Distribution Industry News

Interest rate watch: Wells Fargo comments on latest hike

From the Economics Group of Wells Fargo Bank, N.A.: The Federal Open Market Committee (FOMC) elected to raise the federal funds rate by 25 bps at the conclusion of its monetary policy meeting on Wednesday. This action lifted the range of the federal funds rate to 4.50%–4.75%, which is 450 bps higher than it was when the FOMC first started its tightening cycle last March.

'Fortune' names Grainger one of World's Most Admired Companies

Grainger has been ranked No. 1 among diversified wholesalers on "Fortune" magazine's 2023 list of the World's Most Admired Companies for the 10th consecutive year.

"Each day, Grainger's 26,000 team members are resolute in fulfilling our purpose, We Keep The World Working®, to make sure our customers have what they need to get their jobs done," said Grainger Chairman and Chief Executive Officer D.G. Macpherson. "Earning the top spot as the most-admired company in our category for 10 years in a row demonstrates our unwavering commitment to focusing on what matters, contributing to our communities and supporting our fellow team members."

Fortune's list is based on an annual survey given to top executives, directors and financial analysts – this year, 645 companies in 52 industries were surveyed. 

January employment trends up slightly

Total nonfarm payroll employment rose by 517,000 in January, and the unemployment rate changed little at 3.4 percent, the U.S. Bureau of Labor Statistics reported on February 3. Job growth was widespread, led by gains in leisure and hospitality, professional and business services, and health care.

Construction added 25,000 jobs in January, reflecting an employment gain in specialty
trade contractors (+22,000). Employment in the construction industry grew by an average
of 22,000 per month in 2022.

Manufacturing employment continued to trend up in January (+19,000). In 2022,
manufacturing added an average of 33,000 jobs per month.

Employment showed little change over the month in other major industries, including
mining, quarrying, and oil and gas extraction; wholesale trade; information;
financial activities; and other services.

In January, both the labor force participation rate, at 62.4 percent, and the employment-population ratio, at 60.2 percent, were unchanged after removing the effects of the annual adjustments to the population controls. The number of persons not in the labor force who currently want a job was 5.3 million in January, little changed from the prior month.

White Cap raised $870,000 for charities in 2022

White Cap said it raised more than $870,000 for nonprofits across North America in 2022, thanks to company donations, the charitable efforts of its employees, and strong partnership with customers and suppliers.

Dynabrade buys abrasive converter supplier 

Dynabrade, Inc. has completed the asset purchase of its strategic supplier, Global Abrasive Products, Inc., a 50-employee abrasives converter with locations in Lockport, New York and Alpharetta, Georgia.

Wright hires new human resources manager

Wright has appointed Heather Pittman as its new human resources manager – she will handle recruiting, benefits, safety and training and development.

Majority of manufacturing reports new order contraction

Economic activity in the manufacturing sector contracted in January for the third consecutive month following a 28-month period of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business. 

Grainger posts 17% sales growth for '22, doesn't expect a '23 encore

Grainger reported its 2022 fourth quarter sales of $3.8 billion were a 13% increase over Q4 '21 – or 17.2% on a daily, constant currency basis. For the full year, sales of $15.2 billion increased 16.9%, or 19.3% on a daily, constant currency basis compared to the prior year.

Snap-on sales grew 5.7% in '22

Snap-on Inc. posted Q4 '22 net sales of $1,155.9 million, $47.6 million, or 4.3%, higher compared to 2021 levels, and reflecting an $85.3 million, or 8.0%, organic sales gain, partially offset by $37.7 million of unfavorable foreign currency translation.

NIBCO expands industry presence with acquisition of Matco-Norca LLC

NIBCO has acquired Matco-Norca, a supplier of globally sourced, code-compliant plumbing & PVF products.

Dec. construction spending down .5% 

Total construction spending during December 2022 was estimated at a seasonally adjusted annual rate of $1,809.8 billion, 0.4 percent (± 0.8 percent)* below the revised November estimate of $1,817.3 billion, according to Feb. 1 data from the U.S. Census Bureau. The value of construction for the entire year was $1,792.9 billion, 10.2 percent (±0.8 percent) above the $1,626.4 billion spent in 2021.

Applied Industrial Technologies releases master product catalog

The fifth edition of Applied Maintenance Supplies & Solutions (Applied MSSSM) Master Product Catalog is now available from Applied Industrial Technologies.

2022 AD owner/member sales reach record $74.9 billion 

AD reported record results for 2022 in owner/member sales, member purchases from AD suppliers, AD warehouse sales to AD members, net distributions to members, and operational efficiency.

ARCH Cutting Tools acquires Custom Carbide Cutter

ARCH Cutting Tools Corp. has acquired Custom Carbide Cutter, Inc. (CCCI), a Cincinnati-based company that provides high-quality cutting tools to manufacturers and distributors.

Timken acquisition to expand linear motion offering

Bearings and industrial motion products maker The Timken Company has reached an agreement to acquire Nadella Group from ICG plc. Nadella is a European manufacturer of linear guides, telescopic rails, actuators and systems, as well as other specialized industrial motion solutions. The deal is expected to close in the first quarter.

Galco acquires regional distributor Zesco

Galco Industrial Electronics, Inc. (Galco) has acquired Zesco, Inc., a regional automation solutions provider located in Brecksville, Ohio.

Flow Control Holdings acquires Andron Stainless

Flow Control Holdings (FCH), a provider of sanitary flow components to producers of foods, beverages and pharmaceuticals, has acquired Andron Stainless, a provider of sanitary stainless steel fittings, valves, tubing and accessories. The deal includes Andron Stainless Ltd. (Columbia, South Carolina) and the company’s Canadian operations, and both operations will continue.

Crosby Group and KITO join to form new lift, material handling company

The Crosby Group and KITO Corp. have completed a deal combining the two businesses to form Kito Crosby. The January 29 announcement follows the settlement of The Crosby Group’s cash tender offer for all outstanding shares of KITO Corp. for JPY 2,725 per share and the completion of the related squeeze-out process and de-listing of KITO Corp. from the Tokyo Stock Exchange.

IWDC adds 13 vendor partners

The Independent Welding Distributors Cooperative (IWDC) added nine vendor partners in 2022 and another four suppliers since the beginning of 2023. 

DSG wears its 125 years with a young vibe

Dakota Supply Group (DSG) is launching a year-long marketing campaign, "125 years young" as part of its anniversary celebration.

Turtle & Hughes turns 100, charts next century of innovation

Turtle & Hughes, Inc., a privately-held industrial and power distributor, has launched the 100-year celebration of its founding on January 29, 1923, with a commitment to raise its own ambitious bar for driving sustainable solutions that will improve how people work, play, and live in a time of profound energy transition.

Chicago Fed National Activity Index: Industrial production falls 0.7% in December 

The Chicago Fed National Activity Index (CFNAI) edged up to –0.49 in December from –0.51 in November. Three of the four broad categories of indicators used to construct the index made negative contributions in December, but two categories improved from November. The index’s three-month moving average, CFNAI-MA3, decreased to –0.33 in December from –0.14 in November.

Kiplinger warns, don't use late '22 economy as a '23 predictor

The economy is slowing, despite strong GDP growth of 2.9% and 3.2%, in the fourth and third quarters of 2022, respectively, a Kiplinger Economic Outlook stated.

Applied Industrial Technologies reports over 20% YOY jump for fiscal Q2

Applied Industrial Technologies, a distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, has reported results for its fiscal 2023 second quarter ended December 31, 2022––net sales for the quarter increased 20.9% to $1.1 billion from $876.9 million in the prior year. 

Dayco appoints new Aftermarket/Belt CEO

Craig Frohock is the new CEO of Dayco Aftermarket and Belts – reporting directly to the Board of Dayco, he is responsible for the business unit’s global operational performance and strategic direction. Dayco is an engine product and drive systems manufacturer for the automotive, heavy-duty, and industrial market segments.

Stellar Industrial Supply names 3M its top supplier

Stellar Industrial Supply named previous multi-year winner 3M as its Supplier of the Year (SOY) award winner for 2022. The two companies collaborated to save 61 joint customers nearly 22.5% in customer Documented Cost Savings (DCS) during 2022. The company also announced Brady, Master Fluid Solutions and Walter Surface Technologies as its new STARS Partners for 2023.

Kimball Midwest celebrates centennial with $1 million community campaign

Kimball Midwest, a national industrial supplier based in Columbus, is celebrating its 100th anniversary in 2023 with a series of events and a community campaign to donate $1 million across the country.

Crescent hires senior director – industrial sales

Crescent Electric Supply, an independent distributor of electrical hardware and supplies, has hired Tom Fechter as senior director – industrial sales. In the newly created role, he is responsible for industrial sales growth and will enhance the company’s subject matter expertise in key markets nationwide, such as conveyance and material handling.

3M reports .4% organic growth for 2022  

3M reported fourth-quarter and full-year 2022 results and provided its 2023 financial outlook, which anticipates a -6% – -2% adjusted total sales growth.

President at Protective Industrial Products adds CEO to title

Protective Industrial Products Inc. (PIP), which makes personal protective equipment (PPE) for the industrial and construction markets, has appointed Curt Holtz as president & CEO. He joined the company as president in September 2022.

PTDA welcomes new member, Nelson Electric Motors 

The Power Transmission Distributors Association has welcomed a new distributor member, Nelson Electric Motors in Opelika, Alabama.

Bowden promoted to VP sales at Air Systems

Air Systems International announced team member changes, including the promotion of Mick Bowden to vice president sales & marketing.

The Lawless Group expands into Rockies, adds new hires

The Lawless Group has officially entered the Rockies with a new territory that includes Colorado, Utah, Wyoming, Idaho, and Montana.

Fastenal closes '22 with 16% higher net sales YOY

Fastenal Co. reported it closed 2022 with approximately $6.9 billion in annual net sales, a 16% increase over 2021 results. 

BSA, PTDA launch tech platform for channel partners

Bearing Specialists Association (BSA) and the Power Transmission Distributors Association (PTDA) have launched the PIE Technology Platform (PIE), a cloud-based platform giving manufacturers and distributors of industrial products access to the most comprehensive catalog for the exchange of rich content product information.

Fastenal surpasses $1 billion in international sales 

Fastenal announced its non-U.S. international teams achieved $1 billion in 2022 sales. The international side of the business has grown to include sales, service, and support teams in 25 countries spanning the Americas, Europe, and Asia.

Turtle & Hughes names vice president

Michael Vitiello, a 13-year veteran of Eaton Corp., has joined Turtle & Hughes as vice president and national sales manager of its electrical distribution division.

Fastenal releases inaugural ESG Report

New STAFDA logo unveiled

The Specialty Tools & Fasteners Distributors Association (STAFDA) has a new face! STAFDA’s blue triangle logo with “Stan the STAFDA Man” was recently updated to give it a more contemporary look. STAFDA’s traditional logo has tremendous brand recognition with Stan and the late '70s groovy script, but for 2023 and beyond, Stan Jr. will now be the face of STAFDA with a modern image and font.

B&D Industrial achieves Timken Platinum certification

B&D Industrial's Tacoma, Washington, site has achieved Timken Bearing Certified Shop “Platinum” level. In addition to thorough training, the Platinum audit process includes meticulous pre-and post-audit evaluations. 

Winsupply president to retire

Winsupply Inc. President John McKenzie will retire on Feb. 28, 2023, after 27 years with the company.

Emerson named ‘Industrial IoT Company of the Year’ for 5th time

Global technology and software company Emerson has been named the IoT Breakthrough 2023 “Industrial IoT Company of the Year” for the fifth time — an honor the company also received in 2018, 2019, 2020 and 2022. This year’s award recognizes the power of Emerson’s industry-leading Plantweb digital ecosystem, which now includes the AspenTech (NASDAQ: AZPN) suite of plant optimization software solutions.

Nov. U.S. cutting tool orders jump 20.8% over 2021

By Christopher Chidzik
November 2022 U.S. cutting tool consumption totaled $194.4 million, according to the U.S. Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology.  This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was down 3.1% from October’s $200.6 million and up 20.8% when compared with the $160.9 million reported for November 2021. With a year-to-date total of $2.0 billion, 2022 is up 10.4% when compared to the same time period in 2021.

Stellar Industrial Supply opens NJ warehouse and branch 

Stellar Industrial Supply has opened a warehouse and branch office in Egg Harbor Township, New Jersey, specifically to support Viking Yacht Company.

ERIKS completes fluid power acquisition

CRC Industries appoints Len Mazzanti as CEO

CRC Industries, a global manufacturer of specialty products and formulations for maintenance and repair professionals and do-it-yourselfers, has appointed Len Mazzanti as Chief Executive Officer. Mazzanti succeeds Perry Cozzone, who served as CEO of the company since 2018 and retired at the end of December 2022.

MSC acquires Buckeye Industrial Supply Co. and Tru-Edge Grinding

MSC Industrial Supply Co., a distributor of Metalworking and Maintenance, Repair and Operations supplies to industrial customers throughout North America, announced January 11 it has acquired Buckeye Industrial Supply Co., an independent metalworking distributor based in Columbus, Ohio, and Tru-Edge Grinding Inc., a St. Henry, Ohio-based custom tool manufacturer.

100 years celebrated at Applied Industrial Technologies 

Applied Industrial Technologies celebrated its 100-year anniversary on January 11, marking  the day in 1923 when Joseph M. Bruening founded the business that is now one of the largest value-added distributors and solution providers of industrial motion, power, control, and automation technologies in the world.

Triad Technologies expands Illinois footprint 

Triad Technologies, LLC (Triad), a distributor of fluid power, industrial automation and fluid conveyance products, completed the acquisition of Industrial Service Products, LLC (ISP) on December 30, 2022.

Harvey Gerstman Associates expands in the Southeast

Harvey Gerstman Associates (HGA), a third-generation manufacturers representative agency based in Garden City, New York, announced January 12 it has expanded its territorial reach and now represents manufacturers into national accounts, distributors, end-users, and retailers across the Southeast U.S, including North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Kentucky, and Tennessee.

PGMA issues call for user comments on standard revision

The Portable Generator Manufacturers' Association (PGMA) has put out a "Call for Members" for its BSR/PGMA G300-201x, Safety and Performance of Portable Generators (revision of ANSI/PGMA G300-2018) Standard which is currently under revision. The proposed revisions include adding additional requirements related to carbon monoxide safety concerns.

NAM Outlook Survey: Optimism dropping

In a January 9 Economic Report, NAM Chief Economist Chad Moutray reports 68.9% of respondents to the Q4 2022 NAM Manufacturers’ Outlook Survey felt either somewhat or very positive in their company outlook, down from 75.6% in Q3. It was the weakest reading since the third quarter of 2020, with growth slowing notably across the board. Indeed, it was the first reading below the historical average (75.1%) in two years.

AMT: Nov. manufacturing tech orders drop 32% from last year

New orders of manufacturing technology totaled $436.5 million in November 2022, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology.

MSC's fiscal Q1 sales jump nearly 13% YOY 

MSC Industrial Supply Co., a North American distributor of a broad range of metalworking and maintenance, repair and operations (MRO) products and services, reported financial results for its fiscal 2023 first quarter ended December 3, 2022.

Buyers' group AD hosts eCommerce & Marketing Summit 

The 2022 AD eCommerce & Marketing Summit, December 5-7, brought together digital and marketing leaders from AD owner/members, supplier partners, and eCommerce partners. Over 470 attendees gathered in San Diego for a week of panel discussions, roundtables, networking, and collaboration opportunities.

2022 manufacturing job growth on par with '21

Total nonfarm payroll employment increased by 223,000 in December, and the unemployment rate edged down to 3.5 percent, the U.S. Bureau of Labor Statistics reported on January 6. Employment in construction increased by 28,000 in December, as specialty trade contractors added 17,000 jobs.

Wright recognizes employees for service, achievement 

Wright announces the winners of its service and achievement awards. The service and achievement awards are designed to reward and recognize those employees for their years of service.

Partners Group acquires SureWerx from Riverside

The Riverside Company has sold SureWerx, a North American supplier of personal protective equipment, safety gear, and tool solutions, to Partners Group, a global private markets firm.

Morse acquires UK warehouse and welding center

The M. K. Morse Company has acquired longtime distribution partner and welding center, PJ Wiseman Ltd., based in North Yorkshire, United Kingdom. Effective January 3, 2023, PJ Wiseman will become The M. K. Morse Company UK Ltd.

Dorner appoints new regional sales manager

Jon Doughty has been appointed regional sales manager at Dorner, covering the Northeast portions of the U.S. He will be working with sales channel partners and key accounts to grow the company’s industrial, automation and sanitary conveyor business within his region.

Marc Strandquist joins Martin Inc. leadership team

Martin Inc., a Florence, Alabama-based provider of custom-tailored solutions for maintenance, repair, operation and production supplies, appointed Marc Strandquist to the role of executive vice president, Fastening Solutions Division. He will develop and execute strategic plans, drive efficiency and profitability, create synergy across all Martin business units, while building and leading the fastening team to achieve business objectives.

Steel King names Rona Rossier-Abel as vice president, Finance

Steel King Industries, a manufacturer of storage rack and material handling products, has appointed Rona Rossier-Abel as its vice president–Finance. She will oversee all financial strategy and actions for the company.

Codale Electric buys NEDCO Supply

Sonepar subsidiary Codale Electric has acquired NEDCO Supply, a privately-owned business full-line distributor of electrical products and services that operates throughout southern Nevada. Based in Las Vegas with over 100 associates, NEDCO is expected to record sales revenue in excess of $180 million for 2022.

Manufacturing PMI at 48.4% – new orders, production, and backlogs contracting

Economic activity in the manufacturing sector contracted in December for the second consecutive month following a 29-month period of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

Mike McLain, Tammy Balogh to lead PTDA 

The recently-elected 2023 Board of Directors and Manufacturer Council of the Power Transmission Distributors Association (PTDA) have begun their leadership terms.

Ingersoll Rand completes acquisition of SPX FLOW’s Air Treatment business

Total construction climbs 8.5% from last November

Construction spending during November 2022 was estimated at a seasonally adjusted annual rate of $1,807.5 billion, 0.2 percent (±0.8 percent)* above the revised October estimate of $1,803.2 billion, the U.S. Census Bureau reported on January 3. The November figure is 8.5 percent (±1.3 percent) above the November 2021 estimate of $1,665.2 billion. During the first 11 months of this year, construction spending amounted to $1,657.6 billion, 10.5 percent (±1.0 percent) above the $1,499.8 billion for the same period in 2021.

Purvis Industries acquires ErieTec

Purvis Industries acquired substantially all the assets, brand rights, websites, personnel, and intellectual property of ErieTec (formerly Erie Bearings) of Erie, Pennsylvania, effective January 1. ErieTec is a family-owned and operated industrial distributor that operates six branches and has been serving western Pennsylvania since 1958.

Shell acquires Allied Reliability, expanding its North American lubricants business

On December 22, 2022, Pennzoil-Quaker State Company d/b/a SOPUS Products, a wholly-owned subsidiary of Shell USA, Inc. that comprises Shell's U.S. lubricants business, acquired 100% of TFH Reliability Group, LLC, the parent company of Allied Reliability Inc. ("Allied Reliability").