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ECONOMIC OUTLOOK REPORTS

MDM’s 4Q Economic Snapshot Webcast

It provides a thorough look at the state of the U.S. wholesale distribution economy today and what factors are influencing underlying demand.

2024 Annual MDM Economic Outlook

Our 2024 EOR is a comprehensive economic reference guide to the U.S. wholesale distribution industry and its many different verticals. It is comprised of 20 different subreports.
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Premium Monthly

MDM September 2024 Premium Monthly

This issue includes seven articles that span Stellar Industrial’s buy-and-build technology approach; what to know before expanding across state lines; corporate DEI pushback; Ferguson’s digital strategy; and more.
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Market Insight Reports

MDM 3Q 2024 MarketPulse Report

Find a wealth of data and analysis extracted from the 3Q24 Baird-MDM Industrial Distribution Survey, including trending charts and figures for revenue and expectations, plus plenty of interesting commentary.

MDM 3Q 2024 M&A Report

See our top Premium M&A articles from July-September 2024, including QXO’s rollout plans; Sonepar’s Purchase of Summit Electric; What to know before expanding across state lines; and the latest EBITDA trading multiples.
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Case Studies

MDM Case Study: Ferguson

This case study explores the plumbing, HVACR, PVF and industrial supplies distributor’s past decade of growth through diversification, private branding and increased customer loyalty.
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Premium Events
Premium Articles
Finance
Builders FirstSource Buys Bama Truss & Components
Builders FirstSource, Inc., Dallas, TX, a supplier and manufacturer of structural and related building products for residential new construction in the U.S., has acquired Bama Truss and Components, Inc.
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Based in Shelby, AL, Bama is a supplier of multifamily and light commercial manufactured structural components with annual sales of $25 million. Its product offerings include: wood roof and floor trusses, wood panels, steel roof trusses and various related building materials and services.
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Builders FirstSource operates in 13 states, principally in the southern and eastern U.S., and has 68 distribution centers and 61 manufacturing facilities, many of which are located on the same premises as its distribution ...
Finance
Airgas Buys Gartech
Airgas, Inc., Radnor, PA, has acquired Gartech Refrigerant Reclamation Center, Inc., with locations in Garland, TX, and Oklahoma City, OK.
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Airgas Specialty Products, in the distribution of industrial ammonia, process chemicals, and refrigerants, has integrated Gartech's operations, which generated almost $2 million in revenue in 2006.
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Airgas, Inc. is a distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. It has more than 1,100 locations, including branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers in the ...
Finance
Curtiss-Wright Acquires Controls Supplier for $102M
Curtiss-Wright Corporation, Roseland, NJ, has acquired Benshaw Advanced Controls & Drives, Pittsburgh, PA, for $102 million in cash.
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Benshaw is a supplier of motor control and protection product solutions for original equipment manufacturers (OEMs) and industrial customers. The business will become part of Curtiss-Wright's Flow Control segment.
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The addition of Benshaw to the Curtiss-Wright family of companies provides a major opportunity to expand our product offerings in the commercial power, control electronics and systems markets," said Curtiss-Wright CEO Martin R. Benante. "Benshaw's expertise in electronic motor control and protection technology will support our growth in high speed motors and AP1000 pumps, as well as providing a low-cost manufacturing ...
Finance
EnPro Buys Compressor Products International
EnPro Industries Inc., Charlotte, NC, manufacturer of engineered industrial products, has acquired Compressor Products International, a privately-held company that designs, manufactures and services sealing components for reciprocating compressors.
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CPI, Hungerford, Berkshire, England, manufactures critical sealing components for reciprocating compressors and related equipment for both compressor manufacturers and for the oil, gas and petrochemical industries.
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It will be combined with EnPro's France Compressor Products business to create the world's largest manufacturer of reciprocating compressor sealing components.
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This acquisition is a very positive step for FCP and CPI, as well as for EnPro," said Ernie Schaub, EnPro president and chief ...
Finance
Industrial Distribution Group Considers Strategic Alternatives
Industrial Distribution Group, Inc. announced it has formed a committee of independent directors to review strategic alternatives for the industrial distributor, which has about $500 million in annual sales. It also announced it expects revenue for the second quarter to be $132.6 million, down from last year.
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In addition, the company preannounced announced a cost-reduction program and related changes to its executive team.
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The independent committee will be led by the company's non-executive chairman of the board, Richard M. Seigel.
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IDG needs to consistently grow revenues at a higher level while also seeking a strategic way to reduce its cost profile, both of which have been a source of concern," Seigel said. "It is imperative that we take ...
Finance
SKF to Buy Bearings Supplier
SKF has agreed to buy S2M, a subsidiary of British company Edwards Limited, a manufacturer of magnetic bearings, for 55 million euros (US$75.04 million).
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S2M has annual sales of 40 million euros (US$54.5 million). It is headquartered in Vernon, France.
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S2M focuses mainly on the European markets, with end-user segments in vacuum pumps, small air and gas compressors, turbo expanders and compressors in the oil and gas industry.
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S2M will be part of SKF's Industrial ...
Finance
Valley National Gases Acquires Mitchell Industrial
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 ...
Finance
RBC Bearings Acquires Coastal Bearing Services
RBC Bearings Inc., Oxford, CT, an international manufacturer of precision plain, roller and ball bearings, has acquired CBS/Coastal Bearing Services, Houston, TX, for $3.7 million in cash.
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CBS manufactures, inspects and refurbishes large bearings for the oil and mining industries, as well as other general industrial applications with sizes ranging up to 124 inches in diameter. CBS has sales of $3.1 million for the year ended Dec. 31, 2006.


RBC said that CBS represents another step in our strategy to expand our presence in the large bearing segment."

RBC operates 17 manufacturing facilities in four ...
Finance
Wolseley Appoints VP of Acquisitions for NA
UK-based Wolseley plc has appointed Dan Parr to vice president of Acquisitions and Business Integration for Wolseley's North American Division, comprised of Ferguson, Stock Building Supply and Wolseley Canada.
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He will oversee acquisitions, and coordinate business integration and installation into Wolseley's systems and processes.

Parr began his career with Ferguson in 1988 as an Internal Auditor. He was promoted two years later to internal audit manager and transferred to Atlanta, Ga., in 1993 to become the integration manager for our Hub, Inc. acquisition. Parr returned to headquarters in 1995 as manager of Acquisitions and Installations, and was promoted to director in 2003 and to vice president in ...
Finance
Simpson Strong-Tie Buys Swan Secure Products
Simpson Strong-Tie Company Inc. has purchased Swan Secure Products Inc., Baltimore, MD, a manufacturer of stainless steel and other fasteners, for $43.5 million in cash. Swan Secure has locations throughout the U.S.


Simpson offers a line of wood-to-wood, wood-to-concrete, and wood-to-masonry connectors and fastening systems, and pre-fabricated shearwalls. Simpson also sells adhesives, mechanical anchors and powder actuated tools for concrete, masonry and ...
Finance
Platinum Equity to Buy Ryerson for $2B
Platinum Equity has agreed to acquire Ryerson Inc., Chicago, IL, for $2 billion, which includes the assumption of debt. The price represents a 15% premium over Ryerson's closing share price on Feb. 31, 2007, the day Ryerson announced it was considering strategic alternatives.

Ryerson is a distributor and processor of metals in North America, with 2006 revenues of $5.9 billion.
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With the transaction, Ryerson will go from a public to a private company.
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The merger agreement allows Ryerson to solicit additional proposals from other potential acquirers through Aug. 18, 2007.
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When Ryerson announced it was considering strategic alternatives for the company, 50 potential acquirers were identified and contacted, including foreign and domestic ...
Finance
Sumitomo Electric Carbide Buys Master Tool
Sumitomo Electric Carbide Inc., Mount Prospect, IL, has acquired cutting tool manufacturer Master Tool, Grand River, OH.
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Master Tool specializes in the development of custom tooling to machine critical features on engine blocks, cylinder heads, connecting rods, crank shafts, transmission cases and other automotives parts.
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Sumitomo manufactures metal cutting tool ...
Finance
Kendall Electric Buys Roden Electric

Kendall Electric has purchased Roden Electric, an electrical distributor in the South Central U.S. with more than $120 million in annual sales.

Kendall Electric has more than $400 million in annual sales. It serves the Industrial, OEM, and Construction markets.

Roden will continue under the Roden brand name.

Investment banking firm Vetus Partners advised on the ...

Finance
Myers Industries Approves Acquisition by Private Equity Firm
Shareholders of Myers Industries, Inc., Akron, OH, has approved the plan of merger, where Myers Holdings Corp., controlled by GS Capital Partners, would acquire the polymer product manufacturer and distributor of tools, equipment and supplies for $1.1 billion, including the assumption of debt.
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The company had sales of $780 million in 2006.
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GS Capital Partners is part of Goldman Sachs & Co.'s Principal Investment Area in the Merchant Banking ...
Finance
Womack Machine Supply Buys FPS Technologies
Womack Machine Supply Company has acquired Birmingham, AL-based FPS Technologies.

FPS distributes many of the same product lines as Womack (Bosch Rexroth, Haskel, Hydac, Hydraforce) and operates a hydraulic repair center near

Birmingham . The industries they serve include Automotive, Steel, Wood Products, Material Handling and Marine.

The combination of both companies allows Womack Machine Supply to expand distribution and service of fluid power and automation products into Alabama, Mississippi, and the

Florida panhandle.

Womack Machine Supply is an industrial distributor of hydraulic, ...
Finance
M& A at a Record High
Last week continued to be a blockbuster for M & A, with a strong showing by strategic players in the industrial and construction arenas: $400M Kendall Electric will buy $120M Roden</a>; Lewis-Goetz has acquired Samson Industrial</a>; and Saint-Gobain will purchase Norandex.

A recent survey shows that a record $2.7 trillion was spent worldwide on mergers and acquisitions in the first half of 2007 (story). Total mergers in the first half are 67% ...
Finance
Saint-Gobain Acquires Norandex
Saint-Gobain has acquired the Norandex group from Owens Corning. Norandex group is split into two units: building materials distribution and vinyl siding manufacturing. The deal values Norandex at $343 million.
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Norandex had sales of $866 million in 2006.
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The Norandex brand, which will be integrated into Saint-Gobain's Building Distribution sector, has a network of 153 specialized distribution branches dealing mainly in exterior building products (siding, doors, windows, etc.).

Norandex also has three plants used to manufacture vinyl siding, which are distributed by its own branches as well as by other independent distributors. The Norandex plants will be consolidated with the existing production facilities operated by the exterior building ...
Finance
M& A Survey: ‘It’s a Seller’s Market’

A record $2.7 trillion in first half 2007 worldwide mergers has led dealmakers to call the current M & A environment good or excellent (93%), according to a new survey by Association for Corporate Growth (ACG) and Thomson Financial.&nbsp ;

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However, there is growing concern among private equity professionals -who have played an increasingly important role in the merger boom -that the easy availability of debt financing which has helped fuel transactions will tighten, with 68% saying the debt markets will be worse in the next year.&nbsp ;
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The ACG/Thomson DealMakers Survey polled 1,011 investment bankers, private equity professionals, corporate development officers, as well as lawyers, accountants and other service providers involved in the deal ...
Finance
Lewis-Goetz Acquires Samson Industrial

Lewis-Goetz and Company, Inc., Pittsburgh, PA, has acquired Samson Industrial, expanding its reach further into the Southeast and solidifying its presence in the Gulf Coast.&nbsp ;


Samson Industrial is a distributor and fabricator of specialty industrial supplies specializing in fluid and material conveyance, fluid sealing, vibration and dampening, fastening, personal safety and industrial tools. Samson has 15 locations, including its headquarters in Tulsa, OK.


Lewis-Goetz is a distributor of fabricated industrial rubber products including industrial, hydraulic and metal hose, conveyer belts, gaskets and seals, and related accessories.

Private equity firm Audax Group recent bought Lewis-Goetz, which, with recently acquired Goodall Rubber ...
Finance
NESCO Buys Yankee Electric Supply
NESCO, Canton, MA, a full-service electrical distributor serving electrical contractors, national retail accounts, commercial and industrial companies, and institutional accounts, has acquired Yankee Electric Supply.
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Yankee Electric Supply is headquartered in Winooski, VT, with branch locations in Winooski and Morrisville, VT, and in Lebanon and Woodsville, NH. Both Vermont locations also have a Lighting Showroom. Yankee Electric Supply will continue to operate under its name as A Division of NESCO, Needham Electric Supply.
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"For the past year, NESCO has been actively researching opportunities to expand into northern New England," stated Joseph A. Cincotta, CEO of NESCO.
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NESCO and Yankee together will have 12 locations throughout the New ...
Economic Trends
YTD, Machine Tool Consumption Off 68.6% in 2009
March U.S. manufacturing technology consumption was $162.94 million, according to the American Machine Tool Distributors' Association, and the Association For Manufacturing Technology. This total, as reported by companies participating in the USMTC program, was up 22.3% from February but down 71.9% from the total of $579.73 million reported for March 2008. With a year-to-date total of $397.56 million, 2009 is down 68.6% compared with 2008.

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

We are pleased that the monthly totals have continued to increase since the historic lows that we saw in January, said Peter Borden, AMTDA president. "This bounce may have been due to ...
Economic Trends
March Wholesale Revenues Decrease 1.6%
March 2009 sales of merchant wholesalers were $310.9 billion, down 2.4 percent from the revised February level and were down 18.1 percent from the March 2008 level, according to the U.S. Census Bureau. The February preliminary estimate was revised downward $1.2 billion or 0.4 percent.
 
March sales of durable goods were down 3.3 percent from last month and were down 19.6 percent from a year ago. Sales of metals and minerals, except petroleum, were down 10.6 percent from last month and sales of electrical and electronic goods were down 5.9 percent.
 
Sales of nondurable goods were down 1.6 percent from last month and were down 16.9 percent from last year. Sales of petroleum and petroleum products were down 5.1 percent from last month and sales of chemicals and ...
Economic Trends
Expectations Weaken for Manufacturing in 2009
The Institute for Supply Management has released its spring 2009 Semiannual Economic Forecast, which shows that expectations for the remainder of 2009 have weakened in both the manufacturing and non-manufacturing sectors.

The manufacturing summary, as presented by ISM:
While 15% of respondents predict revenues to be 13.7% greater in 2009 than in 2008, an overall revenue decrease of 14.7% is expected for manufacturing as 67% expect a 25.2% decline, and 18% expect no change. This represents a significant decline in expectations from December 2008 when the panel of supply management executives predicted a 1.1% decrease in 2009 revenues compared to 2008. With operating capacity at 67%, an expected capital investment decline of 22.7% and prices expected to decrease 5.3% ...
Economic Trends
Canadian Wholesale Sales Down Slightly In February
Canadian wholesale sales fell 0.6% to $41 billion in February, the sixth decline in seven months, according to Statistics Canada. Declining sales in the machinery and equipment trade group and the "other products" sector were major factors contributing to this decrease. In terms of the volume of sales, wholesale sales were flat.

Canadian wholesalers sell to both the domestic and international markets, and are active importers and exporters. The decline in sales reflected both lower export demand for Canadian goods, a significant part of which flows through wholesale markets, and weaker sales in .

In February, four out of seven sectors, accounting for over two-thirds of total wholesale sales, posted declines. The machinery and electronic ...
Economic Trends
Canadian Industrial Product Price Index Edges Up In March
The Industrial Product Price Index (IPPI) rose 0.3% in March compared with February, due to the depreciation of the Canadian dollar against the US dollar and higher prices for primary metals, according to Statistics Canada. The Raw Materials Price Index (RMPI) advanced 12.1% compared with February, pushed up by a strong increase in crude oil prices.
 
Motor vehicles and other transport equipment rose 0.9%, as a result of the depreciation of the Canadian dollar in relation to its US counterpart. Prices for primary metal products increased 1.3%, pushed up by copper and copper alloys in primary forms. These increases were offset in part by lower prices for metal fabricated products, petroleum and coal products as well as chemical products.
 
The ...
Economic Trends
Construction Spending Up 0.3% in March
Construction spending in March 2009 was up 0.3% to $969.7 billion from the revised February estimate. The March figure is 11.1% below March 2008, according to the U.S. Census Bureau of the Department of Commerce.
 
During the first 3 months of this year, construction spending was 10.9 percent below the same period in 2008.
 
Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $661.0 billion, 0.1% below the revised February estimate. Residential construction was 4.2% below the revised February estimate of $269.6 billion. Nonresidential construction was at a seasonally adjusted annual rate of $402.6 billion in March, 2.7 percent (±1.4%) above the revised February estimate of $392.0 ...
Economic Trends
A Positive Outlook Due to Anticipated Stimulus Spending
Though cement consumption is expected to continue to decline through 2009, the latest economic forecast from Portland Cement Association is looking for recovery in 2010 based in part on new spending from the American Recovery and Reinvest Act of 2009.
 
By the second half of 2010, stimulus spending should enter a phase that includes more traditional infrastructure projects that carry higher cement intensities, said Edward Sullivan, chief economist for PCA.
 
With the double digit declines seen in 2007 and 2008 expected to continue in 2009, the group predicted 7% growth rate for 2010 - a long way from full recovery but a sign of stabilization for an industry that has been beaten badly by the construction slowdown.
 
In his recent ...
Economic Trends
Manufacturing Sector Contracts in April
The manufacturing sector once again contracted in April, according to the latest Manufacturing ISM Report on Business.
 
The decline in the manufacturing sector however has moderated, says the Institute for Supply Management. After six months below the 40% mark, the PMI, driven by the New Orders Index at 47.2%, has shown improvement at 40.1%.
 
Still, ISM reports that "a large gap must be closed before manufacturing begins to grow once again. The Customers' Inventories Index indicates that channels are paring inventories to acceptable levels after reporting inventories as 'too high' for eight consecutive months. The prices manufacturers pay for their goods and services continue to decline; however, copper prices have bottomed and are now starting to ...
Economic Trends
GDP Falls at Rate of 6.1% in 1Q
Real gross domestic product - the output of goods and services produced by labor and property
located in the U.S. - decreased at an annual rate of 6.1 percent in the first quarter of 2009, (from the fourth quarter to the first quarter), according to advance estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP decreased 6.3 percent.
 
The Bureau emphasized that the first-quarter advance estimates are based on source data that are incomplete or subject to further revision by the source agency. The first-quarter "preliminary" estimates, based on more comprehensive data, will be released on May 29, 2009.
 
The decrease in real GDP in the first quarter primarily reflected negative contributions ...
Economic Trends
Survey: Slight Uptick in Optimism Among Industrial Manufacturers
The first quarter edition of the PricewaterhouseCoopers LLP Manufacturing Barometer reported a slight uptick in economic optimism among U.S.-based industrial manufacturers with 16% of executives polled expressing optimism about the U.S. economy over the next 12 months, up 11 points from the previous quarter. More than half the respondents (55%) remain pessimistic about the U.S. economy, which is an improvement from the 70% who were pessimistic last quarter.
 
Anxieties over international prospects remain high amidst the global recession, as 98% of manufacturers marketing abroad agree that the global economy declined in Q1. International sales turned increasingly negative in the first quarter, with more than half (60%) of respondents reporting decreased international sales from ...
Economic Trends
New Orders for Durable Goods Down 0.8% in March
New orders for manufactured durable goods in March decreased $1.3 billion or 0.8 percent to $161.2 billion, the U.S. Census Bureau announced in its advance report. This was the seventh decrease in the last eight months and followed a 2.1 percent February increase. Excluding transportation, new orders decreased 0.6 percent. Excluding defense, new orders also decreased 0.6 percent.
 
Shipments of manufactured durable goods in March, down eight consecutive months, decreased $3.0 billion or 1.7 percent to $175.0 billion. This followed a 0.8 percent February decrease.
 
Unfilled orders for manufactured durable goods in March, down six consecutive months, decreased $11.2 billion or 1.4 percent to $760.3 billion. This followed a 1.6 percent February decrease. ...
Economic Trends
Chicago Fed Midwest Manufacturing Index Falls 2.4% In March
The Chicago Fed Midwest Manufacturing Index fell 2.4% in March, to a seasonally adjusted level of 82.0 (2002 = 100). Revised data show the index decreased 0.4% in February, to 84.0.
 
The Federal Reserve Board's industrial production index for manufacturing fell 1.7% in March. Regional output in March was down 23.2% from a year earlier - lower than the 14.9% decrease in national output.
 
The region's steel sector output dropped 5.5% in March after falling 4.3% in February. The nation's steel output was down 3.8% in March. Regional steel output dropped 34.1% from its March 2008 level, and national steel output fell 24.2%.
 
The Midwest's machinery sector output also declined 5.5% in March after moving down 4.9% in February. ...
Features
Keeping Layoffs to a Minimum
Wholesaler-distributors are searching far and wide for ways to cut costs without cutting people. Here is a look at how some distributors have approached the process.
 
When business began to soften in November for W.P. & R.S. Mars Co., Bloomington, MN, the industrial distributor began preparing for a rough 2009. Then sales plummeted in January, and executives in the company knew some serious decisions had to be made.
 
The management team was pulled together to brainstorm ways to reduce expenses that wouldn't involve layoffs. Our employees are so important to us that we wanted to make cuts in every area before we considered reducing our staff, says controller Beth Ahrens.
 
A desire to avoid layoffs is common among ...
Free
Commentary: Now is the Time to Act
The past few weeks, with a few economic indicators going up here and there, have given many distributors a glimmer of hope that we might be near the trough of the business cycle.
 
For distribution executives, this is the toughest part of the cycle. The difficult decisions made on the way down are not easy, but the bottom line often does the deciding; conserving cash is king. Few distributors and manufacturers have avoided layoffs; indeed some have cut their work force for the first time in decades.
 
It's always possible to be too conservative, but this downturn has redefined what that means. Markets are volatile. A day of strong orders is followed by a day when phones are quiet. It's impossible to forecast effectively to start the rebuilding process. ...
Economic Trends
Inflation by Commodity Group: First Quarter 2009
These select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. First quarter 2009 is compared with first quarter 2008, first quarter 2009 with fourth quarter 2008.
 
The product groups in this report:
 
Abrasives
Adhesives & Sealants
Cutting Tools & Accessories
Hand & Edge Tools
Fasteners
Power-Driven Hand Tools
Ball & Roller Bearings
Mechanical Power Transmission Equipment
Valves, Except Fluid Power
Pumps, Compressors & Equipment
Electrical Machinery/Equipment
Industrial Material Handling Equipment
Industrial Gases
Welding Machinery/Equipment
Fluid Power Equipment
Plumbing Fixtures & Fittings
Hardware
Sanitary ...
Technology
Pushing Ahead With a Warehouse Management System
In a survey for our recent special report, "The State of the Distribution Software Industry," available here, we found that many distributors are continuing to invest in warehouse and inventory management software applications. Particularly now, when efficiency and cost reduction is key, distributors are growing smarter about where they invest to ensure they get a sufficient ROI in a time when ROI is an absolute must.

A recent article in Supply and Demand Chain Executive (sdcexec.com) looked at plumbing, HVAC and PVF distributor Bardon Supplies Limited's decision to move forward with a WMS implementation in 2007; the new warehouse management system was finally in place earlier this year at one of the ...
Economic Trends
Slightly Down is the New Up
The Industrial Supply Association Conference & Trade Fair took place earlier this week. I moderated a panel session, The View from Wall Street on Industrial Markets, with Walter Liptak, security analyst for Barrington Research Associates, Chicago, IL, and Holden Lewis, Industrial Equipment Analyst for BB&T Capital Markets Equity Research, Richmond, VA. They gave the industry insiders in that room (standing room only) a view from the investment side on strengths, weaknesses and trends.
Sometimes the truth hurts, and their analysis of a range of macro trends, end-use markets and outlook for the near-term was not pretty. That said, some of the data gave a glimmer of hope on top of the recent positive signs that we could near the bottom of this cycle and see a ...
Economic Trends
Chicago Fed National Activity Index Edges Down in March
The Chicago Fed National Activity Index was -2.96 in March, down slightly from -2.82 in February. All four broad categories of indicators continued to make negative contributions to the index in March.
 
The three-month moving average, CFNAI-MA3, increased to -3.27 in March from -3.57 in the previous month. March's CFNAI-MA3 suggests that growth in national economic activity was well below its historical trend. With regard to inflation, it indicates little inflationary pressure from economic activity over the coming year.
 
Employment-related indicators made a large negative contribution of -1.27 to the index in March after contributing -1.29 in the previous month. Total nonfarm payroll employment declined 663,000 in March, after decreasing 651,000 in February; ...
Free
Striking a Balance Between Long- and Short-Term Plans
Current economic conditions have impacted the way businesses think about doing business, according to a recent article and survey found in The McKinsey Quarterly.
 
The article, Strategic planning: Three tips for 2009," warns businesses against abandoning strategic planning for survival mode, because eventually the crisis will end.
 
Focusing solely on the recession is a mistake for two reasons, according to the piece:
 
First, market trends are already established, and managers and executives should continue to focus on those for long-term business planning.
 
Second, fixation on the economy itself creates tunnel vision that could ...
Economic Trends
March Housing Starts Fall 10.8% From February
Privately-owned housing starts in March were at a seasonally adjusted annual rate of 510,000, 10.8% below the revised February estimate of 572,000 and 48.4% below the March 2008 rate of 988,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
 
Single-family housing starts in March were at a rate of 358,000; this is unchanged from February. The March rate for units in buildings with five units or more was 116,000.
 
By region, housing starts in the Northeast were down 41.7% from March 2008; in the Midwest, they were down 24.4%. Starts dropped 48% in the South, and the West experienced a decrease of 67.3%.
 
Permits
Privately-owned housing units authorized by building permits in March were at a seasonally ...

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