The 2020 Mid-Year Economic Update_long

November 10 2008

Volume 38, Issue 21 - 11/10/2008

Volume:

38

Issue:

21

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Features
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 ...
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 ...
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 ...

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:  





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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, ...
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 ...
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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 ...
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 ...
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 ...



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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, ...
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 ...