MDM Premium Archives - Page 523 of 548 - Modern Distribution Management

Log In

Search
Premium Member Dashboard

All your exclusive premium content in one location.

Quarterly MDM-Baird Distribution Survey

Analysis: Geopolitical Impacts on Distributors’ Supply Chains

We analyze the qualitative results of our 1Q24 Baird-MDM Distribution Survey question that asked distributors about current or expected impacts from geopolitical issues.
Read More

Premium Monthly

Archives

Market Insight Reports

MDM 4Q 2023 M&A Report

The report features in-depth articles that recap the year that was 2023 in distribution dealmaking, a full rundown of every deal we covered in October-December, the latest EBITDA trading multiples and more.

MDM 4Q 2023 MarketPulse Report

Find a wealth of data and analysis extracted from the 3Q23 Baird-MDM Industrial Distribution Survey, including trending charts and figures for revenue and expectations, plus plenty of interesting commentary.

MDM 3Q 2023 MarketPulse Report

Find a wealth of data and analysis extracted from the 3Q23 Baird-MDM Industrial Distribution Survey, including trending charts and figures for revenue and expectations, plus plenty of interesting commentary.

MDM 3Q 2023 M&A Report

Our 2023 third quarter M&A report features in-depth articles on activity by Ferguson and Veritiv, and chronicles the overall quarterly pace of new deals.

MDM 2Q 2023 M&A Report

See MDM’s analysis of 2Q23 M&A activity pertaining to wholesale distributors, plus M&A financial benchmarks and recent Premium articles that had an M&A focus.
Archives
Premium Events
Premium Articles
Top Distributor Sectors
Timken Sales Up 2% in 1Q

The Timken Co., Canton, OH, reported sales of $1.28 billion in the first quarter 2007, an increase of 2% over the same period a year ago. Income from continuing operations was $41.6 million.
&nbsp ;
Sales in Asia were up 17%.
&nbsp ;
The Industrial Group had first-quarter sales of $544.4 million, up 8% from $503.9 million for the same period last year. Favorable pricing and higher volume drove the increase, with sales strength coming from multiple market sectors, especially aerospace and heavy industry.
&nbsp ;
The Automotive Group's first-quarter sales of $388 million were down 8% from $421 million for the same period last year. The decrease was driven by the sale of its steering business at the end of 2006 and lower demand from North American light vehicle and ...
Top Distributor Sectors
Industrial Production Falls 0.2% in March

Industrial production decreased 0.2 percent in March after an increase of 0.8 percent in February. Output in the manufacturing sector moved up 0.7 percent in March; the increase was led by advances in the production of durable goods.
&nbsp ;
The output of utilities dropped 7.0 percent, largely reversing its February jump of 7.6 percent, as temperatures swung from below seasonal norms in February to above seasonal norms in March.
&nbsp ;
Mining output edged up 0.1 percent in March. At 112.5 percent of its 2002 average, overall industrial production for March was 2.3 percent above its year-earlier level.
&nbsp ;
The rate of capacity utilization for total industry fell 0.2 percentage point, to 81.4 percent, a level 0.4 percentage point above its 1972-2006 ...
Top Distributor Sectors
Praxair Sales Rise 8% in 1Q

Praxair, Inc., Danbury, CT, reported sales in the first quarter 2007 rose 8% from the prior-year quarter, excluding the effect of lower natural gas prices passed through in hydrogen prices. Profit rose 18%.
&nbsp ;
Higher overall pricing and volumes across all major end markets contributed to the increase.
&nbsp ;
In North America, first-quarter sales reached $1,205 million, 5% above the prior-year quarter excluding the effect of lower natural gas prices passed through in hydrogen prices. Sales growth came primarily from energy and general manufacturing markets, where demand continues to be strong for new gases applications.
&nbsp ;
In Europe, sales in the quarter of $330 million grew 23%, and increased 14% excluding currency effects. Underlying sales growth ...
Top Distributor Sectors
Kennametal Sales Up 6% YTD
Kennametal Inc., Latrobe, PA, reported sales in the third quarter 2007 increased 7% on an organic basis to $616 million. Sales in the first nine months of fiscal 2007 were up 6% on an organic basis to $1.7 billion.
&nbsp ;
Metalworking Solutions & Services Group (MSSG) growth of 7% (organic) in the third quarter was led by year-over-year expansion in the distribution, general engineering and machine tool markets and the effect of an acquisition. The European market (up 8%) continued to be favorable. Asia Pacific (up 22%) and India (up 25%) delivered double-digit growth, while the North American market showed flat-to-modest growth of 2%.
&nbsp ;
Advanced Materials Solutions Group (AMSG) sales grew 6% on an organic basis. Energy product sales were up 18%, mining and ...
Top Distributor Sectors
Huttig Building Products 1Q Sales Fall 21%
Huttig Building Products, Inc., St. Louis, MO, a domestic distributor of millwork, building materials and wood products, reported sales for the first quarter 2007 were $222.4 million, down 21% from $281.1 million in 2006.
&nbsp ;
That reflects a 30% drop in housing starts. Sales to national accounts for Huttig, which represented 36% of sales in the first quarter 2007, as compared with 34% last year, declined by 16%.
&nbsp ;
Huttig reports there is no indication that the new housing construction market is likely to pick up this year, but it expects the market has stabilized. Huttig has implemented several cost reduction strategies in the past several months, including streamlining regional management from four to two groups, and closing underperforming distribution facilities ...
Economic Trends
Canadian Wholesale Revenues Pick Up in February

Following a lackluster start to the year, wholesaling activity in Canada picked up in February with higher sales of food and personal and household products accounting for much of the increase.
&nbsp ;
Wholesale sales rose by&nbsp ; 0.8% to&nbsp ; $43.0&nbsp ; billion in February, reversing all of the&nbsp ; 0.7% decline posted in January. The most significant increase came in the personal and household goods sector (+4.0%), which resumed its upward momentum after a significant drop in January. The food, beverages and tobacco products sector also had a solid month (+2.4%), as did the automotive products (+1.9%) sector.
&nbsp ;
These gains were partially offset by declines in the building materials (-2.2%) and other products" (-1.5%) sectors.
&nbsp ;
Wholesalers in ...
Top Distributor Sectors
Lawson Products Sales Agents Indicted on Fraud







Sales agents for Lawson Products, Des Plaines, IL, have been indicted on federal fraud charges. The sales agents allegedly paid kickbacks totaling $140,000 to employees of some of their customers, including suburban municipalities, school districts, a non-profit organization and private businesses.
&nbsp ;
They disguised the kickbacks as purchasing incentives, according to the US Attorney's office in Chicago. In return, the sales agents allegedly obtained higher sales commissions based on greater volume and prices.
&nbsp ;
Eleven of the defendants were charged in six separate cases in Chicago, while two additional cases were filed in Dayton, OH, and Philadelphia, PA. All of the cases involve commissioned sales agents for either Des Plaines-based ...
Top Distributor Sectors
U.S. PT/MC Sales Grow 9.3% in February
After a four-month decline in U.S. distributors'sales of Power Transmission/Motion Control products at the end of 2006, this year's sales continued to show positive growth with a 9.3 percent jump in sales for February, according to the most recent trend data report from the Power Transmission Distributors Association.
&nbsp ;
When matched up against February 2006 sales, sales in February 2007 were up 8.8 percent. Accounts receivable collection days were up 0.5 percent in February after a steep decline the previous month; accounts receivable collection days were up 1.5 percent compared to the same period last year.
&nbsp ;
Following a drop in December 2006 sales, Canadian distributors'sales in PT/MC products posted its second consecutive month of gains, rising 8.5 percent ...
Subscriber Only
Relationships Differentiate in Global Markets
A few follow-up thoughts on the global industrial products trade fair in Hannover, Germany last week. I came away with two very distinct, very different thoughts about what is happening in industrial markets, how customers are sourcing, and the impact on distributors.
&nbsp ;
First the mind-boggling news. Some end-user customers and distributors I interviewed there were looking for the next source of product beyond China. Why? China pricing will be too expensive in a year or two. It's hard to exaggerate how many times I had to process that thought: China pricing is too high& hellip; "
&nbsp ;
Of course, it is no surprise except for the speed at which the search for the next lowest-price source of product is happening. India, Turkey and other low labor-cost countries are in ...
Subscriber Only
Changing Channels, Part 2
This article is available to non-subscribers through online access below, or by purchasing the series, Changing Channels, in the MDM Store.

As reported in Part 1, tension between manufacturers and distributors has always been there -but the reasons for that tension have changed. Channel partners are navigating a new frontier that includes private-label branding, converging channels, pricing conflicts, the push of big-box retailers and national accounts into their back yards, and a changing customer base. In Part 2 of this article, we address best practices in manufacturer-distributor relationships.

One answer to manufacturer-distributor conflicts, MDM found in interviews for this article, is that distributors must focus on creating value for the customer and the supplier by homing in on core competencies. And manufacturers must find a balance of trade between high-volume distributors, integrated ...

Subscriber Only
Inflation by Commodity Group

These 16 select product groups provide a snapshot of inflation trends. First quarter 2006 is compared with first quarter 2007, and the fourth quarter 2006 with the first quarter 2007.

Metals & Metal Products
Plumbing Fixtures & Fittings
Fasteners
Hardware
Hand & Edge Tools

Chemicals & Allied Products
Adhesives & Sealants
Industrial Gases

Machinery & Equipment
Mechanical Power Transmission Equipment
Pumps, Compressors & Equipment
Electrical Machinery & Equipment
Ball and Roller Bearings
Metal Valves, Except Fluid Power
Industrial Material Handling Equipment
Fluid Power Equipment
Welding Machines & Equipment
Cutting ...
Top Distributor Sectors
13 Lawson Products Sales Agents Accused in Kickback Scheme

Thirteen sales agents for Lawson Products, Des Plaines, IL, have been indicted on federal fraud charges. The sales agents are accused of paying kickbacks totaling $140,000 to employees of some of their customers, including suburban municipalities, school districts, a federal agency, a non-profit organization and private businesses.


They disguised kickbacks as purchasing incentives, according to the Chicago U.S. Attorney's office. In return, the sales agents allegedly obtained higher sales commissions based on greater volume and prices.


Eleven of the defendants were charged in six separate cases in Chicago, while two additional cases were filed in Dayton, OH, and Philadelphia, PA. All of the cases involve commissioned sales agents for Lawson Products, Inc., or its ...
Subscriber Only
Commentary: Channel Conflict Appears When Visibility Disappears

Channel dynamics, as our lead article explores, have arguably never been more complex or more fluid. One of the core concepts as this article came together was the need to have a clear line of visibility from manufacturer to end-user customer. With so many variables at play, visibility seems to be one of the few constants.


Channel conflict appears when clarity disappears, whether in communication, policies, discount structures or behaviors. There is no right answer, yet there are great examples of consistent and clear approaches that are working.


Ten years ago, the hot issue was how integrated supply was radically altering traditional channel relationships. Power was shifting to the customer. The redundancies and inefficiencies of traditional channels were ripe for ...
Subscriber Only
MDM News Digest 3708
Paris-based electrical distributor Rexel Inc. reported sales of 2.576 million euro (US$3.509 billion) in the first quarter 2007, up 31 percent from the same period last year. Growth was 5.9 percent on a comparable basis. Rexel saw double-digit organic growth in Europe and Asia-Pacific, with flat sales in North America. Acquisitions added 545 million euro (US$742 million) in sales in 2006. More ...

Grainger, Chicago, IL, reported sales of $1.5 billion in the first quarter, up 9 percent from the first quarter 2006. Profit increased 18 percent to $102 million. Daily sales increased 8 percent in January, 10 percent in February and 9 percent in March. Sales in the branch-based segment in the U.S., Mexico and ...
Subscriber Only
MDM Inflation Index: March 2007

Modern Distribution Management's March Inflation Index, which measures a cross-section of industrial supplies, was up 0.07% from the previous month, and up 2.88% from March 2006.


Summary of&nbsp ; MDM Inflation Index for the past 12 months:


March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0
June 2006 Index 263.0
May 2006 Index 262.1
April 2006 Index 262.1
March 2006 Index 262.1


Please click below to view a print-ready pdf of the&nbsp ; MDM Inflation Index for March 2007, listing the ten individual product categories ...

Subscriber Only
MDM April 25, 2007
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 ...
Top Distributor Sectors
Anixter Sales Grow 24% in 1Q






Anixter International Inc., Glenview, IL, distributor of communication products, electrical and electronic wire & cable and a distributor of fasteners and other small parts, reported sales of $1.33 billion in the first quarter 2007, up 24% from the same period last year. Profit was up 71% to $53.6 million.
&nbsp ;
Sales for the quarter include $33.6 million from the acquisitions of IMS Inc. in May 2006 and MFU Holdings S.p.A. in October 2006.
&nbsp ;
Sales in the first quarter grew at a year-over-year organic rate of 19%.
&nbsp ;
Anixter reported seeing strong larger project business, especially in data center builds in the enterprise cabling market and energy/natural resources customers within the electrical wire and cable market. Anixter ...
Top Distributor Sectors
Pentair 1Q Sales Buoyed by Foreign Markets
Pentair, Inc., Golden Valley, MN, sales increased 5% in the first quarter 2007 to $808 million from the first quarter of 2006. Profit was flat from the same period a year ago.

Pentair reported challenges due to slowing North American residential housing starts and headwinds in the electronic markets, as well as consolidation in the telecommunication industry.

The Water Group delivered strong year-over-year sales performance with sales of $555 million, up 7% over the same period last year. Organic sales growth, excluding the Jung Pump acquisition, was 5%.

Continued growth in China and in emerging markets in Asia-Pacific as well as continued success in penetrating markets in Europe and the Middle East contributed to Water's overall growth. Sales ...

Top Distributor Sectors
Sandvik Buys UK Manufacturers

Sandvik, Stockholm, Sweden, has agreed to buy Extec Screens and Crushers Ltd., based in Birmingham, UK.
&nbsp ;
Sandvik has also agreed to buy Fintec Crushing and Screening Ltd., Belfast, UK.
&nbsp ;
Extec and Fintec, respectively, are manufacturers of mobile crushing and screening equipment, including consumables and services to the international construction industry.
&nbsp ;
Extec employs 450 people and had sales of 1800 MSEK (US$266.4 million) in 2006. It has manufacturing facilities in Birmingham and Northern Ireland as well as sales and service facilities in Australia, the U.S. and Germany.
&nbsp ;
Fintec employs 325 people and had sales of 560 MSEK (US$82.9 million) in 2006.
&nbsp ;
Sandvik is a global industrial group focused on tools for ...

Investment Banking Directory

Work with a banking partner that knows your business. Get detailed information on investment banks with expertise in the wholesale distribution industry.

Learn More
Featured Content

SHIFT 2023 Playbook

As distribution leaders constantly seek educational resources on business transformation, technology optimization and talent…

Data-Driven Decisions: Opportunities and Challenges in the Data Revolution

Distributors of all sizes and in all verticals are ambitiously investing in data capabilities…

Elevate Your Sales Game: The Ultimate CRM Playbook for Distributors

Customer expectations are evolving, buying behavior is shifting, and competition has become more intense….

What It Takes to Embrace AI in Distribution for Next-level Business Success

Find out how wholesale distribution executives in various stages of adoption have practically applied…
Go to Library

Market Prospector

  • Build strategic sales plans.

  • Determine market and demand.

  • Create smart prospect lists. 

Turn your sales data into actionable data with Market Prospector.  A web-based SAAS tool that gives you insight into your market, your territories, your customers and new prospects too. 

Learn More

Sign Up for the MDM Update Newsletter

Our daily newsletter is your best source for news and trends in the wholesale distribution industry.

Sign Up

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.