June 10, 2008 - Modern Distribution Management

Log In

Search

June 10, 2008

Schneider Electric to Buy RAM Industries

Electrical, Finance, Free, Mergers & Acquisitions, News, Subscriber Only, Top Distributor Sectors /

Schneider Electric has agreed to buy RAM Industries, Leesport, PA, a supplier of engineered control systems to HVAC&R machine manufacturers.
 
The acquisition will strengthen Schneider’s automation offering into the OEM market. It also strengthens its position in the energy efficiency segment.
 
RAM has facilities in the U.S., Mexico, Brazil and China.
 
Schneider is in 102 …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Schneider Electric to Buy RAM Industries Read More »

U.S. Market Analysis: Plastics MRO

Economic Trends, Finance, Market Analysis, Research & Analytics, Subscriber Only /

The industrial product group listed here – Plastics MRO – represented a market in 2007 of $11.3 billion, according to estimates by Industrial Market Information, Minneapolis. 
 
These charts show the top ten industries, by SIC code, consuming these products; and the 2007 end-user consumption of these groups sorted by the nine government market …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

U.S. Market Analysis: Plastics MRO Read More »

Monthly Wholesale Trade: April 2008

Economic Trends, Research & Analytics, Subscriber Only /

April 2008 sales of merchant wholesalers were $390.3 billion, up 1.4 percent from the revised March level and were up 12.7 percent from the April 2007 level. The March preliminary estimate was revised upward $0.7 billion or 0.2 percent. April sales of durable goods were up 2.3 percent from last month and were up 7.3 percent from a year ago. Compared to last month, lumber and other construction materials were up 5.9 percent and sales of furniture and home furnishings were up 5.2 percent. Sales of nondurable goods were up 0.6 percent from last month and were up 17.8 percent from last year. Sales of paper and paper products were up 6.2 percent from last month and sales of grocery and related products were up 1.8 percent.
 
Inventories. Total inventories of merchant …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Monthly Wholesale Trade: April 2008 Read More »

MDM News Digest 3811

Free, Subscriber Only /

Grainger’s Canadian subsidiary Acklands-Grainger Inc. has acquired Excel Industriel, Granby, Quebec. Excel is a business-to-business broad line distributor of maintenance, repair and operating (MRO) supplies. The company expects an incremental sales contribution of $11 million from the acquisition over the next 12 months. More
Airgas, Inc., Radnor, PA, has agreed to buy Energy Safety Services Inc., doing business as Oilind Safety, based in Phoenix, AZ. The provider of rental safety equipment and safety services had $21 million in sales in 2007. Oilind Safety will operate as a stand-alone company within a new Airgas organization that includes construction and rental businesses.

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

MDM News Digest 3811 Read More »

Report: PT/MC Sales in U.S., Canada Grow in April

Economic Trends, Free, Power Transmission/Motion Control/Fluid Power, Research & Analytics, Subscriber Only, Top Distributor Sectors /

U.S. distributors’overall sales of PT/MC products climbed 6.4 percent in April 2008 compared to March 2008, according to April 2008 month-end trend data from the Power Transmission Distributors Association.
 
When matched up against sales in the same month last year, sales in April 2008 were up 11.5 percent. Accounts receivable collection days fell 4.3 percent since March 2008. The confidence index of U.S. distributors held steady for the fifth month in a row at 5.8 (on a 10-point scale).
 
Canadian distributors also reported a rise in PT/MC sales, gaining 8.6 percent in April 2008. Sales over the same period last year were up 6.6 percent. Accounts receivable collection days dropped 6.9 percent compared to March 2008. In April 2008, the confidence level of Canadian …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Report: PT/MC Sales in U.S., Canada Grow in April Read More »

Canada Wholesale Trade: 2007 in Review

Economic Trends, Free, Research & Analytics, Subscriber Only /

Wholesale sales in Canada continued their upward trend, posting strong growth for the fourth straight year in 2007.
 
Increased demand for agricultural products in the other products”sector led the growth with its best showing since 2003, according to “Wholesale Trade: The Year 2007 in Review,”a recently released report from Statistics Canada. Machinery and electronic equipment sales, which accounts for 21 percent of wholesale sales, also contributed by posting gains higher than total wholesale growth.
 
Nationally, wholesale revenues increased 5.5 percent to $517.8 billion. Since 2002, the rate of wholesale sales growth has averaged 5 percent, almost double growth for the economy as a whole, which posted average …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Canada Wholesale Trade: 2007 in Review Read More »

Price is an Issue, But Not the Issue

Sales & Marketing, Subscriber Only /

This article examines four common mistakes made by salespeople that lead to competing on price and what you can do about it.
 
You’ve hired a dedicated sales force. Your company has the best product. Great service is delivered after the sale. So why is your team losing sales to low price?”Here are four reasons we see when working with individuals and sales teams:
 
1. Wrong Audience     
If you’re trying to sell ice to an Eskimo, you’re in front of the wrong prospect! Let’s face it, you could be Zig Ziglar and still not close the sale if you are not selling to a real prospect.

Knowledge, business acumen and excellent selling skills are useless if they are not in front of a prospect that values the expertise. …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Price is an Issue, But Not the Issue Read More »

Commentary: Bar is Raised in Mergers & Acquistions Climate

Finance, Mergers & Acquisitions, Perspective, Subscriber Only /

Is it a buyer’s or a seller’s market in wholesale distribution mergers &acquisitions? I think the answer is both, as there are a lot more variables on how value is being measured than even a year ago. If you run a tight ship and considering a sale, your value is still historically high. If you are a buyer with a clear strategy and view of current markets, there are great opportunities.

As this issue’s lead article details, the feeding frenzy of the past few years in wholesale distribution merger &acquisition activity is over. But note carefully that deal-making is not. Mega-deals with double-digit EBITDA valuations have cooled in risk-averse credit and economic climates. Well-managed smaller distribution companies are in some ways more marketable than ever, particularly as …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Commentary: Bar is Raised in Mergers & Acquistions Climate Read More »

Key Factors in Acquiring and Selling a Distribution Company

Finance, Mergers & Acquisitions, Subscriber Only /

PCE Investment Bankers’ Jon Skelly outlined considerations in acquiring and selling a company.
 
Acquiring?

  • Accelerate Growth Rate
    Look at how acquisition will help you supplement organic growth; acquisitions are often quicker and more certain growth vehicles than greenfield branches.
  • Diversification
    Look at how acquisition will broaden your geographic reach or your current product offering.
  • Improve Operational Performance
    Look at opportunities to acquire strong operators and implement their core competencies within the base business; consider access to management, sales and branch talent.
  • …
    To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

Key Factors in Acquiring and Selling a Distribution Company Read More »

A Shift in Deal-Making

Finance, Mergers & Acquisitions, Research & Analytics, Subscriber Only /

The prognosis for the distribution M&A market was mixed in the recent MDM Webcast Distribution M&A 2008 Update: Redefined Value in a Tough Market.”Three industry experts spoke on concerns of the credit crunch, valuation drops, a strained economy and inflation in relation to prospects for distribution mergers and acquisitions in the next couple years. Here’s a summary of the two-hour event.
 
Deal activity has fallen significantly from the boom years of 2005 and 2006, but the market has not yet fallen off a cliff. Still, companies are less willing to take a risk in the current market unless the acquisition target is top-notch and hitting its numbers, says Jon Skelly of PCE Investment Bankers.
 
“Distribution M&A activity has fallen dramatically from the record …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

A Shift in Deal-Making Read More »

MDM June 10, 2008

Subscriber Only /

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 …

To access this page, you must purchase MDM Premium Subscription, MDM Premium Subscription – Monthly or MDM Premium Subscription – Annually.

MDM June 10, 2008 Read 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.

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!