The 2020 Mid-Year Economic Update_long

Day: December 10, 2007

NetSuite IPO Commences

The auction for NetSuite Inc.'s initial public offering of its common stock has started. The software provider, based in San Mateo, CA, expects the offering to price after the stock market closes on or about Dec. 19, 2007.
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NetSuite will offer 6,200,000 shares of its common stock in the offering.
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The preliminary prospectus is available at NetSuite's auction Web site,

MDM December 10, 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 to ...

Wholesale Distribution Economic Outlook: Adam Fein’s First Look at 2008

Adam J. Fein, well-known wholesale distribution industry expert, presents an exclusive first look at how U.S. economic trends are shaping up&nbsp ; for wholesaler-distributors in the year ahead. Use this CD of this Dec. 6 program to benchmark your 2008 sales and marketing plan with the latest segment-specific economic data and analysis for wholesale distribution channels.
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Tap into Fein's insightful analytic commentary on the latest government business data, emerging macroeconomic trends and his forecast for 2008 conditions. This 90-minute Webcast includes detailed data on 19 wholesale distribution sub-sectors and Fein's seasoned analysis of the 2008 economic landscape.
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Based on the latest quarterly data, you'll learn:

  • Forecast ...

U.S. MARKET ANALYSIS: Safety Products

The industrial product group listed here - Safety Products - represented a market in 2007 of $6.5 billion, according to estimates by Industrial Market Information, Minneapolis.&nbsp ;

These charts show the top ten industries, by SIC code, consuming these products; and the 2007 end-user consumption of these groups sorted by the nine government market ...

MDM Inflation Index: October 2007

Modern Distribution Management's October Inflation Index, which measures a cross-section of industrial supplies, was up 0.03% from the previous month, and up 2.88% from October 2006.
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Summary of&nbsp ; MDM Inflation Index for the past 12 months:

October 2007 Index 273.6
September 2007 Index 273.5
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

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

News Digest 3723

UK-based Wolseley plc will be laying off 1,300 more workers in the U.S. in its second quarter; the global building materials and plumbing distributor reduced headcount by 1,700 in the three months ended Oct. 31, 2007. In total to date, layoffs represent a third of Stock Building Supply workforce and 10 percent of the Ferguson work force. More

Noland Company, Newport News, VA, has cut 45 jobs across the company over the past month due to the national housing downturn, according to the local paper, the Daily Press. Noland, bought by WinWholesale, Dayton, OH, in 2005, sells plumbing and HVAC supplies to construction end-markets. More

Commentary: CompUSA’s Closing Holds Lessons for Distributors

News that CompUSA will shut its remaining 100 stores and sell off its assets offers some insight for distributors and manufacturers feeling the pressures of consolidation. The downturn of the electronics retailer was not for lack of investment, but likely poor positioning.

Investing in the business in the late 1990s, Mexican telecom and retail store magnate Carlos Slim (now the richest man in the world) took CompUSA private, and the company grew its consumer electronics business through acquisition, including The Good Guys, a California chain.

The Wall Street Journal estimates annual sales last year at $4 billion, but likely to come in at $1.5 billion this year. Early in 2007, it said it would close 126 stores, more than half of its total then.

Anyone who ...

Survey: Paperless Invoices Gain Ground

An electrical distributor in the Northeast delivers more than one-third of its invoices by email. More than 95 percent of its contractors who receive their invoices by email said in a survey they are satisfied or very satisfied with the delivery method.

About 70 percent said they like email delivery to save time" and because they "get their bills faster." Most would recommend email delivery to other contractors. This electrical distributor is not alone in its invoicing practices.

A recent report by Allen Ray Associates, Channel Marketing Group and BillTrust says that as companies become more comfortable with electronic processes, customers are gravitating toward receiving invoices electronically via email or by downloading them off a distributor's Web site. ...

Take Care When Cutting Staff

Finding that a supervisor's comments about an employee's age were admissible circumstantial evidence, and that his employer's reduction in force plan was not a plan" at all, an appeals court has reinstated the claim of a 57-year-old employee, who had been let go in a Reduction in Force (RIF) that affected over 90 employees.&nbsp ;
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Richard Blair had worked as a sales engineer since 1986 for Henry Filters Inc., a manufacturer of industrial filtration systems. In 2001 the new owner of Henry Filters, Durr Ecoclean, decided for business reasons to consolidate the sales force of Henry Filters with two other companies it owned, resulting in a cut back among the sales staff. Blair was one of the employees let go, and believed it was because of his age.

To ...

First Steps in Strategic Pricing

MDM Audio Conferences recently featured consultant Mike Marks and attorney Gene Zelek in Strategic Pricing: Create a Value-Based Approach." The two told participants they must go beyond traditional pricing practices, segment customers and not be afraid to differentiate based on price. This article is based on that audio conference.

If you are implementing a pricing structure from scratch, and want to unfreeze an organization from its old habits, plan for at least 12 months of work to "make it stick." Keep in mind: "It's more than just coming up with a new price sheet and imposing it," says Mike Marks, a principal in Indian River Consulting Group.

Here are a few thoughts to get you started.
Legal Hang-ups
One of the first ...

The Decline of the U.S. Dollar

U.S. companies doing business overseas. But not all manufacturers and distributors are benefiting. For those distributors who import from the euro-zone, for example, costs have suddenly spiked, forcing them to reexamine the way they define value in this marketplace. This article examines the impact of the dollar decline on three groups:

  • U.S. importers,
  • manufacturers who export to the European Union, and
  • Canadian distributors who buy from U.S.-based manufacturers.

Recently, Equipment Controls Co., Norcross, GA, has started to factor the value of the U.S. dollar into its business planning. The gas measurement and control equipment ...

Report: Construction Worker Wins $3.4M in Nail Gun Misfire

A construction worker who was injured when a nail became embedded in his brain after he tried to fire the nail into metal has won $3.4 million in a lawsuit filed in Hartford, CT, the Associated Press reported. The man was partially paralyzed.
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The worker sued tool manufacturer Stanley Works and The Home Depot, where the tool was purchased.
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The jury concluded the worker was 55% liable for the injuries because he fired into metal instead of wood. The nail bounced back at him.
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Stanley Works assistant general counsel Ted Morris told the AP that the nail gun met industry standards and that tool users are warned to follow ...

Timken Joint Venture to Supply China’s Wind Energy Market

The Timken Company, Canton, OH, is establishing a joint venture with Chinese heavy equipment manufacturer Xiangtan Electrica Manufacturing Co. Ltd. to manufacture ultra-large-bore bearings for main rotor shafts of multi-megawatt wind turbines.
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The turbines are for the Chinese wind energy market. China has a goal of generating 30 million kilowatts of power from wind energy systems by 2020.
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The joint venture will build a $38 million facility in Xiantan, in China's Hunan province. Construction will begin in 2008.
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Timken has continued to invest heavily in China since entering this country in 1992, and the joint venture with XEMC is the latest example of our commitment to meet the needs of Chinese customers as they participate in one of the most ...

Ross Valve Acquires Troy Die Cutting

Ross Valve Manufacturing Co., Troy, NY, has acquired Troy Die Cutting Co., Troy, NY. Ross Valve hopes the deal will trim costs and spur new product development, according to the Albany, NY, Business Review.
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Ross Valve, which designs, manufactures and services automatic control valves, anticipates making more acquisitions. The company is a fifth-generation family-run business.
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Troy Die Cutting is a specialized supplier of turn arrows, lane markings and other decals for ...

84 Lumber to Shutter 12 Stores

According to various news reports, 84 Lumber is closing 12 stores in nine states. A spokesman says that all but two of the closing are due to consolidation in markets in the U.S., according to one report.
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84 Lumber is leaving Redding, CA, and Manchester, TN, due to a steep drop in housing starts in those markets. The spokesman told a Pittsburgh, PA, paper that outside of these two markets, other closings would have been done regardless of the downturn in the housing market.
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84 Lumber announced last week it was cutting up to 45 positions at its corporate headquarters. 84 Lumber operates 415 stores and 20 component ...

Private Equity Firm Buys Horsburgh & Scott

Bolder Capital, LLC, a Chicago-based private equity firm, purchased The Horsburgh & Scott Company, Cleveland, OH, for $43.5 million.
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Horsburgh & Scott is a manufacturer of custom industrial gears and mechanical gear drives.
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H & S offers a wide array of large gear types and engineering services for new or replacement installations in steel, mining, sugar, aluminum and power generation applications. H & S also provides custom industrial gears, repair services, spare parts, heat treatment and other technical ...