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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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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
WinWholesale Acquires Tri-State Electric Supply
WinWholesale Inc. has acquired Tri-State Electric Supply, a regional distributor of electrical products based in Cincinnati, OH, the Dayton Business Journal reported. The acquisition gives WinWholesale a chance to build a stronger presence in Ohio, Kentucky and Indiana.
&nbsp ;
Tri-State had $24 million in revenues in 2006. Tri-State has branches in Dayton and Columbus.
&nbsp ;
WinWholesale had $2.6 billion in revenues in 2006 and opened 16 new locations in 2006. It distributes commercial, industrial and residential supplies. ...
Finance
Pro-Build Subsidiary Buys Riverside Roof Truss
US Components, Morristown, NJ, a truss and wall panel supplier and subsidiary of Pro-Build Holdings, has acquired Riverside Roof Truss, Home Channel News reported.
&nbsp ;
Riverside Roof Truss, Danville, VA, is a high-volume maker of floor and roof trusses for Virginia and North Carolina area builders.
&nbsp ;
HCN says that the addition of Riverside expands US Components' reach from New York to South Carolina.
&nbsp ;
According to Pro-Build, US Components will look to continue its expansion through acquisitions as well as start-up operations. Eventually, US components will provide truss and wall panel products to all of Pro-Build's building supply locations, HCN reported.
&nbsp ;
US Components operates six truss plants in the East and Northeast. Pro-Build ...
Finance
FCX Performance Buys RVS Controls
Flow control distributor FCX Performance, Inc., Columbus, OH, has acquired RVS Controls & Instrumentation, distributor of process control instrumentation serving industrial customers in eastern Pennsylvania, southern New Jersey, Delaware, Maryland and Washington D.C.
&nbsp ;
With the acquisition, FCX expands its product range offered in the area through its Sewell, NJ, branch.
&nbsp ;
FCX has about $120 million in annual sales, 15 offices serving 21 states and more than 190 ...
Finance
U.S. Steel to Acquire Lonestar Technologies for $2.1B
United States Steel Corporation, Pittsburgh, PA, has agreed to buy Lone Star Technologies, Inc., Dallas, TX, a manufacturer of welded oilfield tubular goods, for $67.50 per share in cash, or about $2.1 billion. The price is a premium of about 39% to Lone Star's closing share price March 28, 2007.
&nbsp ;
Lone Star Technologies, Inc. is a $1.4 billion holding company whose principal operating subsidiaries manufacture and market oilfield casing, tubing and line pipe, specialty tubing products, including finned tubes used in a variety of heat recovery applications, and flat rolled steel and other tubular products and services.
&nbsp ;
U. S. Steel expects that the acquisition of Lone Star will strengthen its position as a producer of tubular products for the energy sector and ...
Finance
Building Materials Holding Corp Acquires Riggs Plumbing
Building Materials Holding Corporation, San Francisco, CA, announced its wholly owned subsidiary, SelectBuild Construction, Inc. has completed the acquisition of the remaining 27% of Riggs Plumbing LLC.
&nbsp ;
Riggs provides turnkey rough and finish plumbing installation to high-volume residential builders in the Phoenix and Tucson markets and in 2006 had sales of approximately $90 million.
&nbsp ;
SelectBuild acquired its initial interest of 60% of Riggs in April 2005 and acquired an additional 13% in July 2005.
&nbsp ;
BMHC is a provider of services and building materials in the U.S., serving the homebuilding industry through two subsidiaries: SelectBuild provides construction services to high-volume production homebuilders in growth markets across the country; ...
Finance
Lab Supplier VWR Buys German Distributor
VWR International, Inc., West Chester, PA, supplier to the global research laboratory industry, has acquired the remaining 76% interest in KMF Laborchemie Handels GmbH, a German-based scientific laboratory supply distributor.
&nbsp ;
KMF has 70 employees, all based in Germany, with annual revenues of US$45 million.
&nbsp ;
KMF's customers include research institutes, universities, public control laboratories, pharmaceutical and other industries. In addition to its central warehouse in Sankt Augustin, Germany, KMF has branch offices in Lohmar and Leipzig. The Company's mission is to deliver excellence in distribution of scientific supplies and customer service.
&nbsp ;
VWR International is a lab supply distributor with worldwide sales in excess of $3 billion. VWR's ...
Finance
Platinum Equity Completes Purchase of Strategic Distribution

Platinum Equity, Los Angeles, CA, has completed its acquisition of Strategic Distribution, Inc., MRO distributor to industrial and institutional customers in the U.S., Canada, and Mexico.


The acquisition is a public-to-private transaction and Strategic Distribution Inc. has been delisted from the NASDAQ exchange, with each share of common stock converted into the right to receive $10 in cash per share.

In conjunction with the acquisition, Platinum Equity announced that Rudi Strobl has been appointed as CEO of the business. Strobl is a senior executive who previously served as Deputy CEO of DyStar, a Platinum Equity company that is a manufacturer of textile ...
Finance
Airgas to Buy Large Part of Linde’s Packaged Gas Business
Airgas, Inc., Radnor, PA, &nbsp ; has agreed to buy a significant part of the U.S. packaged gas business of Linde AG for $310 million in cash.
&nbsp ;
The operations to be acquired include branches, warehouses, packaged gas fill plants, and other operations involved in distributing packaged industrial and specialty gases and related equipment. The business includes 130 locations in 18 states, with more than 1,400 employees, which generated $346 million in revenues and $36 million in EBITDA in the year ended Dec. 31, 2006.&nbsp ; About 50% of the revenues were from gas sales and cylinder rent, with the remainder from sales of welding equipment and supplies.
&nbsp ;
The proposed acquisition would be positive for customers, associates, and shareholders," said Airgas Chairman ...
Free
84 Lumber Sued by EEOC
The Equal Employment Opportunity Commission has sued building materials distributor 84 Lumber, Eighty Four, PA, for failing to file an Employer Information Report for each year since 2005.
&nbsp ;
In the lawsuit, filed in Pennsylvania's Western District, says that 84 Lumber has not filed reports, despite "written notice and a demand for these documents from the EEOC."
&nbsp ;
The EEOC is the governing body that makes equal employment opportunity policy and approves most litigation. The General Counsel conducts litigation under Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act.
&nbsp ;
For more information on laws and ...
Finance
AmerisourceBergen to Add $2B Distributor to Portfolio
AmerisourceBergen Corporation, Valley Forge, PA, has agreed to buy Bellco Health, a privately held distributor of branded and generic pharmaceuticals, for $235 million in cash.
&nbsp ;
AmerisourceBergen said Bellco will add strength in the New York City area, as well as a sophisticated generic pharmaceuticals sales and marketing business. Bellco also sells dialysis products and services that will complement AmerisourceBergen's specialty distribution business.
&nbsp ;
Headquartered in North Amityville, New York, Bellco Health has annualized revenues of $2 billion and is a major pharmaceutical distributor in New York City, where it primarily services independent retail community pharmacies. Nationally, the company markets and sells generic pharmaceuticals to individual retail ...
Finance
Premier Farnell Sells UK-Based BuckHickman

Premier Farnell plc has agreed to sell BuckHickman InOne, a distributor of industrial tools and supplies, to The BSS Group plc for about & pound; 27 million.



&nbsp ;


BuckHickman had sales of & pound; 99.8 million and operating losses before interest and tax of & pound; 0.8 million for the financial year ended Jan. 28, 2007.



&nbsp ;


Premier Farnell is a global distributor of electronic components and industrial products to the design, maintenance and engineering sectors. It operates in 21 countries. Companies within Premier Farnell Group include Farnell, CPC, BuckHickman InOne,

Newark , MCM, Akron Brass, TPC Wire & Cable and Cadillac Electric.



&nbsp ;


It is ...
Finance
Kennametal to Buy Advanced Materials Business
Kennametal Inc., Latrobe, PA, has agreed to buy Purity Metal Holdings Inc. and its subsidiary International Specialty Alloys Inc.&nbsp ; ISA will become part of Kennametal's Advanced Materials Solutions Group.
&nbsp ;
ISA manufactures high-purity specialty metal products for the aerospace, defense and super alloy industries.
&nbsp ;
This acquisition further supports Kennametal's growth and investment strategies, which include expanding AMSG to eventually represent 50% of its ...
Finance
Carlyle Group to Buy Goodyear Division for $1.5B

Private equity firm The Carlyle Group has agreed to acquire The Goodyear Tire & Rubber Company's Engineered Products Division for $1.475 billion in cash.


Goodyear Engineered Products manufactures hoses, conveyor belts and power transmission belts, as well as tank tracks for military and off-road vehicles. With approximately $1.5 billion in sales, the company serves more than 4,500 customers around the world in a variety of end markets. Following the transaction, the company's headquarters will remain in
Akron, OH
, and current management, including President and CEO Timothy R. Toppen, will continue to lead the business.


The Goodyear Tire & Rubber Company is one of the world's largest ...

Technology
Technology Case Study: Graybar’s Lessons Learned

Electrical distributor Graybar rolled out its new IT system in 2003-2004; the three-year implementation was anything but easy for the $5 billion company. But CFO Beatty D'Alessandro, who oversaw the implementation, says distributors can mitigate the risks inherent with such a transition. Here's how.



Most distributors who are implementing or even considering switching to a new business system may place too much worry on whether the technology will work and what it will cost but not enough on other risks inherent with the transition.


The fact of the matter is if you're with a name-brand software company, the technology is going to work. This is not splitting the atom or curing cancer -we're talking about billing material, and shipping material, and ...
Finance
MDM Interview: Strategic Player to Financial Buyer

In 2006, Charles Banks retired as CEO of global building materials and plumbing/HVAC distributor Wolseley plc. Banks had nearly 40 years with Wolseley and its subsidiary Ferguson. He decided to apply that vast experience elsewhere at retirement and joined the private equity firm Clayton, Dubilier & Rice, long-time investors in the distribution world. He serves as an operating partner for the firm, meaning his job is to help improve purchased companies to boost value for CD & R.

CD & R is an owner of electrical distributor Rexel and lab supply wholesaler VWR International. Both companies may be sold or up for IPOs in the coming months.

Banks recently sat down with MDM to talk about his transition from leading and building a public company to working for a ...
Finance
Value Lessons from HD Supply

Value Lessons from HD Supply
&nbsp ;
What's the value of a $12-billion distribution roll-up of a couple dozen companies, roughly doubling in size the past two years, consisting of a highly diversified portfolio of both branch-based and catalog models, in more than half a dozen product categories?
&nbsp ;
Rumors are floating $9-11 billion as a potential price. With HDS estimated EBITDA somewhere around $1 billion, that puts the valuation in the range of 9-11X EBITDA. Home Depot paid around 12X EBITDA for Hughes Supply a year ago. But this is definitely a seller's market. HD may feel some Wall Street pressure to jettison the unit quickly, but it also is in the catbird seat. As reported by the Financial Times and <a ...
Finance
Stock Building Supply Buys Albuquerque Door
Stock Building Supply, Raleigh, NC, has acquired Albuquerque Door, previously owned by Orepac Building Products. Albuquerque Door assembles pre-hung exterior and interior doors, distributes vinyl windows, and manufactures specialty architectural millwork items for national and custom builders in the Albuquerque and Santa Fe markets.

The company operates from one location in Albuquerque; the acquisition adds approximately 50 associates to the Stock family. All senior management, including manager Carolyn Kidd, will remain with the company.



Stock Building Supply now operates 321 locations in 34 states, with reported sales of $5.3 billion for the fiscal year 2006. Stock Building Supply is a subsidiary of Wolseley plc of Theale, England, which had sales in fiscal ...
Finance
HD Supply Ship About to Sale

While countless offices in this country have the NCAA Men's Basketball Championship pool sapping the life out of productivity this week, I'm guessing there are at least a few pools estimating the date of sale for Home Depot Supply. I don't know what the Vegas odds are, but the probability is close to 100 percent in my book that we see a deal happen. Here's why I think it will be sooner rather than later.


Home Depot CEO Frank Blake said that it was important to determine a course of action for HD Supply so that the company didn't have a foot on the dock and a foot on the boat, as MDM reported on the company's refocus on retail.


Let's get out the spyglass and look at that statement. If ...

Finance
Illinois Tools Works Buys Quasar International

Illinois Tool Works Inc., producer of highly engineered components, equipment, consumable systems, and specialty products, has bought Quasar International, Inc., the inventor of PCRT (Process Compensated Resonant Testing), a NDT (Nondestructive Test) method. Quasar is in Albuquerque, NM. Terms of the transaction were not disclosed.


&nbsp ;


Quasar will continue to operate as an independent company, consistent with the ITW decentralized organization structure. Quasar will be associated with MAGNAFLUX, a division of Illinois Tool Works Inc., a supplier of Magnetic Particle equipment, Dye Penetrant inspection equipment, and associated chemical products used for nondestructive testing. Quasar operations in Albuquerque and Detroit will remain essentially unchanged, and ...
Finance
Beacon Buys $253M North Coast Commercial Roofing
Beacon Roofing Supply, Inc., Peabody, MA, has agreed to acquire North Coast Commercial Roofing Systems, Inc., a Twinsburg, OH-based distributor of commercial roofing systems and related accessories, with 16 locations in eight U.S. states.


&nbsp ;


North Coast has branches in Ohio, Illinois, Indiana, Kentucky, Michigan, New York, Pennsylvania and West Virginia. There is minimal overlap with Beacon's existing locations.


&nbsp ;


North Coast gives Beacon with its first locations in three states: New York, Ohio and West Virginia. North Coast employs 197 associates and had sales of about $253 million for the fiscal year ended March 31, 2006.


&nbsp ;


It will operate as a separate region under the North Coast name.


&nbsp ;


Beacon ...
Economic Trends
Conference Board Employment Trends Index Falls In January
The Conference Board Employment Trends Index fell further in January. The index stands at 96.6, down 1% from the December revised figure of 97.5, and down 18.6% from a year ago.
 
The Employment Trends Index has recently been declining faster than at any time since the 1974 recession, said Gad Levanon, senior economist at The Conference Board. "Such declines suggest considerable job losses will persist for several more months. It is becoming clearer that the continued worsening economic conditions are forcing many companies to make further downward adjustments to their workforce."  
 
The 18-month-long decline in the Employment Trends Index is seen in all eight of its components, most notably over the past six months in ...
Economic Trends
Machine Tool Consumption Down 2.4% In 2008
December U.S. manufacturing technology consumption totaled $194.01 million, according to AMT - the Association for Manufacturing Technology and AMTDA, the American Machine Tool Distributors' Association.  This total, as reported by companies participating in the USMTC program, was down 2.2% from November, and down 53.8% from the total of $419.80 million reported for December 2007.  With a year-to-date total of $4,211.79 million, 2008 is down 2.4% compared with 2007.

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

The 2008 Stimulus Package and the International Manufacturing Technology Show in September were expected to pull orders out of 2009 and place ...
Economic Trends
New Orders Fall 3.9% in December
New orders for manufactured goods in December, down five consecutive months, decreased $14.8 billion or 3.9% to $362.4 billion, the U.S. Census Bureau reported in the preliminary report on Manufacturers' Shipments, Inventories and Orders.
 
This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992 and followed a 6.5% November decrease. Excluding transportation, new orders decreased 4.4%.
 
Shipments, also down five consecutive months, decreased $11.3 billion or 2.9% to $377.6 billion. This was the longest streak of consecutive monthly decreases since March-July 1998 and followed a 6.5% November decrease. Unfilled orders, down three consecutive months, decreased $11 billion or 1.4% to $801.9 billion. ...
Economic Trends
On Renegotiating Contracts, Leases to Cut Costs
In today's conditions, everyone is looking for ways to cut costs. One of the recommendations made by experts is to renegotiate set contracts. (See what Alan Beaulieu had to say on the subject of renegotiation in Economic Forecast Places Start of Recovery in 2010.)
 
How realistic is this method in cutting costs? According to a recent article on WSJ.com, companies have been able to negotiate savings of up to 15% of their operating costs by renegotiating leases. If you're a good paying customer, there's a chance your suppliers will also give you a discount if you agree to terms that can also help them, such as ...
Economic Trends
PTDA Survey: Distributors, Manufacturers Expect Flat Sales In 2009
The mixed results of the 2009 Member Forecast Survey of the Power Transmission Distributors Association underscore the uncertainty in the economy, revealing a healthy dose of optimism mixed in with a cautious outlook for the coming year. 
 
While two-thirds of this year's respondents confirm that the economy is declining, nearly the same proportion project that their sales will increase or remain flat in 2009.
 
The 79 manufacturer respondents are slightly more optimistic about 2009 sales than their 58 distributor counterparts. Nearly half of manufacturers project an increase in sales, compared to 36.2% of distributors. 
 
Overall 42.8% of all firms project their companies' sales will increase in 2009, down roughly 15% from ...
Human Resources in Wholesale Distribution
Keeping Your Senior Managers
A recent survey shows that engagement among your top executives may be falling faster than any other group of employees, according to the Corporate Executive Board. (Read BusinessWeek article here.)


A CEB survey showed that just 13% of senior executives at the vice president level or higher (down from 29% two years ago) say they are willing to go above and beyond what is expected of them."
 
CEB speculates that most companies feel that senior leaders are "just grateful to have a job." But the reality is, "valued players are increasingly likely to be looking around." According to the survey, one of four ...
Economic Trends
Adam Fein on Surviving the Recession
On his blog, Pembroke Consulting's Adam Fein gives us his take based on his experiences at the National Association of Wholesaler-Distributors meeting last week on how the best companies are surviving the recession."
 
He says:
 
"As I see it, the winners are those companies with the will, the skill, and the till to survive this recession. Here are some specific ideas I heard from executives at the wholesaler-distributors that are growing faster (or shrinking more slowly) than competition."
 
His ideas: Work harder, enforce profit discipline, stay connected, acquire distressed competitors, and keep perspective (ie, ...
Economic Trends
Moving Past the Cuts
Employees and their managers are on edge these days; uncertainty about jobs, strategic direction and generally the future of the company can breed a wide range of emotions.
 
A recent Wall Street Journal article addressed this, and the advice offered can be used by employees and managers at all levels. The article says that it takes deliberate thought and action" to get past the cuts.
 
The highlights:


  • Confirm new business priorities based on the new direction of the business and the changing importance of certain projects.


  • Take initiative by looking for work that needs to be done. (To this end, look for ...
Economic Trends
Manufacturing Contracts in January
Manufacturing contracted again in January, according to purchasing managers in the latest Manufacturing Report on Business from the Institute for Supply Management.
 
The report pointed out that the rate of decline as measured by the Purchasing Managers Index was slower than experienced in December. The January New Orders Index is at 33.2%, up from the seasonally adjusted 23.1% recorded in December. While this is a significant month-over-month improvement, it is still a sign of continuing weakness in the sector, according to ISM.
 
The report found that a recovery in automobiles and housing will go a long way toward helping the manufacturing sector recover.
 
The Prices Index indicated significant deflation in prices that manufacturers have to pay for ...
Free
Grainger Names Carruthers President Of International Businesses
Industrial distributor Grainger, Chicago, IL, has named Court Carruthers to a newly created position as president of its international businesses in Canada, Mexico, and China. Carruthers' new responsibilities include growing and improving Grainger's international business operations, which had sales of more than $800 million in 2008.
 
Carruthers is currently president of Grainger's Canadian subsidiary, Acklands-Grainger. He has been with Acklands-Grainger since ...
Economic Trends
Construction Spending in 2008 Down 5.1%
Construction spending in December 2008 was estimated at a seasonally adjusted annual rate of $1,053.7 billion, 1.4% below November. December was 3.6% below December 2007.
 
The value of construction in 2008 was $1,078.9 billion, 5.1% below the $1,137.2 billion spent in 2007.
 
Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $737.1 billion, 1.7% below November. Residential construction was at a seasonally adjusted annual rate of $319.2 billion in December, 3.2% below the November. Nonresidential construction was at a seasonally adjusted annual rate of $417.9 billion in December, 0.4% below November.
 
The value of private construction in 2008 was $770.4 billion, 9.4% below the $850 billion spent in ...
Free
HD Supply to Receive $22M Payout from Home Depot
HD Supply, diversified wholesale distributor in the infrastructure and energy, maintenance, repair and improvement and specialty construction markets, has reached an agreement with The Home Depot, Atlanta, GA, related to post-closing purchase price adjustments from the sale of HD Supply in August 2007.
 
Home Depot sold HD Supply to three private equity firms for $8.5 billion, with the Home Depot retaining a 12.5% equity stake in the company.
 
Under the terms of the agreement, HD Supply will receive a payment of $22 million and other non-cash considerations.
 
"We are very pleased to have reached an agreement and to put this matter behind us," said

Joe DeAngelo, HD Supply's Chief Executive Officer, ...
Economic Trends
New Orders for Durable Goods Fall 2.6% in December
New orders for manufactured durable goods in December decreased $4.7 billion or 2.6% to $176.8 billion, the U.S. Census Bureau announced. This was the fifth consecutive monthly decrease and followed a 3.7% November decrease. Excluding transportation, new orders decreased 3.6%. Excluding defense, new orders decreased 4.9%.
 
Shipments
Shipments of manufactured durable goods in December, down five consecutive months, decreased $1.4 billion or 0.7% to $191.3 billion. This followed a 4.2% November decrease.
 
Unfilled Orders
Unfilled orders for manufactured durable goods in December, down three consecutive months, decreased $10.3 billion or 1.3% to $803.2 billion. This followed a 0.9% November decrease. ...
Economic Trends
Advance Estimates: GDP Falls 3.8% in 4Q
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 3.8% in the fourth quarter of 2008, (that is, from the third quarter to the fourth quarter), according to advance estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP decreased 0.5%.
 
The Bureau emphasized that the fourth-quarter advance estimates are based on source data that are incomplete or subject to further revision by the source agency. The fourth-quarter "preliminary" estimates, based on more comprehensive data, will be released on Feb. 27, 2009.
 
The decrease in real GDP in the fourth quarter primarily reflected negative contributions from exports, ...
Economic Trends
Industrial Manufacturers Expect Zero, Negative Growth in 2009
U.S.-based industrial manufacturers are expecting revenue growth to turn negative over the next 12 months, according to the fourth-quarter edition of the PricewaterhouseCoopers LLP Manufacturing Barometer. For the first time since the Barometer's inception in the third quarter of 2003, more manufacturers are preparing for negative growth (33%) than those expecting positive revenue growth (25%). Meanwhile, another 34% are expecting zero growth.
 
In the year ahead, manufacturing executives anticipate a sharper year-to-year drop-off in revenues, down to an average of -2.4%. Just one year ago, survey respondents forecasted a mean revenue growth of +5.4%.
 
For the first time in the Barometer's history, industrial manufacturers are ...
Economic Trends
Small Distributors Look For Opportunity, Survival In Tough Economy
It's not all doom and gloom in the industrial distribution world. According to the Nashville Business Journal, some companies are still finding opportunity. A new startup industrial distributor Alliance Distribution Partners LLC picked Gallatin, TN, to be its headquarters and will begin employing people immediately. (Full article can be read here.)


Though small - the company will employ 15 people initially, with expansion plans already in place to increase the workforce to 50 over the next two years - the move is a sign that there may still be opportunity for smaller distributors in certain markets. Of course, it's yet to be seen whether the company ...
Economic Trends
Evolving Sales Force and Process in 2009
Companies of all types have made tough cuts in the past two months, and have focused on tightening the ship for 2009. Every business activity has to have a clear ROI this year and many entrenched business models are coming under fire. In a survey of the MDM audience on profitability earlier this month, distributors indicate primary investment areas this year will be in new market development, online sales capabilities, and in outside sales activities.
 
While some people might think hybrids are the hope of the automotive industry, I think we will see distributors increasingly build more efficient hybrid sales models. Resource-guzzling outside salespeople won't make the cut this year. Companies will get much more strategic about assembling a combination of online sales ...
Economic Trends
Economic Forecast Places Start of Recovery in 2010
We all left the presentation by Institute for Trend Research's Alan Beaulieu feeling more than a little pessimistic. This is not surprising, given that Beaulieu's economic forecast did not see any sort of recovery until 2010. What's more, he forecast that things would get worse before they get better.
 
He spoke at the National Association of Wholesaler-Distributors annual meeting going on this week in Washington, D.C.
 
Beaulieu forecast the recession we are in right now - though he admits that in some areas he didn't foresee how bad it could get. The first half of his presentation was filled with a lot of doom and gloom, but the second half was more productive, focused on strategies to come out the other side of this recession ...
Economic Trends
Canadian Wholesale Revenues Down 1.6% in November
Source: Statistics Canada

Canadian wholesale revenues fell 1.6% from October to $44.4 billion in current dollars in November, as decreases in four out of seven sectors contributed to the third decline in four months. In terms of the volume of sales, wholesale sales were down 3%.
 
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.
 
At current prices, the machinery and electronic equipment sector declined 1.6% in November, reflecting a 1.9% sales drop in the machinery and equipment trade group, ...
Free
Barnes Group Reports Company Cost-Saving Measures
Barnes Group Inc., Bristol, CT, an international aerospace and industrial components manufacturer and logistical services company, reported several actions undertaken in 2008 to address deteriorating economic conditions and improve performance of its global business segments.
 
During the fourth quarter of 2008 our entire organization continued to proactively anticipate and adapt to the unprecedented changes affecting all of our businesses as a result of the tumultuous economy, said Gregory F. Milzcik, president and CEO. "Given the deceleration in global demand for our products and services we took numerous actions to improve our overall cost structure, enhance our manufacturing footprint, and strengthen our global operations.
 
A freeze on all ...

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