News
Breaking news in Wholesale Distribution
Valley National Gases Inc., Washington, PA, has acquired Mitchell Industrial Supply Inc, an industrial gases and welding supply distributor in Elkhart, IN. Mitchell serves customers throughout Northern Indiana and Southwest Michigan.
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Valley National Gases is a packager and distributor of industrial, medical and specialty gases, welding equipment and supplies, propane and fire protection equipment. Valley National Gases operates 75 locations in 14 states, with eight production and distribution centers in the eastern …
Airgas, Inc., Radnor, PA, U.S. distributor of industrial, medical, and specialty gases, welding, safety, and related products, reported sales increased 18% in its first quarter ended June 30, 2007. Sales were $915 million. Profit was up 34%.
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Acquisitions accounted for 11% of the first-quarter sales growth. Same-store sales increased 7%, with hardgoods up 6% and rent up 8%.
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We had an outstanding quarter. We continue to see good growth in non-residential construction and energy markets, and our strategic products are also performing well,” said Airgas CEO Peter …
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This table highlights key financial metrics and trading multiples for 30 publicly traded distributors in the industrial and building products industries. Download this data below. Also find graphic illustrating median EBIDTA multiples for the same distribution companies.
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<These materials,  ; prepared by Robert W. Baird & Co. for MDM,  ; are for informational purposes …
Two major distributors of industrial and oilfield PVF supplies, McJunkin Corporation, with nearly $2 billion in annual revenues,  ; and Red Man Pipe and Supply Company, nearly $1 billion in annual sales, have announced a merger of equals.” Charleston, WV, and Tulsa, OK , will serve as co-headquarters for the new company. McJunkin Corporation CEO and President H.B. Wehrle III and Red Man Pipe and Supply Company President and CEO Craig Ketchum will serve as Co-CEOs for the new company.  ; More …
Wolseley plc has reported it will close 24 more Stock Building Supply branches, primarily in the Midwest. The closures include a 370 headcount reduction. The announcement comes after …
Despite pressures from commodity price increases the past few years, many distributors are finding it hard to raise prices. The traditional method of price increases has too often been to throw five percent (or another guesstimate) against the wall to see if it sticks.
The authors of the article in this issue argue that there is a better, more profitable approach. The solution is to develop products and services that target unique segments with very specific offers. For most distributors, this involves developing a range of offers from the high end (with all the bells and whistles) to the low end (no frills).
The key, the authors say, is to segment the market and build specific offers based on your unique ability to drive economic value (e.g. revenue growth or cost …
May 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 $357.2 billion, up 1.3 percent from the revised April level and were up 8.7 percent from the May 2006 level. The April preliminary estimate was revised upward $0.8 billion or 0.2 percent. May sales of durable goods were down 0.5 percent from last month, but were up 4.2 percent from a year ago. Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were down 5.3 percent. May sales of nondurable goods were up 2.9 percent from last month and were up 13.1 percent from last year.
Inventories. Total inventories of merchant wholesalers, except …
These 16 select product groups provide a snapshot of inflation trends in industrial and construction channels. Second quarter 2006 is compared with second quarter 2007, and the first quarter 2006 with the second quarter 2007.
Metals & Metal Products
Plumbing Fixtures & Fittings
Fasteners
Hardware
Hand & Edge Tools
Chemicals & Allied Products
Adhesives & Sealants
Industrial Gases
Machinery & Equipment
Mechanical Power Transmission Equipment
Pumps, Compressors & Equipment
Electrical Machinery & Equipment
Ball and Roller Bearings
Metal Valves, Except Fluid Power
Industrial Material Handling Equipment
Fluid Power Equipment<br ...
With the recent attention in this industry given to strategic pricing, distributors who change their pricing structures must consider developing new sales compensation plans that reward improved profits. Before attempting a change, consider all appropriate structures and take steps to avoid implementation pitfalls.
According to a recent study, U.S. companies are markedly more satisfied with their sales compensation programs today than they were two years ago." Having spent the last 10 years designing and implementing sales compensation programs for hundreds of firms, I found this intriguing.
Upon further reading, I discovered that "markedly more satisfied" meant that 59 percent of companies surveyed in 2006 were satisfied compared to 34 percent in 2004. In other …
The Rockford Register Star has reported that Rockford Products, Rockford, IL, a manufacturer of cold-formed components, fasteners and other related products, will file for Ch 11 bankruptcy protection to keep it running until a buyer is found.
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A Ch. 11 bankruptcy allows the supplier to restructure its debt. In 1987 employees bought Rockford, which was then near-bankrupt, from Rexnord Inc., according to the paper. The company had $101 million in sales in 2006 and has been buried under debt” since the buyout.
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Rockford’s president told the Register Star that growing pension liabilities and the loss of key customers due to the slow automotive and housing markets sparked the decision to file …
