The 2020 Mid-Year Economic Update_long

Day: November 10, 2008

International Wire Sales Up 13% in 3Q

International Wire Group, Inc., Camden, NY, Operating income, reported for the third quarter ended Sept. 30, 2008, were $203.4 million, an increase of 13% from net sales for the same period 2007. Profit was $2.4 million, down 11.1%.
A higher selling price of copper, increased sales volume, higher customer pricing/mix, the impact of a stronger euro versus the U.S. dollar and sales from the Global Wire acquisition beginning on July 1, 2008, contributed to the quarterly sales growth. Profit was negatively impacted by lower sales to the automotive industry.
Sales for the nine months ended Sept. 30, 2008, were $609.7 million, an increase of 10.0% over reported 2007 levels. The company reported profit of $15.2 million, up 13.9% over the prior year same period. ...

MDM News Digest 3821

Chicago, IL-based W. W. Grainger, Inc. has appointed Michael A. Pulick, senior vice president for Customer Service, to president, Grainger Industrial Supply. Pulick is replacing Y.C. Chen, 61, who will stay on in a special advisory role with the company. Pulick joined Grainger in 1999 from General Electric. More
Fairmont Supply Company, Canonsburg, PA, distributor of industrial maintenance, repair and operating supplies, has acquired Pennsylvania-based North Penn Pipe &Supply. Based in Warren, PA, North Penn Pipe &Supply is a supplier to the oil and gas industry. North Penn Pipe &Supply will operate under its current name.  More
Interline Brands, ...

U.S. Market Analysis: Telecommunications Equipment MRO

The industrial product group listed here - Telecommunications Equipment MRO - represented a market in 2007 of $73.3 billion, according to estimates by Industrial Market Information, Minneapolis. 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 ...

Inflation by Commodity Group: Third Quarter 2008

These select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Third quarter 2008 is compared with third quarter 2007, and second quarter 2008 with third quarter 2008. Graphics depict trend for that product from the start of 2007.
The product groups in this report:  

State of the Distribution Software Industry, Part 4: The Next Steps for Distributors

This is part of a series looking at the distribution software industry. This article examines challenges and what distributors should expect in the next five years.
In the year or so leading up to Y2K, many distributors upgraded their computer systems to protect their businesses from what was supposed to be a widespread system breakdown when the clock struck midnight on Jan. 1, 2000. The scare fueled massive technology investment in businesses worldwide.
And now, thanks to technological improvements making viable solutions more affordable and scalable to distributors of all sizes, many are looking to invest again or transition from their legacy systems to an off-the-shelf solution or a modernized interface.
In a recent MDM survey, about 24 ...

Commentary: The Real Impact of 2009

Last week produced more economic bad news: chain store and vehicle sales down, a labor market in self-reinforcing decline. The data is dismal. Our lead article in this issue on construction markets indicates that many expect a tough year ahead before improvement. The severity holds parallels to what industrial distributors went through eight years ago.
So this is where I have to say the sky is not falling. The feedback we are hearing, including at the recent Power Transmission Distributors Association meeting, doesn't match the TV chatter regarding the economy.
The general consensus across industrial sectors is this: Most distributors and manufacturers expect a flat to 5 percent decline in sales for 2009. The only sector falling off a cliff so far is ...

Construction Markets Outlook

MDM asked economists for their take on residential, commercial and institutional construction markets. Construction supply and building materials distributors also describe how they have adjusted to the new market realities. While many still write off 2009, some signs of improvement are emerging.
Signs that the boom in the housing market were coming to an end began appearing as early as 2006. At that time, companies like ORCO Construction Supply, Livermore, CA, began preparing themselves for what they thought would be a normal market correction.
We never expected it to get this bad,"says Hal Look, senior vice president of marketing and business development at ORCO and the incoming president of the Specialty Tools &Fasteners Distributors ...

Kinecor 3Q Sales Up 11%

Quebec-based Kinecor reported sales of C$81.7 million (US$68.3 million) for the third quarter of 2008, up 11% from the same period 2007. Earnings improved to C$5.4 million (US$4.5 million), an increase of 17.3%.
Increases in sales of bearings and power transmission parts, and fluid power parts and service revenue, as well as C$4.3 million (US$3.6 million) of revenue from the acquisition of Weir Process Equipment, contributed to overall higher revenues for Kinecor. Increased natural gas drilling activity in western Canada and higher sales to manufacturing, agricultural and mining sector customers also contributed to the increase. Offsetting these revenue increases was a reduction in forestry sector sales in eastern Canada compared to last year.
For the nine ...

September Machine Tool Consumption Jumps 32% from August

September U.S. manufacturing technology consumption totaled $439.51 million, according to the Association for Manufacturing Technology and the American Machine Tool Distributors'Association. This total, as reported by companies participating in the USMTC program, was up 32.0% from August but down 1.4% from the total of $445.56 million reported for September 2007. With a year-to-date total of $3,462.69 million, 2008 is up 11.4% compared with 2007.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.

This solid September machine tool consumption report confirms the strong numbers from IMTS in September,"said Peter Borden, AMTDA President. "However, the financial uncertainty faced by ...

MDM November 10, 2008

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