Business, and life in general, is pretty good these days for the hose and accessories industry. For starters, many customers are doing well, which means, of course, that hose and accessory distributors are also doing well.

"We're enjoying record numbers, across the country. It's been a real strong year for us," says Tony Cefalu, vice president/general manager of the OEM Division at Motion Industries in Birmingham, Ala.

Cefalu looks at various manufacturer's earnings reports and statements that show that "everybody in this general business is busy right now; the OEM markets, as well."

Ironically, it has come close to being "too strong"—at least to the extent that, for some customers, simply acquiring enough product has occasionally been a challenge, Cefalu says.

"There have been [availability] issues across the board just keeping up with the demand," he says. "Our ability to buy that inventory has really helped us out... But we have a very good vendor base that has supported us well. So we have the inventory and the trained people, as well as the logistical capabilities to get product out quickly."

Merrill Johnston, president of Hydro Hose, Inc., paints much the same picture from his office in Tupelo, Miss. He remains philosophical, though, when analyzing the occasional difficulty in getting enough product.

"We've been fairly successful getting anything we've needed," he says. "But when business is good...the supply side gets a little short. And I'd rather have it be a little short than have it just sitting on my [loading] docks."

Both speak favorably about the Hose Assembly Guidelines that have been implemented over the past year.

"They've been a very pleasant success," Cefalu says. "They've heightened awareness of the hose and coupling industries, as well as the fabricating procedures and definitions.... They've been a very positive thing for the industry."

Johnston adds that he has heard "nothing but positives so far," from the customers who have familiarized themselves with the guidelines. Others have been slow to catch on, he adds, something that puzzles and frustrates him somewhat.

"Some customers don't seem to have time for them right now, which I think is pretty shortsighted on their part," he says. "Those who understand that safety is an important issue have embraced them." (See related article on p. 50.)

Johnston and Cefalu are bullish on 2006, but admit to a few concerns—primarily in the area of raw materials and petroleum.

"A lot of our products are petroleum based and that's a concern, as is the cost of steel," Cefalu says. "Prices are going up, which puts pressure on U.S. manufacturing, as well."

"Almost everything in our business has some form of petroleum in the base," Johnston agrees. "It's not just the hose-accessory industries, but it's all businesses. Petroleum influences all of them."

Johnston also adds his concerns about other materials, such as brass and steel, and their impact on prices.

"The toughest thing right now is to stay on top of pricing," he explains. "Many manufacturers are having a difficult time with raw materials, and their costs are jumping around. So we have to pass that on, too.... It may cost this much today, but I'm not sure what it will be tomorrow."

jnowlan@reedbusiness.com