September 2007

Survey: Premiums Up 6.1% in 2007

Leave a Comment / Free, Subscriber Only / MDM Staff

Annual premiums for family coverage now average $12,106, according to one annual survey, with workers paying $3,281.

Health insurance premium growth was the slowest since 1999 when premiums rose 5.3 percent.

Premiums saw a 6.1 percent increase in 2007, according to the 2007 Employer Health Benefits Survey released by the Kaiser Family Foundation and Health Research and Educational Trust.

The average health benefit cost per employee is expected to rise 6.7 percent in 2008, the Mercer Health Benefits survey of employers found. In 2006, employers saw a 6.1 percent increase in costs. The percentage of the workforce (60 percent) obtaining coverage from employer-sponsored plans remained unchanged since 2006. (See graphic on page 7.)
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Act Protects Returning Veterans’ Rights

Leave a Comment / Operations, Legal Issues in Wholesale Distribution, Subscriber Only / Steven Bernstein

USERRA, a federal law that protects the jobs of members of the uniformed services, has long been considered a dangerous trap for the unwary employer.
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A jury recently awarded nearly $1 million in damages to an Oregon National Guardsman discharged after seeking outside assistance to get his job back, based largely upon the timing of the employer's discharge decision.
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USERRA Protection
The action was brought under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), which was enacted to protect the jobs of reservists, National Guard members and other members of the uniformed services.

The law codifies a series of statutes dating back to WWII, all of which were underpinned by the notion that our returning ...

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Commentary: Engage Entire Company in Customer, Vendor Accounts

Leave a Comment / Sales & Marketing, Perspective, Strategy, Management, Subscriber Only / Tom Gale

As our lead article outlines, many distributors are trying to evolve a traditional sales model -where the outside salesperson owns the customer relationship -into a more flexible one. It's a tough transition that engages the entire company, not just the sales rep.

The payoff goes far beyond particular customers. It really shifts the way in which distributors position themselves with customers and suppliers.

Not only do these customer relationships become much more productive and cost-efficient, it is much easier for distributors to tailor services to specific customer needs across the organization. That in turn defines for the customer the real difference in the value your company offers versus alternatives.

Distribution management gains much better ...

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News Digest 3718

Leave a Comment / Free, Subscriber Only / MDM Staff

Wolseley plc, a global distributor of plumbing and heating products as well as building materials, announced five bolt-on acquisitions this month, including two by Ferguson and two in Europe. These acquisitions are expected to add 110 million pounds to total revenue.

Wolseley subsidiary Stock Building Supply has acquired ProSource Building Supply Ltd, Houston, TX, a construction services business supplying commercial doors, trim, hardwood, related specialty products and installation services. In the year ended Dec. 31, 2006, ProSource had revenue of $17.2 million. The acquisition is in line with Stock's goal of expanding in the commercial and industrial markets. More&nbsp ;

Another Wolseley ...

News Digest 3718 Read More »

MDM Inflation Index: August 2007

Leave a Comment / Economic Trends, Research & Analytics, Subscriber Only / MDM Staff

Modern Distribution Management's August Inflation Index, which measures a cross-section of industrial supplies, was up 0.35% from the previous month, and up 3.04% from August 2006.

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

August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7
May 2007 Index 271.2
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

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

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MDM September 25, 2007

Leave a Comment / Subscriber Only / MDM Staff

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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U.S., Canadian PT/MC Sales Drop in July

Leave a Comment / Free, Top Distributor Sectors, Power Transmission/Motion Control/Fluid Power, News, Subscriber Only / MDM Staff

Power Transmission Distributors Association today released July 2007 month-end trend data for distributors and manufacturers of power transmission/motion control (PT/MC) products.
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U.S. distributors'sales of PT/MC products dropped 7.0 percent from June to July after a rise in sales for the past two months.&nbsp ; Year-to-year comparisons remain positive for the first half of this year with sales in July 2007 coming in 11.0 percent higher than in July 2006.&nbsp ; Accounts receivable collection days rose 2.7 percent over June 2007.&nbsp ; The July 2007confidence index for U.S. distributors remained unchanged for the fifth month in a row at 6.6 (on a 10-point scale).
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Canadian distributors'sales in PT/MC products continue to fall, dropping 9.0 percent from ...

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Wholesale Prices Fall in August

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

The Producer Price Index for Finished Goods fell 1.4 percent in August, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported.&nbsp ; &nbsp ; This decrease followed a 0.6-percent increase in July and a 0.2-percent decline in June. &nbsp ; At the earlier stages of processing, prices received by manufacturers of intermediate goods moved down 1.2 percent in August compared with a 0.6-percent advance in July, and the crude goods index dropped 3.0 percent after climbing 1.2 percent in the prior month.

Accounting for most of the downturn in finished goods prices, the index for energy goods fell 6.6 percent in August following a 2.5-percent rise in the prior month. &nbsp ; Prices for consumer foods declined 0.2 percent after inching down 0.1 ...

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Praxair China to Build Gases Facility in Nanjing

Leave a Comment / Free, Gases & Welding Equipment, Companies, Top Distributor Sectors, News, Subscriber Only / MDM Staff

Praxair China has announced plans to build a specialty gases facility in the Nanjing Science Park, in Nanjing, China.
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This facility will allow Praxair to dramatically increase its presence in the rapidly growing Chinese specialty gas markets," said David Chow, president of Praxair China. "With the addition of high-purity gases, calibration gases and ultra-high-purity gases for the electronics segment, this facility will also be capable of producing complex mixtures for research laboratories and emission testing centers being developed throughout China."
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The facility is scheduled to start up in August 2008. Markets served will include the petrochemical, automobile, lighting, and pollution control industries as well as laboratories and research centers. In a ...

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Timken to Acquire The Purdy Corp.

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, Power Transmission/Motion Control/Fluid Power, News, Subscriber Only / MDM Staff

The Timken Company, Canton, OH, has agreed to acquire The Purdy Corp., Manchester, CT, a precision manufacturer and systems integrator for military and commercial aviation customers, for $200 million.
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The acquisition will further expand the growing range of power-transmission products and capabilities Timken provides to the aerospace market.
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The Purdy Corp.'s expertise includes design, manufacturing, testing, overhaul and repair of transmissions, gears, rotor-head systems and other high-complexity components for helicopter and fixed-wing aircraft platforms. Purdy employs more than 200 people and had 2006 sales of $87 million.
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Timken offers a comprehensive line of aerospace quality bearings, along with a select range of turbine engine ...

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Flowserve Sells Distribution Assets in Sweden

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, Power Transmission/Motion Control/Fluid Power, News, Subscriber Only / MDM Staff

Flowserve Corp., Dallas, TX, a global supplier of fluid motion and control products and services, has agreed to sell certain product distribution assets of its non-core instrumentation and positioner facility in Karlstad, Sweden, to Indutrade.
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The Karlstad facility provides instrumentation products and systems including gas analyzers, I/O devices, recorders, radiation density meters and other non-core products used for measurement and control of flow processes in industries such as power, paper and machinery.
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Under the terms of the agreement, Indutrade will continue to sell Flowserve's products and services, which should provide Flowserve wider access to sales channels in the region.
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This agreement enables Flowserve to strengthen its focus ...

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Klein Tools Affiliate Acquires Heritage Cutlery

Leave a Comment / Finance, Mergers & Acquisitions, Free, Top Distributor Sectors, Building Materials/Construction, News, Subscriber Only / MDM Staff

Klein Cutlery Inc., an affiliate of hand tool manufacturer Klein Tools, Lincolnshire, IL, has acquired Heritage Cutlery, Bolivar, NY, from Rogers, Lunt and Bowlen Company.
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The acquisition includes the brand names Heritage and C-Mon.
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Heritage Cutlery is a manufacturer of hot-forged scissors and shears for a wide variety of markets including electrical and industrial. The company employs about 55 people at its 18,000-square-foot facility. Heritage has about 900 distributors in the U.S., Canada, Australia and Europe.
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The new company will operate under the name Klein Cutlery LLC. No changes in management are ...

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Industrial Production Rises 0.2% in August

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

Industrial production rose 0.2 percent in August after an increase of 0.5 percent in July. At 114.4 percent of its 2002 average, total industrial production in August was 1.7 percent above its year-earlier level.
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Manufacturing output fell 0.3 percent in August after five consecutive months of increases, mining output dropped 0.6 percent, but unusually hot weather contributed to an increase of 5.3 percent in the output of utilities.
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Capacity utilization for total industry was unchanged, at 82.2 percent, a rate 0.2 percentage point below its level in August 2006 but 1.2 percentage points above its 1972-2006 average.
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Market Groups
The production of consumer goods edged up 0.1 percent in August.
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The production of ...

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Actuant Acquires Templeton, Kenly & Co. for $48M

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

Actuant Corp., Milwaukee, WI, has acquired Templeton, Kenly & Co, Inc., Broadview, IL, for $48 million in cash.
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TK produces hydraulic pumps and tools, mechanical jacks, wrenches, and actuators. Its products are sold under brand names including Simplex, Uni-Lift, and Pow'r-Riser. TK generated $33 million in sales in the last year, and has 120 employees.
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TK will operate within Actuant's Industrial Segment, which includes Enerpac.
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&nbsp ; TK's leading positions in the mechanical jack product line and the railroad end market represent attractive market extensions for Actuant, and we are excited about the prospects for utilizing our global distribution network to accelerate the sales of these products. In addition, TK's hydraulic pumps and tools ...

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Brady Organic Growth Up 4% to $1.36B in 2007

Leave a Comment / Free, Top Distributor Sectors, Safety Products, News, Subscriber Only / MDM Staff

Brady Corp., Milwaukee, WI, reported sales rose 34% in fiscal 2007 to $1.36 billion. Organic growth was 4%. Acquisitions contributed 26% to sales.
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Profit for fiscal 2007 rose 5% to $109.4 million.
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In the fourth quarter, Brady sales rose 26% to $362.8 million. Organic growth was 5% from the prior-year quarter, with acquisitions adding 17% to total sales growth.
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Regionally, sales were up 25% in the Americas, 28% in Europe, and 25% in Asia/Pacific.

Profit was up 17% to $26.2 million in the fourth quarter.

Fiscal 2007 was a very busy year for Brady, and included 7 acquisitions, 16 SAP implementations, and further expansions in Mexico, Thailand, Malaysia, India, China and the Philippines among other geographic areas," said ...

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HD Supply: The ‘White-Knuckle Deal’

Leave a Comment / Finance, Mergers & Acquisitions, Free, Companies, Subscriber Only / Lindsay Young

BusinessWeek just ran a couple of articles on Clayton, Dubilier & Rice, the private equity firm that joined with Bain Capital and the Carlyle Group to buy HD Supply. Due to a tightening in the credit markets, the trio will pay $8.5 billion instead of the original $10.3 billion price for the Home Depot wholesale unit.
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The first BW article was aptly titled, Private Equity's White-Knuckle Deal," and the other focuses on CD & R's chairman Joseph L. Rice III, 75, who discusses how his firm years ago fell into the trap of buying into industries it did not understand and "embraced debt too enthusiastically." (Read article)
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"White-Knuckle Deal" recounts in ...

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Air Liquide Buys Team One Technologies

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

Air Liquide, Houston, TX, has acquired Team One Technologies Inc., an independent producer and distributor of medical and specialty gases in Romeoville, IL.
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Air Liquide Healthcare America will own and operate the medical and specialty gas facility to support its strong growth initiatives in the Midwest medical gas market.
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The newly acquired facility will also supply Air Liquide's non-medical packaged and specialty gas business, with an additional geographic base for direct and distributor sales.
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The acquisition strengthens Air Liquide Healthcare America's position as a major supplier in the greater Chicago area, a region that represents about 6 percent of the overall U.S. medical gases ...

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Construction Spending Down in July

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

Construction spending during July 2007 was estimated at a seasonally adjusted annual rate of $1,169.1 billion, 0.4 percent below the revised June estimate of $1,173.2 billion. &nbsp ; The July figure is 2.0 percent below the July 2006 estimate of $1,192.9 billion.
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During the first 7 months of this year, construction spending amounted to $657.7 billion, 3.4 percent below the $680.9 billion for the same period in 2006.
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Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $880.1 billion, 0.7 percent below the revised June estimate of $886.3 billion. Residential construction was at a seasonally adjusted annual rate of $534.0 billion in July, 1.4 percent below the revised June estimate of $541.8 billion. ...

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Chase Expands Coatings Line

Leave a Comment / Chemicals & Plastics Distribution, Free, Top Distributor Sectors, News, Subscriber Only / MDM Staff

Chase Corporation, Bridgewater, MA, a global manufacturer of specialty tapes, laminates, sealants and coatings, announced its subsidiary, Chase Protective Coatings Ltd, has acquired Long Products of Rye, East Sussex, England.
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Long Products is a manufacturer of waterproofing and corrosion protection systems for oil, gas and water pipelines and has been a major supplier to Europe, the Middle East and Southeast Asia.
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This acquisition joins Chase's North American based Tapecoat and Royston brands to broaden the protective coatings product line and better address increasing global demand. Long Products'tapes, epoxies and cathodic protection accessory products are used internationally on new pipeline projects as well as for regular pipeline maintenance.
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MDM September 10, 2007