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Distribution Industry News Archives
News from the week of Dec. 22, 2003

Hughes Supply completes Century Maintenance acquisition
John Reynertson dies at 77

I.D.A./ISMA task force proposes association merger

Georgino Industrial Supply opens new location

supplyFORCE chosen to supply York International

PTDA enters manufacturing public policy ring

Hughes Supply completes Century Maintenance acquisition
Hughes Supply Inc. completed the acquisition of Century Maintenance Supply Inc., previously announced Nov. 26, for $360 million in cash. 

This strategic acquisition is clearly aligned with Hughes' growth strategy of investing in businesses that expand its national footprint, reduce business cyclicality and offer superior returns. Additionally, it will make Hughes a leader in the apartment maintenance, repair and operations (MRO) market, enabling it to more effectively serve national property management companies throughout the United States and facilitating its entry into other adjacent MRO markets.

The transaction, effective Dec. 19, was financed through borrowings under the company's revolving credit facility and a $250 million interim senior unsecured term loan.

Century is one of the nation's largest and fastest-growing distributors of MRO products to property management companies in the United States. Its distribution network includes 39 branches in major metropolitan markets in 35 states.

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John Reynertson dies at 77
Former Sturtevant Richmont owner and operator John L. Reynertson, 77, died Dec. 3 in his Bloomingdale, Ill., home after a six-year battle with hepatitis C.

Reynertson was well-known in industrial supplier circles. He was asked to head Dresser Industries' hand tool division in 1969 and later went on to purchase Sturtevant Richmont in 1984 when Dresser decided to sell. By taking a new approach to marketing and purchasing new equipment, Reynertson built the division into one of the top torque-measuring toolmakers in the country.

Three of his sons, Ray, Donald and John Jr., still run Sturtevant Richmont along with a son-in-law. Ray is also president of the Industrial Supply Manufacturers Association.

Survivors also include wife Patricia, son Ronald, daughters Gloria Krecl and Mariann Johnston, brother Stan, sister Ardele Bryntesen, and 14 grandchildren.

"He led all his life," wife Patricia told the Chicago Tribune. "It was just natural instinct."

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I.D.A./ISMA task force proposes association merger
A special task force of officers of the Industrial Supply Manufacturer’s Association (ISMA) and the Industrial Distribution Association (I.D.A.) recommended that the two organizations merge, pending member approval. Members will vote on the proposal in April, 2004.

ISMA president Ray Reynertson and I.D.A. president Jim Beckstein said the task force is recommending the merger because American manufacturing is under siege and the pressure to reduce costs has never been greater.

“We have a unique opportunity to use the merged strength of I.D.A. and ISMA, working in unison, to streamline the supply chain, reducing costs for the MROP user. We recognized that the needed level of cooperation and singular focus was hampered by separate distributor and manufacturer organizations, both concentrating on the welfare of their respective membership, but not necessarily addressing the overall needs of the channel,” Reynertson said.

Beckstein added: “The free flow of communication within the new organization will facilitate our members’ understanding of the needs and concerns of both distributors and manufacturers, reducing channel conflict and fostering the cooperation required to succeed in meeting the needs of the MROP end users. The entire channel will benefit by reducing costs for our end users, helping them compete in this very difficult business environment.”

The task force envisions an MROP industry-wide event to bring together other MROP associations, buying groups, MROP stakeholders and end users, and developing closer relationships with other MROP associations to act jointly on issues affecting the MROP industry.

Under the task force recommendation, the combined organization would be governed by a 12-member board of directors that includes four officers, with equal manufacturer and distributor representation. Board members would serve staggered three-year terms, and committees and task forces would be aligned directly with core program areas.

The new organization would have one regular membership category for manufacturers and distributors. Manufacturer’s representatives would be classified as associate members while other MROP stakeholders and service providers would be considered affiliate members. The current memberships dues structure for the two organizations would be maintained.

A new name for the combined organization has yet to be selected.

The task force also recommends continuing the following mission-critical activities:
• Conventions and forums for member interaction and education.
• Gathering and disseminating critical information, including industry data, research, trend analysis and operating metrics.
• Publishing the annual membership directory.
• Developing and implementing channel performance initiatives, including e-commerce, standards, industry advocacy and education.

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Georgino Industrial Supply opens new location
Georgino Industrial Supply of Pittsburgh announced the opening of its third location in Erie, Pa. It will complement the two other locations in Pittsburgh and Penfield, Pa.

The doors for Georgino Industrial Supply in Erie officially opened Dec. 22 and will be located at 1615 Ash Street. The main contact for this location is Scott Ellrich.

Georgino was originally founded as a general line industrial distributor in 1936 and serves the powder metal, tool and die, paper and other industries throughout western Pennsylvania.  Georgino’s main product lines include abrasives, cutting tools, fasteners, fluid power, lubricating oils, power transmission supplies and other general-line MRO products. Its combined manufacturer offering is greater than 600 suppliers.

“We are very much looking forward to expanding our scope in the northwest corner of Pennsylvania," said Georgino vice president of operations Don Pletcher. "Georgino has always been focused on providing the highest quality products and technical expertise and now will be able to offer these services in a much larger footprint.”

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supplyFORCE chosen to supply York International
MRO procurement solutions company supplyFORCE was selected by York International as its national MRO supplier for non-production items including pipe, valves and fittings; electrical; fluid power; bearings; and industrial supplies.

“SupplyFORCE provides York International a network of primary regional distributors of PVF, electrical, PT and industrial supplies who provide inventory services, usage reporting, product fulfillment, local inventory and technical support to York International," the company said in a press release. "In many cases the local supplyFORCE distributor has already been a valuable supplier partner to many York International sites."

SupplyFORCE will help York International move toward supplier consolidation without reducing the service levels required by each York location. In the future, supplyFORCE will provide a single order portal and payment remit-to address, while the traditional distributor network continues to perform its supply distribution function without interruption.

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PTDA enters manufacturing public policy ring
The Power Transmission Distributors Association (PTDA) joined three public policy endeavors spearheaded by the National Association of Manufacturers (NAM). The PTDA board of directors unanimously agreed to become more active in the public policy sphere given the importance of manufacturing to industrial distributors and manufacturers.

PTDA joined the Coalition for the Future of Manufacturing, a group of businesses and industry associations dedicated to raising awareness of the critical importance of a strong manufacturing base to American prosperity and the challenges facing U.S. manufacturing today. PTDA also joined the Coalition for a Sound Dollar and the Fair Currency Alliance, which are focused on raising awareness of the serious impact of currency manipulation among Asian trading partners and influencing policy changes to address these practices.

PTDA's active role in supporting this public policy agenda stems from its recognition of the central role of manufacturing in ensuring the health of its distributor and manufacturer members, the industrial distribution channel and the American economy.

Manufacturing is an engine of growth, because of the following reasons.
• Every $1 in manufactured goods generates an additional $1.43 of additional economic activity, more than any other sector of the economy.
• Manufacturers accounting for nearly two-thirds of all private sector research and development investment.
• Sixty-two percent of U.S. exports are manufactured goods, allowing the United States to compete internationally.
• Manufacturers provide the highest average employee compensation in the private sector.
• Manufacturers pay one-third of all corporate taxes collected by state and local governments.

Intense global competition has challenged U.S. manufacturers as never before, as costs of doing business continue to rise without an opportunity for price increases.  

The Coalition for the Future of Manufacturing is seeking pro-growth public policy changes that will ensure a vibrant U.S. manufacturing base in the future to:
• level the international playing field;
• reduce production costs in the United States;
• promote innovation, investment and productivity;
• ensure the adequate supply of skilled workers and availability of effective resources for worker re-training and re-employment; and,
• improve the policy-making infrastructure to advance the manufacturing agenda.

PTDA is working actively to support the goals of the coalition by encouraging members to host plant tours for government representatives, attend a manufacturing forum in Washington, D.C., in February, and join the coalition directly.

PTDA also invited NAM senior vice president of external affairs Patrick Cleary to speak at the association's recent annual convention. And, the PTDA Educational & Scholastic Foundation initiated a program to address the industry's need for workforce development.  

By partnering with community colleges, the foundation is working to create local pools of qualified potential employees and affordable training programs for industrial distributors and manufacturers.

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