| November 21, 2008 | News for the wholesale distribution industry |
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- Economic downturn expected to catch up with industrial distributors
Although most industrial distributors so far have escaped the effects of the economic downturn, the decrease in industrial activity soon will trickle down to distributors, according to this Reuters analysis. U.S. producer prices dropped a record 2.8% in October, and industrial production decreased 3.7% in September. "The deflationary environment would be a pretty significant negative for all industrial distributors," said Brent Rakers, an analyst for Morgan Keegan. Reuters
(11/18)
     
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Report warns of tough times ahead for U.S. economy: A report from the Manufacturers Alliance/MAPI says the U.S. economy is in the grips of a severe recession, and this might be just the beginning. The report predicts 1.4% growth for the U.S. gross domestic product this year and a dip to 1% in 2009. "A consumer-led decline aggravated by a credit crunch is a recipe for trouble," said Daniel Meckstroth, MAPI chief economist. Industrial Distribution
(11/18)
, Modern Distribution Management
(11/18)
- Wolseley announces additional layoffs after Q1 profit drops
After Wolseley's profit declined 30% in its fiscal first quarter, which ended Oct. 31, the buildings materials distributor announced plans to lay off 2,300 employees in the U.K. and Scandinavia. The job cuts are in addition to the 5,000 layoffs already implemented in the first quarter. "In these unprecedented circumstances, the key priorities remain driving cost reduction and enhancing cash flow to ensure the group remains compliant with its banking covenants," Wolseley CEO Chip Hornsby said. Industrial Distribution
(11/18)
, Modern Distribution Management
(11/18)
, Bloomberg
(11/18)
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| Best Practices |  | |
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- Build survival plan to get through downturn
In tough times, keeping track of your customer and employee relationships, as well as applying a logical and quantitative discipline to your company's hiring and succession-planning processes, is essential. Some questions to ask yourself include whether your company has the people necessary to lead you through tough economic times and whether your employees can do more with less. Gallup Management Journal (subscription required)
(11/13)
- 5 reasons many leaders fail to have lasting impact on employees
Only 20% of leaders truly influence workers in a way that lasts, research indicates. Some leaders lack influence because they don't think it's their job to influence others; other leaders simply lack competence; and others in leadership positions don't realize that influencing involves more than talking. Manage Smarter
(11/17)
 | SmartBrief Year-End Reports Sponsorship: Big Trends, Big Stories, Big Results (Small Expenditure)
We focus on the big stories of 2008 and look ahead to the trends that will shape 2009 in your industry. Each YER has a single sponsor, offering a highly effective and exclusive marketing opportunity. Click to download a fact sheet. |
| Sales | | |
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- Build retention strategy by focusing on higher-margin customers
Rather than pouring resources into acquiring new customers, businesses with a strong base of profitable customers should focus on retention. Building a successful retention program should begin with analyzing the company's database to find significant indicators of customer churn and then concentrating on those customers who have the greatest margins. CRM Daily
(11/10)
 | It's time to get strategic about hiring.
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Start your focused recruiting campaign now. |
| Small Business Manager | | |
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- On-site care keeps workers healthy, productive
On-site clinics and an emphasis on preventive health care are on the rise in local workplaces as employers hope to stem the increasing cost of keeping their workers healthy. In addition to saving money from lost production because of sick workers, companies see on-site clinics as a way to reduce an employee's off time for doctor's appointments. The Wall Street Journal
(11/18)
| Executive Life | | |
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- Baby boomers take active vacations to escape, not rest
America's baby boomers, who are now between the ages of 44 and 62, are interested in vacations that are more adventurous than their parents' trips. Experts say that unlike older generations, the group sees travel as a necessity rather than a bonus. "They see travel as a right and not a privilege. They have high expectations and demands," said Wendy Weigel, president of the Upper Midwest chapter of ASTA. Weigel says boomers going on international trips want to live like the locals do, but fly business class, if they can afford it. Pioneer Press (St. Paul, Minn.)
(11/16)
- A recipe for eye health
Chef Jeff Moschetti worked with EyeCare America to create a recipe rich in ingredients that are good for eyes. His saffron tamale with Spanish braised pork shank has nutrients including zinc, vitamin C and beta carotene that can promote eye health. The Dallas Morning News
(11/18)
| NAW Insider | | |
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Increase awareness, reduce costs and downtime
In every wholesaler-distributor operation, materials of every shape, size and weight must be moved. Reduce costs and potential injuries by increasing the handling efficiency and safe operation of industrial vehicles. Learn more here.
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Brand new: Make your operations lean in challenging times
Becoming lean in distribution is more important than ever in today's challenging economic market. Applying lean concepts makes sense because becoming lean means becoming a more effective distributor. And becoming lean will lead to higher profitability. Lean Operations in Wholesale Distribution focuses on the lucrative operations area and discusses steps distributors must take to design and manage a lean culture.
| Weekly Poll | | |
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Does your business have any mergers or acquisitions planned in 2009?
To find out how your peers are responding, check out the NAW Year-end Report, which will be published on Dec. 11.
 | Yes -- we already have at least one planned. |
| We don't have any plans yet, but there is still time. |
| No -- we don't foresee any 2009 mergers or acquisitions. |
| SmartQuote | | |
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 | Fortune befriends the bold."
--John Dryden,
English poet, literary critic and playwright
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The CEO of HD Supply remains optimistic that infrastructure spending will not fall as hard as residential construction. Joe DeAngelo said the "endless critical demand" for infrastructure projects can only continue as city populations grow. 
