13% Fewer Housing Starts in 2006
Housing starts in December were at a seasonally adjusted annual rate of 1,642,000. This is 4.5 percent (±8.8%) ...
13% Fewer Housing Starts in 2006 Read More »
2007
Applied Industrial Sales Up 4% in 2Q
Applied Industrial Technologies, Cleveland, OH, reported sales increased 4% in the second quarter 2007 to $472.36 million. Profit grew 21% to $18.5 million.
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For the six months ended Dec. 31, 2006, sales increased 7% to $964.9 million from $899.3 million in the same period last year. Profit was up 23% to $39.7 million.
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Applied CEO David Pugh said: Although our sales growth was softer than we expected, we believe the economic outlook suggests continued growth through our fiscal year.  ; We are actively managing our business and are working to keep costs in line with the slower pace of the economy. Based on the current state of the industrial economy, and with six months of results under our belt, we now expect our year-end sales to ...
Applied Industrial Sales Up 4% in 2Q Read More »
SKF Acquires Preventive Maintenance Company
SKF has acquired the Preventive Maintenance Company Inc., Elk Grove Village, IL. PMCI has 70 employees with annual sales of about $10 million.
PMCI is in Predictive Maintenance services for industrial customers in the pulp and paper, metals, food, automotive and other industries. The PMCI acquisition strengthens SKF in reliability services, condition monitoring products and maintenance strategies.
The integration of PMCI into the SKF Group has just started.
Related Links:
SKF Group Sales Grow 8.3% in First Half
SKF to Buy Austrian Industrial Seals Co.
...
SKF Acquires Preventive Maintenance Company Read More »
Apollo Management Takes Stake in Bradco Supply
Apollo Management, which also recently invested in Rexnord, has made an investment in Bradco Supply Corp., a roofing supply distributor based in Avenel, NJ. Bradco has more than 150 branches in the U.S.
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We are happy for the relationship with Apollo, said founder Barry Segal. In a short period of time we have become comfortable with the chemistry and we see this as a great opportunity to significantly grow the company."
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Apollo is a private equity, debt and capital markets investor with offices in New York, London and Los Angeles.
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More Breaking ...
Apollo Management Takes Stake in Bradco Supply Read More »
Wholesale Prices Rise 1.1% in 2006; 0.9% in December
Wholesale prices rose 1.1% in all of 2006, in contrast to the 5.4% rise in 2005, the Department of Labor reported. The government attributed the slower rate of advance to the index for finished energy goods, which fell 2% in 2006 after climbing 23.9% a year earlier. Otherwise, wholesale prices except foods and energy moved up 2% in 2006 following a 1.4% gain in 2005.
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At the earlier stages of processing, prices received by intermediate goods producers increased 2.8% in 2006 compared with an 8.6% advance in the preceding year, while the crude goods index declined 2.4% after moving up 21.1% in 2005.
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Wholesale prices rose 0.9% in December, seasonally adjusted. The rise follows a 2% advance in November and a 1.6% decline in October. At the ...
Wholesale Prices Rise 1.1% in 2006; 0.9% in December Read More »
Nov. Power Transmission/Motion Control Sales Up 10.7% YTD
In November, U.S. distributors' year-to-date sales of power transmission/motion control products climbed 10.7% as compared to sales for January through November 2005, according to the latest November trend data released by the Power Transmission Distributors Association. Sales fell 3.6% over the previous month and were up 7.8% as compared to November 2005.
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Days sales in accounts receivables rose 1.3% as compared to October 2006 and increased 2.9% as compared to the same month last year.  ; Annualized sales to inventory ratio in November was 8.3, compared to 7.9 in 2005.
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For November, the confidence level of U.S. distributors decreased to 6.2 from 6.3 in October on a 10-point scale.
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Canadian distributors' ...
Nov. Power Transmission/Motion Control Sales Up 10.7% YTD Read More »
Wurth Grows 12% in 2006
Global fastener distributor The Wurth Group, based in Germany, recorded 12% sales growth in fiscal 2006 to 7.74 billion euro, or US$9.9 billion. Outside of Germany, sales increased by 11.8% to 4.62 billion euro, or US$5.96 billion.
Profit grew by 16.5% overall.
In 2006, Wurth grew its staff by 8.2%, and its sales representatives by 5.6% to 29,020 worldwide.
The Wurth Group also expanded to Mongolia in 2006, bringing the group to 83 countries.
Related Links:
Wurth Service Supply Reports 28.5% Sales Increase in 2005
More Breaking ...
Wurth Grows 12% in 2006 Read More »
More Management Changes at Home Depot
The Home Channel News reports that more management changes are expected at The Home Depot following CEO Bob Nardelli's resignation this month.
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Already, Harvey Seegers, president of Home Depot Direct, was replaced by Steve Skinner, who will oversee the online and catalog division. Skinner had worked under Seegers previously.
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John Campi, the senior vice president for global sourcing and vendor management, resigned as well. He will be replaced by Brian Robbins, HCN reported.
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Both Seegers and Campi came over to HD with Nardelli from GE.
When Nardelli left, Joe DeAngelo, HD Supply chief, was promoted to Chief Operating Officer, giving him more retail ...
More Management Changes at Home Depot Read More »
Ferguson Buys $148M Plumbing Distributor
Ferguson has acquired Cal-Steam Supply Inc., a distributor of plumbing products with 10 locations in the San Francisco Bay area. Cal-Steam had sales of $148.6 million in the year ended Dec. 31, 2005.
Ferguson's parent company, Wolseley, says the acquisition will benefit from its new Stockton, CA, distribution center to be completed later this year.
Ferguson has also acquired Guntersville Fabrication and Sprinkler Co. Inc. and Guntersville Pipe and Supply. Guntersville distributors and fabricates fire protection systems with three locations in the Southeast. It serves Ohio, Florida, Georgia and Louisiana.
Guntersville had sales of $31.5 million in the year ended Oct. 31, 2006.
Related Links:
Ferguson Buys $148M Plumbing Distributor Read More »
Private Label Use to Grow
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 »
Technology Case Study: Routing Costs
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 »
Single-Sourcing on a Smaller Scale
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 »
Construction to Moderate in 2007
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 »
MSC Keeps Eye on ISM Index
MSC Industrial Direct Inc., Melville, NY, said in a recent conference call with investors that it has seen a slowdown in revenue growth in the past few months.
We're mindful of the ISM index and its historic correlation to our growth rate, CEO David Sandler said of the Institute for Supply Management's monthly manufacturing report. While we believe a number of marketing and sales initiatives will moderate its impact … it is apparent that three to six months of ISM weakness has modestly affected our revenue growth and will probably continue to do so in the next couple of quarters if past experience proves out."
Still, thanks in part to its acquisition of J & L Industrial Supply last year from Kennametal, the industrial MRO distributor recorded an increase in sales ...
MSC Keeps Eye on ISM Index Read More »
MDM News Digest 3701
Strategic Distribution, Inc., Bristol, PA, has agreed to be bought out by Platinum Equity in a deal worth $30 million. The deal stipulates that Strategic Distribution will merge with Project Eagle Holding Corp. and Project Eagle Merger Corp., each a Platinum Equity portfolio company. Strategic reported revenues of $136.9 million in 2005 and a net loss of $3.4 million. Platinum Equity has been busy in the industrial sector, recently buying Textron Fastening Systems for $630 million and PNA Group Inc., a $1.2 billion processor and distributor of steel products. More ...
Kennametal Inc., Latrobe, PA, has agreed to acquire Federal Signal ...
MDM News Digest 3701 Read More »
MDM Inflation Index: November 2006
Modern Distribution Management's November Inflation Index, which measures a cross-section of industrial supplies, was up 0.20% from the previous month, and up 4.04% from November 2005.
Summary of  ; MDM Inflation Index for the past 12 months:
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
March 2006 Index 262.1
Febuary 2006 Index 261.2
January 2006 Index 260.2
December 2005 Index 258.1
November 2005 Index  ; 256.1
Please click below on Related Document to view a detailed calculation of the  ; MDM Inflation Index for November 2006, listing the ten ...
MDM Inflation Index: November 2006 Read More »
U.S. Wholesale Revenues Up 1% from October
Sales
November 2006 sales of merchant wholesalers, except manufacturers' sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $331.3 billion, up 1.0% (+/-0.5%) from the revised October level and were up 7.9% (+/-1.2%) from the November 2005 level. The October preliminary estimate was revised upward $0.4 billion or 0.1%. November sales of durable goods increased 1.2% (+/-0.8%) from last month and were up 7.7% (+/-1.8%) from a year ago.  ;
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Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were up 5.0% and sales of electrical and electronic goods increased 2.9 %. November sales of nondurable goods were up 0.7% (+/-0.7%) ...
U.S. Wholesale Revenues Up 1% from October Read More »
Machine Tool Consumption Down 12% From October
November U.S. manufacturing technology consumption totaled $335.02 million, according to AMTDA, the American Machine Tool Distributors' Association, and AMT - The Association for Manufacturing Technology.
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This total, as reported by companies participating in the USMTC program, was down 12.3% from October, but up 32.7% from the total of $252.38 million reported for November 2005. With a year-to-date total of $3,549.90 million, 2006 was up 29.4% compared with 2005.
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These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.
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Though below the exceptional September peak, the November results continue to show strong purchases of advanced ...
Machine Tool Consumption Down 12% From October Read More »
Commentary: HD Supply Strategy Bigger Than One Guy
Hype and speculation tend to follow an industry consolidator. The announcement last week that Home Depot CEO Bob Nardelli was ousted from his position over pay issues and lagging stock gains generated an inordinate amount of buzz. Some even claimed it is a repudiation of the Home Depot model itself and its relatively recent strategy to aggressively grow the wholesale distribution division.
Hardly. All we know versus a week ago is that HD has $210 million less to fund acquisition activities that instead went to Mr. Nardelli's severance package (Wouldn't you like to be chastised like that?). Now that will really slow the acquisition pace of HD Supply….
What's lost in the shock value of the pay deal is that Home Depot's net income in the most recent quarter, ended ...
Commentary: HD Supply Strategy Bigger Than One Guy Read More »
MDM January 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 info@mdm.com to ...
MDM January 10, 2007 Read More »
