Purchasing articles from February 2009

Purchasing archives from February 2009

How to save on banking services.(Brief article)
February 12, 2009... Staff Purchasing's smartest negotiators move from conflict to collaboration fast. Match your wits against these pros. Guess their strategy. Then, read what they really did at purchasing.com/negotiations . Possible alternatives: Accept...

Supplier qualification just got more difficult.
February 12, 2009... By Richard Weissman Regulatory and risk concerns have combined with economic and financial uncertainty in the chemicals supply chain to give buyers new challenges in evaluating chemical suppliers. While the barrage of chemicals price...

Benzene prices are down, but demand is well off historical norms.
February 12, 2009... By Gordon Graff A perfect storm of economic events has driven benzene prices down to their lowest levels in eight years. Unfortunately, buyers aren't really in need of it all that much right now. A main cause of the declining benzene...

Business Intelligence.
February 12, 2009... Staff $156 Net ton cost of soda ash Source: www.purchasingdata.com WHAT IT MEANS: While historically high, soda ash prices ended 2008 well off their peak in May at $190/ton. The rise and fall of soda ash prices contributed...

Volatile sodium bicarbonate prices may stabilize with raw materials this year.
February 12, 2009... By Gordon Graff The soaring raw materials and energy costs that led to inflationary pressures on sodium bicarbonate in 2008 have begun to ease up. While no one is predicting that bicarbonate prices will drop significantly any time soon,...

Expect more flexibility from distributors.
February 12, 2009... By James Carbone During a downturn, buyers typically can get lower prices from semiconductor distributors because of sluggish demand and competition for their orders. However, buyers will also find that semiconductor distributors are...

How to plan for a chip shortage.
February 12, 2009... By James Carbone Buyers are enjoying low semiconductor prices and short leadtimes, but they won't last forever. With capex cutbacks, chip supply will tighten when the economy improves. By all accounts, 2009 will be a buyer's market for...

Digital signal processor prices will fall as demand weakens.
February 12, 2009... By James Carbone Despite fairly significant demand declines, prices for digital signal processors (DSP) will drop only about 1.3% this year, according to researcher Forward Concepts. While the researcher forecasts the overall DSP...

Nortel looks to reorganize.(Nortel Networks Corp.)(Brief article)
February 12, 2009... By James Carbone Nortel networks has filed for Chapter 11 bankruptcy protection as the recession has resulted in less demand for the telecommunications equipment it builds. The Toronto-based company filed for bankruptcy in Delaware....

DRAM manufacturers cut production, want higher prices.(Brief article)
February 12, 2009... By James Carbone In an effort to stabilize prices, memory IC manufacturers have cut back worldwide DRAM production by about 22% since September, according to researcher DRAMeXchange. In September 2008, DRAM manufacturers produced 1.37...

Business Intelligence.
February 12, 2009... By James Carbone 59% Buyers who say business is down compared to last month Source: www.purchasingdata.com WHAT IT MEANS: The electronics industry is feeling the effects of the recession. 57% Electronics buyers who...

Electronics systems shipments will decline in '09.(Brief article)
February 12, 2009... By James Carbone The global economic downturn means fewer computers, cell phones and consumer electronics equipment will ship for the first time since 2002. Revenue from global electronic equipment production will fall 3.2% in 2009 and...

AMD sells handheld graphics assets to Qualcomm.(Advanced Micro Devices Inc)(Brief article)
February 12, 2009... By James Carbone Chipmaker amd has sold its handheld graphics and multimedia technology assets and intellectual property to Qualcomm in a deal valued at $65 billion. "This acquisition from AMD's handheld business brings us strong...

Jaco sells its components business.(Jaco Electronics acquire WPG Holdings )(Brief article)
February 12, 2009... By James Carbone In an effort to focus on the fast-growing LCD market, electronics distributor Jaco Electronics recently sold most of its electronics components business to WPG Americas, a subsidiary of WPG Holdings of Taiwan. "We...

iSuppli: LEDs will outperform overall chip industry.(Light emitting diodes )(Brief article)
February 12, 2009... By James Carbone Light-emitting diodes (LEDs) will be one of the few bright spots for the semiconductor industry this year. While the overall semiconductor market is expected to drop by about 10%, LED revenue will rise about 3% in 2009,...

NAND memory prices rise.(Brief article)
February 12, 2009... By James Carbone Contract prices for NAND flash memory increased in January following production cutbacks by suppliers, according to researcher DRAMeXchange in Taiwan. The average contract price of 4Gb multi level cell (MLC) and 8Gb...

Fujitsu wants to sell its hard-disk-drive business.(Brief article)
February 12, 2009... By James Carbone There could be fewer hard drive suppliers if Toshiba is successful in its plans to buy the hard-disk-drive operations of rival Fujitsu. If it acquires Fujitsu's hard drive business in the deal that would be worth...

Distribution Briefs.
February 12, 2009... By James Carbone Mouser signs deals Mouser has a signed a distribution deal with GPS technology firm DeLorme. Mouser's DeLorme portfolio includes the GPS receiver GPS2058-10, a compact high performance module with complete GPS firmware...

Prices.(Brief article)
February 12, 2009... Staff All commodity groups flat or down in price (National, recent price trend) -------------------------------------------- UP DOWN SAME INDEX Tooling 22% 22% 56% 50.0 Paper ...

Truckload Rates Downhill.(Brief article)
February 12, 2009... Staff Analyst Thomas Albrecht at Stephens Inc. forecasts that truckload rates will drop 2-4% this year, saying some lanes could be discounted 10-20%. The bad news for freight buyers is that Albrecht estimates that truckload capacity will...

Iron Ore Will Plunge.(Brief article)
February 12, 2009... Staff Iron ore prices will drop as much as 50% this year, forecasts James Wainscott, CEO of AK Steel. Iron ore contract prices nearly tripled in the past year, amid tight supply. But with demand for steel falling sharply, Chinese and...

SBR Prices Tumble.(Styrene-butadiene rubber)(Brief article)
February 12, 2009... Staff Demand and prices of styrene butadiene rubber have continued to weaken due to slumping car sales and dismal global economic conditions. So, the price of 1502-grade non-oil SBR dropped to $1.08/lb in January. The cyclical U.S. peak...

Steel Plate Price Cracks.(Brief article)
February 12, 2009... Staff Significant declines are being reported in steel plate prices as capital spending projects are being postponed or cancelled. Plate supply has loosened as consumption has fallen. Production is down, but consumption is down more. So,...

Economy + Supply.
February 12, 2009... Staff Soft economy has dramatically reduced purch- asing plans (Buyers' 30-day buying plans) -------------------------------------------- UP DOWN SAME INDEX Energy 11% 41% 48% 34.7...

GDP Fell 3.8% In Last Quarter.(gross domestic product)(Brief article)
February 12, 2009... Staff U.S. economy shrank by 3.8% in the fourth quarter of 2008, the biggest decline in 26 years. The Bureau of Economic Analysis says Americans, hit by tight credit and soaring job losses, slammed the brakes on spending in the quarter....

Durable Goods Orders Off 2.6%.(Brief article)
February 12, 2009... Staff Orders for such big-ticket manufactured goods as machinery, metals and computer equipment decreased by 2.6% in December to a seasonally adjusted $176.80 billion. The slump in December was the fifth month in a row of decline, the...

No Quick Turn.(Brief article)
February 12, 2009... Staff Microsoft Corp CEO Steve Ballmer says the U.S. economy likely will not bottom out until about a year from now, and then will return to a slow growth-track. The world's largest software maker is laying off 5,000 employees, or about 5%...

USS Exits Dom Pipe.(U.S. Steel Corp)(Brief article)
February 12, 2009... Staff U.S. Steel Tubular Products Inc. in Lone Star, Texas, a unit of U.S. Steel Corp., will stop making drawn-over-mandrel (DOM) mechanical-grade pipes bought by automakers, mine operators, fluid power component manufacturers and steel...

Hotel Vacancies...Really.(Brief article)
February 12, 2009... Staff The U.S. hotel industry finished 2008 with only a 60.4% occupancy rate, an average daily rate of $106.55. So, the occupancy rate was 4.2% lower than 2007 (63.1%), says Smith Travel Research. "After a reasonably good start to 2008,...

Diesel Hits Four-Year Low.(Brief article)
February 12, 2009... Staff The average price of diesel fuel dropped to $2.29/gallon in January, more than $1 less than January 2008, according to data from the Department of Energy. The last time diesel averaged $2.29/gallon was in July 2005.

Nucor Delays Plant.(Brief article)
February 12, 2009... Staff Nucor Corp. has delayed start-up of a new $150 million hot-dip galvanizing facility in Decatur, Ala., due to a lack of steel orders. John Ferriola, Nucor's chief operating officer, confirms the decision to delay the start-up from...

Sunoco Shuts Plant.
February 12, 2009... Staff Sunoco is closing its Bayport, Texas polypropylene plant. The decline in petrochemicals demand has made the 33-year-old facility "no longer financially viable," according to Bruce Rubin, vice president of Sunoco Chemicals. The...

Steel Shipments Way Off.(Brief article)
February 12, 2009... Staff North American shipments by U.S. and Canadian steel distributors declined 20% in December from November--off 26% in the U.S. and 12% in Canada. Analyst Sal Tharani at Goldman Sachs Group says "the weak shipments at service centers...

Ferrochrome Buys Down.(Xstrata joins venture with Merafe Resources )(Brief article)
February 12, 2009... Staff Xstrata's joint ferrochrome venture with Merafe Resources will cut production of the stainless steelmaking additive to 80% of annual capacity by shutting 11 furnaces. The joint venture cites weakened demand for stainless steel as the...

Ethanol Production Cut.(Brief article)
February 12, 2009... Staff Verasun, which filed bankruptcy in October, has halted production at three of its ethanol plants in Bloomingburg, Ohio, Albion, Neb. and Linden, Ind. Also, Pacific Ethanol is temporarily idling its Madera, Calif. plant which produces...

Crude Demand Flat.(Brief article)
February 12, 2009... Staff Both OPEC and the International Energy Agency revised their forecast for crude oil demand, saying that the global economic downturn will cause global oil consumption to fall by less than 1%, enough to keep oil prices languishing in...

Magnesium Plant Shuts.(Brief article)
February 12, 2009... Staff U.S. magnesium will curtail production at its Rowley, Utah, plant, due to weak demand from key industrial customers. It also is delaying capacity expansion beyond the current 52,000 metric tons/year "until market conditions improve."...

Cabot Closes Plants.(Brief article)
February 12, 2009... Staff Major carbon-black producer Cabot Corp. says a "significant reduction in global demand" will force it to close four manufacturing plants in 2009 and mothball two others while delaying the launch of new capacity in China.

Day in Court for Rohm & Haas.(Brief article)
February 12, 2009... Staff Rohm & Haas has received approval for a speedy trial in its lawsuit with Dow Chemical after Dow missed its deadline to close on its acquisition of Rohm & Haas. Chemical giant Dow announced in late January it would not be able to...

Aluminum At Six-Year Low.(Brief article)
February 12, 2009... Staff The global recession, collapsing consumer and corporate confidence and plunging demand for industrial metals combined to drop the aluminum prices on the London Metal Exchange for January to 66Ao, which would be the lowest monthly...

Polypropylene Crashes.(Brief article)
February 12, 2009... Staff Polypropylene prices have plunged in recent months as feedstock prices and demand have declined dramatically. According to Purchasingdata.com , homopolymer grade polypropylene prices were as high as 98Ao/lb in September but crashed...

Rails Rates Head Up.(Brief article)
February 12, 2009... Staff Despite decreasing volumes throughout the fourth quarter, such major railroads as Union Pacific and Burlington Northern Santa Fe reported higher revenues based on higher rates and fuel surcharge revenues. UP says it has been able to...

Linerboard Prices Down.(Brief article)
February 12, 2009... Staff Despite production cutbacks, soft new-order volume has dropped linerboard prices as low as $540/ton for February deliveries, according to a survey of buyers that put the January average at $560. In a note to clients, analyst Mark...

Gold Prices to Slide.(Brief article)
February 12, 2009... Staff A survey of market mavens finds them forecasting the London fix price for gold averaging $855/troy ounce in 2009, a 2% decline from the $872 average of 2008. However, there are some bullish analysts like Philip Klapwijk, executive...

Butadiene Takes A Dive.(Brief article)
February 12, 2009... Staff Spot market prices for butadiene dropped 68.5% since September to 45Ao/lb in January, according to Purchasingdata.com . Early buys for February deliveries were being reported as low as 30Ao, according to ICISPricing.com . Butadiene...

Silver Prices to Dip.(Brief article)
February 12, 2009... Staff A consensus forecast of two dozen precious metals market analysts forecasts that silver prices will drop 2% this year to an average of $11.12/troy oz. MKS Finance says in a report to clients that "silver surprised many in 2008," when...

2009 Green Supplier Directory.
February 12, 2009... Staff Green has become a rallying cry for buyers and sellers alike as they look for ways to develop products and run their businesses in an environmentally friendly way. Buyers are increasingly looking for suppliers with Green products....

Goal: A Green supply chain.
February 12, 2009... Staff Companies develop tools to monitor emissions--and save money. Companies are increasingly looking at the supply chain as a major opportunity for reducing their carbon (CO2) footprint. And, some suppliers are developing a variety...

Truckers cautious with their infrastructure optimism.(Safe, Accountable, Flexible, Efficient Transportation Equity Act of 2005: A Legacy for Users)
February 12, 2009... By David Hannon After many years of lobbying and arm-twisting, the trucking industry is certainly happy to hear so much talk about infrastructure spending these days. Perhaps no sector of the supply chain or the U.S. economy relies more...

Business Intelligence.
February 12, 2009... By David Hannon 1.4% Nov. drop in BTS' Freight Transportation Index Source: Bureau of Transportation Statistics WHAT IT MEANS: The TSI index, which measures changes in the output of freight transportation services, hit its...

IATA data shows biggest air freight declines in seven years.(International Air Transport Association)(Brief article)
February 12, 2009... By David Hannon The latest statistics from the International Air Transport Association show that international air cargo volumes crashed 13.5% in November, while capacity declined only 1%. The decline in air freight volume is the biggest...

Economic woes hit China's metals industry.(gross domestic product)
February 12, 2009... By Tom Stundza As the Year of the Ox dawns, China's impact on world metals purchasing trends and pricing is collapsing. The country's home-market economy is headed for single-digit expansion and a probable drop in exports. Economic...

Weak demand inflates inventories and deflates prices.
February 12, 2009... By Tom Stundza The status of the copper and brass market is evident from the steeper-than-expected 7.8% drop in U.S. manufacturing output in 2008--and the 14% decline in construction. That's why North American copper demand dropped by 7%...

Business Intelligence.
February 12, 2009... By Tom Stundza 120K Global metric-ton copper surplus Source: International Copper Study Group WHAT IT MEANS: World refined copper market was 48,000 metric tons higher at the end of September than at the same time a year...

Metals Chips.(Patriot Metals open two more service centers )
February 12, 2009... By Tom Stundza Patriot Metals , a new firm, has opened a full-line steel service center in Portland, Maine and plans to open two more New England service centers within the next six months, according to CEO James Post. The new 25,000 sq ft...

Nonferrous metals markets have gone from deficit to surplus in a year.
February 12, 2009... By Tom Stundza The world refined zinc market showed a 134,000 metric tons surplus at the end of November 2008, compared with an 11,000 metric ton deficit in the same 11-month period of 2007, according to statistics from the International...

MRO sourcing goes global.(maintenance, repair and operations )
February 12, 2009... By Susan Avery Purchasing operations at global companies are extending sourcing strategy to other regions of the world. The trick is finding suppliers able to meet their rigorous standards. On the face of it, developing and deploying...

Business Intelligence.
February 12, 2009... By Susan Avery 64,000 New products added to the 2009 Grainger catalog Source: Grainger WHAT IT MEANS: The industrial distributor continues to expand its product line based on input from its MRO purchasing customers. 13...

Strategic MRO sourcing takes center stage at Grainger event.(maintenance, repair and operations)
February 12, 2009... By Susan Avery Grainger invited more than 1,400 customers to a networking and training event in Orlando recently so they could get a more strategic look at the maintenance, repair and operations (MRO) buy. Mike Pulick, president of...

Green efforts continue despite the economy.
February 12, 2009... By Paul Teague, Editor in Chief Given the deadline realities of the publishing world, it's always a little risky writing commentary in a monthly magazine on current issues because the issues could change between the writing and the...

Survey finds spend compliance still a challenge for office buyers.
February 12, 2009... By Maria Varmazis A joint report by OfficeMax and Purchasing shows that there's still room for buyers to capture maverick spend in their companies. Buyers know that a key component in getting costs under control is compliance. In a...

Business Intelligence.
February 12, 2009... By Maria Varmazis 12-14 MeadWestvaco plants to close or restructure in 2009 Source: MeadWestvaco WHAT IT MEANS: As the effects of the recession ripple throughout the economy, producers of virtually all commodities including...

Tips for controlling costs.
February 12, 2009... By Tim Minahan Lawmakers are taking unprecedented actions to stabilize the financial system. Businesses too must find ways to control costs. Spend management can help. Here are tips for getting started. Target new spend categories....

Find your inner salesperson.
February 12, 2009... By David Hannon Procurement's role in services spend management requires internal selling, communication skills. As a procurement professional, you have undoubtedly sat across the table from an endless stream of overly conversant, well...

Strategic sourcing buys the best for MillerCoors.
February 12, 2009... By Susan Avery Purchasing should be involved in the travel buy because it has processes in place that provide an all encompassing view of the company's spending, says Pam McTeer, strategic sourcing manager at MillerCoors. Travel is one...

Today's travel procurement professional knows how to manage supplier relationships.
February 12, 2009... By Susan Avery Managing the company's travel services buy is nothing new for purchasing professionals. While much has been made of late of the growing trend toward the purchasing and travel departments converging at many companies,...

Business Intelligence.
February 12, 2009... Staff 1.9% Decline in December's Producer Price Index Source: Bureau of Labor Statistics WHAT IT MEANS: Though slightly less than the October and November declines of 2.8% and 2.2% respectively, the December PPI marked the...

Boston Scientific develops supplier risk management program.
February 12, 2009... By William Atkinson The concept of supplier risk management is still relatively new, as business strategies go. But in the era of global sourcing and volatile markets, supplier risk management is rapidly becoming every bit as necessary to...

Xerox debuts purchasing outsourcing service.
February 12, 2009... By Susan Avery Xerox Corp. is launching a new service for those looking to source components from suppliers in other regions of the world but who may not have the resources to do so on their own. Xerox Procurement Solutions provides a...

Contract equipment purchasing requires team-based focus.
February 12, 2009... By William Atkinson Most procurement professionals feel they have their hands full buying products and services for their domestic facilities. But imagine you've been charged by your company to source one-of-a-kind equipment from U.S. and...