BSA launches 2009 convention Web site
MSC posts sales decline
Manufactured goods order decrease
BMHC to close facilities
SPX sells GSE Scales to ITW
EMS acquires Cowboy Valve & Fittings
CUMI to expand North American footprint
Purvis buys Bearing Belt chain
Three hose distributors form HosePower
Esco Tool opens new facility
Airgas buys Great Lakes Oxygen
ISM index drops to 32.4
Gateway publishes new catalog
Productivity Inc. joins IBC
Survey: Distribution industry confidence drops
Columbus McKinnon makes organizational changes
3M and EVG Group setting patent suit
MSA offers employee buyouts

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BSA launches 2009 convention Web site
The Bearing Specialists Association (BSA) launched a Web site detailing its 2009 Annual Convention May 2-5 at the Hyatt Grand Cypress Hotel, Orlando, Fla.

In addition to general information about programming and social activities, the site (www.bsaconventions.org) links to the hotel for room reservations and to the association for convention registration. From February 1st through April 1st, it will also allow distributor attendees to register online for the Conference Table Sessions with participating manufacturers. The pre-planned, one-on-one meetings between distributors and manufacturers are one of the convention's most highly-regarded events.

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MSC posts sales decline
01/08/09 – MSC Industrial Direct reported net sales for the fiscal 2009 first quarter of $433.0 million, compared to $437.6 million in the fiscal 2008 first quarter. Operating income was $74.4 million, or 17.2 percent of net sales, compared to $78.0 million, or 17.8 percent a year ago. Net income totaled $45.1 million, compared to net income of $46.9 million in the first quarter of fiscal 2008.

“Market conditions continued to deteriorate during the quarter as the economic downturn deepened,” said David Sandler, president and CEO. “Having managed through market cycles in the past, MSC moved quickly to control spending and maximize profitability despite the effects of overall market conditions on our sales levels.”

Sandler said the company is operating in one of the most challenging markets ever experienced. “Feedback from our customers indicates that conditions continue to deteriorate, with many reporting declines in revenue and orders and strict initiatives to eliminate non-essential spending,” he said.

For the second quarter, MSC expects net sales to be between $354 million and $366 million.

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Manufactured goods order decrease
01/06/09 – New orders for manufactured goods decreased $18.7 billion or 4.6 percent to $384.6 billion in November, the U.S. Census Bureau reported today.

This followed a 6.0 percent October decrease and marks the fourth consecutive drop. Excluding transportation, new orders decreased 4.2 percent.

Shipments, also down four consecutive months, decreased $22.1 billion or 5.3 percent to $393.8 billion. This was the largest percent decrease since the series was first published on a NAICS basis in 1992 and followed a 3.6 percent October decrease.

Unfilled orders, down two consecutive months, decreased $5.3 billion or 0.6 percent to $815.4 billion. This followed a 0.9 percent October decrease. The unfilled orders-to-shipments ratio was 5.82, up from 5.69 in October.

Inventories, down three consecutive months, decreased $1.6 billion or 0.3 percent to $553.4 billion. This followed a 0.6 percent October decrease. The inventories-to-shipments ratio was 1.41, up from 1.33 in October.

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BMHC to close facilities
01/06/09 – Building Materials Holding Corporation, a provider of building materials and construction services to professional residential builders and contractors, announced that it will close several additional facilities during the first quarter. The moves will affect approximately 260 employees.

BMHC will close all of its operations located in Northern Nevada, including Reno and Sparks facilities. The Sherwood, Ore., site will close, with operations consolidated to Vancouver, Wash. In Marysville, Calif., BMHC will consolidate its lumber and building materials distribution and wall panel manufacturing operations into its existing Modesto, Calif., facilities. Other operational consolidations will occur in Texas, Colorado and Arizona.

"The unprecedented national economic and local market challenges require that we continue to realign costs with current market conditions," said Robert E. Mellor, chairman and CEO. "With the exception of the Reno area, where we will be exiting the market, we will continue to serve our customers with our full range of products and services - including framing, lumber, millwork and trusses - through nearby facilities. These actions will enable us to significantly reduce our expenses, to share key personnel and to achieve higher utilization of our facilities and equipment."

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SPX sells GSE Scales to ITW
01/06/09 – SPX Corporation announced the sale of its GSE Scales product line, in the test and measurement segment, to Illinois Tool Works Inc. SPX Corporation reported this business unit as a discontinued operation at the end of the third quarter 2008.

Robert W. Baird & Co. Incorporated served as an advisor on the sale.

GSE Scales manufactures programmable weight indicators and scales sold through an international network of distributors and equipment manufacturers.

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EMS acquires Cowboy Valve & Fittings
01/06/09 – EMS Group has acquired Cowboy Valve & Fittings, Inc., a valve and fittings distributor based out of Beaumont, Texas.

Cowboy Valve & Fittings, Inc. offers a wide inventory of valves, flanges, fittings and other piping products to the oil & gas and petrochemical industry throughout the Texas Gulf Coast Region; and has the ability to fulfill orders on a 24/7 basis.

“We are delighted to welcome Cowboy Valve & Fittings, Inc. into the EMS Group family as this brings an essential product division to our organization,” said Tim Nesler, CEO of EMS Group. “This will give EMS the opportunity to provide our customers with exceptional quality valves, flanges and other piping products at very competitive rates.”

Cowboy Valve & Fittings, Inc. is the 24th acquisition for the EMS Group.

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CUMI to expand North American footprint
01/05/09 – Carborundum Universal Limited (CUMI) of India announced an aggressive expansion effort into the North American market. In 2009, CUMI will introduce products for automotive, iron and steel, construction, fabrication and mining industries. CUMI said it plans to leverage its vertically integrated manufacturing resources in Asia, Africa and Russia to provide the North American region with a variety of abrasive solutions on bonded, coated and abrasive grains, according to a company statement. The company’s North American headquarters is located in Erlanger, Ky.

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Purvis buys Bearing Belt chain
01/05/09 – Purvis Industries of Dallas acquired Bearing Belt Chain, a three location, regional distributor serving southern Nevada, southwestern Utah and northwestern Arizona. Founded in 1958, Bearing Belt Chain has locations in Las Vegas, St. George, Utah, and Kingman, Ariz., serving a broad range of customers with bearings, v-belts, drives, electric motors, clutches and power transmission equipment.

“We’re excited about bringing a strong organization such as Bearing Belt Chain into the Purvis Industries family of companies. We believe Steve Philpott has put together a great team and a formidable business that will enhance Purvis Industries and our expansion efforts,” said Cameron Barker, vice president of Corporate Operations for Purvis.

“Purvis Industries is a good fit for our customers and our organization. We both have a strong commitment to independent distribution and the values of providing technical solutions, local inventories and personalized customer service it represents,” said Steve Philpott, president of Bearing Belt Chain.

Purvis Industries, founded in 1945 in Waco, Texas, has 40 locations and more than 300 team members in seven states.

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Three hose distributors form HosePower
01/05/09 – Three North American hose and accessories service companies united under the HosePower banner effective Jan. 1. Florida-based Masthead Hose & Supply joined with Arizona-based Granberry Supply Corporation and Canada's IPM Hose & Fittings in using the label. The three companies comprise the HosePower Group, which will provide hose products and service at 30 locations across the U.S., Canada and Mexico. The group projects 2009 sales in excess of $90 million.

"We share a similar business philosophy and product line, and we've made service our top priority. So it's natural that we should share a brand name that signifies this," said Rod Granberry, founder and president of Granberry Supply Corporation.

All three companies offer Hose Boss mobile repair service, a concept pioneered by Masthead in the early 1990s. HosePower's fleet of more than 70 service trucks provide on-site hydraulic hose repair to construction and manufacturing operations across North America. HosePower will also serve as North America's master distributor of Flextral products, which include hydraulic hose and fittings, hose crimping equipment, industrial hose and a complete line of accessories.

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Esco Tool opens new facility
01/05/09 – Esco Tool has acquired and refurbished a 60,000 sq. ft. building in nearby Holliston, Mass. Founded as the Evans Supply Company in Winchester, Mass., and purchased by the Brennan family in 1975, the firm has been located in Medfield, Mass., since 1980.

The company manufactures and supplies welding end prep tools, saws, and other specialty tools for the power generation, offshore pipeline, pulp and paper, and metalworking industries,

“We have been the beneficiary of a growing power industry and are moving into a larger building in response to worldwide demand for our tools which are used for maintaining and upgrading existing power facilities as well as for new construction,” said Matthew Brennan, president.

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Airgas buys Great Lakes Oxygen
01/05/09 – Airgas completed the acquisition of Great Lakes Oxygen, effective Dec. 31, its 13th acquisition in 2008. With locations in Cleveland, Painesville and Brook Park, Ohio, the company also does business as Welder's Supply, Westside Welders Supply, Great Lakes Propane and Lake Erie Iron and Metal.

Great Lakes Oxygen, a distributor of industrial gas and welding supplies, was formed in 1982 and generates annual revenues in excess of $15 million. Facilities include retail showrooms, warehouses, fill plants, a specialty gas laboratory and an acetylene plant.

"Throughout their history, Great Lakes Oxygen has enjoyed a reputation for outstanding customer service," said Kevin McBride, Airgas Great Lakes president. "This transaction adds great resources and talent to Airgas Great Lakes, and allows us to offer a broader array of products and services to an expanded base of valued customers. We are pleased to welcome all 50 Great Lakes Oxygen associates to Airgas."

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ISM index drops to 32.4
01/02/09 – Manufacturing contracted in December as the PMI registered 32.4 percent, 3.8 percentage points lower than the 36.2 percent reported in November. This is the lowest reading since June 1980 when the PMI registered 30.3 percent, according to the Institute for Supply Management. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

"The decline covers the full breadth of manufacturing industries, as none of the industries in the sector report growth at this time. New orders have contracted for 13 consecutive months, and are at the lowest level on record going back to January 1948. Order backlogs have fallen to the lowest level since ISM began tracking the Backlog of Orders Index in January 1993. Manufacturers are reducing inventories and shutting down capacity to offset the slower rate of activity,” said Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.

Click here for the full report.

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Gateway publishes new catalog
01/01/09 – Gateway Safety introduced the 2009 edition of its full-line product catalog, a complete sourcing guide for more than 60 styles of safety eyewear, hearing, respiratory, head, and face protection products. Consisting of 32 full-color pages, the catalog includes eight product sections with comprehensive ordering information.

Specially designed icons provide at-a-glance confirmation of the appropriate safety certifications for each safety product, including ANSI, CSA, UV-A and UV-B, and Underwriters Laboratories Certifications for eye and face protection and independently tested Noise Reduction Ratings (NRR) for hearing protection.

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Productivity Inc. joins IBC
12/24/08 – IBC announced today the addition of Productivity Inc., as a distributor to its IndustrialSupplyPlus division. Founded in 1968, Productivity provides technical expertise for machine tools, fabrication equipment, tooling and accessories, robotics, lubricants, as well as service and training throughout the Minneapolis area, Nebraska, Iowa and the Dakotas.

“Joining an organization like IBC makes sense in a challenging economy. By working with the IBC suppliers, we can remain more competitive and supportive of our customers as they feel the pressure from their competition. The IBC contract model gives us a platform to compete with the national distributors too,” said Dan Podgorsek, tooling manager of Productivity.

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Survey: Distribution industry confidence drops
12/22/08 – A new survey shows that U.S. wholesale-distributors have altered their growth and operational strategies in response to the weakened economy. The RSM McGladrey 2008 Distribution Industry report indicates that distribution executives are concerned about the rising costs of doing business, mainly associated with labor and energy.

Economic struggles in housing and real estate have affected the building materials industry while automotive and retail difficulties have also carried over to many distribution companies.

Another significant obstacle for companies is escalating costs – primarily due to energy and personnel. The cost most respondents see rising is energy, with 86 percent forecasting an increase of six percent or more in the coming year. More than 80 percent also project increases in the costs of operating labor, freight, benefits and raw materials.

“Distribution companies have taken several measures to account for rising energy costs,” said Robert Jirsa, RSM McGladrey managing director. “Through actions such as better routing, modifications to credit and collections procedures, changes to charge structure for special orders and amending frequency of deliveries, many companies have effectively countered surging expenses.”

Click here to download the full report.

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Columbus McKinnon makes organizational changes
12/22/08 – Columbus McKinnon Corporation has eliminated the position of chief operating officer and announced other organizational changes. Effective Jan. 5, 2009, the COO position currently held by Derwin Gilbreath will be eliminated.

In addition, the U.S.-based Duff Norton division, which designs and manufactures industrial components including mechanical and electromechanical actuators, will report to Wolfgang Wegener, vice president and managing director - CMCO Europe. Gene Buer, executive director - Hoist Products assumes responsibility for hoist products in all the Americas. The Columbus McKinnon crane business, CES, will report to Charles Giesige, executive director - Rigging Products.

Global supply chain management for the entire organization will be brought under Joseph Owen's leadership in the newly created position of vice president - Supply Chain Management.

The company said the changes will further “its strategic goal of being a global leader in the material handling industry.”

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3M and EVG Group setting patent suit
12/22/08 – 3M and EV Group have agreed to settle the patent infringement litigation brought by EVG against 3M. The suit, relating to systems for temporary wafer bonding, was filed in the U.S. District Court for the Southern District of New York.

Under the terms of the confidential settlement, 3M and its customers and licensed suppliers of 3M's Wafer Support System will continue to make, sell and use the Wafer Support System in global semiconductor and packaging markets. EVG will continue to defend its patent portfolio and protect its intellectual property.

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MSA offers employee buyouts
12/22/08 – Mine Safety Appliances has offered buyouts to about 100 salaried employees, according to a report in the Pittsburgh Tribune-Review. The employees have until mid-January to accept the offer affecting workers in Pennsylvania and Colorado. The company also has implemented a hiring freeze. Click here to read the story.

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