July 2020 News

Genuine Parts Company sales fall 14.2 percent
Genuine Parts Company reported sales of $3.8 billion in the second quarter, a 14.2 percent decline from $4.5 billion in the same period of the prior year.

Snap-on sales fall 23.9 percent
Snap-on Incorporated said its net sales of $724.3 million in the second quarter of 2020 decreased 23.9 percent from $951.3 million in 2019.

FNA Group builds new Texas facility
The FNA Group has expanded its manufacturing and distribution footprint with a new 400,000-square-foot manufacturing facility in Mesquite, Texas.

Real Results Marketing rebrands as Distribution Strategy Group
Real Results Marketing, a boutique consulting firm focused on distributors, has changed its name to Distribution Strategy Group to better reflect its focus and expanded service offerings.

Columbus McKinnon sales fall 34.6 percent
Columbus McKinnon Corporation's sales fell by 34.6 percent in its fiscal 2021 first quarter, to $139.1 million.

Pandemic Revenue Index remains in negative territory
Except for a brief positive turn around the July 4 holiday weekend, the Weekly distributor Pandemic Revenue Index has remained in negative territory.

GDP records sharpest ever decline
The U.S. economy logged its sharpest ever decline in GDP in the second quarter, as real gross domestic product decreased at an annualized rate of 32.9 percent.

PTDA recognizes new members
The Power Transmission Distributors Association welcomed six new member companies, including four distributors and two manufacturers.

Rexnord posts 12 percent sales decline
Rexnord Corporation's sales of $449 million in the second quarter were12 percent below the same period last year.

Eaton's sales fall 30 percent
Eaton Corporation reported sales in the second quarter of 2020 were $3.9 billion, down 30 percent from the second quarter of 2019.

Waypoint Robotics and AHS announce integrator partnership
Waypoint Robotics and Advanced Handling Systems (AHS) announced a new systems integrator partnership.

Systemax Inc. sales declined 2.6 percent
Systemax Inc. reported that its second-quarter sales decreased 2.6 percent to $242.1 million compared to $248.6 million last year.

3M sales decline 12.2 percent
3M said its second-quarter sales of $7.2 billion were down 12.2 percent year-on-year from $8.2 billion.

Allied Motion announces reorganization
Allied Motion Technologies has realigned and expanded its organization structure.

Rockwell Automation sales decline 16.3 percent
Rockwell Automation said its fiscal 2020 third quarter sales were $1.39 billion, down 16.3 percent from $1.66 billion in the third quarter of fiscal 2019.

Barnes Group sales fall 37 percent
Barnes Group reported that second quarter sales of $236 million declined 37 percent from $372 million in the prior year period.

Winsupply makes executive appointments
Winsupply Inc. has named Jeff Dice president of Winsupply Equity Group and Chris Schrameck vice president of Information Technology, Winsupply.

Schron earns ISA Lifetime Achievement Award
Jack Schron, president and CEO of Jergens Inc. in Cleveland, Ohio, was named winner of the 2020 ISA John J. Buckley Lifetime Achievement Award.

Pandemic hurts Grainger gross margins

by Rich Vurva

While sales of pandemic-related products in the U.S. were up by more than 70 percent in the second quarter for Grainger, it has taken a toll on the company’s gross margin.

LINC Systems acquires Active Sales Company
Center Rock Capital Partners announced that its industrial fastener and packaging distribution platform, LINC Systems, has acquired Active Sales Company.

Pandemic Revenue Index declines 5.5 percent
Indian River Consulting Group’s weekly Pandemic Revenue Index for the work week of June 13-17 indicated a 5.5 percent decrease compared with the same week a year ago.

Business Strategies for Difficult Times

Utilizing the Gift of Slow Times

By Dave Kahle

Depending on your age, this may be your first encounter with life that hasn’t gone according to your plan. But it certainly isn’t unique for many of us.

B&D Industrial joins AD Industrial & Safety US Division
B&D Industrial, one of the founding members of the AD Bearings and Power Transmission division in 2015, recently joined AD's Industrial & Safety Division.

Grainger's second quarter sales decline 2%
Grainger reported second quarter sales of $2.84 billion declined 2 percent from $2.9 billion in the same period last year.

Pandemic Revenue Index declines 5.5 percent
Indian River Consulting Group’s weekly Pandemic Revenue Index for the work week of June 13-17 indicated a 5.5 percent decrease compared with the same week a year ago.

PTDA to move Industry Summit to online format
The Power Transmission Distributors Association has cancelled its in-person Industry Summit scheduled for Oct. 21-24 in Atlanta.

Kaman Distribution makes executive appointments
Kaman Distribution Group announced the appointment of Stephen Martin as vice president – general counsel, and John Crawford as vice president of human resources.

Chicago Fed National Activity Index shows June growth
Led by improvements in production- and employment-related indicators, the Chicago Fed National Activity Index increased to +4.11 in June from +3.50 in May.

May cutting tool consumption down 36 percent from last year
May U.S. cutting tool consumption totaled $136.6 million, down 4.4 percent from April's $142.9 million and down 36 percent compared with the $213.4 million reported for May 2019.

ISA announces 2020 virtual events calendar
The Industrial Supply Association has launched a virtual event calendar for 2020, beginning with the Emerging Leaders Virtual Summit, taking place Sept. 1-2.

Mattsco Supply acquires Tool Center Inc.
Mattsco Supply Co. has acquired Tool Center Inc. in Tulsa, Oklahoma.

Pandemic Revenue Index falls back into negative territory
Indian River Consulting Group’s (IRCG) weekly Pandemic Revenue Index for the work week of June 6-10, 2020, indicated a 7.4 percent decrease compared with the same week a year ago.

Drillco names new director of sales for Eastern USA
Drillco Cutting Tools has named Jason Finch director of sales for the Eastern USA.

STAFDA cancels Anaheim convention
A day after California reported its largest number of new coronavirus infections in a single day, the STAFDA board of directors decided to cancel the Nov. 8-10 Convention & Trade Show in Anaheim at the Anaheim Convention Center.

IWDC names regional sales manager
The IWDC named Vic Wilson Southern regional sales manager, responsible for promoting IWDC’s value proposition to members and driving profitable growth of vendor partner brands and the Weldmark brand.

Industrial production rose 5.4 percent in June
Total industrial production rose 5.4 percent in June after increasing 1.4 percent in May but remains 10.9 percent below its pre-pandemic February level.

Core & Main to acquire Water Works Supply
Core & Main has entered into a definitive agreement to acquire substantially all of the assets of Water Works Supply Co.

Fastenal 2Q sales up 10.3 percent
A surge in sales of PPE items at Fastenal Company during the second quarter resulted in a 10.3 percent gain in sales to $1.5 billion.

NetPlus Alliance revamps website
NetPlus Alliance has launched a new website designed to help distributors and suppliers access resources for growth in challenging times.

Bill Ward named Evergreen EVP
The Evergreen Marketing Group has named William W. Ward as executive vice president effective Sept. 1.

Manufacturing technology orders declined in May
U.S. manufacturing technology orders decreased 5 percent in May from the previous month to $219.4 million.

Pandemic Revenue Index shows 11.7 percent increase
The weekly Pandemic Revenue Index moved into positive territory for the first time since May.

MSC moves from defensive to offensive posture

By Rich Vurva

As the coronavirus pandemic drags on, MSC Industrial Supply president and CEO Erik Gershwind said the company is moving from a defensive posture to an offensive posture.

MSC's 3Q sales down 3.6 percent
Net sales fell by 3.6 percent to $835 million in MSC Industrial Supply's fiscal third quarter, compared to $866.5 million in the same period last year.

SupplyPro adds Contact Tracing function
SupplyPro announced availability of a new Contact Tracing function on its advanced inventory control systems.

Distributors named among 50 Best Companies to Sell For
Five industrial distributors were recognized by Selling Power magazine in its list of the "50 Best Companies to Sell For" in 2020.

Shurtape names new VP of Industrial Marketing
Shurtape Technologies announced the addition of Kevin Stamets to its executive management team.

Applied Industrial Technologies unveils 2020/2021 catalog
Applied Industrial Technologies has published its annual Product Catalog for 2020/2021 with more than 31,000 of its most popular industrial and maintenance products.

Barnes Group to cut workforce by 8 percent
Barnes Group plans to reduce its workforce by about 8 percent in response to the slowdown in business brought about by the COVID-19 pandemic.

Embrace Customer Managed Inventory in the Era of COVID-19

By Rock Rockwell

While the right ecommerce website is necessary for distributors, a Customer Managed Inventory program supported by the right technology is a better way to replenish inventory, especially given today’s social distancing requirements.

Weekly Pandemic Revenue Index down 11.4 percent
Indian River Consulting Group’s (IRCG) weekly Pandemic Revenue Index for the work week of June 22-26, 2020, indicated a 11.4 percent decrease compared with the same week a year ago.

Manufacturing and construction employment improved in June
More workers returned to manufacturing and construction jobs in June, as total employment rose by 4.8 million and the unemployment rate declined to 11.1 percent.

Construction spending declined in May
Construction spending during May 2020 was estimated at a seasonally adjusted annual rate of $1,356.4 billion, 2.1 percent below the revised April estimate of $1,386.1 billion.

Manufacturing improves for second straight month
Manufacturing expanded during June, as the purchasing manager's index from the Institute for Supply Management registered 52.6 percent, up 9.5 percentage points from May.

ISA announces new board members
The Industrial Supply Association has announced its new board of directors effective July 1.