December 25, 2008 - Modern Distribution Management

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December 25, 2008

The Year in Distribution: 2008

The economy has officially shifted into lower gear after a turbulent ride in the second half of 2008. This article is an overview of trends and events in the past year in the wholesale distribution sector.
At the end of 2007, MDM published an article titled, Preparing for Uncertainty in 2008."At the time, the economy was starting to show signs of weakening. Certain sectors -automotive and housing — had already taken a dive. And deal-making had started to ease.
But we could not have guessed the enormity of change that would take place this year -particularly in the second half. Financial markets collapsed and previously stalwart institutions went under.
Residential construction plummeted further. In November, unemployment rose to 6.7%; half a million jobs ...

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Commentary: Five Things to Be Thankful For

When it rains, it pours. Sometimes it sleets and snows, as well. With weather before Christmas hurting retail traffic in an already slow year, bad news is flowing freely.
Many manufacturers and distributors are making tough decisions as the New Year approaches. But it's important to keep a healthy perspective, manage what you can control, and focus on the future. With that in mind, it seems appropriate to end this year with a few thoughts of what we have to look forward to in the many niche distribution markets that make this industry strong, flexible and resilient. Let us hope and work to grow in the next few quarters!
Demand will build. Even as we hear continued dismal monthly reports on housing starts and car sales, demand is in fact starting to ...

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Forecast: Flat to Negative Growth in `09

The collapse of the financial markets, the drops in new residential construction, and the pronouncement that the U.S. is in a recession have all contributed to a general feeling of pessimism about the state of the economy.
The results of the Institute for Supply Management December 2008 Semiannual Economic Forecast show just how widespread that pessimism is.
Business investment, a major driver in the U.S. economy, is expected to decline as both sectors expect a combined 7.6 percent decline in capital spending. Sixty-five percent of survey respondents expect revenues to be the same or smaller in 2009 than in 2008. The panel of purchasing and supply executives expects a 1.1 percent net decrease in overall revenues for 2009, compared to a 2.2 percent decrease ...

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MDM News Digest 3824

HD Supply White Cap, an HD Supply company, has opened a 44,000 square foot distribution center and regional offices in Arlington, Texas.  The facility will improve inventory availability throughout the South Central markets by consolidating all purchasing, receiving and distribution activities for more than 300 vendors.
Avnet, Inc. entered a joint venture agreement with Sanko Holding Group in Turkey. Avnet will acquire a 50.01 percent interest of the joint venture, which will include the operations of Akora Technology and Industry Corporation, a Sanko affiliate company, making the joint venture one of the largest IT distributors in Turkey.
The Bosch Group has acquired the power tool accessories business of the ...

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