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.
| Aircraft Engines & Engine Parts | 46.2 |
| Ship Building & Repairing | 11.4 |
| Machine Tools (Metal Cutting Types) | 9.0 |
| Cutlery | 8.6 |
| Machine Tool Accessories | 6.2 |
| Blast Furnaces & Steel Mills | 20.4 |
| Construction Machinery | 17.7 |
| Top & Body Repair & Paint Shops | 10.8 |
| Aircraft Engines & Engine Parts | 10.6 |
| Turbines & Turbine Generator Sets | 10.4 |
| Wood Household Furniture | 33.5 |
| Ship Building & Repairing | 25.2 |
| Mill Work | 21.9 |
| Boat Building & Repairing | 18.2 |
| Upholstered Household Furniture | 16.3 |
| Motor Vehicles & Car Bodies | 19.5 |
| Motor Vehicle Parts & Accessories | 13.3 |
| Gray & Ductile Iron Foundries | 13.2 |
| Upholstered Household Furniture | 12.1 |
| Wood Household Furniture | 11.2 |
| Motor Vehicles & Car Bodies | 89.3 |
| Internal Combustion Engines | 86.7 |
| Motor Vehicle Parts & Accessories | 85.7 |
| Construction Machinery | 47.7 |
| Gray & Ductile Iron Foundries | 36,2 |
| Farm Machinery & Equipment | 23.8 |
| Construction Machinery | 16.6 |
| Mill Work | 14.0 |
| Wood Kitchen Cabinets | 10.4 |
| Motor Vehicles & Car Bodies | 10.1 |
| Oil & Gas Field Machinery | 14.1 |
| Ship Building & Repairing | 12.6 |
| Motor Vehicles & Car Bodies | 9.6 |
| Top & Body Repair & Paint Shops | 9.5 |
| Construction Machinery | 9.4 |
| Aircraft Engines & Engine Parts | 11.6 |
| Construction Machinery | 7.9 |
| Mill Work | 7.8 |
| Wood Kitchen Cabinets | 6.0 |
| Top & Body Repair & Paint Shops | 5.5 |
| Aircraft | 62.6 |
| Mill Work | 19.1 |
| Aircraft Engines & Engine Parts | 17.5 |
| Aircraft Parts & Equipment | 15.6 |
| Industrial Machinery | 14.3 |
| Source: Industrial Market Information, Inc. (612) 379-3939 |
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