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Markets down for most products

Staff -- Industrial Distribution, 1/1/2002

The economic downturn that caused a drop in orders for heavy industries has affected all markets, experts report, but the maintenance market may help some distributors sell items they have in stock. Companies are cleaning and rebuilding machines that are idle due to lack of work, reports said.

That may be a selling opportunity for distributors who have an otherwise dismal fiscal outlook.

The maintenance premise is possible, but may be a tough sell for coated-product fabricators, according to John Sidebottom, president of Duraline Press-On Abrasives and president of the Coated Abrasives Fabricators Assn. The entire coated abrasives market took a large hit in sales beginning in July, 2000, he explained. Distributors are likely to sell from stock rather than place new orders with fabricators.

"It's true that [industrial plants] break down machines for maintenance, but that does not mean business grows [for new orders] of maintenance products," he said. "Our business is flat in all product lines for the association's member-fabricators."

Where distributors anticipate the conversion from production to maintenance, they can order more "clean-up" abrasives for stock or check inventories for products that may fit the move from production abrasives to maintenance.

"Sales of maintenance items would be on a distributor-by-distributor basis. That's not to say there are not opportunities, but I don't think any abrasives distributor would say their business is on a boom," Sidebottom said. He added that regions of the country that have more, older machinery could make better targets than other regions.

To boost sales, members of CAFA are trying to export finished products but the going is slow, Sidebottom said. Finding trustworthy distribution channels offshore is a challenge and a slow process, he said.

At home, distributors should contact customers who are candidates for machine overhauls to see about their future plans. Products used for maintenance, like mounted wheels, cones and points, or sheets and rolls, can play a dual role in production and maintenance applications.

To sell more from stock, look for applications like these, as provided by Norton Co., Worcester, Mass.:

  • Grinding hardened gasket material from dismantled motors
  • Grinding old layers of paint and other coatings
  • Cleaning vent holes in steel grates
  • Cleaning steel motor housings and machinery covers
  • Grinding and cleaning machine mounts
  • Deburring new parts for machines
  • Cleaning concrete or other mounting material on machinery floors.
USERS OF ABRASIVES Top Industries By Region NORTHEAST COASTAL (figures in millions)
Aircraft Engines & Engine Parts46.2
Ship Building & Repairing11.4
Machine Tools (Metal Cutting Types)9.0
Cutlery8.6
Machine Tool Accessories6.2

MID-ATLANTIC (figures in millions)
Blast Furnaces & Steel Mills20.4
Construction Machinery17.7
Top & Body Repair & Paint Shops10.8
Aircraft Engines & Engine Parts10.6
Turbines & Turbine Generator Sets10.4

SOUTH-ATLANTIC (figures in millions)
Wood Household Furniture33.5
Ship Building & Repairing25.2
Mill Work21.9
Boat Building & Repairing18.2
Upholstered Household Furniture16.3

SOUTHEAST CENTRAL (figures in millions)
Motor Vehicles & Car Bodies19.5
Motor Vehicle Parts & Accessories13.3
Gray & Ductile Iron Foundries13.2
Upholstered Household Furniture12.1
Wood Household Furniture11.2

NORTHEAST CENTRAL (figures in millions)
Motor Vehicles & Car Bodies89.3
Internal Combustion Engines86.7
Motor Vehicle Parts & Accessories85.7
Construction Machinery47.7
Gray & Ductile Iron Foundries36,2

NORTHWEST CENTRAL (figures in millions)
Farm Machinery & Equipment23.8
Construction Machinery16.6
Mill Work14.0
Wood Kitchen Cabinets10.4
Motor Vehicles & Car Bodies10.1

SOUTHWEST CENTRAL (figures in millions)
Oil & Gas Field Machinery14.1
Ship Building & Repairing12.6
Motor Vehicles & Car Bodies9.6
Top & Body Repair & Paint Shops9.5
Construction Machinery9.4

MOUNTAIN STATES (figures in millions)
Aircraft Engines & Engine Parts11.6
Construction Machinery7.9
Mill Work7.8
Wood Kitchen Cabinets6.0
Top & Body Repair & Paint Shops5.5

PACIFIC COAST (figures in millions)
Aircraft62.6
Mill Work19.1
Aircraft Engines & Engine Parts17.5
Aircraft Parts & Equipment15.6
Industrial Machinery14.3
Source: Industrial Market Information, Inc. (612) 379-3939

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