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Distribution Industry News Archives
News from the week of Oct. 20, 2003

Atlas Copco to supply Ford's all-electric tooling needs
Smarter Distribution launches Web-based job listing service
New book looks at sales force compensation myths
PTDA names new executives for 2004
PTDA honors David Witwer for lifetime achievement
Lawson Products posts increased Q3 financials
Technology providers to host Inforums at I.D.A. expo
Trio Pines names new president
Applied Industrial Technologies names new executives
Columbus McKinnon sees income rise on lower sales
Pentair Tools Group posts third quarter increases
Home Depot launches extended line of Ridgid power tools
ISMA changes name of Spring Convention
Wilson turns profitable during third quarter
PMA report reflects waning economic confidence

Atlas Copco to supply Ford's all-electric tooling needs
The Ford Motor Co.’s new truck plant in Dearborn, Mich., is one of three locations selected to build Ford’s new F-150 pick-up truck. The plant is currently being completely remodeled to provide sustainable manufacturing and referred to by some as the ”factory of the future."

Chosen as a single-source tool supplier for this prestigious project, Atlas Copco will supply an all-electric tooling solution, consisting of about 650 Tensor nutrunners with Power Focus controllers and QMX fixtured nutrunners with PowerMACS controllers, and related equipment.

Ford Motor Co. spent three years and $1.8 billion redesigning the F-150 pick-up. Production of the F-150 started this past summer at Ford’s truck plants in Virginia (Norfolk Assembly) and Missouri (Kansas City Assembly), where Atlas Copco was selected for single source supply. The Dearborn plant will begin production in the summer of 2004.

Situated on the banks of the Rouge River, the Dearborn plant is rich in automobile manufacturing history. In 1925, Henry Ford completed a revolutionary manufacturing complex on the site, turning raw material into completed automobiles at one facility. In 1999, Bill Ford Jr., then Ford Motor Company chairman, proposed to overhaul the entire Rouge complex, transforming it into a model of 21st century sustainable manufacturing. It will feature world-class flexibility, with assembly lines capable of handling three different vehicle platforms and nine different models., the Dearborn plant is rich in automobile manufacturing history. In 1925, Henry Ford completed a revolutionary manufacturing complex on the site, turning raw material into completed automobiles at one facility. In 1999, Bill Ford Jr., then Ford Motor Company chairman, proposed to overhaul the entire Rouge complex, transforming it into a model of 21st century sustainable manufacturing. It will feature world-class flexibility, with assembly lines capable of handling three different vehicle platforms and nine different models.

In its choice of tooling for Dearborn, Ford’s decision to go all-electric was based on extensive research in the key areas of quality, reliability, ergonomics, efficiency and productivity. Primary goals are maximum vehicle quality and lowest cost of tool ownership.

Atlas Copco will work in a partnership way with Ford at Dearborn Truck, as well as Norfolk Assembly and Kansas City Assembly, to achieve the goals and support the success of the F-150 program. program.

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Smarter Distribution launches Web-based job listing service
Smarter Distribution is offering a new job listing service for wholesale distributors.

"This service really grew out of travels with my consulting practice," said Smarter Distribution principal Bob Boyles. "Distributors are constantly asking if I know of qualified people to fill a position they have open. So, we decided to offer a service where they could use our Web site to list their job openings."

Finding the right person to fill key vacancies such as an MIS Manager slot or Branch Manager opening has always been difficult for wholesalers.

Distributors seeking to fill positions can have them listed on the Web site for a nominal fee. The service operates as a "blind box service," where interested applicants submit their résumés to Smarter Distribution and Smarter Distribution forwards the résumé to the wholesaler.

For more information, visit www.smarterdistribution.com.

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New book looks at sales force compensation myths
Take this little quiz. To increase market share, a wholesale distribution firm should pay its outside salespeople.
A. Commission, to keep them hungry.
B. Salary, so they think beyond the short term.
C. Some combination of A and B.
D. It doesn’t matter.

You probably didn’t pick D. But according to the authors of this eye-opening book from NAW’s Distribution Research and Education Foundation, there is absolutely no relationship between a wholesale distribution company’s sales incentive plan and that company’s likely gain or loss in market share.

In fact, here’s what matters most:
• setting a company objective;
• getting management to use progress toward this objective in rating salesperson performance; and
• making sure the whole company team buys in.

“What’s Your Plan?” debunks the myths and shows wholesaler-distributors how to bring these three all-important factors into alignment.

Mike Marks and Mike Emerson of Indian River Consulting Group surveyed hundreds of wholesale distribution executives and talked to dozens more in-depth on the phone. Their main finding is that pay plans don’t/can’t operate effectively in a corporate/sales management vacuum. That may seem obvious, but the study raises this tough question: If it’s so obvious, why are so many wholesaler-distributors operating otherwise?

By reading this book and thinking deeply about the real-life compensation case studies presented, wholesaler-distributors can determine whether they have the preconditions in place to verify that their sales force pay plan is the right one, or to adjust it as necessary so it produces the desired results.

Marks is principal and managing partner at IRCG. He founded IRCG in 1986 and is well known throughout the wholesale-distribution industry as both a speaker and consultant. He is also serving a four-year term as a Fellow of NAW’s Distribution and Research Education Foundation. Emerson is the sales compensation practice manager at IRCG. Emerson has been with the firm managing this practice since 1998.

Prices are as follows: NAW Direct Member, $79; Member of NAW Member Association, $89; Non-Member, $99.

NAW offers three ways to order:
* Go to www.nawpubs.org for an online discount.
* Send an e-mail to with the name and phone number of the person you’d like NAW to call.
* Go to www.naw.org/orderform.htm for a faxable form.

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PTDA names new executives for 2004
The Power Transmission Distributors Association (PTDA) elected its officers, board of directors and Manufacturer Council for 2004 at the association's recent annual convention in New Orleans.

Don R. Latham, president of Canadian Bearings Ltd. in Mississauga, Ontario, was elected to succeed Carlos Ingram of Kaman Industrial Technologies as PTDA's president in the coming year. Latham, the association's first vice president in 2003, served on the board since 1999. He also served as board liaison to the marketing committee.

John R. Neal, vice president of marketing for Root Neal & Company in Buffalo, N.Y., will be PTDA's first vice president in 2004. A PTDA board member for the past four years, Neal has been active in the association since 1992, serving on the association's industry relations committee.

Andrew H. Nations, president of Bearings & Drives Inc. in Macon, Ga., will be PTDA's second vice president in 2004. Since 1998, he has served three terms on the PTDA board and as its liaison to PTDA's technical education committee.

Jeffrey H. Pickelman, owner and CEO of Northern Industrial Supply Inc. of Saginaw, Mich., will serve as PTDA's treasurer in 2004. He currently serves as a director and board liaison to the employee development committee.

James Lamb, vice president of marketing and sales for Drives Inc. in Fulton, Ill., will assume the duties of PTDA's Manufacturer Council chair for 2004, replacing Barb Ross of Klozure Oil Seals and Bearing Isolators, a Division of Garlock Sealing Technologies. Lamb served on the Manufacturer Council since 2001 and previously served on the association's industry relations committee.

William R. Demmel, sales director for Martin Sprocket & Gear Inc. in Arlington, Texas, became Manufacturer Council vice chair for 2004. He currently serves on the council and has served on the marketing committee.

The remaining delegates serving on PTDA's board of directors in 2004 include:
• Fernando Rojas, president of Rodamientos Rovi CA in Caracas, Venezuela;
• Helen Yost, general manager of The Rowland Company in Philadelphia;
• John Masek, vice president of human resources of Bearing Services Inc. in Livonia, Mich.;
• Drew Tucci, sales director of Eastern Bearings Inc. in Manchester, N.H.;
• Stephen Philpott, president of Bearing Belt Chain Co. Inc. in Las Vegas; and
• R.P. Racine, chief operating officer of Gopher Bearing Co. Inc. in Saint Paul, Minn.

Additional PTDA Manufacturer Council members for 2004 include:
• Wendell Witten, director of sales and product support for Warner Electric Division Colfax Power Transmission Group in South Beloit, Ill.;
• Robert Ruland, president of Ruland Manufacturing Co. Inc. in Marlborough, Mass.;
• Jim Little, national distribution manager of Peer Bearing & Chain Company in Waukegan, Ill.;
• Richard A. White, executive vice president of Flexible Steel Lacing Co. in Downers Grove, Ill.;
• John H. Stewart, president of Duff-Norton in Charlotte, N.C.;
• William A. Childers, president and chief operating officer of NSK Canada Inc. in Mississauga, Ontario; and
• John A. Hegel, president and CEO of Minarik Corporation in South Beloit, Ill.

The PTDA Educational & Scholastic Foundation 2004 board of trustees was also elected. David J. Witwer, general manager for Minarik-Midwest in Strongsville, Ohio, will serve as president. Charles W. Hibbett, president of sales and distribution for Emerson Power Transmission Corp. in Ithaca, N.Y., will serve as vice president. And, Jeffrey H. Pickelman, owner and CEO of Northern Industrial Supply Inc. in Saginaw, Mich., will be treasurer.

Additional trustees of the foundation include:
• Robert Callahan, vice president of sales and distribution services for U.S. Tsubaki (UST) in Wheeling, Ill.;
• Robert J. Daniel, general sales manager of The Timken Company in Canton, Ohio;
• James E. Humphrey, president of Diamond Chain Co. in Indianapolis;
• Robert M. Oberholzer, chairman of Shingle & Gibb Co. in Moorestown, N.J.;
• Gerald P. Ferris, vice president of sales for Boston Gear Division Colfax Power Transmission Group in Quincy, Mass.;
• David A. LaRue, president and owner of Baldwin Supply Co. in Minneapolis;
• Don R. Latham, president of Canadian Bearings Ltd. in Mississauga, Ontario;
• Robert Morrish, associate director of trade and apprenticeship for Henry Ford Community College in Dearborn, Mich.; and
• W. Penny Omnès, vice president of external affairs and corporate relations for BC Bearing Engineers Ltd. in Burnaby, British Columbia.

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PTDA honors David Witwer for lifetime achievement
The Power Transmission Distributors Association named David J. Witwer, general manager of Minarik-Midwest in Strongsville, Ohio, the 14th recipient of the association's Warren Pike Award for lifetime achievement in the power transmission/motion control (PT/MC) industry.

Named for PTDA's co-founder and first president, the Warren Pike Award was established in 1984 to honor individuals who have demonstrated outstanding, continuous, long-term support of PTDA and the PT/MC industry. Witwer received the award at the association's annual convention Oct. 17 in New Orleans.

Witwer has been active in PTDA since 1992. His accomplishments and contributions span virtually all of the association's operations and interests.

As the general manager of Reserve Motion Control Systems, an independent distributor in the Cleveland area, Witwer served on PTDA's board of directors from 1995 to 1998 and was the association's president in 1997. He served continuously on the PTDA Educational & Scholastic Foundation Board of Trustees since 1997, as foundation president in 1999 and as its vice president in 2000 and 2003.

Witwer also helped advance PTDA and PT/MC industry causes through participation in many of the association's committees. He has been a member of PTDA's executive, membership and steering/bylaws committees, and chair of the association's international and nominating committees. Additionally, Witwer played leadership roles on PTDA's planning task force and young executives group.

Witwer's commitment to the association remained steadfast even after Reserve Motion Control was acquired by Minarik in 2001. He continues to serve on the association's marketing committee and recently was re-elected president of the foundation board for 2004-2005.

''Dave Witwer truly deserves PTDA's Warren Pike Award,'' said PTDA executive vice president Mary Sue Lyon. ''He personifies the core values of PTDA through his unfailing efforts to establish community among members, his encouragement of frank and open dialogue on issues in the industry and efforts to build mutual trust among members.''

''Dave's leadership has helped PTDA make a difference on virtually every issue the association has addressed. His generosity in sharing his time and expertise is legendary among the PTDA leadership and staff. Dave is a true visionary, one who is dedicated to ensuring the continued success of the PT/MC industry and his association.''

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Lawson Products posts increased Q3 financials
Lawson Products Inc. reported third quarter net sales of $99.3 million, an increase of 0.8 percent from net sales of $98.5 million in the third quarter of 2002.

Net income increased to $4.4 million, or 46 cents per share, compared to net income of $3.8 million, or 39 cents per share, during Q3 2002.

For the first three quarters, Lawson Products generated net sales of $292.5 million, down less than 1 percent from $294.1 million last year.

Net income reached $12.3 million, or $1.29 per share, for the period, vs. $12.3 million and $1.28 per share a year ago.

"Our efforts to expand the markets served by our family of businesses have helped to stabilize and grow our revenues," said Lawson Products chairman and CEO Robert J. Washlow. "Those efforts, combined with continued cost controls, have produced improved results at Lawson during a difficult economic period."

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Technology providers to host Inforums at I.D.A. expo
Eleven technology providers will host educational sessions as part of the Industrial Distribution Association (I.D.A.) Annual Distributor & Manufacturer Business Expo, Nov. 22-24, in Chicago.

Free for registered Business Expo delegates, the Technology Inforum sessions will be held Nov. 22 from 11:30 a.m. to 1 p.m.

Presented by I.D.A. Associate members in individual theatres, these informational forums, or “inforums,” will provide expo attendees an opportunity to learn how emerging distribution challenges can be affordably addressed using technology solutions. Many sessions will focus on improving internal operations and reducing operating costs.

“The Technology Inforums provide an excellent opportunity for attendees to learn about the most current available technology and what it can do for them,” said I.D.A. interim director Don Ruggles. “As technology continues to have a greater effect on their businesses, the importance of forums like this will continue to grow."

Presenters and programs include the following:
• Aperum will present operational, organizational, cultural and technical views on how to profit through partnerships more effectively.
• daly.commerce will show distributors how they can enable automation and efficiency beyond the walls of their enterprise.
• i2 Trade Service will demonstrate features from its distribution-centric catalog content system.
• Intuit Eclipse will present six technical design decisions that make Intuit Eclipse unique.
• LG Soft India will share how its catalog services offer substantial reduction in content development costs and accuracy levels of 99.99 percent on data entry.
• Microsoft and MaxQ Technologies will present a joint program showing how businesses can meet demands for lower prices, shorter delivery times, quicker response and better inventory availability through automation of sales forecasting, planning, execution and analysis.
• Prelude Systems will show attendees how they can reduce inventory by 35 percent while improving customer service.
• Prophet 21 will present sessions on how CRM can impact the bottom line and on its Trading Partner Connect system.
• ToolingUniversity will present a case study and benefits of product training online.
• WEBCOM will show attendees how to maximize ROI from its catalog programs.

More than an exhibit opportunity, participants developed their own presentations and most will use the time block for several shorter vignettes, enabling attendees to visit multiple theatres.

Distributor and manufacturer attendee lists are now posted on the I.D.A. Web site and updated every Friday afternoon. For more information on the 2003 I.D.A. Annual Distributor & Manufacturer Business Expo, visit the I.D.A. Web site at www.ida-assoc.org.

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Trio Pines names new president
Casters importer Trio Pines U.S.A. announced that Salvatore Aliotta Jr. joined the company as its new president to oversee all North American operations. Aliotta will succeed former Trio Pines president Stanley Noh, who was promoted to CEO and vice chairman.

A respected veteran of 25 years in the caster industry, Aliotta began his career as an outside sales representative for a local caster distributor in New Jersey. He later served as sales manager of industrial distribution for Faultless Caster Company in Evansville, Ind., and then as national sales manager for PJ Company in Compton, Calif.

Prior to joining Trio Pines, he served 10 years as president of Darnell-Rose Caster in Industry, Calif.

"The U.S. caster industry is undergoing a major transformation," said Noh. "Buyers today seek value in the form of cost savings, quality products, and exceptional service. The experience Mr. Aliotta brings to Trio Pines is our commitment to provide customers with the value they demand. Aided by an experienced staff, Mr. Aliotta will move Trio Pines to a leadership position supported by our breadth of line, competitive pricing and responsiveness from three fully stocked regional warehouses."

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Applied Industrial Technologies names new executives
Applied Industrial Technologies' board of directors elected Mark O. Eisele to the positions of vice president, chief financial officer and treasurer, effective Jan. 1, 2004.

In addition, the board elected Maryann R. Correnti to the new position of vice president of strategic planning and development, effective Dec. 1, 2003.

Eisele, previously vice president and controller, will be responsible for all financial functions, including financial analysis, planning, budgeting, reporting and investor relations. He succeeds John R. Whitten, who will retire Dec. 31. Eisele will report to chairman and CEO David L. Pugh.

"In his 12 years of service with Applied, Mark Eisele has proven himself a dedicated accounting professional with a wealth of knowledge and experience in financial management," Pugh said. "His extensive knowledge of our business, as well as his proven track record of accomplishment, have prepared Mark well for his role as our chief financial officer. He has earned the confidence of our shareholders and our organization."

Eisele joined Applied in 1991 as manager of internal audit and became controller in 1992. In 1997, he was elected vice president and controller. Prior to Applied, Eisele served as senior audit manager for Deloitte & Touche LLP in Cleveland.

Correnti will support all corporate functions and help Applied create and implement growth strategies for the future. New to Applied, she will report to Pugh, with dotted line responsibility to president and chief operating officer Bill L. Purser.

"Maryann Correnti will strengthen progress toward our goals of generating profitable growth and enhancing shareholder value," Pugh said. "Maryann's strong background in public accounting and extensive experience with mergers and acquisitions provides Applied with additional senior-level resources to help us plan strategically for growth."

A 29-year accounting industry veteran, Correnti most recently was an audit partner with Andersen, where she worked in virtually every aspect of finance and operations. She joined Andersen in 1977 and was named partner in 1989.

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Columbus McKinnon sees income rise on lower sales
Columbus McKinnon reported net sales of $106.6 million during its second fiscal quarter of 2003, compared to net sales of $113.2 million during the same quarter last year. The company posted Q2 net income of $1.5 million, or 10 cents per share, vs. net income of $1 million, or 7 cents per share, last year.

For the first two quarters of fiscal 2003, Columbus McKinnon generated net sales of $213.2 million vs. net sales of $227.1 million the year before. Net income reached $2 million, or 14 cents per share, compared to a net loss of $3.5 million, or 24 cents per share, a year ago.

"We continue to make significant progress in reducing debt and taking costs out of our business," said Columbus McKinnon president and CEO Timothy T. Tevens. "During the quarter, we successfully completed a debt refinancing which will reduce our annual interest expense by about $3 million going forward. We also reduced debt net of cash by $17.8 million in the second quarter. Inventories are down $8.5 million from last year, a 10.4 percent decline, and we continue to benefit from our lean manufacturing initiatives, facility rationalization and other strategic initiatives."

He added: "While the industrial sales environment remains soft, sales from our products segment, which makes up over 85 percent of total sales, improved by 2.8 percent over the first quarter of fiscal 2004 and are within 2.5 percent of last year, suggesting a stabilization of business activity in this important market segment."

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Pentair Tools Group posts third quarter increases
Pentair's Tools Group reported third quarter net sales of $268 million, up 1 percent from sales during the same quarter last year. Operating profits fell 16 percent to $21.4 million during the third quarter of this year.

The Tools Group posted nine-month sales of $803.2 million, down from $821.6 million last year. Operating profits reached $62.3 million, down from $73 million a year ago.

As a whole, Pentair reported Q3 net sales of $685 million, up substantially from $629.3 million a year ago. Net income was $38.4 million, or 77 cents per share, in the third quarter, up from net income of $37.4 million, or 75 cents per share, during the prior-year period.

For the first nine months of 2003, Pentair recorded net sales of $2 billion, up from $1.9 billion. Net income has reached $110.1 million, or $2.21 per share, so far this year, compared to $101.8 million, or $2.04 last year.

"We made solid gains in working capital, supply chain management, our lean enterprise initiative, and organic growth, and we're redoubling efforts to offset competitive market price pressures in the Tools Group through additional materials savings and improved productivity," said Pentair chairman and CEO Randall J. Hogan. "Looking forward, we expect fourth quarter 2003 EPS of between 62 cents and 70 cents, compared to EPS of 56 cents in the same period last year."

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Home Depot launches extended line of Ridgid power tools
The Home Depot announced the largest introduction of professional-grade power tools in its 24-year history. More than 30 new RIDGID brand tools, including cordless drills, miter saws with laser guides and an innovative table saw, are now available in all Home Depot stores in the United States and Canada.

"The Home Depot's introduction of this new Ridgid product line, with the brand's 80 years of heritage, underscores our dedication to serving professional contractors," said Craig Menear, senior vice president of merchandising for hardlines at The Home Depot. "We're continually developing ways to bring value to our commercial customers, through both special services and offering new products such as these powerful and durable Ridgid power tools, at competitive prices."

With this launch, Home Depot becomes the exclusive hardware home center retailer of Ridgid power tools. The new line is also available through electrical, plumbing and industrial supply centers.

The new Ridgid line is the result of intensive customer research conducted by Emerson Professional Tools and OWT Industries, Inc. A wholly owned subsidiary of Techtronic Industries Co. Ltd., OWT also developed and manufactures the tools.

In designing Ridgid tools, thousands of hours were spent talking with and working alongside contractors, builders and woodworkers to understand how they work, job site challenges and their power tool needs. This research translated into products that boost productivity, enhance user comfort and offer exceptional power and durability.

The research influenced tool designers and engineers to include the following innovations and features.
• The Rapid Max Twin charging system on cordless tools charges two high-capacity batteries simultaneously in half the time of standard cordless chargers.
• Selected corded tools include extended motor life (EML) motors, which are engineered to withstand extreme conditions and last up to five times longer than other motors.
• Ridgid standard series cordless drills feature single-sleeve locking chucks, a 24-position clutch and 20-minute chargers.
• Auto-stop brushes on selected Ridgid tools halt their operation when the brushes are worn but before they can damage the motor.

On an introductory basis, a limited lifetime service warranty is being offered on all Ridgid handheld corded and cordless, bench and stationary power tool purchases made between Sept. 1, 2003, and Dec. 31, 2003. The warranty includes lifetime free service on batteries, brushes, chucks, cords, switches and normal wear items.

In order to redeem the warranty customers only need to bring their receipt and tool to their local service center authorized to repair Ridgid power tools. Ridgid professional power tools also carry a 90-day satisfaction guarantee and a three-year warranty.

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ISMA changes name of Spring Convention
The Industrial Supply Manufacturers Association announced the name of its annual spring convention will now be the Industrial Supply Convention, or ISCON, to reflect the dramatic changes happening in the marketplace.

The new name will be effective with ISCON 2004, scheduled for May 23-25, 2004, in Orlando, Fla.

In the past, the annual gathering of manufacturers and distributors held in conjunction with the Industrial Distribution Association (I.D.A.) was called the ISMA/I.D.A. Spring Convention.

"ISCON will be a new beginning for a nearly 100-year-old tradition," said ISMA executive director Charles M. Stockinger. "We hope the acronym will catch on as an easy way of referring to the premier event in the industrial supply channel, both domestically and internationally."

He added: "The 'Spring Convention' was no longer sufficiently indicative to encompass all that is changing within the industry and ISMA's response to this evolution."

Groundwork for the change began in May in New Orleans when the Spring Convention was opened for the first time to all non-I.D.A. industrial distributors. They are now welcome and encouraged to attend ISCON on the same financial footing as distributors who belong to I.D.A.

"It is our goal to expand ISCON into a multi-faceted convention which represents a rapidly expanding channel," said Stockinger. "We want attendees to have the ultimate networking experience in a venue that brings together the broadest possible representation of manufacturers from North America and industrial distributors from all segments of the MROP channel from around the world."

Stockinger said ISCON 2004 will focus on providing program content that has one primary goal: adding value to the convention experience. ISMA will continue to provide innovative programming focused on distributor and manufacturer concerns and interests.

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Wilson turns profitable during third quarter
Smith International Inc.'s industrial business unit Wilson reported third quarter revenues of $237.4 million, up from revenues of $220.2 million during the third quarter last year. Wilson's operating income swelled to $229,000, up from a loss of $705,000 last year.

For the first three quarters of 2003, Wilson reported revenues of $661.2 million, down from revenues of $672.1 million last year. The business unit recorded an operating loss of $4.3 million during the period compared to a $1.5 million operating loss the year before.

Wilson is a stocking distributor of more than 90,000 items, with a network of more than 120 branches. The products represent more than 500 manufacturers of pipe, valves, fittings and general supplies for the maintenance, repair and operation, as well as the project needs of its customers. In addition to branch stock, Wilson manages inventories at more than 70 customer sites.

Smith International chairman and CEO Doug Rock said he was pleased with the third quarter results and "encouraged by the continued improvement in our distribution segment, which turned profitable on the operating income line this quarter."

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PMA report reflects waning economic confidence
Growing economic faith over the past three months has now fallen off slightly, according to the Precision Metalforming Association (PMA) Business Conditions Report.

Conducted monthly, the report is an economic indicator for the manufacturing world, sampling 155 manufacturing companies. Information is based on conditions as of Oct. 1.

Survey respondents indicated an increasing confidence in the economy since August, but are now sharing a less positive outlook. Thirty-five percent of participants expected that general economic activity over the next three months would improve from today (down from a peak of 45 percent last month). The majority, 52 percent, thought conditions would stay the same, and 13 percent said that activity would decrease (only 7 percent felt this way in September).

Optimism also waned when members were asked their expectations for incoming orders during the next three months. Forty-three percent predicted that orders would increase (down from 49 percent last month), and 17 percent anticipated that orders would decrease (a downgrade from only 7 percent in September). The remainder, 40 percent, expected that orders would not change.

The report also shows data on the percentage of companies with workforce on short time or layoff. The results for October indicate that 24 percent of companies are operating with fewer staff (up 3 percent from the previous survey).

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