The 2020 Mid-Year Economic Update_long

Day: May 21, 2008

Update: Industrial Distribution Group After the Tornado

Early in the morning May 9, Industrial Distribution Group's Belmont, NC, distribution center was hit by a tornado. The distributor suffered an estimated $5 million to $7 million in damages, CEO Charles Lingenfelter told MDM.

The office building, a separate facility, was not hit, but the distribution center was severely damaged. Inventory was damaged by water and flying debris. Fortunately, nobody was hurt because the tornado hit in the middle of the night.

Lingenfelter estimates it will take a minimum of four to six months to repair the facility in part due to lead times on required materials.

Until then, the distributor is utilizing a temporary distribution facility about four miles away that local officials helped the distributor find. IDG has had ...

Hagemeyer Releases Green Catalog

Hagemeyer introduced a new Green Products catalog. The full-color catalog features industrial, electrical, and safety products from many of Hagemeyer's supplier partners that promote environmental sustainability.
 
Most competitors feature environmentally-friendly products from a single segment, usually electrical since lighting and energy provides such great opportunities,"says James Sipe, vice president of Product Strategy. "However, Hagemeyer has carefully selected an array of products to support broad customer sustainability goals. The catalog also showcases value-added services that set us apart, including complete turnkey solutions for lighting and energy audits, chemical recycling, and universal waste recycling such as lamps and ballast disposal."
 
The ...

Wolseley Closes 75 Ferguson Branches, Cut Headcount

Wolseley plc, distributor of plumbing and heating products to professional contractors and a supplier of building materials, reported overall that sales for the first nine months ended April 30, 2008, were up 2% and profit fell 23%.
 
As a result of what the distributor called tough market conditions, Wolseley has made further cost reductions in North America since April 30, 2008. The distributor has:
 
-closed 75 branches and reduced headcount by 200 at Ferguson
-closed or consolidated an additional 15 locations in Canada, with a reduced headcount of 50 people
 
Given the continuing tough market conditions, our response has been to take further action to lower the cost base and improve cash flow, while continuing to pursue our longer term strategic ...

Brady Corp. 3Q Organic Sales Down 1%

Brady Corp., Milwaukee, WI, sales for the third quarter 2008 were $381.9 million, up 10.3% from the prior-year period. Organic sales were down 1%.
 
Regionally, sales increased 14% in Brady Americas, 20% in Europe, 1% in Asia/Pacific and remained flat in Direct Marketing &People Identification Americas.
 
Profit for the quarter was up 18.5% to $34.4 million.
 
Sales for the nine months ended April 30, 2008, rose 12.6% to $1.126 billion. Profit for the nine-month period was $97.4 million, up 17.2% compared to $83.1 million in the prior ...

Industrial Distributors Should See Positive Growth in 2008, Albeit Slower

According to Adam Fein, author of the 2008 Wholesale Distribution Economic Reports, 2008 will be a positive year for industrial distributors, though growth will be slower and uneven across the country. Industrial distributors are tied more closely to the industrial manufacturing economy than any other wholesale distribution sector, Fein writes in the latest issue of MDM. (Click here to view the issue.)

Revenues of industrial distributors rise and fall with manufacturing activity, though the link has become slightly weaker in recent years as more traditional industrial distributors diversify into ...

ISM Survey: Average Salaries for Supply Chain Professionals

According to the Institute for Supply Management's third salary survey, average salaries for supply chain professionals were:
 
Chief Purchasing/Supply Management/Sourcing: $128,821
Vice President, Purchasing/Supply Management/Sourcing: $210,419
Director, Purchasing/Supply Management/Sourcing: $125,833
Manager, Purchasing/Supply Management/Sourcing: $90,088
Experienced staff member (3 or more years of experience): $68,537
Entry-level staff member (less than 3 years of experience): $49,682
 
Additional findings:
Respondents who hold one or more certifications reported an average salary that was higher than those who do not. Overall, those who hold one or more certifications earned an average of $94,648, while those who do not hold a ...

Tightened Credit Markets, Economy Played Role in IDG Deal

The tightened credit markets and the economic downturn were center stage in the bidding for Industrial Distribution Group Inc., Atlanta, GA, according to a proxy statement filed this week by IDG with the SEC about the distributor's plan to be acquired by Luther King Capital Management.
 
In fact, Platinum Equity, which was originally the winning bidder for the industrial distributor, had first bid $12 a share in December 2007 but reduced its offer to $10 a share in mid-January. The private equity firm cited risk in improving IDG's MROP and integrated supply business due to an overall decline in the industrial economy.
 
This prompted investment banking firm Robert W. Baird &Co. to return to five bidders for new written proposals. Among the five bidders was ...