June 25, 2006 - Modern Distribution Management

June 25, 2006

MDM Inflation Index: May 2006

Modern Distribution Management’s May Inflation Index, which measures a cross-section of industrial supplies, stayed the same from the previous month, and up 3.8% from May 2005. Summary of MDM Inflation Index for the past 12 months: May 2006 Index 262.1April 2006 Index 262.1March 2006 Index 262.1Febuary 2006 Index 261.2January 2006 Index 260.2December 2005 Index 258.1November 2005

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Survey Offers Mixed Reaction

About 96 percent of respondents to RSM McGladrey’s 2006 Manufacturing and Wholesale Distribution National Survey said their company was “thriving and growing” or “holding its own.”The survey looked at what CEOs, CFOs and other senior executives are doing to grow their companies and compete in the global economy. Overall the survey reported business leaders are

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News Digest 3612

acquisition of the Lanoga Corp. With the Hope acquisition, Pro-Build will have more than $6 billion in revenues under its umbrella. More … Tencarva Machinery Company, Greensboro, N.C., (about $100 million in annual sales) has acquired the Municipal Division of emoryWilson Company, a pump distribution company, effective May 1, 2006. Tencarva’s municipal division includes Tencarva’s current

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Survey Reviews M&A Activity

only fifth (20 percent for domestic transactions and 19 percent for cross-border deals) by executives considering the elements most critical to a transaction’s success. One particularly encouraging insight from the Accenture study was that most corporate executives think their companies did a good job with employee retention and customer relations during their most recent transactions.

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