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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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Research & Analytics
Global Competition on a Local Level

This article is part of an ongoing series looking at The Shifting Competitive Landscape in wholesale distribution. Read this and other articles in the series at www.mdm.com/shiftinglandscape.

Cross-border M&A in wholesale distribution has accelerated in recent years, adding to an increasingly busy competitive landscape. The U.S. market continues to be attractive to Europe-based distributors seeking growth outside of their traditional markets. This article looks at this trend and the impact it has had on the market.

In recent years, Europe-based distributors have accelerated their expansion in the U.S. As a result, local and regional distributors are increasingly facing local competitors backed by resources they did not have access to previously.

“As Thomas Friedman says, the world is truly flat,” says Robert Stolz, who leads Wurth Group’s North American …

Technology
Commentary: Shifting Landscape, Shifting Relationships

If there’s anything I’ve learned in my time covering the wholesale distribution industry, it’s that distributors hold one thing above all else: relationships. Even in the shifting competitive landscape, relationships have an important role in this industry.

Sure today’s distributor may look a lot different than distributorships of the past. Once-local businesses are being bought up by larger national or …

Technology
MDM Interview: Disintermediation & Channel Conflict

Principia Consulting’s Building Products Distribution 2012 study identifies the best growth opportunities in the sector through 2014 and provides strategies for value creation and competitive advantage.

Ken Jacobson, partner at Principia, spoke with MDM staff writer Angela Poulson about the study’s findings, including increased disintermediation and how distributors can stay competitive despite e-commerce’s role in accelerating this trend.

MDM: In Principia’s 2011 survey, 50 percent of building products distributors expected industry-wide growth of at least 5 percent in 2012. What are distributors’ expectations for 2013?

Ken Jacobson: It depends on the day of the week that you’re asking. It depends on the still-looming status …

Finance
Praxair Acquires Wilson Welding
Praxair Distribution, Inc., a subsidiary of Praxair, Inc., Danbury, CT, has acquired Wilson Welding & Medical Gases of Warren, MI. Wilson is a distributor of industrial, medical, specialty gases and related equipment and supplies.
&nbsp ;
Wilson operates a cylinder filling plant and retail store in Warren, retail stores in Macomb and Pontiac, and a beverage CO2 business in Flint, Michigan. The business generated sales of $20 million in 2006 and has 72 employees.
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Praxair, Inc. is a global industrial gases with 2006 sales of $8.3 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of ...
Finance
Houston Investor Wins $36M in Acquisition Suit
A Houston, TX, investor who alleged that private investment firm Key Principal Partners, LLC and corporate parent Key Corp. secretly cut him out of a 2003 deal to acquire one of Hawaii's largest lumber suppliers has won a $36.5 million jury verdict against the companies.


A Honolulu circuit court jury found late Wednesday that the Key defendants breached their fiduciary duties, intentionally interfered in investor Richard R. Foreman's attempts to acquire Honsador Lumber Corp, and violated Hawaii's unfair competition statute.

Foreman alleged that he and a group of investors that included Key Principal Partners, LLC formed a partnership in 2003 to buy Honsador for $28 million. According to the lawsuit, Key wrongfully withdrew from the partnership and then secretly ...
Finance
Fletcher Building Buys Formica for $700M

Fletcher Building Limited, Auckland, New Zealand, has acquired Formica Corporation, Cincinnati, OH, for $700 million. Fletcher is a publicly traded material and construction company with revenues of US$4 billion.

The company has five operating units: Laminates & Panels, Building Products, Steel, Infrastructure and Distribution.

Formica will retain the South America operations and certain real estate in California.

Formica has 14 manufacturing and 33 distribution facilities across Asia, Europe and North America.


In the near term, Formica will be structured as a business unit within the Fletcher Building Laminates & Panels division. Frank Riddick will remain as president and CEO of Formica and the management team will remain with the ...
Finance
Private Equity Firm Buys Mark IV’s Fluid Handling Unit

Sun Capital Partners, Inc., Boca Raton, FL, private investment firm announced that one of its affiliates has acquired the automotive OEM fuel and fluid handling operations of Mark IV Industries, Inc., Amherst, NY/Airasca, Italy, which will operate under the name, Fluid Routing Solutions, Inc.
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FRS designs and manufactures highly-engineered fluid and fuel handling systems from six facilities in Florida, Michigan, South Carolina, Tennessee and Quebec. Products are sold to original equipment automotive manufacturers serving customers in North America, Europe, South America, Asia and the Pacific regions.
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Fuel system products include fuel filler assemblies, evaporation canisters, and coolant hoses primarily for original equipment channels. Fluid handling ...
Finance
Danaher Agrees to Buy ChemTreat for $435M

Danaher Corporation has agreed to buy ChemTreat Inc., a provider of water treatment products and services, for $435 million in cash.
&nbsp ;
Headquartered in Glen Allen, VA, and with revenues of over $200 million in its most recent completed fiscal year, ChemTreat serves a broad set of end markets with a particular focus on boiler, cooling water and industrial waste water applications.
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Danaher is a manufacturer of Professional Instrumentation, Medical Technologies, Industrial Technologies and Tools and ...
Finance
MN-based JH Larson Buys Lappin Lighting

JH Larson Electrical Company, Plymouth, MN, has purchased Lappin Lighting, a full-service lighting showroom, Minneapolis, MN. Lappin serves the commercial and residential lighting markets.

&nbsp ;
JH Larson serves the electrical, plumbing and HVAC residential and commercial markets. It has 240 employees in eight branches. It is in three ...
Finance
Beyond the HD Supply Factor

The volume of mergers and acquisitions activity in distribution has increased substantially over the past 12 months. Along with a continued increase in interest from private equity firms, strategic buyers have reentered the fray, both in the U.S. and overseas. The market will likely plateau or even soften in the next year or so, especially in sectors affected by the downturn in residential construction. Right now though, the market is hot -maybe even too hot, according to some industry experts. What's more, an HD Supply spin-off could have an impact on valuations and provide opportunity to competitors of its diverse units.



HD Supply
Home Depot's potential spin-off of its $12-billion wholesale division -announced in February by the $90-billion ...
Finance
Grainger President: M& A Shifts Market

The competitive landscape has shifted thanks to growing consolidation, Grainger President and COO Jim Ryan said recently.


Small regional and local distributors still command the overwhelming share of this market," he said. "But they're under attack from larger regional and national players. The billion-dollar plus players are growing at a disproportionate rate to the market and to their smaller competitors.


"...There is going to be a need for specialist distributors, and there is absolutely a place for large-scale distributors. The ones who will find it more difficult are the generalists in the middle."


Ryan was addressing analysts attending the annual meeting of the Electrical Products Group of New York. Grainger is a $5.9 billion broad-line supplier of ...
Human Resources in Wholesale Distribution
Legal Risks in Health Care Plans

Employer spending on health care continues to grow so many employers are focusing on hiring healthier employees. This article looks at some of the federal and state laws that affect decisions regarding who to hire based on health considerations.



In recent years most employer provided health plans have significantly raised employees'co-payments so that the amount of money employers spend on prescription medication has decreased. Nevertheless, employer spending on total health care still exceeds the rates of general inflation. Indeed, such spending increased 7.7% in 2006.
Given the continuing increase in employer spending it's not surprising that employers are focusing on hiring healthy employees, wellness programs and on employer provided drug programs. Doing so is ...
Finance
Rockwell Automation to Acquire ICS Triplex

Rockwell Automation, Inc., Milwaukee, WI, has agreed to acquire UK-based Industrial Control Services Group Limited for & pound; 110 million (US$218.4 million) in cash. ICS does business as ICS Triplex, a global supplier of control and safety solutions to process industries.
&nbsp ;
ICS Triplex annual revenues are projected to be & pound; 70 million (US$138.9 million) for its current fiscal year which ends May 31, 2007.
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Headquartered in Maldon, United Kingdom, ICS Triplex has more than 500 employees and operations across Europe, the Middle East, Asia and North America. It serves industries including oil and gas exploration, production, transportation and refining as well as chemicals and power generation.
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ICS Triplex will be included in ...
Finance
RBC Bearings Buys Phoenix Bearings
RBC Bearings Incorporated, Oxford, CT, a manufacturer of highly-engineered precision plain, roller and ball bearings for the industrial, defense and aerospace industries, has acquired Phoenix Bearings Limited for $4.3 million in cash.

Phoenix, in Gloucestershire, England, manufactures bearings for the steel and mining industries as well as other general industrial applications with bore sizes ranging from 100 millimeters to one meter. Phoenix generated revenues of $4.5 million in its most recent calendar year.

RBC Bearings Incorporated is an international manufacturer and marketer of highly engineered precision bearings and ...
Finance
ITW Buys Tregaskiss Welding Products
Illinois Tool Works has acquired Tregaskiss Welding Products of Windsor, Ontario, Canada.
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Tregaskiss is a manufacturer of robotic and semi-automatic MIG welding torches and peripherals.
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Tregaskiss, a privately held company, employs 179 people and offers its products through welding supply distributors in Canada and the U.S. The company will continue to operate independently, which is consistent with ITW's decentralized organizational structure.
&nbsp ;
Other ITW welding companies include Hobart Brothers, Jetline Engineering, Smith Equipment, Tempil and Weldcraft.
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ITW, Glenview, IL, is a $14.1 billion diversified manufacturer of highly engineered components and industrial systems and ...
Finance
GE Sells Plastics Business for $11.6B

GE has agreed to sell GE Plastics to Saudi Basic Industries Corporation (SABIC), a global petrochemicals manufacturer, for $11.6 billion in cash plus assumption of debt.

&nbsp ;
GE Plastics is a $6.645 billion global supplier of plastic resins widely used in automotive, healthcare, consumer electronics, transportation, performance packaging, building and construction, telecommunications, and optical media. It is headquartered in Pittsfield, MA. and employs 10,300 people in 60 locations worldwide.
&nbsp ;
SABIC is&nbsp ; one of the world's 10 largest petrochemicals manufacturers ranked by market capitalization (currently US$80 billion). The company produces polyethylene, polypropylene, glycols, methanol, and fertilizers as well as the fourth largest polymer producer. ...
Finance
Airgas Acquires Unit of Continental Nitrogen & Resources
Airgas, Inc., Radnor, PA, has acquired the aqua ammonia operations of Continental Nitrogen & Resources in Rosemount, MN, which had more than $2 million in revenues in 2006.
&nbsp ;
The business will be integrated into Airgas Specialty Products, a leading national distributor of ammonia products and services, various process chemicals, and refrigerants. &nbsp ; Other operations of CNR were not included.

This acquisition is in line with our strategy to expand our aqua ammonia business and capabilities and serve our growing customer base across the U.S.," said Chuck Broadus, president of Airgas Specialty Products, Duluth, GA.

Airgas Specialty Products has 24 locations nationwide for distribution of anhydrous ammonia and aqua ammonia products and services and ...
Finance
Audax Group Acquires Seal Supplier UTEX
Audax Group, Boston, MA, has acquired UTEX Industries, Inc. Headquartered in Houston, TX, UTEX is a manufacturer of complex gaskets and highly engineered seals to oil and gas, water distribution, and industrial end markets.
&nbsp ;
UTEX CEO Michael Balas will continue to lead the management team.
&nbsp ;
Audax Group Co-CEO Geoffrey S. Rehnert says the firm, which invests in middle-market companies, wants to capitalize on positive trends in the energy market. Audax plans to grow the business by expanding into new markets and executing strategic add-on acquisitions.<br ...
Finance
State Industrial Products Buys Ohio Soap Products

State Industrial Products, Cleveland, OH, has acquired Ohio Soap Products of Parma, OH, a Cleveland suburb.

&nbsp ;
Ohio Soap is a manufacturer and distributor of institutional ware washing equipment and cleaning products with $10 million in annual sales and 100 employees.
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Founded in 1911, privately-owned State Industrial Products has 1,200 employees and annual sales of more than $100 ...
Finance
Eaton Acquires Medium-Voltage Drive Business
Diversified industrial manufacturer Eaton Corporation, has acquired the technology and related assets associated with SMC Electrical Products, Inc.'s industrial medium-voltage adjustable frequency drive business.
&nbsp ;
This acquisition complements Eaton's already strong position as a manufacturer of medium-voltage motor control products," said Randy Carson, Eaton senior vice president and president -Electrical Group. "By incorporating this product into our power distribution and control assemblies portfolio, we will be able to provide our customers with a comprehensive solution to address their motor starting needs."
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Eaton Corporation had 2006 sales of $12.4 billion.&nbsp ; Eaton has 61,000 employees and sells products to customers in more than 125 ...
Finance
Pearlman Industries Buys Tool Distributor
Pearlman Industries, Inc., Commerce, CA, which was recently acquired by Harbour Group, has acquired Dimensional Tools, Inc., Dallas, TX.
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Dimensional Tools, based in Dallas, will become part of Pearlman's Keystone Tools division.

Dimensional Tools is a distributor of products for the stone fabrication market. It has locations in Dallas and Phoenix as well as a fleet servicing customers in the field.
&nbsp ;
Pearlman Industries, Inc. is a supplier of diamond cutting products and abrasives to professionals in diverse end-markets, including stone, tile, construction, welding, and equipment rental. The company has two divisions: Pearl Abrasives, which develops branded abrasives and diamond products sold through distributors to a wide range of industries; and ...
Finance
Praxair Invests in Scandinavian Industrial Gases Co.
Praxair, Inc., Danbury, CT, has agreed to buy a 50% stake in the industrial gases business of Yara International ASA of Norway.

The joint venture would initially include Yara's existing industrial gases businesses in Norway, Denmark and Sweden. The venture would operate under the name Yara Praxair AS and would be based in Oslo, Norway. The intentions are to establish the new company during the third quarter.

Yara generated annual sales of US$150 million in fiscal year 2006.

Combining the strong market position and name recognition that Yara enjoys in Scandinavia with Praxair's operational expertise and technology offerings, particularly in the areas of energy and environmental applications, creates a very compelling partnership," said Steve Angel, chairman ...
Economic Trends
Canadian Manufacturing Sales Fall 8% in December
Canadian sales declined 8.0% to $44.2 billion in December, reflecting almost equal decreases in both volume and price, according to Statistics Canada. This was the largest monthly percentage decline since the start of the current series in January 1992.
 
Constant dollar manufacturing sales, measured in 2002 prices, decreased by 4.4% in December.
 
By Sector
Declines were widespread in December, as sales fell in 20 of 21 manufacturing industries. The printing and related support activities industry recorded the only increase (+0.1%).
 
Manufacturing sales in the petroleum and coal products industry fell 18.4% to $4.4 billion. Sales have decreased by almost $3.8 billion ...
Economic Trends
Canadian Wholesale Revenues Fall 3.4% in December
Canadian wholesale sales declined 3.4% to $42.8 billion in December, the largest month-over-month decrease since August 2003, according to Statistics Canada. In terms of the volume of sales, wholesale sales fell 3.6%.

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 Canada.

In December, five out of seven sectors, which account for about two-thirds of wholesale sales, reported declines. The machinery and electronic equipment sector declined 4.5% in December. The automotive products sector declined 3.4% ...
Economic Trends
Warren Buffet Finds Reason to Be Hopeful in Annual Letter
Berkshire Hathaway Chairman Warren Buffet found reason to be optimistic in his 2008 annual letter to shareholders (released at the end of February and available here).
 
He uses a slew of graphic metaphors - "By year-end, investors of all stripes were bloodied and confused, much as if they were small birds that had strayed into a badminton game." - but threw in some optimism, reminding his shareholders that the country has "faced far worse travails in the past." Among those: two great wars, a dozen or so panics and recessions; virulent inflation leading to a 21½% prime rate in 1980; and the Great Depression, when unemployment was between 15% and 25% for ...
Research & Analytics
Graybar & Other Wholesalers On Fortune’s Most Admired List
Fortune magazine's annual World's Most Admired Companies list is out.

Of any wholesaler-distributor, Graybar showed up the most. The electrical distributor ranked No. 1 in diversified wholesalers, but also found itself in the top 10 on several breakout lists, including management quality, long-term investment, financial soundness, quality of product and services, use of assets, people management and innovation.

(An interview with Graybar CFO Beatty D'Alessandro was featured in the Feb. 25, 2009, issue of MDM. Read it here.)


Foodservice distributor Sysco also made the financial ...
Economic Trends
Industrial Outlook: Just 1 of 24 Industries in Report Will Grow in 2009
The latest Manufacturers Alliance/MAPI U.S. Industrial Outlook forecasts that growth will occur in one of 24 industries covered in the report in 2009: aerospace products and parts. The reports says that 19 of the 24 industries is expected to expand in 2010, with housing starts growing by 84%.
 
Four industries will see negative change in 2009 and 2010, according to the outlook, with mining and oil and gas field machinery the weakest. That industry is expected to fall 13% in 2009 and 24% in 2010. Other declines are expected in domestic electronic computer equipment, private nonresidential construction, and electrical equipment.
 
Read the full report at <a href=http://www.mapi.net" ...
Free
Timken To Streamline Operations
The Timken Company, Canton, OH, is realigning its organization to improve efficiency and reduce costs. As the company streamlines its operating structure, it expects to cut its salaried workforce by up to 400 positions in 2009.
 
Over the past 15 months, the company has lowered production and cut its manufacturing workforce by approximately 2,500 positions. Other steps, such as short work weeks and reduced operating hours, have been taken to better align output to demand.
 
We are taking actions to align our organization for effectiveness and to right-size our cost structure to increase our competitiveness in today's global markets, said James W. Griffith, president and CEO. "Our focus now is to align our administrative and sales functions ...
Research & Analytics
Arrow Electronics To Name Long CEO
The board of directors of Melville, NY-based Arrow Electronics, Inc. will name Michael J. Long CEO at the company's annual meeting on May 1, 2009. Long will replace William E. Mitchell, who has held the post since 2003.
 
An 18-year veteran of Arrow, Mr. Long has served as president, COO and a director of the company since March 2008, with responsibilities for all of the company's business operations.
 
Mike's commitment to driving profitable growth and talent development and his outstanding record of achievement have been critical to Arrow's strong financial and market position, Mitchell said. "His solid leadership in our global operations and success in delivering on Arrow's strategic initiatives will ensure ...
Economic Trends
Manufacturing Contracts in February
The manufacturing sector contracted again in February, according to the latest Manufacturing ISM Report on Business from the Institute for Supply Management.
 
ISM reported: "Manufacturing continues to decline at a rapid rate ... While production has slowed its rate of decline, employment continues to fall precipitously. Prices continue to decline, but price advantages are not sufficient to overcome manufacturers' apparent loss of demand. Survey respondents appear generally pessimistic about recovery in 2009. Some express hope that the stimulus package will help their industry."
 
None of the 18 manufacturing industries in the survey reported growth.
 
A transportation equipment manufacturer said that customers are being cautious about ordering ...
Research & Analytics
For Grainger, Product Expansion Will Continue to Be A Priority
Chicago-based facilities maintenance distributor Grainger won't be slowing its product expansion anytime soon. According to Fred Costello, vice president-product management, the strategy is a priority going forward.
 
This year, Grainger's catalog is 64,000 SKUs thicker, or 33% larger than last year's. Grainger now has 240,000 SKUs available in print, and 300,000 on its Web site. The goal of the product expansion is to fill gaps in its already broad offering and reach out to new customers, in an effort to become a "one-stop shop," Costello tells me.
 
MDM Publisher Tom Gale recently wrote in the Feb. 25 issue of MDM that Grainger has a history of building market share in downturns; Grainger's ...
Economic Trends
Fourth-Quarter GDP Fell 6.2% in Latest Estimates
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 6.2 percent in the fourth quarter of 2008, (from the third quarter to the fourth quarter), according to preliminary estimates released by the Bureau of Economic Analysis. 
 
These GDP estimates are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the decrease in real GDP was 3.8 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 were partly offset by a positive ...
Research & Analytics
Commentary: Grainger Moves Are Worth Watching
W.W. Grainger has increased the number of SKUs in its catalog 33 percent, year-over-year. The massive scale of Grainger's product expansion over the past few years indicates a reorientation of Grainger's traditional model.
 
Five years ago, Grainger invested in a multiyear branch expansion program in the top 25 major metro markets. The goal was more local sales people and larger, more merchandise-oriented branches. In 2003, the company set an aggressive 7-10 percent annual growth rate target, and this effort was the engine. The company saw an opportunity to take market share from competitors by increasing presence in local markets.
 
The effort was all about increasing customer service. The recent product expansion effort has come with an increased focus ...
Economic Trends
Strategies for Surviving the Recession

The economic outlook looks very grim right now. The housing-led slowdown that began in 2007 has now turned into a deep U.S. recession that looks likely to be the longest and deepest downturn since the 1930s.

Unprecedented financial and credit market volatility has reduced prospects for a quick turnaround. Both U.S. Gross Domestic Product (GDP) and the wholesale distribution industry's revenues will decline this year.

As I see it, the companies with the will, the skill, and the till have the best chance of surviving the downturn and coming out with a better position on the other side:

  • The skill to manage their businesses well despite a crisis; ...
Research & Analytics
Grainger Plans to Continue Rapid Product Expansion
Chicago, IL-based facilities maintenance distributor Grainger has added 64,000 products to its catalog, along with 27,000 more to its Web site. The additions to the company's catalog are a 33 percent increase over last year's 180,000. (Some products were also removed this year.)
 
Grainger now has 240,000 products in its catalog and 300,000 online.
 
In an interview with MDM, Fred Costello, vice president - product management, says Grainger will continue adding products over the next several years.
 
Every catalog will continue to see a similar increase, Costello says.
 
"Product line expansion is a Grainger priority. … I can say with confidence that our Canadian and Mexican business units are also ...
Economic Trends
Monthly Wholesale Trade: Sales and Inventories for December 2008
December 2008 sales of merchant wholesalers were $336.1 billion, down 3.6 percent from November and down 10.7 percent from the December 2007, according to the U.S. Census Bureau. December sales of durable goods were down 2.0 percent from last month and were down 9.4 percent from a year ago.
 
Compared to last month, sales of lumber and other construction materials were down 8.6 percent and sales of motor vehicle and motor vehicle parts and supplies were down 8.1 percent. Sales of nondurable goods were down 4.9 percent from last month and were down 11.8 percent from last year. Sales of petroleum and petroleum products were down 16.4 percent from last month and sales of farm product raw materials were down 9.4 percent.
 
Inventories. Total inventories of ...
Economic Trends
Global M&A Activity Falls 38.7% in January
M&A deal activity fell by 38.7 percent globally in January, according to the latest Robert W. Baird & Co. monthly M&A market analysis. It's the largest monthly decline since Sept. 2001, the firm says.
 
Dollar volume for January was up 14.6 percent, but excluding the Pfizer-Wyeth deal, global M&A volume was down 40.1%. The middle market saw greater hits than the overall market. Strategic acquisitions continue to increase as a percentage of all deals.
 
A bright spot to the report: The credit markets appear to have "largely stabilized." That said, the report acknowledges that credit is available at much lower levels, higher interest rates and tighter covenants than before. "The ability to raise debt for acquisitions is a key component ...
Economic Trends
MDM Interview: Growth in a Difficult Climate
MDM Editor Lindsay Young sat down with Graybar Senior Vice President and CFO Beatty D'Alessandro at the January meeting of the National Association of Wholesaler-Distributors to talk about current market conditions and Graybar's approach to growth.
 
The Graybar veteran also addressed the electrical distributor's M&A strategy, recent drops in commodity prices, plans for technology and global opportunities. Part II of this interview, to be published March 10, will cover how Graybar is addressing the recruitment, retention and training of its employees.
 
Graybar is a $5.2 billion North American distributor of electrical and networking products.
 
MDM: How is Graybar doing this ...
Economic Trends
3M: The Principle Effects of a Severe Downturn
Here's what 3M's George Buckley had to say about current conditions and supply chain partner reaction in the manufacturer's recent earnings call with analysts:
 
"While weak business conditions, poor consumer confidence and the psychological fear factor made it worse, we believe the principle cause of the severe downturn was the shortage of credit to lubricate the wheels of global commerce. That fact effectively locked the cycles of the world's major economies into synchronism and into shrinking mode.
 
"… There are always three principle effects that one sees at times like these. The first is that the rate of contraction in sales at wholesale is always a multiple of the rate of contraction in point of sale or retail. This happens as the channel ...
Economic Trends
Survey: Many Companies Have Not Yet Cut Staff
On almost any given day, another company is announcing another round of layoffs in response to the recession. But even with the sky-high numbers we're seeing, some analysts are beginning to say that it's not as bad as it could be.
 
A recent survey conducted for Towers Perrin showed that companies have been taking a more measured approach to cutting costs, looking at a variety of options before resorting to layoffs. Of the 513 companies who responded to the survey, only 11% said they had made significant reductions in headcount (defined as 10% or more of the workforce). That said, 19% are now considering significant reductions or have such reductions planned.
 
Other methods being utilized include: hiring freezes or reductions, cutting travel and ...

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