October 23 2010 Archives - Modern Distribution Management

October 23 2010

Volume 40, Issue 20

Volume:

40

Issue:

20

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Features

This is the pdf of this issue of Modern Distribution Management. Apply the full $34.95 pay-per-view cost of this issue toward an annual subscription, which includes two issues a month plus access to more than eight years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. Subscribers log-in to download this issue.

Robert W. Baird & Co. in partnership with Modern Distribution Management, conducted a survey of more than 650 distributors and manufacturers to gauge business trends and the outlook for the distribution industry in diverse sectors.

On average, respondents to the latest quarterly MDM/Baird survey said third-quarter revenues were up 6 percent.

Jonathan Byrnes, senior lecturer at MIT and author of new book Islands of Profit in a Sea of Red Ink, spoke with Lindsay Konzak, editor, about why 40% of every business is unprofitable and how to fix it.

MDM: You write in your book about the Age of Precision Markets. What is the importance of this for managers?

Jonathan Byrnes:We were for decades and decades in what’s commonly called the Age of Mass Markets – from the early 1900s to about 20 years ago. The objective in most companies at a time when national markets were forming was to get economies of scale and drive costs down in mass production. The idea was to sell as widely as possible using mass distribution – the more volume you got the lower your cost and the higher your profit. The volume of revenues equaled profitability. Most customer relationships were arms-length. You dropped orders off at customers’ loading dock, and in that era distributors were simply part of the manufacturer’s outreach.

These 56 product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Third quarter 2010 is compared with third quarter 2009, and second quarter 2010 with third quarter 2010. To access, premium subscribers should ensure they are logged-in to download this pdf report by clicking Download pdf below the product list (link shown after logging in).

Industrial:

  • Abrasives
  • Adhesives & Sealants
  • Metal Cutting Machine Tools
  • Metal Forming Machine Tools
  • Pumps, Compressors, & Eqmt
  • Ind. Material Handling Eqmt
  • Ind. Rubber Products, nec
  • Ind. Safety Eqmt
  • Metal Valves (not fluid power)

Construction:

  • Softwood Lumber
  • Hardwood Lumber
  • General Millwork
  • Gypsum Products
  • Hardboard, Particlebd, Fiberbd
  • Plywood
  • Plastic Construction Products
  • Wood Ties, Siding, Shingles, Shakes

Electrical:

  • Electrical Machinery & Eqmt
  • Electronic Components & Accs
  • Integrating and Measuring Instruments
  • Motors & Generators
  • Wiring Devices
  • Transformers & Power Regulators
  • Switchgear, Switchboard, etc. Eqmt
  • Communications & Related Eqmt
  • Electric Lamp Bulbs & Parts

Power Transmission/Bearing

  • Mechanical Power Transmission Eqmt
  • Ball & Roller Bearings
  • Plain Bearings & Bushings
  • Speed Changers, Drives & Gears

Fluid Power

  • Fluid Power Eqmt
  • Fluid Power Valves

Plastics

  • Plastic Resins & Materials

Fasteners

  • Nuts, Bolts, Screws, Rivets, Washers (overall)
  • Aircraft Fasteners
  • Externally Threaded Fasteners
  • Internally Threaded Fasteners
  • Nonthreaded Metal Fasteners

Hardware

  • Hardware (overall)
  • Builders’ Hardware

Tools

  • Cutting Tools & Accs (overall)
  • Hand & Edge Tools
  • Power-Driven Hand Tools
  • Precision Measuring Tools
  • Small Cutting Tools
  • Tools, Dies, Jigs, Molds, Fixtures

Gases/Welding

  • Industrial Gases
  • Welding Machinery/Equipment

Jan-San

  • Sanitary Paper Products
  • Spec. Cleaning, Polish & Sanitary Products

Packaging

  • Boxes
  • Label/Wrapper Printing for Packaging
  • Packaging & Ind. Converting Paper
  • Packaging Products from Plastic

HVAC/Plumbing

  • Air Cond. & Refrigeration Eqmt
  • Heating Eqmt
  • Plumbing Fixtures & Fittings
PDF Download

This is the pdf of this issue of Modern Distribution Management. Apply the full $34.95 pay-per-view cost of this issue toward an annual subscription, which includes two issues a month plus access to more than eight years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to subscribe. Subscribers log-in to download this issue.

Robert W. Baird & Co. in partnership with Modern Distribution Management, conducted a survey of more than 650 distributors and manufacturers to gauge business trends and the outlook for the distribution industry in diverse sectors.

On average, respondents to the latest quarterly MDM/Baird survey said third-quarter revenues were up 6 percent.

Jonathan Byrnes, senior lecturer at MIT and author of new book Islands of Profit in a Sea of Red Ink, spoke with Lindsay Konzak, editor, about why 40% of every business is unprofitable and how to fix it.

MDM: You write in your book about the Age of Precision Markets. What is the importance of this for managers?

Jonathan Byrnes:We were for decades and decades in what’s commonly called the Age of Mass Markets – from the early 1900s to about 20 years ago. The objective in most companies at a time when national markets were forming was to get economies of scale and drive costs down in mass production. The idea was to sell as widely as possible using mass distribution – the more volume you got the lower your cost and the higher your profit. The volume of revenues equaled profitability. Most customer relationships were arms-length. You dropped orders off at customers’ loading dock, and in that era distributors were simply part of the manufacturer’s outreach.

These 56 product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Third quarter 2010 is compared with third quarter 2009, and second quarter 2010 with third quarter 2010. To access, premium subscribers should ensure they are logged-in to download this pdf report by clicking Download pdf below the product list (link shown after logging in).

Industrial:

  • Abrasives
  • Adhesives & Sealants
  • Metal Cutting Machine Tools
  • Metal Forming Machine Tools
  • Pumps, Compressors, & Eqmt
  • Ind. Material Handling Eqmt
  • Ind. Rubber Products, nec
  • Ind. Safety Eqmt
  • Metal Valves (not fluid power)

Construction:

  • Softwood Lumber
  • Hardwood Lumber
  • General Millwork
  • Gypsum Products
  • Hardboard, Particlebd, Fiberbd
  • Plywood
  • Plastic Construction Products
  • Wood Ties, Siding, Shingles, Shakes

Electrical:

  • Electrical Machinery & Eqmt
  • Electronic Components & Accs
  • Integrating and Measuring Instruments
  • Motors & Generators
  • Wiring Devices
  • Transformers & Power Regulators
  • Switchgear, Switchboard, etc. Eqmt
  • Communications & Related Eqmt
  • Electric Lamp Bulbs & Parts

Power Transmission/Bearing

  • Mechanical Power Transmission Eqmt
  • Ball & Roller Bearings
  • Plain Bearings & Bushings
  • Speed Changers, Drives & Gears

Fluid Power

  • Fluid Power Eqmt
  • Fluid Power Valves

Plastics

  • Plastic Resins & Materials

Fasteners

  • Nuts, Bolts, Screws, Rivets, Washers (overall)
  • Aircraft Fasteners
  • Externally Threaded Fasteners
  • Internally Threaded Fasteners
  • Nonthreaded Metal Fasteners

Hardware

  • Hardware (overall)
  • Builders’ Hardware

Tools

  • Cutting Tools & Accs (overall)
  • Hand & Edge Tools
  • Power-Driven Hand Tools
  • Precision Measuring Tools
  • Small Cutting Tools
  • Tools, Dies, Jigs, Molds, Fixtures

Gases/Welding

  • Industrial Gases
  • Welding Machinery/Equipment

Jan-San

  • Sanitary Paper Products
  • Spec. Cleaning, Polish & Sanitary Products

Packaging

  • Boxes
  • Label/Wrapper Printing for Packaging
  • Packaging & Ind. Converting Paper
  • Packaging Products from Plastic

HVAC/Plumbing

  • Air Cond. & Refrigeration Eqmt
  • Heating Eqmt
  • Plumbing Fixtures & Fittings

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