2009

May Machine Tool Consumption Down 70.5% YTD

Economic Trends, Free, News, Research & Analytics, Subscriber Only, Top Distributor Sectors / MDM Staff

May U.S. manufacturing technology consumption totaled $109.90 million, according to AMTDA, the American Machine Tool Distributors’ Association, and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the USMTC program, was up 5.8% from April but down 72.3% from the total of $397.16 million reported for May 2008. With a year-to-date total of $618.30 million, 2009 is down 70.5% compared with 2008.

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

While total manufacturing technology dollar values increased slightly, the unit numbers decreased in May,” said Peter Borden, AMTDA President. “The overall economic signs are more …

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Research Firm: Number of Suppliers Shipping to U.S. Down Slightly in June

Economic Trends, Free, News, Research & Analytics, Subscriber Only / MDM Staff

Panjiva, a firm that tracks overseas suppliers to the U.S., saw a 1% decline in the number of global manufacturers shipping to the U.S. in June, similar to May’s trade data. According to the firm, the slight decline from May to June is slightly less than last year’s May-to-June decrease. To Panjiva, it looks like global trade is tracking its "typical seasonal path."

Panjiva Watch List numbers were unchanged:
The percentage of significant manufacturers on the Panjiva Watch List remains at 30%. The percentage of significant buyers having done business wtih a Panjiva Watach List supplier in the preceding three months remains at 40%.

About the Watch List:
Manufacturers that have suffered a 50% or greater decline in volume shipped to American customers in the most recent …

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Hagemeyer North America Launches New E-Commerce Site

Companies, Free, News, Subscriber Only, Technology, Top Distributor Sectors / MDM Staff

Hagemeyer North America, Charleston, SC, has launched a new e-commerce Web site at www.hagemeyerna.com. The redesigned site offers enhanced features and intuitive navigation to make the customers’ shopping experience fast and easy.

"Our team has spent months incorporating our customers’ feedback to develop a site that helps them more economically satisfy their need for MRO products and services," says Greg Tabor, director of e-business.

Changes include a multi-faceted, comprehensive search capability, virtual versions of Hagemeyer North America’s Safety, Electrical, Industrial and Sustainability print catalogs, and customizable features including bookmarks, order templates and customer-specific catalogs.

Hagemeyer North America, Inc., is a distributor of products and …

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Report: European Manufacturing Sector to Continue Decline in 2009

Economic Trends, Free, News, Research & Analytics, Subscriber Only / MDM Staff

The European manufacturing sector saw an accelerated downward trend in the first part of 2009 and will face challenges throughout the year, before seeing the potential for marginal improvement in 2010, according to the semiannual Manufacturers Alliance/MAPI European Industrial Outlook: 2009-2010 (ER-682e), a report that analyzes 14 major industries.

The report separately analyzes two distinct regions: Western Europe and Central Europe. The former generally comprises the 15 countries that form the currency union (Eurozone), while the latter includes the four largest economies of Central and Eastern Europe (CEE4): the Czech Republic, Hungary, Poland, and Slovakia.

Kris Bledowski, Ph.D., Manufacturers Alliance/MAPI Economist and report author, forecasts a continued decline for …

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What Will Be the Impact of the Latest Minimum Wage Hike?

Free, Human Resources in Wholesale Distribution, Operations, Subscriber Only / Lindsay Konzak

A new federal minimum wage floor of $7.25 an hour will be put in place July 24.

According to this article by CNN Money, the new standard will affect 29 states.

We are watching to see how it will affect the health of many industries who are already …

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Commentary: Focus on the Now, But With a Strategic Plan as Your Guide

Free, Management, Perspective, Strategy, Subscriber Only / Lindsay Konzak

Michael Jackson's death has spurred nonstop coverage from CNN, the tabloids, and everything in between. The King of Pop is all over the Web. And it's rare to turn on a TV news program without Jackson at its center.

Since the launch of CNN and 24-hour news, we have been able to get our news whenever we want it. As the World Wide Web has grown, we've been able to get updates almost literally by the second – as we did earlier this week during the Los Angeles-based Jackson memorial service.

It really is incredible how we can garner information about an event halfway across the country close to real-time; it was not that long ago when we would have had to wait for the full report and pictures of the memorial service until the next morning's paper was delivered.

These days, we are …

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A Demographic Shift in Distribution

Research & Analytics, Subscriber Only / Jenel Stelton-Holtmeier

As baby boomers speed toward retirement, managers are preparing for the next generation of workers eager to move up the ladder. They follow in the footsteps of retirees who have worked in distribution for decades – if not their whole careers. MDM spoke with and surveyed juniors and seniors at three universities about what they are looking for as they start their careers in distribution.

Times have certainly changed, and much has been made of the differences between the baby boomers and generations X and Y. While it is true that younger generations may value different attributes and incentives in the workplace, many younger workers also recognize they have a lot to learn from long-time distribution veterans …

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MDM Interview: Breaking Through the ‘Grass Ceiling’

Research & Analytics, Subscriber Only, Top Distributor Sectors / MDM Staff

More women are entering the field of distribution than ever before. And more women are taking on leadership roles. Tammy Miller, CEO of Border States Electric, Fargo, ND, was the first chairwoman of the National Association of Electrical Distributors, serving from 2007 to 2008. Miller recently spoke with MDM Associate Editor Jenel Stelton-Holtmeier about the Women in Industry conference – established during her tenure at NAED, preparing young people for a career in distribution, and the changing role of technology in the industry.

MDM: During your tenure as the first chairwoman of NAED, the Women in Industry forum was launched. How did that come about?

Tammy Miller: I was proud to be the NAED Board chairwoman the year the first Women in Industry conference was …

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Grainger’s Plans: Grow DC Network, Expand Product Lines, Make Acquisitions

Companies, Facilities Maintenance (MRO), Subscriber Only, Top Distributor Sectors / Jenel Stelton-Holtmeier

Even as some companies are pulling back in response to current economic conditions, Grainger has taken a different tack: aggressively pursue market share. At the William Blair & Company Growth Stock Conferencein June, Grainger CEO Jim Ryan laid out Grainger’s plan to gain market share in the highly fragmented MRO market.

Focus on service is essential to gaining and keeping market share, Ryan says. For Grainger, this includes expanding its network of distribution centers in North America, adding square feet in existing and new branches, and investing in its IT network.

"Our IT network and phone systems are integrated across the network, meaning we can respond more efficiently to customer needs," Ryan says. For example, during the H1N1 flu outbreak in Mexico, Grainger was able to …

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MDM News Digest 3913

Free, Subscriber Only / MDM Staff

MSC Industrial Direct Co., Inc., Melville, NY, a distributor of metalworking and maintenance, repair and operations supplies to industrial customers throughout the U.S., reported sales of $350.5 million for the third quarter ended May 30, 2009, a decrease of 23.3% from the prior year. Profit declined 45.9% to $27.8 million. For the first nine months of fiscal 2009, sales were $1.135 billion, down 14.7% from the first nine months of fiscal 2008. Profit fell 32% to $99.1 million. More

London, UK-based Bunzl plc, an international distribution and outsourcing group, reported sales for the six months ending June 30, 2009, will be up 17%, with core sales slightly down. Sales in the UK and Ireland …

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MDM July 10, 2009

Subscriber Only / MDM Staff

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 seven years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to …

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U.S. Power Transmission/Motion Control Manufacturers See Slight Increase in May Sales

Free, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors / MDM Staff

Canadian manufacturers of power transmission/motion control products experienced another drop in sales while U.S. manufacturers experienced a slight increase in May 2009 according to sales data released by the Power Transmission Distributors Association (PTDA). Confidence in the market (as measured on a scale of 1 to 10 with 10 being most optimistic) remained the same this month, holding a current negative position between 4.3 and 4.8.

U.S. manufacturers’ sales rose slightly by 0.3% in May 2009 when compared to April 2009. Sales in May 2009 fell 26.5% compared to the same period last year. Orders in May 2009 decreased by 2.8% over April 2009 orders.

Canadian manufacturers’ sales were down 6.9% compared to April 2009. Sales were down 29.4% when compared to the same period …

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HD Supply Facilities Maintenance Launches New Commercial Catalog

Companies, Facilities Maintenance (MRO), Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff

HD Supply Facilities Maintenance, San Diego, CA, released its new Commercial Product Line Catalog, featuring more than 3,000 products for use in mid and high-rise buildings.

“Commercial product expansion is one of our key initiatives for 2009," said Robin Soehl, vice president, marketing and business development. "During these challenging economic times, our customers are looking to reduce the number of suppliers they do business with to streamline their purchasing process. The stocking of these products enhances our ‘one-stop shop’ value proposition."

The product expansion and new catalog was created to better serve the unique needs of customers with mid and high-rise buildings as well as customers with a need for commercial grade products. The catalog features an expanded …

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Square D’s Long Fight Against Counterfeits

Electrical, Free, Legal Issues in Wholesale Distribution, Operations, Subscriber Only, Top Distributor Sectors / Lindsay Young

Schneider Electric won a recent court case against Breakers Unlimited, a Noblesville, IN-based business that purchased counterfeitSquare D products in 2005 and 2006 for resale. Schneider, the parent company of Square D,spoke with MDM in February 2008 about its long fight against counterfeits of its brand. This recent win by Square D is from just one of many lawsuits it has filed to protect its brand. An excerpt from the February 2008 MDM article:

“Counterfeiters had taken their own products and slapped fake Square D labels on them. Historically, counterfeits have been easy to detect. But the counterfeiters have grown more sophisticated, making it more difficult to name a …

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Crystal Ball Still Foggy On the Economy

Economic Trends, Free, Research & Analytics, Subscriber Only / Jenel Stelton-Holtmeier

Though ambiguity still rules the economic future, a consensus is forming that recovery will be a long, slow process. Experts from academia to governments are doing their best to clear the fog in their crystal balls but few hard and fast answers can be found.

That said, there are some interesting insights appearing. In a recent interview with Knowledge@Wharton, Jeremy Siegel, a finance professor at Wharton, noted that demand in several sectors is starting to show signs of increasing.

But don’t expect a huge jump in the near future, Siegel advises. Industries like housing and automotive have been battered. So even though we’ve likely hit the bottom – Siegel expects May, June or July to be declared the official bottom – we still have a long way to climb before we can say things are …

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Jury Finds For Schneider Electric In Counterfeit Case

Electrical, Free, Legal Issues in Wholesale Distribution, News, Operations, Subscriber Only, Top Distributor Sectors / MDM Staff

A jury in Indiana has found Breakers Unlimited, Noblesville, Ind., guilty of purchasing and selling counterfeit Square D circuit breakers. Schneider Electric – the parent company of Square D – filed the lawsuit in June 2007.

The amount of damages to be awarded and the scope of an injunction restricting Breakers Unlimited’s continued involvement in the market where counterfeit circuit breakers are bought and sold have yet to be decided by the court.

"Distributors, electrical contractors and users need to be aware that there are hidden and potentially deadly hazards associated with counterfeit circuit breakers," said Jim Pauley, vice president of industry and government relations at Schneider Electric.

During the course of the lawsuit, Schneider Electric discovered that Breakers …

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Study: Medical Costs Continue to Rise

Free, Human Resources in Wholesale Distribution, Operations, Subscriber Only / MDM Staff

With all the news about potential health care reform in the U.S., many publications are looking more closely at the issue – and some surveys have been released looking at where medical costs are going in the next year, and how employers are dealing with the continued increases.

A recent report from PricewaterhouseCoopers says that medical costs continued to grow in late 2008 and early 2009; growth in costs for 2010 is expected to be 9%, slightly lower than in previous years. Employers in the survey said they were ready to push more of these costs for health care to workers, and expect workers to take more responsibility for managing their health in 2010.

Read the full report …

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Genuine Parts Co. Names New Auto Parts Group President

Free, News, Power Transmission/Motion Control/Fluid Power, Subscriber Only, Top Distributor Sectors / MDM Staff

Genuine Parts Co., Atlanta, GA, has named a Paul D. Donahue president of its U.S. Automotive Parts Group. Donahue was previously responsible for several of the company’s automotive business units.

Donahue, 52, joined S. P. Richards Company, the company’s office products group, as Executive Vice President – Sales and Marketing in 2003. Prior to that, Donahue was president of Sanford North America, a division of Newell Rubbermaid.

As president of the U.S. Automotive Parts Group, Donahue will oversee 58 distribution centers and 1,100 stores.

Genuine Parts Company is a distributor of automotive replacement parts, industrial replacement parts, office products, and electrical and electronic products in the U.S., …

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Construction Spending Down Slightly in May

Building Materials/Construction, Economic Trends, Free, News, Research & Analytics, Subscriber Only, Top Distributor Sectors / MDM Staff

Construction spending in May 2009 was estimated at a seasonally adjusted annual rate of $964.0 billion, 0.9 percent below the revised April estimate of $972.5 billion, according to the U.S. Census Bureau of the Department of Commerce. The May figure is 11.6 percent below the May 2008 estimate of $1,090.7 billion.

During the first five months of this year, construction spending amounted to $368.8 billion, 11.7 percent below the $417.5 billion for the same period in 2008.

Spending on private construction was at a seasonally adjusted annual rate of $649.2 billion, 1.0 percent below the revised April estimate of $655.6 billion. Residential construction was at a seasonally adjusted annual rate of $240.2 billion in May, 3.4 percent below the revised April estimate of $248.8 billion. …

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MSC Industrial Direct Sales Down 23.3% In 3Q

Companies, Free, News, Subscriber Only, Top Distributor Sectors / MDM Staff

MSC Industrial Direct Co., Inc., Melville, NY, a distributor of metalworking and maintenance, repair and operations supplies to industrial customers throughout the U.S., reported sales of $350.5 million for the third quarter ended May 30, 2009, a decrease of 23.3% from the prior year. Profit declined 45.9% to $27.8 million.

For the first nine months of fiscal 2009, sales were $1.135 billion, down 14.7% from the first nine months of fiscal 2008. Profit fell 32% to $99.1 million.

"While our performance in the fiscal third quarter was better than anticipated, visibility remains limited as we continue to operate in one of the most severe economic downturns our industry has ever experienced. Feedback from our customers indicates that market conditions have remained weak without any …

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MSC Industrial Direct Sales Down 23.3% In 3Q Read More »

May Machine Tool Consumption Down 70.5% YTD

Research Firm: Number of Suppliers Shipping to U.S. Down Slightly in June

Hagemeyer North America Launches New E-Commerce Site

Report: European Manufacturing Sector to Continue Decline in 2009

What Will Be the Impact of the Latest Minimum Wage Hike?

Commentary: Focus on the Now, But With a Strategic Plan as Your Guide

A Demographic Shift in Distribution

MDM Interview: Breaking Through the ‘Grass Ceiling’

Grainger’s Plans: Grow DC Network, Expand Product Lines, Make Acquisitions

MDM News Digest 3913

MDM July 10, 2009

U.S. Power Transmission/Motion Control Manufacturers See Slight Increase in May Sales

HD Supply Facilities Maintenance Launches New Commercial Catalog

Square D’s Long Fight Against Counterfeits

Crystal Ball Still Foggy On the Economy

Jury Finds For Schneider Electric In Counterfeit Case

Study: Medical Costs Continue to Rise

Genuine Parts Co. Names New Auto Parts Group President

Construction Spending Down Slightly in May

MSC Industrial Direct Sales Down 23.3% In 3Q

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