The 2020 Mid-Year Economic Update_long

November 10 2007

Volume 37, Issue 21 - 11/10/2007

Volume:

37

Issue:

21

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Features

Doug Levin has been involved in distribution information technology for more than 20 years. He is well known in many distribution sectors as the former executive vice president of Prophet 21 software company, acquired by Activant Solutions in 2005. In this interview, the guy who sold a lot of technology systems urges distributors to optimize current systems first. Here's Levin's perspective on IT best practices, standards, consolidation and challenges ahead.

MDM: What's your perspective on the consolidation you've seen in distribution software over 20 years, some of which you actively drove in your role with Prophet 21? Have distributors benefited?
 
Doug Levin: It has probably gone from 30 companies that focus specifically on distribution ...


According to the MDM/Industrial Market Information MRO Market Analysis, the U.S. market size in 2007 for the 126 MRO industrial product groups is $445.7 billion. (Prior-year data available at&nbsp ; the MDM Databank&nbsp ; are not directly comparable due to slight variations in product groups included.)


Estimates are based on data compiled by Industrial Market Information, Minneapolis, MN, and analyzed by MDM. Definitions for the 126 individual product categories used to estimate the market size are on p. 6 of this section.

Two aggregate subgroups were measured, as well. Manufacturing & Utilities sectors consumed $229.8 billion in MRO products across these 126 product groups.

Construction & Mining sectors consumed $97.8 ...
September 2007 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 $366.8 billion, up 1.3 percent from the revised August level and were up 9.9 percent from the September 2006 level.

The August preliminary estimate was revised upward $1.3 billion or 0.4 percent. September sales of durable goods were up 0.3 percent from last month and were up 4.6 percent from a year ago. Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were up 4.1 percent, while sales of metals and minerals, except petroleum, were down 3.7 percent.

Sales of nondurable goods were up 2.1 percent from last month and were up 15.1 percent from ...
Hagemeyer and Rexel have entered exclusive negotiations aimed at finalizing an agreement under which Rexel would make an all-cash offer of & euro; 4.85 per share, approximately & euro; 3.1 billion in total, or US$4.5 billion. Under the agreement, Hagemeyer's Management and Supervisory Boards would recommend Hagemeyer accept this offer. The offer is up from Rexel's original bid of & euro; 4.60, which had valued the company at US$4.3 billion Rexel's agreement with Sonepar will stand to sell Sonepar the American, Asian-Pacific and select European activities of Hagemeyer. More


3M,

<city ...

As a good friend once observed, success in distribution is not so much hitting home runs or triples, but executing singles well and celebrating the occasional double. (The baseball analogy might be a little late but only because the World Series ended too early).
&nbsp ;
It would be nice to apply that thought to the area of data standards in distribution, but we can't. There are some isolated sectors where there have been successes, most notably in electronics and electrical product sectors. But most areas in distribution have been striking out or at best getting an infield hit every once in a while. Not surprising really, when you consider how fragmented this industry is at every level.
&nbsp ;
For more than 20 years, there have been efforts to connect distributors with ...
This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. ...
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Doug Levin has been involved in distribution information technology for more than 20 years. He is well known in many distribution sectors as the former executive vice president of Prophet 21 software company, acquired by Activant Solutions in 2005. In this interview, the guy who sold a lot of technology systems urges distributors to optimize current systems first. Here's Levin's perspective on IT best practices, standards, consolidation and challenges ahead.

MDM: What's your perspective on the consolidation you've seen in distribution software over 20 years, some of which you actively drove in your role with Prophet 21? Have distributors benefited?
 
Doug Levin: It has probably gone from 30 companies that focus specifically on distribution ...


According to the MDM/Industrial Market Information MRO Market Analysis, the U.S. market size in 2007 for the 126 MRO industrial product groups is $445.7 billion. (Prior-year data available at&nbsp ; the MDM Databank&nbsp ; are not directly comparable due to slight variations in product groups included.)


Estimates are based on data compiled by Industrial Market Information, Minneapolis, MN, and analyzed by MDM. Definitions for the 126 individual product categories used to estimate the market size are on p. 6 of this section.

Two aggregate subgroups were measured, as well. Manufacturing & Utilities sectors consumed $229.8 billion in MRO products across these 126 product groups.

Construction & Mining sectors consumed $97.8 ...
September 2007 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 $366.8 billion, up 1.3 percent from the revised August level and were up 9.9 percent from the September 2006 level.

The August preliminary estimate was revised upward $1.3 billion or 0.4 percent. September sales of durable goods were up 0.3 percent from last month and were up 4.6 percent from a year ago. Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were up 4.1 percent, while sales of metals and minerals, except petroleum, were down 3.7 percent.

Sales of nondurable goods were up 2.1 percent from last month and were up 15.1 percent from ...
Hagemeyer and Rexel have entered exclusive negotiations aimed at finalizing an agreement under which Rexel would make an all-cash offer of & euro; 4.85 per share, approximately & euro; 3.1 billion in total, or US$4.5 billion. Under the agreement, Hagemeyer's Management and Supervisory Boards would recommend Hagemeyer accept this offer. The offer is up from Rexel's original bid of & euro; 4.60, which had valued the company at US$4.3 billion Rexel's agreement with Sonepar will stand to sell Sonepar the American, Asian-Pacific and select European activities of Hagemeyer. More


3M,

<city ...

As a good friend once observed, success in distribution is not so much hitting home runs or triples, but executing singles well and celebrating the occasional double. (The baseball analogy might be a little late but only because the World Series ended too early).
&nbsp ;
It would be nice to apply that thought to the area of data standards in distribution, but we can't. There are some isolated sectors where there have been successes, most notably in electronics and electrical product sectors. But most areas in distribution have been striking out or at best getting an infield hit every once in a while. Not surprising really, when you consider how fragmented this industry is at every level.
&nbsp ;
For more than 20 years, there have been efforts to connect distributors with ...
This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. ...