The manufacturing recession continues to linger despite predictions several months ago that an end was in sight. More than a million manufacturing jobs have been lost, 600-plus plants closed, consolidation continues and many distributors are closing their doors.

The latest distributor casualty is Elisha Penniman Inc., a small cutting tool distributorship located in West Hartford, Conn., that shuttered its doors last month after more than 50 years in business. Just four years ago Elisha Penniman received INDUSTRIAL DISTRIBUTION's Excellence in Distribution Award in the small business category. The firm had also won awards from newspapers and trade associations.

The closing is especially hard on Mary King, Elisha Penniman's president, who had inherited the business after her husband's death in 1995. King did everything to make the company successful. She introduced a new sales and marketing plan that resulted in increased market share and profitability. She eventually won the respect of her customers and suppliers, especially from those who had originally questioned whether she could make the business succeed. And she did succeed.

But as she pointed out recently, "the economic recession and declining market share for the small distributor has forced me to make this difficult decision."

It's a shame that a company like Elisha Penniman has gone out of business. It isn't the first and it certainly won't be the last because of this lingering economic downturn.

But we're happy to report that the entrepreneurial spirit still exists in distribution. We proudly highlight some of the industry's newcomers in a special report on p. 81.

The Industrial Depot, for example, was founded in 1999 when products were sold and shipped from the basement of one of the company's founders. Today the company has revenues of more than $6 million and hopes to double that number this year.

A similar story is occurring in New Mexico where Eagle Supply, also started in 1999, sells industrial fasteners, hand tools and related products to companies working in the region's oilfields. Tom Miller, president of the small company, doesn't regret for one minute the decision to start his own business.

"Starting your own business is a gamble no matter what you do," he says, "but the satisfaction and the rewards of helping others is beyond measure."

Jack Keough Editor/Associate Publisher jkeough@reedbusiness.com