February 20, 2008 - Modern Distribution Management

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February 20, 2008

Raw Materials, Energy Costs Top Concerns in Survey

Raw material and energy costs topped the list of cost pressure concerns in 2008, according to a recent survey by Prime Advantage, a buying consortium for small and mid-sized manufacturers, focused on the top economic concerns in 2008. Respondents to the Group Outlook Survey included business owners, vice presidents of procurement and purchasing directors.
 
More than 46 percent of respondents agreed that raw materials (including stainless steel, nickel, copper and other metals and plastics) were a major concern in 2008. Energy costs were the second biggest concern, with 17.5 percent and logistics and supply chain costs followed closely at 16.4 percent in agreement.
 
Inflation (8 percent), labor (4 percent), foreign competition (3.4 percent), overhead costs (2.8 ...

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Hagemeyer Organic Growth of 4.3% in 2007

Electrical distributor and integrator Hagemeyer NV reported sales of €6.4 billion in 2007 (US$9.4 billion at current exchange rates). Organic revenue growth was 4.3% for the year, decreasing from 5.7% in the first half to 3.1% in the second half.
 
About 75% of the organic revenue growth for the year can be attributed to price increases.
 
In 2007, revenue for the Professional Products and Services business was €6 billion, compared to €5.8 billion in 2006. Organic growth was 4% in 2007. Copper price fluctuations did not have a noticeable impact on Hagemeyer's revenue, unlike in 2006 when they accounted for a revenue increase of 7%. Organic growth is almost exclusively attributable to price increases, of which the largest part was ...

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Lakeland Industries Expands in Brazil

Lakeland Industries, Inc., manufacturer of protective apparel, has agreed to acquire Brazilian protective apparel supplier Qualytextil S.A. Qualytextil, based in Salvador Bahia, Brazil, was founded in 1999 and serves the Brazil Protective Clothing market in the following areas: firemen's turnout gear, conductive and electric arc garments, chemical protective garments, occupational, multilayer and waterproof operational garments, aluminized and molten metal lines of protective clothing.
 
The purchase price is USD$12.5 million. Qualytextil sales for 2007 were US$9.8 million.
 
Qualytextil is in the northeastern part of the country, where the State provides tax incentives, labor rates are favorable and is conveniently located to transport garments economically ...

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Platinum Equity to Buy Industrial Distribution Group for $113M

Platinum Equity has agreed to buy Industrial Distribution Group, Inc., Atlanta, GA, distributor of maintenance, repair, operating and production (MROP) products and integrated supply services to manufacturers and other industrial users, for about $113 million. With the acquisition, IDG will go private.
 
The move complement's Platinum Equity's other recent distribution investment: Strategic Distribution. Platinum Equity said it would look for synergies with IDG. Both companies have integrated supply operations.
 
We are very enthused about this transaction with Platinum Equity, which we believe will provide excellent value to our stockholders," said Richard M. Seigel, chairman of the Board of the Company, who also chaired the special committee.
 
Seigel ...

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