The 2020 Mid-Year Economic Update_long

Day: December 25, 2007

The Year in Distribution: 2007

It's been another roller-coaster year, with HD Supply changing hands and consolidation kicking into high gear. As distributors plan for 2008, opportunities exist for growth, but they may be more difficult to secure as the economy shifts into lower gear.

We thought it couldn't get more interesting than 2006, when HD Supply bought Hughes Supply for $3.4 billion and recorded triple-digit growth throughout the year -thanks to a still-booming residential market and an aggressive acquisitive growth strategy.

Boy, have things changed.
For one, HD Supply is no longer in the hands of Home Depot and already is starting to shed some of the weight it put on over the past several years. Though it was a big deal when HD Supply was sold to a trio of private equity ...

Purchasing Execs Expect Growth in 2008

The past year, 2007, has presented challenges to manufacturers in the form of energy costs and overall inflation in manufacturing inputs. Manufacturer respondents in the Institute for Supply Management December 2007 Semiannual Economic Forecast expect cost pressures to subside in 2008; 62 percent of manufacturing purchasing and supply executives expect growth in revenues over 2007.
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The panel of purchasing and supply executives expect a 6.8 percent net increase in overall revenues. These projections are part of the forecast issued by the Business Survey Committee of the Institute for Supply Management.
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Manufacturing Summary
Manufacturing industries expecting the greatest improvement over 2007 & mdash; listed in ...

MDM News Digest 3724

Paris-based electrical distributor Rexel confirmed that it will keep its bid of & euro; 4.85 per share for Dutch rival Hagemeyer NV, a total of about & euro; 3.1 billion (US$4.5 billion). Analysts had questioned whether the company would move ahead with its takeover bid or reduce the offer after Hagemeyer was ordered to pay & euro; 50 million in advance damages over the bankruptcy of a former subsidiary.

Ingersoll-Rand Company Ltd., Hamilton, Bermuda, has agreed to acquire Trane Inc., formerly American Standard Companies Inc., Piscataway, NJ, for $10.1 billion, including the assumption of $150 million of Trane net debt. Trane is a manufacturer of indoor climate control systems with expected 2007 sales of $7.4 billion.

MDM Inflation Index: November 2007

Modern Distribution Management's November Inflation Index, which measures a cross-section of industrial supplies, was up 0.41% from the previous month, and up 3.1% from November 2006.
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Summary of&nbsp ; MDM Inflation Index for the past 12 months:

November 2007 Index 274.7
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

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

Commentary: The Value of Wholesale Distribution

This time of year serves as a reminder of the incredible logistics infrastructure that now exists in this country and around the globe. But while we increasingly take for granted the ability to point, click, shop and select overnight delivery, let's acknowledge the distinct value wholesale-distributors provide.
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A unique set of capabilities, service functions and responsibilities defines how a distributor meets customer requirements (often including same-day delivery and 24-hour service). In addition to large customers, there are countless micro markets that depend on local supply services that go far beyond logistics expertise or product selection with a mouse and price-comparison sheet.
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Yet, as conversations often remind us at holiday parties, many ...

MDM December 25, 2007

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