2006

quarterly revenue growth averaged a healthy 6.8 percent from 2002 through mid-2006. However, the average growth rate drops to only 1.9 percent after adjusting for inflation. The wholesale distribution industry has experienced limited real growth in the past two years despite historically comparable top-line revenue growth. The revenue-enhancing benefit of product price inflation will dissipate […]

The following case study is excerpted from Driving Growth and Shareholder Value: The Distribution Value Map," by Neil Gholson and Mark Schloegel of Deloitte Consulting LLP and published by the National Association of Wholesaler-Distributors. A distributor of electrical products recognized the need to be more agile and efficient in distributing 1.5 million SKUs from multiple

It’s a way to better manage our information, to not only get more efficient internally but most importantly provide a very high level of service to the customer. But again, SAP is really only an enabler to the extent that that technology is layered in and leveraged against world-class processes. That’s why we’re going to

every statute, the CFAA has some limits. For example, under the UTSA an injured business may recover attorney’s fees and exemplary (e.g., punitive) damages, but any award of those damages is in the discretion of the court hearing the case. Also, the CFAA requires that the business have suffered at least $5,000 in damages. At

Ferguson, Newport News, VA, has acquired Gulf Refrigeration Supply Inc. Gulf is a distributor of HVAC equipment, parts and supplies based in Tampa, Florida. In the year ended June 30, 2006, Gulf had revenue of $54.9 million. Ferguson has also acquired Kandall Fabricating & Supply Corporation KF Industries, LLC. Kandall, Passaic, NJ, is a fabricator

Modern Distribution Management’s September Inflation Index, which measures a cross-section of industrial supplies, was up 0.12% from the previous month, and up 4.43% from September 2005. Summary of MDM Inflation Index for the past 12 months: September 2006 Index 265.6August 2006 Index 265.2July 2006 Index 264.0June 2006 Index 263.0May 2006 Index 262.1April 2006 Index 262.1March 2006

Rexnord Corporation, Milwaukee, WI, manufacturer of highly engineered precision motion technology products, primarily power transmission products, reported sales grew 9.1% in second quarter fiscal 2007 to $298.1 million. Rexnord recorded profit of $0.4 million for the quarter. The sales increase was driven primarily by strength in its industrial products end markets of natural resource extraction, metals

Sales. September 2006 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $330.2 billion, down 1.2 percent from the revised August level, but were up 8.1 percent from the September 2005 level. The August preliminary estimate was revised downward $1.4

Builders FirstSource, Inc., Dallas, TX, supplier and manufacturer of structural and related building products for residential new construction in the U.S., has acquired Waid Home Center, Inc.  Based in Auburn, AL, Waid is a full-line building materials supplier with sales of $25 million in 2005. Its product offerings include: lumber, tools, windows, roofing, molding, paint,

The Timken Company has opened a new aerospace precision products center in Chengdu, China. The plant is expected to include sales, engineering support and customer service capabilities for a range of aerospace bearings and other precision products.Timken selected Chengdu as the location for its sixth plant in China in part because it is a major

Tencarva Machinery Company, Greensboro, NC, has acquired Engineering Equipment Company, Richmond, VA. Engineering Equipment Company had $8 million in sales last year.Tencarva reported that the acquired company has strong sales coverage in Virginia, with very little overlap with Tencarva’s territory.  ‘The acquisition of Engineering Equipment Company broadens our footprint in both the Virginia industrial and municipal

HD Supply Waterworks, a division of HD Supply, has acquired Heartland Waterworks Supply in Kansas City, KS.  Heartland Waterworks Supply was founded 12 years ago and provides underground pipe, valves, meters, fittings, castings and accessories.  With one location on seven acres in Kansas City, MO, Heartland Waterworks employs 21 associates.  HD Supply Waterworks is a

Motion Industries, Birmingham, AL, distributor of industrial MRO replacement parts, opened two new branches one in Bellingham, WA, and the other in Marietta, OH. “These two branches reflect our ongoing commitment to meet the needs of our customers in these respective areas,” said President and CEO Bill Stevens. Motion had sales of $2.8 billion in 2005. It

Baldor Electric Company, Fort Smith, AR, has agreed to acquire the Reliance Electric Company and affiliated companies of Rockwell Automation Inc., Milwaukee, WI, for $1.8 billion in cash and stock.The Power Systems business, which markets its products under the Reliance Electric and Dodge brand names, complements Baldor’s business in industrial electric motors, drives and generators.The

Industrial Distribution Group, Inc., Atlanta, GA, reported a 2.8% sales increase in the third quarter 2006 to $139 million. On a per day basis, revenue increased 4.4% over the prior-year quarter.Profit was up to $1.8 million from $1.2 million in the prior-year period.The 2005 quarter results include the company’s former Cardinal Machinery business unit, which

Electronics distributor Avnet, Inc., Phoenix, AZ, has agreed to acquire Access Distribution, a General Electric company and distributor of complex computing solutions. Avnet will pay $412.5 million in cash. The acquisition makes Avnet a leading distributor for Sun Microsystems. Avnet will create a separate business unit for the account, similar to how it operates with

Metals service center Ryerson Inc., Chicago, IL, reported sales of $1.5 billion in the third quarter 2006, up 8.6% from the prior-year period. Profit was $21.6 million, compared with $30.7 million last year. “Market demand remained solid and prices continued to rise, especially in stainless,” said Neil S. Novich, chairman, president, and CEO of Ryerson. “Our

RBC Bearings Incorporated, Oxford, CT, an international manufacturer of highly-engineered precision plain, roller and ball bearings for the industrial, defense and aerospace industries, reported sales for the second quarter 2007 grew 12.1% to $73.2 million. Profit was $7.4 million, compared to a loss of $2 million in the same period last year.Sales for the six-month