The 2020 Mid-Year Economic Update_long

November 10 2010

Volume 40, Issue 21

Volume:

40

Issue:

21

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Features

On Nov. 1, Kaman Corp., Bloomfield, CT, reported third-quarter sales of $359.5 million. A key driver behind that sales growth was Kaman Industrial Technologies, the power transmission, bearing and motion control distribution arm of Kaman Corp., which posted a year-over-year sales increase of 37 percent in the quarter.

Steve Smidler recently took on the role of president at Kaman Industrial Technologies when T. Jack Cahill retired after serving in that post for 17 years. Smidler and Vice President of Marketing David Mayer spoke with MDM Associate Editor Jenel Stelton-Holtmeier at the Power Transmission Distributors Association 50th Anniversary Industry Summit in Phoenix about Kaman’s goals and the outlook for the industry.

MDM: As the new president of Kaman Industrial Technologies, what are your goals for the company, and how will your experience help you attain those goals?

While the economic recovery has been slow, signs of it were still evident at the 50th Anniversary Power Transmission Distributors Association Industry Summit in Phoenix last month. The overall tone of the event was more positive than the previous, with hot-button issues focused on growth rather than tactics designed to just survive.

Those topics covered a spectrum of concerns, as evidenced by issues raised during the “Big Issues for Small Distributors Forum.” Here is a sampling of the discussion.

Jonathan Byrnes, senior lecturer at MIT and author of new book Islands of Profit in a Sea of Red Ink, recently spoke with Editor Lindsay Konzak. Here is part 2 of that interview, covering steps distributors can take to make unprofitable business profitable. He also addresses how to incentivize your team to make these critical changes to how you do business.

MDM: You write in your book that 40 percent of every business is unprofitable. How can distributors make the changes necessary to reverse this?

Jonathan Byrnes: There are four building blocks. The first is the right information. In Chapter 6 I talk about profit-mapping. That will give a company information on the specific products bought by customers. That information can be put into a database program on the profitability of each one, and the company can figure out the best measure for profitability.  By the way, that information can be developed by two people within a month or two. … I’ve done that with multibillion-dollar companies.

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On Nov. 1, Kaman Corp., Bloomfield, CT, reported third-quarter sales of $359.5 million. A key driver behind that sales growth was Kaman Industrial Technologies, the power transmission, bearing and motion control distribution arm of Kaman Corp., which posted a year-over-year sales increase of 37 percent in the quarter.

Steve Smidler recently took on the role of president at Kaman Industrial Technologies when T. Jack Cahill retired after serving in that post for 17 years. Smidler and Vice President of Marketing David Mayer spoke with MDM Associate Editor Jenel Stelton-Holtmeier at the Power Transmission Distributors Association 50th Anniversary Industry Summit in Phoenix about Kaman’s goals and the outlook for the industry.

MDM: As the new president of Kaman Industrial Technologies, what are your goals for the company, and how will your experience help you attain those goals?

While the economic recovery has been slow, signs of it were still evident at the 50th Anniversary Power Transmission Distributors Association Industry Summit in Phoenix last month. The overall tone of the event was more positive than the previous, with hot-button issues focused on growth rather than tactics designed to just survive.

Those topics covered a spectrum of concerns, as evidenced by issues raised during the “Big Issues for Small Distributors Forum.” Here is a sampling of the discussion.

Jonathan Byrnes, senior lecturer at MIT and author of new book Islands of Profit in a Sea of Red Ink, recently spoke with Editor Lindsay Konzak. Here is part 2 of that interview, covering steps distributors can take to make unprofitable business profitable. He also addresses how to incentivize your team to make these critical changes to how you do business.

MDM: You write in your book that 40 percent of every business is unprofitable. How can distributors make the changes necessary to reverse this?

Jonathan Byrnes: There are four building blocks. The first is the right information. In Chapter 6 I talk about profit-mapping. That will give a company information on the specific products bought by customers. That information can be put into a database program on the profitability of each one, and the company can figure out the best measure for profitability.  By the way, that information can be developed by two people within a month or two. … I’ve done that with multibillion-dollar companies.