The 2020 Mid-Year Economic Update_long

Day: October 25, 2009

Distributors Find Savings in Leases

This article looks at one way wholesaler-distributors of all sizes are saving money and boosting their bottom lines: by renegotiating leases. The author looks at why it's a good time to renegotiate, where to start when renegotiating lease terms, and what to offer in return for lower rates.

When the real estate market crumbled, the market price for leasing business space also took a hit. Yet most companies continued to pay the higher rates because they were locked into leases.

That was the case for KAR Industrial …

Commentary: November Will Be a Barometer for 2010

Overall news is much more positive, as Adam Fein points out in his blog at distributiontrends.com. Fein is raising his forecasts for industrial distribution with "slightly positive" year-over-year growth in the first quarter of 2010. The weakening dollar also is helping exports. All good. But few distributors expect a straight-line rebound like the good old days.

Economic Update: Are Recent Signs Sustainable?

Industrial production increased 0.7 percent in September, after a revised gain of 1.2 percent in August. Manufacturing production increased 0.9 percent.

While the sequential growth is a positive sign for a ragged economy, many factors will play a role in determining whether that growth is sustainable, says Thomas J. Duesterberg, president and CEO of Manufacturers Alliance/MAPI.

"The inventory cycle has further to run, and this should sustain …

Distribution Financial Metrics and Trading Multiples: 3Q

This table highlights key financial metrics and trading multiples for 27 publicly traded distributors in the industrial and building products industries up to Sept. 30, 2009. Download this data below. Also find graphic illustrating median EBIDTA multiples for the same distribution companies.

These materials, prepared by Robert W. Baird & Co. for MDM, are for informational purposes only.

MDM October 25, 2009

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