What's more, an HD Supply spin-off could have an impact on valuations and provide opportunity to competitors of its diverse units.


HD Supply
Home Depot's potential spin-off of its $12-billion wholesale division -announced in February by the $90-billion ...

Rexnord Sales Grow 16.1% in 2007

Rexnord LLC, Milwaukee, WI, supplier with two key platforms of power transmission and water management products, reported sales for fiscal 2007 grew 16.1% over the prior year to $1.3 billion. Power Transmission sales grew 9.7% to $1.18 billion.
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Sales in the fourth quarter grew 27.1% over the prior-year quarter to $386.1 million. PT sales grew 4.2% to $316.6 million. Waste Management sales were $69.5 million from acquisition date through March 31, 2007.
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Rexnord reported growth across many of its end markets; in its PT platform, mining, energy, aggregates and aerospace growth rates were above average. Slower growth rates were see in general industries and in forest products.
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Within Water Management, commercial construction continues to be solid, ...

MN-based JH Larson Buys Lappin Lighting

JH Larson Electrical Company, Plymouth, MN, has purchased Lappin Lighting, a full-service lighting showroom, Minneapolis, MN. Lappin serves the commercial and residential lighting markets.

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JH Larson serves the electrical, plumbing and HVAC residential and commercial markets. It has 240 employees in eight branches. It is in three ...

Danaher Agrees to Buy ChemTreat for $435M

Danaher Corporation has agreed to buy ChemTreat Inc., a provider of water treatment products and services, for $435 million in cash.
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Headquartered in Glen Allen, VA, and with revenues of over $200 million in its most recent completed fiscal year, ChemTreat serves a broad set of end markets with a particular focus on boiler, cooling water and industrial waste water applications.
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Danaher is a manufacturer of Professional Instrumentation, Medical Technologies, Industrial Technologies and Tools and ...

MDM May 25, 2007

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...

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