While CEOs have generally been staying put in the past few months, March saw a "resurgence" in turnover, according to the firm Challenger, Gray & Christmas Inc. This article says that a total of 309 CEO changes occurred in the first quarter, down nearly 17 percent from the year-ago period. It is the fewest CEO exits since fourth quarter ...
CEO Turnover Up in March Read More »
Zep Inc., producer of cleaning and maintenance products, reported a net loss of $0.9 million in the second quarter fiscal 2009.
Sales were at $114.6 million in the second quarter, down 13.9% from the prior-year period.
The company reported weakened demand in most markets - management estimated that about 70 percent of the 14 percent decline in quarterly sales volume was attributable to the global economic slowdown, with the remainder due to reduced selling capacity resulting from the elimination of underperforming sales representatives and other demand-shaping initiatives.
Sales in the first half fiscal 2009 were $243.8 million, down 11.9 percent from the prior-year period. The company reported a net loss of $2.5 million, versus $8.2 million ...
Zep Reports Net Loss in 2Q Fiscal 2009 Read More »
Layoffs and buyouts continue as the weak economy persists. Two industrial companies announced further staff reductions this week.
3M, St. Paul, MN, said it would offer early retirement packages to 3,600 employees in the U.S., about 11% of its total U.S. workforce, according to a report published by the St. Paul Pioneer Press. The announcement comes a week after the diversified manufacturer reported it would be laying off 1,200 employees, primarily outside the U.S.
Lawson Products Inc., Des Plaines, IL, announced it would eliminate 150 positions - about 11% of its workforce - by the end of the second quarter 2009. In addition, the industrial distributor will close its Dallas, TX, distribution center in response to economic ...
3M, Lawson Products Cut Staff Read More »
The American Recovery and Reinvestment Act of 2009 - more commonly referred to as the economic stimulus package - is not government as usual.
I have never seen a bill as Web-based as this one, said Pembroke Consulting's Adam Fein in a recent MDM Webcast, "Economic Stimulus Package: Impacts & Opportunities for Distributors."
A big shift is the transparency being required of all the involved agencies - from cities and towns all the way up the channel to the federal government. Every detail of how the $787 billion will be spent is supposed to be made available, in advance, to the general public.
"What that means is that we have an unprecedented ability to track specific funding initiatives and ...
Agencies Already Releasing Details On How They’ll Spend Stimulus Funds Read More »
February 2009 sales of merchant wholesalers, except manufacturers' sales branches and offices, were $319.7 billion, up 0.6% from January and down 14.3% from February 2008, according to the U.S. Census Bureau.
The January preliminary estimate was revised downward $0.7 billion or 0.2%. February sales of durable goods were up 2.0% from last month, but were down 14.8% from a year ago. Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were up 3.7%, while sales of metals and minerals, except petroleum, were down 5.6%. Sales of nondurable goods were down 0.4% from last month and were down 13.8% from last year. Sales of chemicals and allied products were down 4.6% from last month.
Inventories
Total inventories of merchant ...
February Wholesale Revenues Edge Up From January Read More »
Castrol Industrial North America Inc., Naperville, IL, is implementing changes designed to increase the efficiency and effectiveness of its North American manufacturing, storage and distribution operations.
The sharp economic downturn is having a significant impact on many of our customers says Dave Fuerst, president. "It is crucial for us to continue driving our own efficiency efforts to be competitive in the marketplace."
Among the changes announced was the consolidation of manufacturing operations at Castrol's Warminster, PA site, which will drive further scale and procurement efficiencies for the business and create a world-scale industrial fluid manufacturing and supply operation. Castrol will close a smaller manufacturing ...
Castrol Industrial Streamlining U.S. Manufacturing and Distribution Read More »
Though not perfect, the American Recovery and Reinvestment Act of 2009 - better know as the stimulus package - may provide some great opportunities for distributors, according to Dr. Adam Fein of Pembroke Consulting.
In his recent MDM Webcast, sponsored by Infor, Fein identified more than $200 billion included in the bill that could directly impact distributors. The key: knowing where to look, Fein says. And, provisions in the stimulus package may make that easier than you thought.
The requirement is that the use of all the funds is transparent to the public, and the public benefits of these funds are reported clearly, accurately and in a timely manner," Fein said during the Webcast. ...
Provisions in Stimulus Package Make Government Spending Plans More Transparent Read More »
Bain & Company's just-released Management Tools & Trends survey says that 59 percent of executives interviewed globally plan to downsize in 2009; this is unsurprisingly up from 2008. Just 37 percent said they did not downsize in 2008 nor plan to in 2009.
An overview:
Bain Survey Sees Spike in Plans to Downsize Read More »
HD Supply Facilities Maintenance, San Diego, CA, a distributor of maintenance products and operating supplies to the multifamily industry, released its 2009 catalog with 20,000 stocked maintenance, repair and operating (MRO) products, including 2,800 new items. The catalog 1,600 page catalog is also available at www.hdsupplysolutions.com in a fully searchable electronic format.
Now more than ever in these tough economic times, our customers are looking to us to provide them with choices, said Anesa Chaibi, president of HD Supply Facilities Maintenance.
New listings in the 2009 catalog include metal halide fixtures that meet the Federal Energy Independence & Security Act and the most commonly used products in compliance with the Virginia Graeme ...
HD Supply Facilities Maintenance Releases 2009 Catalog Read More »
The Conference Board Employment Trends Index fell again in March. The index now stands at 90.1, decreasing 2.3% from the February revised figure of 92.2, and down 22.1% from a year ago.
While we see a continued sharp fall in the ETI, the decline was not as strong as in the previous four months, suggesting that the most intense stage of job losses may be behind us, said Gad Levanon, senior economist at The Conference Board. "However, the drops in each of the eight components of the ETI in March signal that many more jobs will disappear over the next several months."
The 20-month-long decline in the Employment Trends Index is seen in all eight of its components, most notably over the past six months in temporary-help hires and part-time ...
Conference Board Employment Trends Index Continues Decline In March Read More »
The Chicago Fed Midwest Manufacturing Index decreased 0.4% in February to a seasonally adjusted level of 83.8 (2002 = 100). Revised data show the index declined 6.7% in January, to 84.2.
The Federal Reserve Board's industrial production index for manufacturing fell 0.7% in February. Regional output in February was down 22.2% from a year earlier - lower than the 13.8% decline in national output.
The region's steel sector output moved down 4.7% in February after declining 6.2% in January. The nation's steel output was down 2.7% in February. Regional steel output dropped 30.8% from its February 2008 level, and national steel output fell 21.2%.
The Midwest's machinery sector output decreased 4.2% in February after moving ...
Chicago Fed Midwest Manufacturing Index Declines 0.4% In February Read More »
MAPEI, Deerfield Beach, FL, a manufacturer of adhesives for the building sector, has acquired All-Purpose Adhesive Company, Dalton, GA. APAC manufactures environmentally friendly adhesives for the installation of floor-covering materials such as resilient flooring, carpet, ceramic tiles and vinyl composition tiles. APAC will be incorporated into the MAPEI Group.
This acquisition is in line with our long-term strategy, said Giorgio Squinzi, CEO of MAPEI Group. "We pursue organic growth in all markets, while considering interesting acquisitions whenever possible. Through the acquisition of the APAC assets, we gain a reliable industry brand that exhibits innovative technology, consistent product quality and strong performance."
MAPEI ...
MAPEI Buys Georgia Adhesive Manufacturer Read More »
WinWholesale Inc., Dayton, OH, has opened St. Jacob Winwater Works Co. in St. Jacob, IL, to provide general, utility and municipal contractors in Southern Illinois with waterworks, sanitary sewer and storm sewer supplies.
The company, which has local ownership, has counter sales and delivery service. It carries a complete line of products such as Clow ductile iron pipe, Kennedy hydrants and valves, A.Y. McDonald brass, and Tyler fittings.
Don Brinker, a 14-year veteran of the waterworks wholesaling business in Southern Illinois, is president of the new company.
WinWholesale Inc. is a supplier of domestic and industrial supplies and materials with more than 470 wholesaling corporations in which WinWholesale is an equity partner, and also ...
WinWholesale Opens New Store In Southern Illinois Read More »
Manufacturing contracted again in March for the 14th consecutive month, according to the latest Manufacturing ISM Report on Business.
The Institute for Supply Management report read: "The rapid decline in manufacturing appears to have moderated somewhat, as the PMI remains in the mid-30s for a third consecutive month. While the PMI is slightly higher in March, the New Orders Index offers greater encouragement, as it rose above the 40-percent mark for the first time in seven months.
"The Production Index showed no benefit as yet from the improvement in new orders, as it continued to decline at a rate similar to March. The rate of decline in the Employment Index slowed slightly, and the same held true for the Prices Index. A special question was asked ...
Manufacturing Contracts in March Read More »
The Institute for Supply Management added what it called "special questions" to the end of this month's Report on Business on expectations regarding the Economic Stimulus Package.
ISM said the questions were structured to determine if respondents believed their industry and organization would benefit from the program as they understand it.
Of all respondents, 36 percent indicate that their industry will benefit. The industries with a majority of respondents indicating they expect to benefit are: Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Nonmetallic Mineral Products; Primary Metals; and Machinery.
Thirty-four percent of respondents indicate that their company will benefit from the ...
ISM Report: 34% of Respondents Expect Their Company to Benefit From Stimulus Read More »
New orders for manufactured goods in February, up following six consecutive monthly decreases, increased $6.1 billion or 1.8% to $352.2 billion, according to the U.S. Census Bureau in a preliminary report. This followed a 3.5% January decrease.
This data is an update to the Advance data released March 25. This report provides more details on the month's performance.
Excluding transportation, new orders increased 1.6%. Shipments, down seven consecutive months, decreased $0.4 billion or 0.1% to $365.9 billion. This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992 and followed a 2.6% January decrease.
Unfilled orders, down five consecutive months, decreased $10.7 billion or 1.4% to ...
New Orders for Manufactured Goods Up 1.8% in February Read More »
The employment numbers out today from the Bureau of Labor Statistics are not great - we have now hit 8.5% unemployment nationally. Since December 2007, the U.S. has lost 5.1 million jobs, with two-thirds of that decrease happening in the past five months. Job losses were widespread.
Wholesale trade saw a decline of 31,000 in March, with nearly all the decline in durable goods.
How did manufacturing and construction fare?
According to data found here, manufacturing employment in March fell by 161,000, with widespread losses among component industries. Factory employment fell by 1 million over the past six months. The largest decreases in March were in fabricated ...
How Did Manufacturing & Construction Fare in March Employment Reports? Read More »
The Industrial Supply Association (ISA) has announced the recipients of its 2009 American Eagle Awards. The American Eagle Award honors ISA member companies who have contributed significantly to improving relationships with their partners in the industrial supply channel as well as their surrounding communities.
This year's winners were ARC Abrasives (Value-Added Manufacturer), Duncan Industrial Solutions (Value-Added Distributor), and Weinacht and Associates (Value-Added Independent Manufacturers' Representative).
Iowa Machinery is the winner of this year's Corporate Citizenship Award. Walter Surface Technologies and Acklands-Grainger have both won this year's Value-Added Partner Award.
Award winners will be recognized during the Opening ...
ISA American Eagle Winners Named Read More »
In doing research for an article on downsizing to be published in our next issue of MDM April 10, I came across this piece on the WARN Act from Fisher & Phillips LLP. MDM has tapped Fisher & Phillips as a source in the past for some of our articles on legal issues employers face.
As the author of this timely article points out: "When times are tough, the last thing a struggling business needs is a class-action lawsuit claiming the former employees are entitled to 60 days' additional pay under federal or state law."
The federal WARN Act (Worker Adjustment and Retraining Notification Act) governs how employers handle laying off large ...
Legal Risks in Layoffs Read More »
60 minutes
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Uncertainty - and there's plenty of it around these days - is bad for employee morale. Workers need security. Their productivity - and maybe even your ability to retain them - depends on how firmly they believe your company is going to be all right, their jobs are safe, and their career is on track. In the past maybe you could get by with regular pats on the back and occasional words of encouragement. No more. These are exceptional times and companies need to proactively manage morale like never before.
This 60-minute conference will lay out the five most common mistakes companies make that kill employee morale in difficult financial ..."
Advanced Morale Boosting: How to Keep Employees Up When Everything Else is Down Read More »
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