2009 - Page 44 of 57 - Modern Distribution Management

2009

Barnes Distribution Increases Steel Fasteners Line by 50%

Barnes Distribution, North America, a business of Barnes Group Inc. is expanding its stainless steel fasteners product line by nearly 50 percent, adding more than 1,200 new items to its stocked inventory.
 
The MRO supplies distributor offers more than 750,000 products, including 2,000 in-line stainless steel fasteners, to its customers ranging from food processors to chemical plants to pharmaceutical markets.
 
New stainless steel items added to the product line include hex head cap screws, socket head cap screws, socket set screws, lock washers and machine screws in standard, fractional and metric sizes. The product expansion also introduces pre-packaged product assortments.
 
The enhancement to the stainless steel fastener line further expands Barnes’ …

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Responding to Delayed Hospital Spending, Cardinal Health Cuts Costs

Drug distributor Cardinal Health, Dublin, OH, says that when it spins off its Clinical and Medical Products businesses later this year it will reduce its global workforce by 800 over six months and eliminate an additional 500 positions through normal attrition and not filling open roles. The distributor also plans to implement cost control measures and reductions in discretionary spending.
 
The actions are in response to a "delay in hospital capital spending" specifically, and the decline in the global economy generally, according a press release.
 
Cardinal said back in January that the spending delay is only a "temporary concern," according to an article at WSJ.com.
 
Cardinal Health, Inc. is a $91 billion global …

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New-Home Sales Climb: Has the Market Hit Bottom?

For the first time in seven months, the Commerce Department reported that new-home sales increased 4.7% in February to a seasonally adjusted rate of 337,000 units. It’s still a long way from where sales were, but Joe Robson, chairman of the National Association of Home Builders, is taking it as a sign that the market is finally hitting bottom, according to a statement posted to NAHB.org.
 
One possible contributor to the upswing: Prices finally may be low enough to draw buyers back into the marketplace for new homes. According to the S&P/Case-Shiller Home Price Indices released on Tuesday, prices for new homes continued to fall in January to lows not seen since 2003 (based on the composite indexes). The 20-city composite index has fallen 19% since January 2008; it …

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John Crane Buys Orion Corp.

John Crane, Morton Grove, IL, a division of global technology business Smiths Group, acquired Orion Corporation, a Grafton, WI-based designer and manufacturer of hydrodynamic bearings for energy and general industrial markets.
 
Orion designs and manufactures hydrodynamic bearings for high speed turbine, generator, compressor and gear drive applications for the power generation, oil and gas and general industrial markets. It reported sales of about $50 million for fiscal year 2008. The acquisition complements and extends John Crane Bearing Technology.
 
John Crane designs and manufactures seals and associated products mainly for the oil & gas, chemical, pharmaceutical, pulp & paper and mining sectors. …

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Matheson Tri-Gas Agrees To Buy Valley National Gases

Matheson Tri-Gas, Inc., Basking Ridge, NJ, a manufacturer and supplier of industrial, medical, electronics and specialty gases and welding supplies, has agreed to buy Valley National Gases, Independence, OH, from New York-based private equity firm CI Capital Partners LLC. Matheson is a subsidiary of Taiyo Nippon Sanso Corporation, a producer of industrial, medical, electronics and specialty gases headquartered in Japan.
 
The acquisition of Valley National Gases supports TNSC’s global expansion strategy and we are thrilled that our MTG team has successfully finalized the agreement. This acquisition also reinforces our commitment to developing a national presence in the United States, Hirosuke Matsueda, president of TNSC said.
 
Acquiring Valley …

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H.B. Fuller Company Agrees to Buy Nordic Adhesives

H.B. Fuller Company, St. Paul, MN, has agreed to acquire Nordic Adhesives, a developer and manufacturer of flexible packaging adhesives based in Buxtehude, Germany. Nordic had sales of US$9 million in 2008.
 
Nordic has a strong product portfolio in the flexible packaging market and a solid presence in northern Europe. This acquisition will complement our existing product line, enhances our applications knowledge, and will enable us to extend our reach in this highly attractive $1 billion segment of the adhesives industry, said Michele Volpi, H.B. Fuller president and CEO.
 
“With Nordic, we can capitalize upon our global footprint and more quickly develop a more meaningful presence in this desirable market.”
 
H.B. Fuller …

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Commentary: A Positive Spin on News in a Negative Time

In a short time, we have grown accustomed to reading (and in my case, writing) articles and headlines filled with words like, decrease, “decline” and “fall.” That’s why when, as reported this month, housing starts saw a slight increase, and new orders for durable goods went up, the words “unexpectedly” and “surprising” started to appear. Confidence went up, at least a little – badly needed in our battered economy.
 
That said, as soon as the word “increase” and all its synonyms came back, however briefly, there were plenty of economists and analysts ready to moderate our excitement that things might finally be hitting rock bottom. “The modest signs of stability in the U.S. economy are …

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Global Report: Mexico Hit by Export Slowdown to U.S.

This is part of an MDM series of articles looking at growth opportunities globally.
 
The remaining optimism at the beginning of the global financial and credit crisis very often came from emerging markets. Though those markets’ growth slowed, they still saw growth, contrary to the negative trends seen in the U.S. Growth forecasts for Brazil, for example, were revised downward, but remained positive, and India continued to see investment growth.
 
And another emerging market – Mexico – continued to steadily plod along even as its trading partners suffered from a barrage of bad news. The picture has since darkened for many of these countries.

Until a few months ago, it was believed that the emerging markets, and …

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GDP Shrinks 6.3% in Fourth Quarter 2008

Real gross domestic product – the output of goods and services produced by labor and property in the U.S. – decreased at an annual rate of 6.3 percent in the fourth quarter of 2008, (from the third quarter to the fourth quarter), according to final estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP decreased 0.5 percent.
 
These GDP estimates are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the decrease in real GDP was 6.2 percent.
 
The decrease in real GDP in the fourth quarter primarily reflected negative contributions from exports, personal consumption expenditures, equipment and software, and residential fixed investment that …

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MDM Interview: Grainger’s Global View

Grainger continues to strengthen its global operations; recently it tapped Acklands-Grainger President Court Carruthers to a newly created post, president of international businesses. As part of that, Grainger also recently named D.G. Macpherson to oversee Grainger’s global supply chain operations.
 
In this interview with MDM, Carruthers talks about Grainger’s plans globally, business improvements at Acklands-Grainger, and how the distributor views talent recruitment and retention. Carruthers has been with Grainger in Canada since the summer of 2002. He has been the president of Acklands-Grainger there since the end of 2006.

MDM: Why did Grainger put this position in place? What are your goals in this new role?
 
Court …

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DXP Enterprises: Supply Chain Services, Repair Remain Strong

When sales declined 11 percent in January, industrial distributor DXP Enterprises turned to Plan B: Expand products and services, grab market share and reduce the bets on the table. The plan may not be unique but the fact that it is already working – February and March results improved, according to President and CEO David Little – offers a positive outlook for the distributor for the rest of 2009.

The worst-case scenario presented during its year-end conference call by the distributor of pumping, supply chain management and MROP products and services was for sales to be down 20 percent in 2009. That’s based on multiplying January’s results by 12 months, Little says.

“There’s not a lot of clarity on what’s …

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MDM News Digest 3906

Graybar, St. Louis, MO, distributor of electrical and communications products and related supply chain management and logistics services, reported sales were $5.4 billion in 2008, an increase of 2.7 percent from 2007. The company also posted profit of $87.4 million, up 4.8 percent. More
Dutch holding company ERIKS group has acquired Arnold Frommeyer GmbH & Co. KG, a German distributor of mechanical engineering components for use primarily in sealing technology, fluid technology, maintenance products and tools. Frommeyer has 15 employees and generates annual sales of €3 million.

MDM News Digest 3906 Read More »

Monthly Wholesale Trade: January 2009

January 2009 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 $326.1 billion, down 2.9 percent from the revised December level and were down 15.4 percent from January 2008, according to the U.S. Census Bureau.
 
January sales of durable goods were down 6.5 percent from last month and were down 17.3 percent from a year ago. Compared with last month, sales of machinery, equipment, and supplies were down 10.8 percent. Sales of nondurable goods were up 0.3 percent from last month, but were down 13.7 percent from last year. Sales of chemicals and allied products were down 4.9 percent from last month, while sales of drugs and druggists’ …

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MDM March 25, 2009

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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U.S. Conference Board, Canadian Composite Indexes Decline at Start of Year

U.S.
Each of the three economic indexes provided by The Conference Board posted declines of 0.4 percent for the month. The Conference Board Leading Economic Index February decline follows a slight increase in January. Between August 2008 and February 2009, the index fell 2.1 percent, faster than the decline of 1.6 percent (a -3.1 percent annual rate) for the previous six months. In addition, the weaknesses among the leading indicators have remained widespread. The Leading Economic Index for the U.S. now stands at 98.5, continuing a downward trend that began in July 2007.

Six of the indicators that make up the LEI increased in February, including the interest rate spread, index of supplier deliveries (vendor performance), building permits, real money supply, …

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MDM Industrial Inflation Index: February 2009

Modern Distribution Management’s February Inflation Index, which measures a cross-section of industrial supplies, was up 0.31% from the previous month, and up 7.12% from February 2008.
 
Please click below to view a print-ready pdf of the MDM Inflation Index for February 2009, listing the 10 individual product categories that make up the …

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Execs: Right Leadership, Training Key to Retaining the Right People

Two recent MDM interviews offered some perspective on retaining quality employees.
 
Graybar Senior Vice President and CFO Beatty D’Alessandro told me (at the recent NAW meeting in January) that the company keeps its focus on drawing employees who take a long-term view. He says finding the right people with the right values is crucial from the get-go, but that providing the right training and the right opportunities are just as important in keeping the right people in place. He says: "The model is built around people who are going to come and stay versus people who job-hop around the industry."
 
In the latest issue of MDM, Grainger’s new president of international businesses, Court Carruthers, says that nurturing employee development is a passion of his. A …

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New Orders for Durable Goods Go Up in February

New orders for manufactured durable goods in February increased $5.5 billion or 3.4% to $165.6 billion, the U.S. Census Bureau announced in the advance report on Manufacturers’ Shipments, Inventories and Orders. This increase follows six consecutive monthly decreases, including a 7.3% January decrease. Excluding transportation, new orders increased 3.9%. Excluding defense, new orders increased 1.7%.
 
Cliff Waldman, economist for the Manufacturers Alliance/MAPI, said that the "welcome turn in big ticket demand" should be "interpreted with caution," though he does point out that it may indicate that the U.S. is close to or at the bottom of the business cycle.
 
"The modest signs of stability in the U.S. economy are early and could be …

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Bunzl Acquires Two UK Distributors

Global distributor Bunzl plc has acquired W.K. Thomas and Industrial Supplies from W.K. Thomas & Co Limited, and Industrial Supplies UK Limited.
 
W.K. Thomas is a distributor in the UK of foodservice products, particularly to customers in the catering and airline sectors. Industrial Supplies is engaged in the distribution of cleaning and hygiene products throughout the East of England. The aggregate revenue of the businesses in the year ended Dec. 31, 2008 was about £35 million.
 
These businesses complement our existing horeca and cleaning & hygiene operations in the UK. This transaction demonstrates our ability to take advantage of appropriate opportunities as they arise in what is a particularly tough environment in the UK & …

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OneSource Buys Berkley Engineering

OneSource Distributors, Oceanside, CA, has acquired Berkley Engineering, Inc., Honolulu, HI. Berkley is a supplier of pumping-related products for the municipal water/wastewater industry and industrial and institutional markets.
 
Berkley Engineering is a good fit for both of our companies and our major suppliers. We are a Rockwell Automation/Allen-Bradley distributor in a number of territories and look forward to growing market share for them as well as all of our key suppliers in the Industrial, Infrastructure, Institutional and Utility markets in Hawaii and in the American territories, Bob Zamarripa, president of OneSource, says.
 
OneSource Distributors operates 12 sales centers and four distribution centers servicing California, Arizona, …

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