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MDM March 25, 2009 Read More »
January 2009 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 $326.1 billion, down 2.9 percent from the revised December level and were down 15.4 percent from January 2008, according to the U.S. Census Bureau.
January sales of durable goods were down 6.5 percent from last month and were down 17.3 percent from a year ago. Compared with last month, sales of machinery, equipment, and supplies were down 10.8 percent. Sales of nondurable goods were up 0.3 percent from last month, but were down 13.7 percent from last year. Sales of chemicals and allied products were down 4.9 percent from last month, while sales of drugs and druggists' ...
Monthly Wholesale Trade: January 2009 Read More »
Two recent MDM interviews offered some perspective on retaining quality employees.
Graybar Senior Vice President and CFO Beatty D'Alessandro told me (at the recent NAW meeting in January) that the company keeps its focus on drawing employees who take a long-term view. He says finding the right people with the right values is crucial from the get-go, but that providing the right training and the right opportunities are just as important in keeping the right people in place. He says: "The model is built around people who are going to come and stay versus people who job-hop around the industry."
In the latest issue of MDM, Grainger's new president of international businesses, Court Carruthers, says that nurturing employee development is a passion of his. A ...
Execs: Right Leadership, Training Key to Retaining the Right People Read More »
Economic indicators continued their downward trend in February, according to The Conference Board and Statistics Canada.
In the U.S., all three indicators from The Conference Board - the Leading Economic Index, Coincident Economic Index and the Lagging Economic index - declined by 0.4% for the month. The LEI has fallen 2.1% in the past six months; the CEI has dropped 3.1%.
Canada's February composite leading index fell 1.1% after a 0.9 percent decrease in January, with 9 of the 10 components declining. The housing and stock markets continued to post the largest declines, while losses in manufacturing steepened as the auto industry began to implement extensive shutdowns at the turn of the year. New orders in ...
Economic Indexes Continue Downward Trend Read More »
New orders for manufactured durable goods in February increased $5.5 billion or 3.4% to $165.6 billion, the U.S. Census Bureau announced in the advance report on Manufacturers' Shipments, Inventories and Orders. This increase follows six consecutive monthly decreases, including a 7.3% January decrease. Excluding transportation, new orders increased 3.9%. Excluding defense, new orders increased 1.7%.
Cliff Waldman, economist for the Manufacturers Alliance/MAPI, said that the "welcome turn in big ticket demand" should be "interpreted with caution," though he does point out that it may indicate that the U.S. is close to or at the bottom of the business cycle.
"The modest signs of stability in the U.S. economy are early and could be ...
New Orders for Durable Goods Go Up in February Read More »
Global distributor Bunzl plc has acquired W.K. Thomas and Industrial Supplies from W.K. Thomas & Co Limited, and Industrial Supplies UK Limited.
W.K. Thomas is a distributor in the UK of foodservice products, particularly to customers in the catering and airline sectors. Industrial Supplies is engaged in the distribution of cleaning and hygiene products throughout the East of England. The aggregate revenue of the businesses in the year ended Dec. 31, 2008 was about £35 million.
These businesses complement our existing horeca and cleaning & hygiene operations in the UK. This transaction demonstrates our ability to take advantage of appropriate opportunities as they arise in what is a particularly tough environment in the UK & ...
Bunzl Acquires Two UK Distributors Read More »
OneSource Distributors, Oceanside, CA, has acquired Berkley Engineering, Inc., Honolulu, HI. Berkley is a supplier of pumping-related products for the municipal water/wastewater industry and industrial and institutional markets.
Berkley Engineering is a good fit for both of our companies and our major suppliers. We are a Rockwell Automation/Allen-Bradley distributor in a number of territories and look forward to growing market share for them as well as all of our key suppliers in the Industrial, Infrastructure, Institutional and Utility markets in Hawaii and in the American territories, Bob Zamarripa, president of OneSource, says.
OneSource Distributors operates 12 sales centers and four distribution centers servicing California, Arizona, ...
OneSource Buys Berkley Engineering Read More »
The Chicago Fed Midwest Manufacturing Index declined 5.9% in January, to a seasonally adjusted level of 85.6 (2002 = 100). Revised data show the index decreased 3.9% in December, to 91.0.
The Federal Reserve Board's industrial production index for manufacturing fell 2.6% in January. Regional output in January was down 21.8% from a year earlier-lower than the 13.0% decrease in national output.
Regional auto sector production dropped 20.0% in January after moving down 1.8% in December. The nation's auto output decreased 10.1%. The Midwest's automotive output was down 42.2% relative to its year-ago value, and the nation's auto output was down 24.3%.
The region's steel sector output moved down 4.9% in January after ...
Chicago Fed Midwest Manufacturing Index Falls 5.9% In January Read More »
Actuant Corp., Milwaukee, WI, reported sales for the second quarter ended Feb. 28, 2009, were $300 million, down 25% from 2008. Core sales declined 27%. Profit for the quarter declined 86% to $3.2 million.
For the first six months, sales were $680 million, 17% lower than the prior year period. Profit was down 70% to $$14.8 million.
Normal seasonal weakness in the second quarter was compounded by he global economic conditions. The diversified industrial company will continue to implement restructuring and cost reduction actions to help offset the weaker demand, said CEO Robert C. Arzbaecher. We have reduced headcount, consolidated facilities, eliminated shifts and established short work week schedules to better align our production, inventory and costs with ...
Actuant Sales Fall 25% In 2Q Read More »
Housing starts went up unexpectedly in February (+22.2% from January), but were still down 47.3% from February 2008. And while to some this might trigger some hope that we're reaching the bottom, as the Chicago Tribune and other papers around the country have noted, most of the gain came from the multifamily sector, which includes apartments and condominiums. Starts in that sector rose more than 80%; single-family homes only gained 1.1%. On the bright side, that 1.1% is an improvement over the double-digit drops we have been seeing the past several months.
Economists are mixed as to whether the slight ...
Behind the Surprising Uptick in February Housing Starts Read More »
Distributors are slimming down.
The sudden drop in sales in November left many distributors with too much inventory and not enough demand. Maximizing cash flow has become the name of the game. To do this, distributors are paring down and better managing inventory. They are shortening their forecasting time frame (to consider just the past three months rather than the past half year or more), analyzing their replenishment processes (in many cases ordering more frequently), improving communication with vendors and returning to basic best practices in inventory management. Many are also digging more deeply into their technology tools to find ways to increase efficiencies in the inventory management ...
Finding Opportunity in Inventory Read More »
Privately-owned housing starts in February were at a seasonally adjusted annual rate of 583,000, 22.2% above January, but is 47.3% below February 2008, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
Single-family housing starts in February were at a rate of 357,000; this is 1.1% above the January figure of 353,000. The February rate for units in buildings with five units or more was 212,000.
By region, housing starts in the Northeast were down 44.8% from February 2008; in the Midwest, they were down 45.5%. Starts dropped 42.5% in the South, and the West experienced a decrease of 59.1%.
Permits
Privately-owned housing units authorized by building permits in February were at a seasonally adjusted ...
U.S. Housing Starts Up 22.2% In February Read More »
Dutch holding company ERIKS group has acquired Arnold Frommeyer GmbH & Co. KG, a German distributor of mechanical engineering components for use primarily in sealing technology, fluid technology, maintenance products and tools.
Frommeyer has 15 employees and generates annual sales of €3 million.
The acquisition further expands ERIKS' local presence in Germany, and continues to aid in expanding offered product lines. Frommeyer´s activities will be integrated in the existing ERIKS Germany regional service centre structure. ...
ERIKS Acquires German Distributor Read More »
Steel prices have been wild this past year - from record highs in mid-July to the current barely-breakeven lows. Steelmakers have seen a dramatic decline in demand, with global output sinking about 25% in January and North American output down 50%, according to Reuters. The unprecedented volatility has left many people related to the steel industry wondering where things might go next.
While no one knows that answer, what they can do is prepare for the new economic reality that will come out of this global financial and economic crisis. This was the message presented by Pierre Mangers of PricewaterhouseCoopers Luxembourg at the Handelsblatt Stahlmarkt conference in Germany earlier this month.
Mangers told attendees that the steel industry needs a new ...
A New Model Needed in the Steel Industry Read More »
Source: Statistics Canada
Canadian manufacturing sales decreased 5.4% to $41.7 billion in January, falling to the lowest level in almost 10 years. Motor vehicle and motor vehicle parts industries, particularly in Ontario, reported record decreases during the month. Excluding motor vehicles and parts and accessories, manufacturing sales decreased a more moderate 1.2% compared with December.
Constant dollar manufacturing sales, which are measured in 2002 prices, fell 6.4% to $38.1 billion in January. This was the sharpest decrease in constant dollar sales since the current series started in 1997.
At the industry level, sales in 14 of 21 manufacturing industries decreased ...
Canadian Manufacturing Sales Fall 5.4% in January Read More »
Wholesale prices increased 0.1% in February, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported. This rise followed a 0.8-percent increase in January and a 1.9-percent decline in December.
At the earlier stages of processing, prices received by manufacturers of intermediate goods decreased 0.9% in February after falling 0.7% in the previous month, and the index for crude materials declined 4.5% following a 2.9-percent decrease in January.
The slower rate of increase in finished goods prices was led by the index for energy goods, which rose 1.3% in February after climbing 3.7% in the preceding month. Capital equipment prices also moved up less, rising 0.1% after increasing 0.5% in January. The index for consumer foods ...
Wholesale Prices Rise 0.1% in February Read More »
Industrial production fell 1.4% in February; the overall index has now declined for four consecutive months and for 10 of the past 12 months, according to the Federal Reserve.
At 99.7% of its 2002 average, output in February was 11.2% below its year-earlier level and was the lowest level since April 2002. Production in the manufacturing sector moved down 0.7%, with broad-based declines among its components.
An increase in the production of motor vehicles and parts after the extended plant shutdowns in January, however, added nearly a half percentage point to the change in manufacturing production. Outside of manufacturing, the output of mines moved down 0.4%, while a swing to above-average temperatures contributed to a 7.7% drop in the output of ...
Industrial Production Falls 1.4% in February Read More »
Cooper Industries, Houston, TX, has acquired Irvine, CA-based Illumination Management Solutions, Inc., a manufacturer of specialized optics and system design for light-emitting diode (LED) fixtures. Terms of the transaction were not disclosed.
The acquisition of IMS demonstrates Cooper's ongoing strategic commitment to become a market leader in energy-efficient solid state lighting solutions, said Cooper Industries' CEO Kirk S. Hachigian. "The acquisition of IMS and the talent it brings into our organization strongly complements our technology investments by adding enhanced capabilities in LED-systems and optical design."
IMS designs and manufactures LED systems and fixtures for a variety of lighting applications in roadway ...
Cooper Industries Buys IMS Read More »
Illinois Tool Works Inc., Glenview, IL, reported operating revenue decreased 21% for the three months ended Feb. 28, 2009. The decline was due to a 20% decrease in base revenues and a 7% fall off in contributions from currency translation. Acquisitions contributed 7%. Significantly lower than expected end market activity in North America, Europe and Asia in January and February also contributed to the decline in operating revenues.
On a segment basis, the Company's three month moving average percentage change for operating revenues, comprised of base revenues, acquisitions/divestitures and currency translation, is provided below:
Industrial Packaging: -27.7%
Power Systems and Electronics: -26.9%
Transportation: -25.0%
Food Equipment: -15.5%
ITW 1Q Sales Down 21% Read More »
Camden, NY-based International Wire Group, Inc. reported sales for fourth quarter 2008 were $126.7 million, down 28.3% from fourth quarter 2007. The wire manufacturer recorded a loss of $8.7 million, a decrease of $11.2 million from the prior year.
Lower sales volume and the significant decline of the price of copper in the fourth quarter contributed to the decline. From September to December 2008, the monthly average copper price dropped by 55.8%.
Sales for the year ended Dec. 31, 2008, were $736.4 million, up 0.8%, from 2007 levels. Higher sales volume from the Hamilton Products and Global Wire acquisitions contributed to the increase. Profit for 2008 was $6.5 million, down 59.1% from the prior year. ...
International Wire 4Q Sales Drop 28.3% Read More »
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