PTDA: Distributor sales edged lower in August
Distributors prepare for manufacturing exodus
Parker dedicates 10th motion and control laboratory
International Truck & Engine hires Precision Industries
Rust-Oleum names new vice president of marketing
Grey Wolf Systems joins Aperum as reseller
IBC adds Simonds Industries to preferred supplier list
Precision Industries wins service contract with AM General
Unemployment lingers at 6.1 percent in September
Factory orders slip 0.8 percent in August

PTDA: Distributor sales edged lower in August
In August, U.S. distributors' year-to-date sales of power transmission/motion control (PT/MC) products decreased 0.2 percent compared to sales for January through August 2002, according to the Power Transmission Distributors Association (PTDA). Sales were down 1.6 percent from the previous month and declined 5.7 percent compared to August 2002.

Days sales in accounts receivables increased 2.1 percent over July 2003 and gained 1.4 percent compared to August 2002. Annualized inventory turnover in August was 4.2 turns, compared to 4.4 turns in 2002.

For August, the confidence level of U.S. distributors remained flat at 4.9 on a 10-point scale.

U.S. manufacturers' year-to-date sales of PT/MC products dropped 11.6 percent in August compared to sales for the same period last year. Sales were up 6.1 percent over the previous month but declined 14.6 percent compared to August 2002. 

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

Year-to-date orders of PT/MC products from U.S. manufacturers fell 12.3 percent compared to 2002. August orders increased 5.6 percent over July but decreased 13.5 percent compared to August 2002. Annualized inventory turnover in August was 5.9 turns, compared to 6.3 turns in 2002.

For August, the confidence level of U.S. manufacturers held steady at 5.3 on a 10-point scale.

To view the charts, click here.

The Market Outlook Report is published monthly by the Power Transmission Distributors Association. For more information, visit www.ptda.org/catalog. PTDA members may download the report at no charge through the Members Only area of the PTDA Web site at www.ptda.org.

Source: PTDA

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Distributors prepare for manufacturing exodus
Industrial distributors know U.S. manufacturers are moving factories and jobs overseas and causing their customer base to shrink.

Distributors stand to lose 20 percent or more of their sales as a result of the manufacturing exodus, and average margins on the lost sales equal more than 21 percent. Learn how distributors can increase market share in this volatile marketplace by purchasing the new study entitled “The China Syndrome and the Effects on Wholesale Distribution,” by Progressive Distributor and Benfield Consulting.

The study includes a profile of manufacturers most likely to move, such as:
• divisions of public companies with sales of more than $100 million;
• companies in the Industrial and Commercial Machinery sector, Fabricated Metal Products sector, and Electronic and Electrical Equipment sector.

This study focuses on:
• the surge of manufacturers moving out of the U.S.;
• how it specifically affects distributors;
• what distributors can expect;
• how to recognize manufacturers that may move;
• what distributors can do to survive this crisis.

“The China Syndrome and the Effects on Wholesale Distribution” is available for $75. Purchase the study online or by fax and receive a Portable Document File (.pdf) of the extensive study plus an easy-to-follow, step-by-step guide for dealing with the manufacturing exodus called “Prescriptions for Improvement.”

To download the free executive summary of "The China Syndrome and the Effects on Wholesale Distribution," click here.

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Parker dedicates 10th motion and control laboratory
Parker Hannifin dedicated its newest motion and control lab, located at Western Michigan University. The lab is a culmination of the long-time partnership between Parker and the university, including four years of focused logistics planning.

Since its founding in 1918, Parker maintained a legacy of commitment to community and educational support for young people, particularly in engineering fields. Western Michigan University will be expanding its curriculum to include lab experiments for undergraduate students as well as senior design and research projects. New motion and control courses will be offered in the future to facilitate additional lab use.

Through the generosity of the Parker Foundation, 10 universities across the United States now house Parker Motion & Control Laboratories. These labs expose engineering students to the tri-technologies of motion and control: electro-hydraulics, electro-pneumatics and electromechanical motion control. In addition, the facilities foster an inter-disciplinary approach to teaching motion and control. The company started this program in 1994 to better prepare students to enter the real world as problem solvers.

Universities with Parker-sponsored motion and control labs include: 
• Cleveland State University, 
• University of Akron, 
• Murray State University, 
• University of Cincinnati, 
• Purdue University, 
• University of Wisconsin-Madison, 
• University of Illinois-Champaign/Urbana, 
• Western Michigan University, 
• University of California-Irvine, and 
• Cal-Poly, San Luis Obispo. 

Each university's lab is different as the schools are encouraged to tailor their facility to meet the needs of their students.

Parker also supports the universities by maintaining lab equipment; providing technical assistance programs and design counsel; and sponsoring scholarships, student organizations, academic competitions, internships and co-ops. The company believes the partnership between industry and universities is essential to continuous technical advancement.

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International Truck & Engine hires Precision Industries
Industrial supply distributor Precision Industries was awarded a three-year supply chain services contract by International Truck & Engine Corp. to provide MRO supplies and on-site services for five International Truck locations in North America.  

"International Truck is a fantastic client and the type of partner anyone would be fortunate to have," said Precision Industries supply chain services group president and chief operating officer Chris Circo. "International has been committed to success from the beginning and we are forecasting significant supply chain reductions as a result of this partnership."

International Truck & Engine produces International brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets.  

Precision Industries will implement this program in five International Truck & Engine plants in North America: Garland, Texas; Springfield, Ohio; Conway, Ark.; Tulsa, Okla.; and Escobedo, Mexico.

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Rust-Oleum names new vice president of marketing
Industrial paint producer Rust-Oleum Industrial Brands promoted John Simons to vice president of marketing. 

In this position, Simons will oversee the group's product development, advertising and marketing initiatives, including promoting Sierra Performance Coatings by Rust-Oleum, the high performance industrial and commercial coatings with zero volatile organic compounds (VOC). 

Simons will also focus on establishing a visible presence for Rust-Oleum in new distribution channels, such as rental centers and utility and survey suppliers.

"John's considerable contributions to our organization have helped Rust-Oleum Industrial Brands become the most trusted name in high-performance paints and coatings," said Rust-Oleum executive vice president Tom Reed. "I am thrilled to announce John's promotion to vice president of marketing. His long-standing commitment to Rust-Oleum and leadership within the industry make him an invaluable asset to our marketing team."

Simons holds a master's in business administration from Fairleigh Dickensen University in Hackensack, N.J., and earned his bachelors degree in marketing from Northeastern University in Boston. Simons currently resides in Lake Bluff, Ill., with his wife and children.

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Grey Wolf Systems joins Aperum as reseller
Distribution software provider Aperum added Grey Wolf Systems as a TakeStock reseller to its channel of solution partners.

"Grey Wolf Systems shares our passion for both the distribution industry and for service excellence," said Aperum president Randy Keith. "We are extremely pleased to add them to our growing channel. This strategic partnership underscores our goal to aggressively broaden our market coverage and further strengthens our ability to provide local support for our customers."

"After extensive investigation of all the software products specifically for distribution, TakeStock was the only solution that fit our requirements," said Grey Wolf Systems president Rick Sundahl. "Grey Wolf has been supporting SHIMS users for over seven years now and will continue to do so. Not only do we view TakeStock as the best solution for most of our new distribution customers, it is also a very viable solution for our SHIMS users when they decide they are ready to move."

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IBC adds Simonds Industries to preferred supplier list
IBC added Simonds Industries Inc. as a preferred supplier to its group of industrial supply manufactures.

Founded in 1832, Simonds Industries boasts the reputation of being the oldest cutting tool manufacturer in North America. It has six distribution locations diversely spread across the U.S. from Massachusetts to California and six manufacturing locations, one in Spangenberg, Germany, and five others in the U.S.

Simonds sells a wide variety of products including band saw blades, files, power tool accessories, magnets and annular cutters. Simonds is ISO 9002 certified and supports distributors and end users by providing field-level technical and sales training. The company also recently merged with International Knife and Saw. Soon it will become Simonds International Inc.

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Precision Industries wins service contract with AM General
Industrial distributor Precision Industries won a multiyear supply chain service provider contract with AM General to source and provide MRO supplies and on-site services for their vehicle assembly and manufacturing locations.

“We are extremely fortunate to have been selected as a supply chain provider and we look forward to a lengthy partnership with a spectacular group of people at AM General," said Precision supply chain services group president and chief operating officer Chris Circo.

AM General, headquartered in South Bend, Ind., designs, engineers, produces and supports military and special purpose vehicles. AM General is the manufacturer of the military use HUMVEE and the civilian use HUMMER H1 vehicles and is involved in a joint venture with GM to produce the HUMMER H2. Precision will service two AM General sites in Mishawaka, Ind.

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Unemployment lingers at 6.1 percent in September
The unemployment rate remained at 6.1 percent in September and total nonfarm payroll employment was little changed, according to the Labor Department. The number of unemployed persons, 9 million, was nearly unchanged in September.

The number of jobs in manufacturing declined at a slower pace than in recent months, while employment in temporary help services continued to trend upward.

In September, there were 2.1 million unemployed persons who had been looking for work for 27 weeks or longer, representing 23.2 percent of the total unemployed.

Manufacturing employment decreased by 29,000 in September. Although small declines occurred throughout most of the sector, September's loss was below the average for the prior 12 months (-54,000). Most of the easing in September occurred among durable goods industries.

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New orders for manufactured durable goods decreased $1.9 billion or 1.1 percent in August to $173.1 billion, revised from the previously published $173.3 billion.

So far in 2003, durable goods orders are off 0.4 percent compared to last year. Durable goods are costly manufactured items expected to last three or more years.

New orders for manufactured nondurable goods decreased $800 million or 0.5 percent to $154.7 billion in August.

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