June 2007 - Page 3 of 4 - Modern Distribution Management

June 2007

Machine Tool Consumption Up 8.7% YTD

April U.S. manufacturing technology consumption totaled $281.54 million, according to The Association For Manufacturing Technology and the American Machine Tool Distributors’Association. This total, as reported by companies participating in the USMTC program, was down 27.2% from March, but up 2.2% from the total of $275.43 million reported for April 2006. With a year-to-date total of $1,259.09 million, 2007 was up 8.7% compared with 2006.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the USMTC program.

Strength in the oil field and auto sectors has brought increased demand in the Central region of the country,” said John B. Byrd III. “Through April this region has the greatest increase in …

Machine Tool Consumption Up 8.7% YTD Read More »

RBC Bearings Sales Up 11.5% in 2007

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 fiscal year ended March 31, 2007, were $306.1 million, an increase of 11.5% from the prior year. Profit was $28.5 million, up 128% from the year before.
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Sales in the fourth quarter 2007 were $81 million, an increase of 7% from the same period a year ago. Profit was $6.7 million, compared with $6 million a year ago. …

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Barnes Distribution Opens Shanghai Sourcing Center

The Barnes Distribution business segment of Barnes Group Inc. has opened an international sourcing center in Shanghai, China. The international sourcing center is in the Xujiahui District in Shanghai, the commercial capital of China.

China has a well-established supplier base for key products such as fasteners, electrical components, and various transportation product lines. The Shanghai sourcing center will complement Barnes’ previously established sourcing center in Taiwan.

Our continued efforts to service our customers as effectively and efficiently as possible will be enhanced with the opening of the international sourcing center in Shanghai,” said Idelle K. Wolf, President, Barnes Distribution. “Our presence in Shanghai will provide a competitive edge for Barnes …

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Canadian 1Q Capacity Utilization Edges Up 1Q

Canadian industries slightly increased the use of their production capacity during the first quarter of&nbsp ; 2007, halting four consecutive quarters of decline.

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Capacity utilization edged up from&nbsp ; 82.4% in the fourth quarter of&nbsp ; 2006&nbsp ; to&nbsp ; 83.0%. This level was&nbsp ; 3.0&nbsp ; points below the rate posted in the fourth quarter of&nbsp ; 2005, before the quarterly drops observed in&nbsp ; 2006.
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The industrial capacity utilization rate is the ratio of an industry’s actual output to its estimated potential output. For this release, rates have been revised back to the first quarter of&nbsp ; 2005&nbsp ; to reflect the revised source data.
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Production rose slightly in the large manufacturing sector, but capacity use …

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HD Supply Downsizes Plans in South Carolina

HD Supply, The Home Depot’s wholesale division, is cutting back on plans to grow in Charleston, SC. HD Supply’s lumber and building materials unit announced this week it will open a warehouse for contractors in North Charleston, according to the Charleston Post and Courier.
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The project replaces a larger one the company was planning. The location will be in an existing 65,000-square-foot building on five acres near Interstate 26.
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The scrapped project was to include a new lumber distribution center and manufacturing plant on 51 acres off of U.S. Highway 78, the paper reported.

In February, Home Depot announced it was considering strategic alternatives for HD Supply, including a possible sale or IPO. Home Depot has also – like other building …

HD Supply Downsizes Plans in South Carolina Read More »

Mayer Electric Buys Southeast Supply

Mayer Electric Supply Inc. has acquired Southeast Supply in Calhoun, Ga., as its 58th branch, the Birmingham Business Journal reported.
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Mayer Electric Supply is a distributor of electrical equipment and supplies, lighting, factory automation, tools and communications. Mayer serves eight states in the …

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Industrial Producer Prices Up 2.4% in Euro Area

The industrial producer price index rose by 0.4% in the euro area in April 2007. In March, prices increased by 0.3%.

In April 2007, compared with April 2006, industrial producer prices gained 2.4% in the euro area.

The highest monthly increases were registered in Bulgaria and Greece (1.9%) and Denmark (1.8%). Decreases were recorded in the United Kingdom (-0.8%), Slovakia (-0.3%) and Belgium (-0.1%).

The highest year-over-year increases were recorded in Luxembourg (8.7%), Hungary (8%), Bulgaria (7.9%)&nbsp ; and Lithuania (7.3%). A decrease was registered in Denmark.

For more on European economic statistics, including industrial production, price indexes, construction output and industrial orders,&nbsp ; visit the MDM …

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Channel Data Sharing

In the new research study Facing the Forces of Change: Lead the Way in the Supply Chain," the author found that the demand-driven supply chain philosophy is taking root in the business-to-business supply chains in which wholesaler-distributors play a major role.

Usually, manufacturers only see orders from wholesaler-distributors, and the distributors, in turn, only see orders from their customers; neither party has visibility into the market consumption (true demand) for a product.

The uncertainty and variability caused by a lack of true demand information leads every participant in the supply chain to stockpile extra inventory. It is caused by a combination of poor or inaccurate forecasts, promotional purchases by the channel, and other failures to provide true …

Channel Data Sharing Read More »

MDM News Digest 3711

Private equity firm Audax Group has acquired industrial rubber distributor Lewis Goetz and Company Inc., Pittsburgh, PA. Lewis-Goetz operates from 48 locations throughout the U.S. and Canada. It sells industrial, hydraulic, and metal hose, conveyer belts, gaskets and seals, and related accessories and services. Audax recently purchased UTEX Industries, Inc., Houston, TX, a manufacturer of complex gaskets and highly engineered seals. Lewis-Goetz with recently acquired Goodall Rubber Co. has more than $200 million in annual revenues. More …


Grainger, Chicago, IL, a $5.9 billion industrial distributor, announced its Lab Safety Supply subsidiary has acquired McFeely’s Square Drive …

MDM News Digest 3711 Read More »

U.S. Market Analysis: MRO Pneumatic Products

The industrial product group listed here – MRO Pneumatic Products – represented a market in 2006 of $1.9 billion, according to estimates by Industrial Market Information, Minneapolis. These charges show the top 10 industries, by SIC code, consuming these products and the 2006 end-user consumption of these groups sorted by the nine government market …

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MDM June 10, 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 …

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The Value of Value-Add

At the May Industrial Supply Association annual meeting in Las Vegas, industry consultant William McCleave presented the results of a survey of ISA members, The Future Impact of Size and Value Content on Industrial Distribution.” This article outlines one of the key findings of that report: the importance of value-add in distribution.

How is value-add being defined in distribution today? As noted in these pages before, the term has been used so heavily that it risks losing meaning. At the same time, most wholesale distribution executives agree that market battles ahead will center on how well their companies define and sell value.

In a recent survey of Industrial Supply Association members by consultant William McCleave, most respondents felt that value-add …

The Value of Value-Add Read More »

Commentary: Fine-Tune Your Company’s Value Offering

Defining and selling value is a critical skill set in markets where customers have a range of sourcing options. Yet how well does your company analyze its market position in terms of value? How well are your associates trained in communicating and delivering this key differentiator that keeps you ahead of competitors?

The article on page 4 of this issue explores how manufacturers, distributors and sales representatives view the state of&nbsp ; value-add.” It offers some tools to analyze your company’s ability to perform extended value activities in key customer segments.

Survey results indicate that value-add definition and communication is just as tough a battle as five years ago. But there seems to be a broader recognition of its importance to staying competitive. …

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Monthly Wholesale Trade: Sales and Inventories for April 2007

April 2007 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 $351.9 billion, up 1.3 percent from the revised March level and were up 8.8 percent from the April 2006 level. April sales of durable goods were up 0.8 percent from last month and were up 7.8 percent from a year ago. Compared to last month, sales of hardware, and plumbing and heating equipment and supplies were up 2.7 percent. April sales of nondurable goods were up 1.8 percent from last month and were up 9.7 percent from last year. Compared to last month, sales of petroleum and petroleum products increased 6.7 percent.

Inventories. Total inventories of merchant …

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Case Study: Engage Partners in ERP Transitions


Company Snapshot:

  • Global manufacturer with three Loctite Industrial production facilities in North America
  • 4,000 Loctite Industrial Group employees
  • Adhesives, sealants, and application equipment for OEM and MRO markets

When most distributors and customers hear about a supplier going through an ERP system change, their blood runs cold because, potentially, it can be devastating to business. There are far more stories about bad implementations than there are about good implementations.

When we learned we would be changing our ERP system, we were determined to make it as smooth a transition as possible. Since we sell approximately 95 percent …

Case Study: Engage Partners in ERP Transitions Read More »

New MDM Audio Conference: Succession Planning for Distributors

Join Brent Grover on Thursday, June 21, 2007 for a 90-minute audio conference, 1 p.m. Eastern.

What’s your exit strategy? No matter when or how you plan to leave your business, there are key issues to address now to ensure a smooth transition. Whether you plan to sell or pass the torch to your son, daughter or key employee, this 90-minute audio conference presents the options to consider and fundamental decisions you need to make to have the right pieces in place at the right time.

Join Brent Grover as he shares his unique experience as the former CEO of the paper distribution business his grandfather started, as well as the varied knowledge gained through his current consulting business focused on wholesale distribution …

New MDM Audio Conference: Succession Planning for Distributors Read More »

April Wholesale Revenues Rise 8.8%

April 2007 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 $351.9 billion, up 1.3 percent from the revised March level and were up 8.8 percent from the April 2006 level. The March preliminary estimate was revised upward $1.1 billion or 0.3 percent.

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April sales of durable goods were up 0.8 percent from last month and were up 7.8 percent (+/-2.0%) from a year ago. Compared to last month, sales of hardware, and plumbing and heating equipment and supplies were up 2.7 percent.
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April sales of nondurable goods were up 1.8 percent from last month and were up 9.7 percent from last year. Compared to last month, sales of …

April Wholesale Revenues Rise 8.8% Read More »

Audax Group Buys Lewis-Goetz

Private equity firm Audax Group has acquired industrial rubber distributor Lewis Goetz and Company Inc., Pittsburgh, PA. Lewis-Goetz operates from 48 locations throughout the U.S. and Canada.
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It sells industrial, hydraulic, and metal hose, conveyer belts, gaskets and seals, and related accessories and services.
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We are excited to have Audax Group as our partner,” said David R. Goetz, Lewis-Goetz CEO. “Their experience sourcing and integrating add-on acquisitions will be an important asset for us as we continue to grow our business.”
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Vetus Partners, featured in a recent MDM audio conference, advised Lewis-Goetz.
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Audax recently purchased UTEX Industries, Inc., Houston, TX, a manufacturer of complex gaskets and highly engineered …

Audax Group Buys Lewis-Goetz Read More »

Pro-Build Buys Florida-based Dunn Lumber

Pro-Build Holdings, Denver, CO, supplier of building materials to professional contractors, has purchased The Dunn Corporation, a Daytona Beach, FL-based distributor of lumber, millwork, building products and Overhead Door Company systems in Central and East Coast Florida.

The Dunn Corporation is very excited about the opportunity to join the Pro-Build family of companies as we see substantial opportunities for our team members,” said Sam Dunn, president, and former chairman of the NLMBDA. “& hellip; Because the employees are stockholders through ESOP ownership, they will share in the proceeds of the sale just as family members. It has always been the feeling of Barry and I that our people are our most important asset.

Dunn Lumber employs more than 120 people …

Pro-Build Buys Florida-based Dunn Lumber Read More »

Premier Farnell Sales Up 4% in 1Q

UK-based Premier Farnell plc, global distributor of electronic MRO products and specialist services in Europe, North America and Asia, reported sales increased 4% in the first quarter ended April 29, 2007.
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The first quarter has seen progress against last year in revenue, operating profit and cash generation,” said Harriet Green, Group CEO. “We expect that the second quarter will continue to reflect the results of the investments we are making and will deliver further revenue growth with our focus on EDE, the Web and internationalizing our high service …

Premier Farnell Sales Up 4% in 1Q Read More »

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