Dakota Supply Group opens new mechanical branch in Minnesota
Dakota Supply Group recently opened its newest mechanical branch in Bemidji, Minn., at 2115 Net Way NW. This 15,000-square-foot facility, situated conveniently in Bemidji’s technology park, will focus on serving the Bemidji area with an extensive inventory of high-quality plumbing and heating products. It will also stock electrical products, including those from Square D. In addition, it features a city desk that will also function as a showroom.
“Our new branch features a broad range of the latest products in the heating and plumbing industry,” said Ryan Tracy, DSG mechanical group manager. “We’re very excited for our new facility to be up and running. It’s a great opportunity to give the Bemidji area a local look at what DSG service really means.”
DSG is one of the Midwest’s fastest-growing distributors of mechanical, electrical, communications, utility, automation, waterworks, metering technology and filtration products. The company has 17 locations throughout North Dakota, South Dakota and Minnesota. They have been in business since 1898 and are based in Fargo, N.D.
Blackman launches boom truck service
Blackman, one of the nation’s leading distributors of plumbing, heating and cooling supplies, has announced that boom truck delivery is now available for their customers throughout the Metro New York area.
“For nearly a century, Blackman has been committed to providing our customers with the best in supplies and service,” noted Mark Schmittzeh, director of sales and marketing for Blackman. “By offering this new boom truck service, Blackman will make it easier to deliver pipe and bulk material directly to the ground, first or second floor of any jobsite. We feel this will be a valuable asset for our customers. In addition to carrying the best brand names in the business, in stock and at the right price, contractors will continue to receive something they can’t find anywhere else -- Blackman’s unique level of unparalleled service.”
Boom truck service is also ideal for cast iron, commercial condensing units, copper pipe, black pipe and galvanized steel pipe. Boom truck delivery is a complimentary service available to all Blackman customers.
For additional information, visit www.blackman.com.
Consolidated Supply opens new showroom and branches
The Fixture Gallery, the decorative plumbing fixture showrooms of Consolidated Supply Co., held a Grand Opening on April 3 at their new 2,600-square-foot Salem showroom. The facility is located at 2710 Pringle Road S.E., Suite 110.
More than 200 invited guests were treated to live music and refreshments as they toured Salem’s newest designer showroom. It features a large selection of traditional and modern fixtures, faucets, accessories and Green products. Marilyn Jones is the manager of the Salem location and brings many years of knowledge and industry experience to the area.
In addition, Consolidated Supply is pleased to announce the opening of its 18th and 19th locations.
The 18th location, in Pacific, Wash., serves the south Puget Sound region. In addition to a wholesale warehouse, the Pacific location will house a Fixture Gallery designer plumbing showroom.
The 19th location, in Kennewick, Wash., was built from the ground up to Consolidated’s specifications and will also house a Fixture Gallery showroom. This location will be open in mid-June.
Consolidated Supply has seven locations in Washington State, five in Idaho, one in Hawaii and six in Oregon. Headquartered in Tigard, Ore., and celebrating its 80th anniversary this year, Consolidated currently employs 320.
For additional information, visit www.thefixturegallery.com and www.consolidatedsupply.com.
Wiseway Supply celebrates grand opening in Ohio
Wiseway Supply opened their new Harrison, Ohio, branch, at 10051 Simonson Rd., on May 5. The new facility is a 19,000-square-foot building, which includes a 4,200-square-foot showroom/counter area in addition to the warehouse storage area.
Wiseway’s grand opening celebration took place the week of May 5-9. Events included daily lunches and demonstrations by vendors such as Philips, Leviton, Takagi, Lutron, Jacuzzi, Newport Brass, Charlotte and T&S Brass, along with giveaways and prizes.
“We are really ecstatic to have this new location,” said Ed Jung, branch operations manager of Wiseway. “With the continued growing market, we offer the contractor convenience, additional inventory, great service and a broad line of quality products. Basically, a one-stop shop for any plumbing and electrical need.”
Jeff Price, the current manager, is managing the new location with the same great team. For more information visit www.wiseway.com.
Charlotte Pipe opens new plant in Utah
Charlotte Pipe and Foundry Company has opened a new plastic pipe manufacturing plant in Cedar City, Utah. The new plant, located in Iron County about 250 miles south of Salt Lake City, boasts the most modern equipment available, from high output extrusion lines and compounding equipment to energy efficient lighting and chilled water systems. The plant will manufacture PVC and ABS pipe for drain, waste and vent systems and FlowGuard Gold CPVC CTS pipe for domestic water applications.
“We are delighted to become a part of the Cedar City community and look forward to being a good corporate neighbor,” said Frank Dowd IV, chairman and CEO of Charlotte Pipe and Foundry. “We are excited about the opportunities and challenges ahead as we grow our company’s business in the Western U.S.”
As Charlotte Pipe continues to strengthen its presence in the West, the new plant will allow the company to offer its pipe and fittings systems from Colorado west to the Pacific Ocean. Charlotte manufactures its PVC, ABS and CPVC pipe to the middle of the spec range as defined by ASTM standards. When combined with Charlotte fittings the result is a TrueFit System that ensures a tight, reliable and consistent fit every time, which saves on installation time and results in fewer callbacks for the plumber.
A leading maker of cast iron and plastic pipe and fittings, Charlotte Pipe offers one of the industry’s broadest product ranges of standard and specialty dwv and pressure products. Headquartered in Charlotte, N.C., the company has seven plant locations across the U.S. Combining modern technology with more than a century of craftsmanship and experience, Charlotte Pipe has a proud legacy of commitment to the industry and its customers.
For information, call 800/438-6091 or visit www.charlottepipe.com.
Despite weak economy, forecasters predict housing rebound
According to a survey by the National Association for Business Economics, the worst of the painful housing slump and the credit crunch might come to an end this year. Unfortunately, the forecasters participating believe the economy will weaken further and unemployment will rise. The survey of 52 economics was conducted April 17 through May 1.
The survey noted that 56% of economics think the country is on the brink of a recession or in one already because of all the problems in housing, credit and financial markets. That is an 11% gain from a similar survey in February. However the good news is that these economists say that if there is indeed a recession, it probably will be short and shallow.
Also, they predict that growth of the economy will slow to 1.4% this year — down from the 1.8% they projected in the February survey. (Last year, the economy grew 2.2%.) On a positive note, the forecasters believe that next year, the economy will gain 2.3%.
The unemployment rate is expected to be higher than last year’s 4.6% average. In fact, the survey showed that economics predict the jobless rate will hit 5.3% in 2008 and 5.6% in 2009.
When considering home sales, forecasters believe that the housing slump will hit bottom this year -- although they couldn’t come to agreement as to which quarter that would occur. Home prices are likely to continuing dropping the remainder of this year and next.
“The economy is still going to be weak in the very near term, but the worst is likely to end this year with respect to the housing decline and the credit crunch,” Lynn Reaser, chief economist at Bank of America’s Investment Strategies Group, who participated in survey, told the Associated Press.
Among the major factors cited as being the most responsible for the spiraling economy were the housing slump, credit problems, and high energy, food and commodity prices.
Consumer prices are expected to increase 3.6% this year, up from a previous forecast of a 3% gain. Next year, the inflation rate is predicted to slow to about 2.4%.
Wolseley to cut 250 more jobs, close 90 branches in North America
Wolseley PLC will cut 250 jobs in the U.S. and Canada and close 90 branches, as the construction downturn continues to have a negative effect on its results.
The British distribution giant plans to close 75 of its Ferguson Enterprises locations in the U.S., laying off 200 workers, while either closing or consolidating 15 Canadian branches, laying off 50 workers.
The closures were announced following the numbers that came in for the nine months ended April 30. Though overall sales rose 2%, profits fell 23%. These cost-cutting measures are expected to save roughly $138 million a year, and mean a $98.2 million charge during the fourth quarter.
Wolseley officials said further closures and layoffs are in the cards and will be announced before July 31.
According to a company statement, “The U.S. housing and Repairs, Maintenance and Improvement markets have continued to soften, but U.S. commercial and industrial markets have held up well. In Europe, there has been a more pronounced slowdown in the U.K. over recent weeks and many other European markets continue to soften.”
In North America, Wolseley officials said Ferguson “continued to take market share,” with overall sales up 1% on acquisitions, but organic revenue growth down 3%.
The company’s Stock Building Supply division posted a $158 million loss, lower gross margins and a 25% drop in sales.
For Wolseley Canada, revenues grew 2%, however there was a 15% decline in profits.
North America was not the only market that has experienced a slowing economy. Wolseley reported slumping market conditions in the United Kingdom -- sales were up 3% against a profit loss of 6% -- and France -- 3% sales gain, but an 18% decline in profits.
“Challenging conditions in many markets are expected to continue, although the U.S. commercial and industrial market, which accounts for the majority of Ferguson’s business, is likely to remain stable into the next financial year,” said a Wolseley statement. “The group’s rigorous focus on cost reduction and cash maximization will continue.”
Wolseley CEO Chip Hornsby commented, “Given the continuing tough market conditions, our response has been to take further action to lower the cost base and improve cash flow, while continuing to pursue our longer term strategic aims. The cost reduction actions outlined today will enable us to restructure the business further, so that we are better positioned for the challenges ahead.”
2008 Wholesale Distribution Economic Reports now available
The NAW Institute for Distribution Excellence announced that the completely revised and updated 2008 Wholesale Distribution Economic Reports are now available for immediate download as PDF files. To order, go to www.naw.org/wder08 or call 202/872-0885. Quantity discounts apply when ordering two or more reports.
The Reports -- written by Adam J. Fein, Ph.D., president of Pembroke Consulting -- supply a wealth of detailed channel benchmarking data, including revenue and employment growth trends, the number and size distribution of companies, gross margins, wages and many other operating statistics. Each individual report includes economic analyses of one of the 19 major wholesale distribution sectors in an immediate and easy-to-read downloadable format. This means that users can download only the reports that are most relevant to their business.
Among the 19 wholesale distribution sectors covered in the Reports are: Building Material and Construction Wholesale Distributors; Chemicals and Plastics Wholesale Distributors; Electrical and Electronics Wholesalers; Hardware, Plumbing, and Heating Equipment and Supplies Wholesale Distributors; Industrial Distributors; and Oil and Gas Products Wholesale Distributors.
As an added bonus, each Report includes the “Wholesale Distribution Industry Overview,” a summary comparison of the 19 sectors. Users will gain all this knowledge quickly, since each report has fewer than two dozen information-packed pages that can be downloaded immediately to a desktop as a PDF file.
These Reports are invaluable reference tools for anyone selling to, investing in or managing a wholesale distribution company. Wholesale distribution executives can use the data to evaluate their market position. Manufacturers can use the reports to benchmark their distribution channel economics, and technology firms can use them to develop better sales and marketing plans.
For more information, visit www.nawpubs.org.