Keough's Korner
Industrial Distribution Editor Jack Keough provides his unique insight, drawn from his nearly 30 years of experience in the industry.
Report: Hornsby’s resignation was not a big surprise
Financial analysts don’t seem too surprised that Chip Hornsby, the former chief executive of Wolseley, resigned yesterday. In fact, it appears that the search for his successor actually began three or four months ago. This article from the Financial Times, it suggests that Hornsby’s restructuring actions were “too little and too late” for Wolseley and its U.S. building ...... Read More
Comments (0)Good news for Michigan; suppliers
Michigan, which has the highest unemployment rate in the nation, finally got two pieces of good business news, namely that that General Motors will build its next small car plant in Orion Township and that General Electric will open a high-tech facility in Van Buren Township. The news is not just good for job creation but new opportunities for industrial and construction distributors. GM said the ...... Read More
Comments (0)Around distribution
Here’s a look at what’s been happening in distribution in the past week. Platinum Equity has completed the acquisition of the wire harness and electrical distribution business of Alcoa. Financial terms of the acquisition were not disclosed. The transaction was first announced on April 30. The wire harness and electrical distribution business is the largest piece of Alcoa’s Ele ...... Read More
Comments (0)Construction forecast: Recovery within a year
Recovery from the recession will stretch out longer than most would like, but there is improvement on the horizon, says CanaData’s chief economist.”Construction costs and prices will begin to pick up because commodity prices and the market will be picking up within a year,” said Alex Carrick, CanaData’s chief economist, according to a report in the Daily Commercial News ...... Read More
Comments (0)Stock Building Supply will close 94 locations
Stock will continue to lose money for four more years, according to court documents A report in London’s Financial Times says Stock Building Supply, the spun-off arm of Wolseley, plans to close almost half its outlets in the U.S. and lose money for the next four years even if it doubles its revenues during that period. The article was based on court documents related to Stock’s ...... Read More
Comments (0)CEOs say business conditions stabilizing
Nearly half of major companies will continue to lay off workers in next six months. Business conditions are stabilizing but are still in negative territory, according to Business Roundtable’s 2nd quarter 2009 CEO Economic Survey. The survey, released today, shows that business conditions remains weak. ”This quarter’s results reflect a continuing weak set of ec ...... Read More
Comments (0)Around distribution
Here’s what’s been happening in distribution this past week. Grainger is expanding its entrance into the Japanese market. Grainger announced it plans to become a 53% majority owner of MonotaRO, a direct marketer of maintenance, repair and operating (MRO) supplies in Japan. Grainger expects to invest approximately $4M through a tender offer bid process later this summer. Established i ...... Read More
Comments (0)Around distribution
Here’s a look at what happened in distribution and in business this week The U.S. Bureau of Labor Statistics reported Tuesday there were 5.4 job seekers for every employment opening in April. That is up from 4.8 workers for every position in March and 1.7 workers in December 2007, which some economists peg as the beginning of the economic slide. “While recent labor market reports hav ...... Read More
Comments (0)Job losses slowed in May
Recession shows signs of abating, say economists.Job losses dropped in May to 345,000, according to a report issued today by the Labor Department. It was the lowest job loss report in eight months and comes after a revised loss of 504,000 jobs in April. The unemployment rate, however, increased to 9.4 percent, the highest since 1983. Job losses remained high in manufacturing and ...... Read More
Comments (1)General Motors considering further temporary plant shutdowns
General Motors Corp. is evaluating the temporary closure of more factories in the third quarter as it tries to control inventory to prepare for its exit from bankruptcy protection, according to an Associated Press report.Decisions are still being made, but the company wants to have inventory under control before its target of emerging from Chapter 11 in 60 to 90 days, said the per ...... Read More
Comments (0)GM bankruptcy to have major fallout for distributors
General Motors formally filed for bankruptcy today and in addition identified more than a dozen plants for closure and the elimination of more than 20,000 jobs.The closings include assembly plants in Pontiac, Mich., which makes full-size pickup trucks, along with a plant in Wilmington, Del., which makes roadsters for the Pontiac and Saturn brands. Plants in Spring Hill, Tenn. and Orion, Mich., wil ...... Read More
Comments (0)More small businesses eliminating health coverage
A story in today’s Wall Street Journal notes that many small businesses are dropping health care because of escalating costs. Click here to read the article. ...... Read More
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