The 2020 Mid-Year Economic Update_long

March 10 2008

Volume 38, Issue 5 - 03/10/2008

Volume:

38

Issue:

5

Subscribers: Log-in to read this issue of Premium.

Not a subscriber? Click here to learn more and subscribe.

Features
More distributors have been hit with product liability lawsuits. If pursuing a private label, distributors must educate themselves on all possible risks associated with taking on a manufacturing role. Distributors and their customers must also be aware of the risk of counterfeits in the supply chain, another potential source of liability claims.
 
Nearly 250,000 circuit breakers can fit into one shipping container. Look at how many possible homes these circuit breakers infiltrate and how many lives and properties can be damaged if the circuit breakers are defective or not installed properly,"says Bernie Heinze, attorney and president/CEO of Sequent Insurance Group, Philadelphia, PA.
 
"And that is just one container. The amount of product that is coming into ...

After learning about some of the risk distributors and their customers can face when counterfeits enter the supply chain, Maurice Electrical Supply, a $166-million distributor of electrical products in Washington, D.C., organized a seminar for its customers.

"Can I defend myself?" asks Warren Janes, Maurice vice president for sales and marketing. "You realize you can't. So you have to educate your customer base, and between the two of you figure out a way to move forward."

About 95 percent of Maurice's customer base is contractor, a segment that Janes wanted most to educate.

Over the past six years, Dayton, OH-based WinWholesale Inc. has embarked on a project to optimize its distribution network. The diversified national distributor, with $2.6 billion in sales for the fiscal year ended Jan. 31, 2007, has five distribution centers across the country: Phoenix, AZ; Denver, CO; Dayton, OH; North Haven, CT; and Richmond, VA.


The company has seen incredible growth over the past several years, benefiting from the housing boom. In addition, WinWholesale acquired Noland Company in 2005.


The company has 462 local Win companies, and 105 Noland branches, in 44 states. WinWholesale distributes plumbing and water-heating supplies, industrial PVF, electrical equipment, electronics, industrial and commercial fastening hardware, waterworks ...
More than 50% of MDM readers are concerned"about the state of the economy, and 27% in a recent MDM survey saying they are "very concerned."About 45% expect the economy to grow worse over the next six months. About the same number expect the economy to stay about the same in the next six months.


The results are part of the MDM Reader Survey on the Economy, conducted in the last two weeks of February.


Overall, results were mixed and, it seems, dependent on customer segment. The two most cited segments in which respondents are seeing slowdowns were building materials/construction and automotive.


Others mentioned slowdowns in any market tied to residential construction, including electrical, HVAC, appliances, plumbing, flooring, and machinery ...
A funny thing happened on the way to a recession. Data keeps getting in the way, at least in certain markets that the mass media don't pay a lot of attention to. Case in point: January trend data by the Power Transmission Distributors Association shows an uptick in sales for the month in the U.S. and Canada.


So while broad-based needles continue to point down, it's important to keep the market niches, customer segments and top ten customers that define the long-term health of your business front and center in your perspective.


The MDM Survey on the Economy in this issue offers a few interesting indicators within wholesale distribution. Nearly a quarter of those who responded are planning an acquisition in the next six months. More than a third expect to have ...
Airgas, Inc., Radnor, PA, has acquired Northeast Gas Technologies Ltd., Albany, NY-based distributor of industrial, medical, and specialty gases and related supplies. The business, with five locations in upstate New York and Vermont, generated $10 million in revenues in 2007. More
Industrial distributor Lewis Goetz and Company Inc., Pittsburg, PA, has acquired JA-MAR Conveyor and Components, a regional conveyor system installation and service company in Bellaire, OH. More
Noland Company, Newport News, VA, has opened a 3,500-square-foot remodeled Bath &Idea Center at the Charleston, SC, for customers of contractors ...
Modern Distribution Management's January Inflation Index, which measures a cross-section of industrial supplies, was up 0.49% from the previous month, and up 3.18% from January 2007.
 
Summary of MDM Inflation Index for the past 12 months:

January 2008 Index 277.2
December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7
May 2007 Index 271.2
April 2007 Index 270.8
March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7

Please click below to view a print-ready pdf of the MDM Inflation Index for January 2008, listing the ten individual product categories that make ...
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 ...
PDF Download
More distributors have been hit with product liability lawsuits. If pursuing a private label, distributors must educate themselves on all possible risks associated with taking on a manufacturing role. Distributors and their customers must also be aware of the risk of counterfeits in the supply chain, another potential source of liability claims.
 
Nearly 250,000 circuit breakers can fit into one shipping container. Look at how many possible homes these circuit breakers infiltrate and how many lives and properties can be damaged if the circuit breakers are defective or not installed properly,"says Bernie Heinze, attorney and president/CEO of Sequent Insurance Group, Philadelphia, PA.
 
"And that is just one container. The amount of product that is coming into ...

After learning about some of the risk distributors and their customers can face when counterfeits enter the supply chain, Maurice Electrical Supply, a $166-million distributor of electrical products in Washington, D.C., organized a seminar for its customers.

"Can I defend myself?" asks Warren Janes, Maurice vice president for sales and marketing. "You realize you can't. So you have to educate your customer base, and between the two of you figure out a way to move forward."

About 95 percent of Maurice's customer base is contractor, a segment that Janes wanted most to educate.

Over the past six years, Dayton, OH-based WinWholesale Inc. has embarked on a project to optimize its distribution network. The diversified national distributor, with $2.6 billion in sales for the fiscal year ended Jan. 31, 2007, has five distribution centers across the country: Phoenix, AZ; Denver, CO; Dayton, OH; North Haven, CT; and Richmond, VA.


The company has seen incredible growth over the past several years, benefiting from the housing boom. In addition, WinWholesale acquired Noland Company in 2005.


The company has 462 local Win companies, and 105 Noland branches, in 44 states. WinWholesale distributes plumbing and water-heating supplies, industrial PVF, electrical equipment, electronics, industrial and commercial fastening hardware, waterworks ...
More than 50% of MDM readers are concerned"about the state of the economy, and 27% in a recent MDM survey saying they are "very concerned."About 45% expect the economy to grow worse over the next six months. About the same number expect the economy to stay about the same in the next six months.


The results are part of the MDM Reader Survey on the Economy, conducted in the last two weeks of February.


Overall, results were mixed and, it seems, dependent on customer segment. The two most cited segments in which respondents are seeing slowdowns were building materials/construction and automotive.


Others mentioned slowdowns in any market tied to residential construction, including electrical, HVAC, appliances, plumbing, flooring, and machinery ...
A funny thing happened on the way to a recession. Data keeps getting in the way, at least in certain markets that the mass media don't pay a lot of attention to. Case in point: January trend data by the Power Transmission Distributors Association shows an uptick in sales for the month in the U.S. and Canada.


So while broad-based needles continue to point down, it's important to keep the market niches, customer segments and top ten customers that define the long-term health of your business front and center in your perspective.


The MDM Survey on the Economy in this issue offers a few interesting indicators within wholesale distribution. Nearly a quarter of those who responded are planning an acquisition in the next six months. More than a third expect to have ...
Airgas, Inc., Radnor, PA, has acquired Northeast Gas Technologies Ltd., Albany, NY-based distributor of industrial, medical, and specialty gases and related supplies. The business, with five locations in upstate New York and Vermont, generated $10 million in revenues in 2007. More
Industrial distributor Lewis Goetz and Company Inc., Pittsburg, PA, has acquired JA-MAR Conveyor and Components, a regional conveyor system installation and service company in Bellaire, OH. More
Noland Company, Newport News, VA, has opened a 3,500-square-foot remodeled Bath &Idea Center at the Charleston, SC, for customers of contractors ...
Modern Distribution Management's January Inflation Index, which measures a cross-section of industrial supplies, was up 0.49% from the previous month, and up 3.18% from January 2007.
 
Summary of MDM Inflation Index for the past 12 months:

January 2008 Index 277.2
December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7
May 2007 Index 271.2
April 2007 Index 270.8
March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7

Please click below to view a print-ready pdf of the MDM Inflation Index for January 2008, listing the ten individual product categories that make ...
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 ...