PTDA to hold Industry Summit in Las Vegas
ZL engineering plastics expands warehouse
Vogel Capital buys Diamond Machining Technology
PT/MC sales increase in February
NAW DREF names fellow, elects board member
Starrett joins IBC IndustrialSupplyPlus
Boss Manufacturing joins IDC-USA
CE Franklin, Smith International end Wilson negotiations
Baldor to move linear motor plant to Arkansas
Cooper names vice president of sales and marketing
Kennametal to sell Full Service Supply to Ferguson
Rexnord to acquire Falk Corp. for $295 million
Dexterra, Strategic Distribution deploy MRO solution
Kennedy Manufacturing emerges from bankruptcy

PTDA to hold Industry Summit in Las Vegas
The Power Transmission Distributors Association (PTDA) 2005 Industry Summit will be held Oct. 18-20 in Las Vegas. Themed “Increase Your Odds for Success,” the summit is designed to help distributors and manufacturers in the industrial power transmission/motion control (PT/MC) channel take the gamble out of their business strategy.

Educational sessions will help attendees assess trends impacting their businesses, while focusing on tactics and techniques to ensure success.

As the premier networking and educational event for the PT/MC industry, PTDA’s Industry Summit provides unparalleled networking opportunities, outstanding educational programming and exceptional social events. Attended by top-level decision-makers from leading distributor and manufacturing firms, the summit is a unique mix of educational sessions on industry trends, distributor-manufacturer meetings and peer networking forums.

Highlights of the 2005 program include:

• A North American economic forecast by keynoter Todd Buchholz, contributing editor to Worth Magazine and manager of the $15 billion Tiger hedge fund. Topics will include short- and long-term trends and leading indicators’ likely impact on competing and surviving in the new economy.

• An interactive forum on controlling healthcare costs facilitated by Rosanne Cassidy, SPHR, a benefit expert from the Management Association of Illinois.

• A tactical session on the effective use of inside sales on how to transition inside salespeople from order takers to proactive, consultative sellers.

• A workshop by Brian Uzzi from Northwestern University’s Kellogg School of Management on how to assess and strengthen one’s network.

• A session on low-cost, high-impact marketing by Jerry Peerbolte of Peerbolte Consulting.

• A keynote presentation by Connie Podesta on how understanding individual personality traits can improve networking.

• A member forum on how third-party logistic (3PL) provider trends, technologies and alliances may impact members’ businesses.

• Distributor and manufacturer networking lunches.

• One-on-one meetings with current and potential business partners as part of the Manufacturer-Distributor Idea Exchange (MD-IDEX).

The PTDA Industry Summit is open to all employees of member companies and qualified prospects. For more information, contact PTDA at or .

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ZL engineering plastics expands warehouse
ZL engineering plastics Inc. doubled the size of its warehouse in Buena Park, Calif. The expansion was necessary to accommodate increasing demand for ZL products in the U.S.

Extruded and cast nylon stock shapes, acetal rod, plate and tubular bar as well as high performance materials will be stored in the new space.

"We will now be able to inventory even more of our most popular selling products. The expansion also gives ZL the flexibility to add new materials and broaden the size ranges or formats we have available for immediate shipment," said Patrick Pheffer, president of ZL-West.

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Vogel Capital buys Diamond Machining Technology
Vogel Capital Inc. acquired manual diamond sharpening innovator Diamond Machining Technology (DMT) Inc. DMT co-founders David and Elizabeth Powell will remain consultants for two years to assure a seamless transition.

"I will miss being 'Diamond Lil' and all my friends in the many markets DMT serves, but I am delighted to have found a new owner with experience, energy and vision to lead DMT," said Elizabeth Powell.

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PT/MC sales increase in February
In February, U.S. distributors’ year-to-date sales of power transmission/motion control (PT/MC) products climbed 14.1 percent compared to sales for January through February 2004, according to the Power Transmission Distributors Association (PTDA).

Sales increased 10.8 percent over January and rose 13.5 percent compared to February 2004.

Days sales in accounts receivables declined 1.9 percent compared to January 2005 and decreased 1.8 percent compared to the same month last year. Annualized sales-to-inventory ratio in February was 9.4, compared to 8.3 in 2004.

For February, the confidence level of U.S. distributors rose to 6.7 on a 10-point scale.

In February, U.S. manufacturers’ sales of PT/MC products increased 15.4 percent compared to sales for January through February 2004. Sales climbed 18.4 percent over January and grew 18 percent compared to February 2004.

Compared to January, sales of mounted bearings, unmounted bearings, standard industrial motors, variable speed drives, positioning systems/linear motion products, gear products, mechanical drives systems and other PT products, clutches and brakes, and shaft couplings increased.

Year-to-date orders of PT/MC products from U.S. manufacturers climbed 18.8 percent compared to 2004. February orders increased 10.7 percent over January and were up 18.1 percent compared to February 2004. Annualized sales-to-inventory ratio in February was 10.8, compared to 9.5 in 2004.

For February, the confidence level of U.S. manufacturers fell to 5.7 on a 10-point scale.

To view the charts, click here.

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NAW DREF names fellow, elects board member
The Distribution Research and Education Foundation (DREF) of the National Association of Wholesaler-Distributors (NAW) named Evergreen Consulting president Brent R. Grover a DREF Fellow. DREF also announced the election of Modern Group Ltd. president and CEO David E. Griffith to the DREF board of directors.

The fourth individual so designated by NAW’s research arm, Grover will serve a four-year term.

The DREF board of directors established the Fellows program in 1999 to acknowledge individuals who have made and can continue to make significant intellectual contributions to the field of wholesale distribution. DREF Fellows work with the foundation to develop and bring new research studies to the wholesale distribution industry.

Grover is the author of DREF’s More to the Bottom Line: Customer Profitability Analysis Tools for Distributors, released in 2004. His second book for DREF, The Acquisitive Distributor: 4 Keys to Success When Buying a Wholesale Distribution Business, will be released this spring.

Evergreen Consulting advises owner/managers of closely held distribution and manufacturing companies on the challenges of strategy and ownership succession. Grover, former CEO of National Paper & Packaging Co., served as chairman of the NAW member association the National Paper Trade Association (NPTA) in 1993.

DREF also elected David E. Griffith to the DREF board of directors.

Modern Group Ltd. is a privately owned distributor of material handling, construction and maintenance equipment serving the Mid-Atlantic region.

Griffith is also president of the Material Handling Equipment Distributors Association (MHEDA), an NAW member association.

Prior to joining Modern Group. Griffith served as an executive at IBM Corp., Rolm Corp. and MCI Corp.

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Starrett joins IBC IndustrialSupplyPlus
IBC added The L.S. Starrett Company as a preferred supplier to its IndustrialSupplyPlus division.

Headquartered in Athol, Mass., and founded in 1880, The L.S. Starrett Company manufactures more than 5,000 variations of precision tools, gages, saw blades, measuring tapes and levels.

In addition to its Athol facility, Starrett has manufacturing plants in Ohio, Pennsylvania, North and South Carolina, Brazil, Scotland, England, Puerto Rico, China and Canada. The company also has sales and warehouse branch offices in Glendale, Ariz., and Toronto.

“One of IBC’s goals in 2005 is our aggressive acquisition of national and minority contracts, and we continue to rely heavily on our member and supplier partners for their support in this endeavor," said IBC president Ed Sullivan. "The L.S. Starrett Company provides industry leadership in productivity improvement and cost containment solutions that will assist in this strategy.”

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Boss Manufacturing joins IDC-USA
Independent Distributors Cooperative – USA (IDC-USA) added Boss Manufacturing Co. as a preferred supplier to its national group of bearing and power transmission distributors throughout the United States.

Boss Manufacturing was established in 1893 in Kewanee, Ill. The company imports, markets and distributes a complete line of gloves, boots and rainwear products.

“Boss is excited to partner with IDC-USA," said Gerry Stockelman, Boss Manufacturing vice president of industrial sales. "We are looking forward to assisting IDC distributors and enhancing their growth in the industrial market. With our nationwide representation, we have the foundation to support the members of IDC-USA.”

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CE Franklin, Smith International end Wilson negotiations
CE Franklin Ltd. and Smith International Inc. terminated negotiations relating to CE Franklin’s previously announced proposal to acquire Wilson International Inc. from Smith.

Smith currently owns approximately 55 percent of the outstanding shares of CE Franklin and all of the shares of Wilson.

CE Franklin distributes products and related services to the Canadian oil and gas industry, including projects involving drilling and completions, production and maintenance and capital construction.

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Baldor to move linear motor plant to Arkansas
Industrial electric motor manufacturer Baldor Electric Co. will relocate its linear motor manufacturing plant from Santa Clarita, Calif., to Fort Smith, Ark., the city where the company is currently based.

The linear motor plant was acquired by Baldor in 1998. It currently manufactures several types of linear motors for precision applications such as pick and place machines, X-Y tables, material handling equipment and semi-conductor manufacturing equipment.

Baldor linear motors provide precise accuracy, fast acceleration and repeatability. They provide unique speed and positioning performance advantages over rotary motors.

Other applications include packaging equipment and medical equipment. In addition, they are found on amusement park rides, airport baggage handling equipment and biomedical inspection equipment. Baldor linear motors are used with motion control products made in the company's Fort Smith Drives Center and its Bristol, England, manufacturing plant.

"This move will allow us the opportunity to show our customers the capabilities of linear motors and our other motion control products when visiting our facilities in Fort Smith," said Ron Tucker, president and chief financial officer. "Moving this plant to Fort Smith will also allow us to easily expand production of these products as sales grow in the next several years."

Baldor has offered relocation to 42 employees of the linear motor plant in California.

"We expect some of these employees to make the move and we are already bringing them to Fort Smith to take a look at the area. Additional employees in manufacturing and engineering will be added from the Fort Smith area," said Roger Bullock, vice president of drives.

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Cooper names vice president of sales and marketing
Cooper Industries appointed Randy L. Ribbing vice president of sales and marketing for Cooper Connection, effective in June.

Ribbing will be based at Cooper's Houston headquarters and will succeed Thomas E. Briggs who will retire this year.

Since 2002, Ribbing served as vice president of sales at the Cooper Bussmann division, headquartered in Ellisville, Mo. He was previously vice president of sales at Cooper B-Line in Highland, Ill.

Ribbing will be responsible for growing Cooper's sales and marketing program, collectively known as the Cooper Connection.

This multi-division program offers distributor and end-user customers one of the industry's most comprehensive lines of electrical products.

"Randy's experience with customers across all of our served markets and with multiple product lines makes him an excellent choice to lead our Cooper Connection program," said Kirk S. Hachigian, president and chief operating officer of Cooper Industries. "These are exciting times at Cooper and for our customers as we continue to expand our marketing and sales efforts and introduce new products to the marketplace. With more than 25 years of electrical industry experience, Randy will play a significant role in expanding and enhancing the Cooper Connection program to deliver greater value to our distributors and end-user customers."

Ribbing held a variety of sales and operating positions within the Cooper B-Line organization, having joined that business in 1982. He was named vice president of sales at Cooper Bussmann in 2002. Ribbing holds a bachelor's degree in business from Quincy University and completed the Stanford Executive Program in 2004.

"We also would like to express our deepest thanks and appreciation to Tom Briggs for his dedication and service to Cooper and our customers," said Hachigian. "Tom has been a vital contributor to Cooper's success, both as a division president at Cooper B-Line and, more recently, leading our Cooper Connection distributor relationship program. Tom's energy and insights helped build the Cooper Connection into the industry-leading program it is today. We are delighted that Randy and Tom will work together closely to ensure a smooth transition of this very important position."

Tapped to head the Cooper Connection program in 2002, Briggs joined Cooper in 2000, when Cooper acquired B-Line from Sigma-Aldrich, becoming division president of Cooper B-Line.

Prior to joining B-Line, Briggs held a variety of positions at Amoco Oil in Chicago. He earned an MBA from the University of Missouri, where he also earned a bachelor's degree in finance.

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Kennametal to sell Full Service Supply to Ferguson
Kennametal Inc. signed a definitive agreement with Ferguson Enterprises Inc. to sell its Full Service Supply (FSS) business for about $41 million.

Ferguson is the U.S.-based integrated supply and distribution subsidiary of Wolseley PLC, an approximately $19 billion U.K.-based firm.

The company plans to use the proceeds of the sale for additional investment in its core consumable materials business and for further debt reduction. The disposition of this unit is in line with the continued execution of Kennametal's strategy to concentrate on its core businesses.

Full Service Supply provides integrated supply chain management and logistics to large and medium-sized metalworking plants. This unit reported total annual sales of $138.4 million and operating income of $800,000 in fiscal year 2004.

Beginning in fiscal year 2006, the divestiture of FSS is expected to be accretive to Kennametal's margins and ROIC. As a part of the transaction, Kennametal will take an estimated $9 million pre-tax charge in the quarter ended March 31, resulting in an earnings-per-share impact of about 18 cents.

"We are very pleased with the agreement," said Markos Tambakeras, Kennametal chairman, president and CEO. "The divestiture allows us to focus on our core businesses while FSS is joining a company that can fully leverage its capabilities. Our goal was to find a strategic partner for FSS that could accelerate growth, add incremental value to customers and be a good home for FSS employees. Ferguson is a great match. Our agreement with Ferguson includes a four-year supply contract that allows for continuity and is a win-win for both Kennametal and Ferguson."

The transaction is expected to be finalized in May 2005.

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Rexnord Corp., headquartered in Milwaukee, is a worldwide manufacturer of mechanical power transmission components with revenues of approximately $800 million.

Falk Corp., also headquartered in Milwaukee, is a manufacturer of gears and couplings, with annual revenues of approximately $200 million.

"By combining two successful companies that have complementary products and technologies, we create a bigger, stronger business, with combined annual revenues in excess of $1 billion," said Robert Hitt, Rexnord CEO. "This acquisition is consistent with Rexnord's growth strategy, enhancing our capabilities and enabling us to better serve our customers."

"Falk Corp. has a strong market position, with substantial brand equity and a significant installed base," said Dave Doerr, Falk president. "Falk looks forward to joining with Rexnord to offer our customers the best solutions to their power transmission needs."

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Dexterra, Strategic Distribution deploy MRO solution
Software provider Dexterra Inc. and systems integration partner Strategic Distribution Inc. (SDI) implemented Dexterra's mobile facilities and asset management software at the University of North Carolina at Greensboro (UNCG).

The UNCG facilities management team, responsible for a 200-acre campus with a $6 million operating budget, need a wireless mobile software solution to help them issue real-time parts orders and work reports, access inventory and job details, and gain work-order updates from the field using a hand-held device.

SDI helped UNCG meet these requirements and eliminate its manual, paper-based processes using the Dexterra software.  Now, UNCG maintenance engineers can accomplish more assignments per working day and are better prepared for upcoming scheduled maintenance.

“Since deploying the Facilities Management application from SDI, we are already seeing a 40 percent increase in efficiency as we are more immediately responsive and able to access historical information on site, from the handheld device,” said Anthony Schallert, director of physical plant for UNCG. “We are exceeding our planned objectives and now expect to see a full return on our investment within the first 14 months of deployment.”

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Kennedy Manufacturing emerges from bankruptcy
Kennedy Manufacturing Co. emerged from Chapter 11 bankruptcy protection pursuant to a plan of reorganization approved by the U.S. Bankruptcy Court for the Northern District of Ohio Western Division.

“Everyone at Kennedy is very pleased to be out of Chapter 11 and is looking forward to being able to devote their full attention to executing the Company’s strategic plan for growth and profitability," said David R. Thompson, Kennedy president and CEO. "I want to extend my heartfelt thanks on behalf of the board of directors and management to Kennedy employees for their hard work and dedication during this period and to Kennedy customers, vendors, lenders and advisors for their support."

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