Purchasing articles from March 2007

Purchasing archives from March 2007

Distributors take on global sourcing with a customer focus.(Brenntag North America)(Company overview)
March 1, 2007... By David Hannon Top buyers report expanding supply bases. As chemical distributors expand their global sourcing footprint, they are carefully keeping in touch with their customers' needs to ensure what they buy--and where they buy it...

Collaboration with polymer suppliers nets improvements.(Tommen Gram)(Borealis Group)
March 1, 2007... By Wayne Forrest Norwegian packaging firm Tommen Gram was faced with a unique challenge--help the Norwegian open sea fishing industry cut its costs through improved packaging. Norwegian fishermen catch mackerel and herring and later...

Business Intelligence.(demand growth for mixed xylenes)(price trends in inorganic chemicals)(Brief article)
March 1, 2007... By Staff 2.2M Demand growth for mixed xylenes through 2009 (in metric tons) Source: CMAI WHAT IT MEANS: Capacity will get tight as global supply of mixed xylenes will "barely cover demand growth" according to CMAI, until...

Biofuels, pharma markets spur increased enzyme demand.
March 1, 2007... By Gordon Graff Buyers of enzymes will see a huge expansion in the number and type of enzyme products over the next few years, driven largely by surging biofuels programs and the quest for more targeted and selective pharmaceuticals....

Buyers at detergent makers leverage natural ingredients to reduce costs.
March 1, 2007... By Gordon Graff Detergent makers continue to show interest in obtaining a larger percentage of their ingredients from natural plant sources, as alternatives to the more traditional--and costly--petroleum-based feedstocks, but the long-term...

Global Sourcing News.(in briefs)(Brief article)
March 1, 2007... By Staff Sinopec to double ethylene capacity China Petroleum & Chemical Corp (Sinopec) plans to double annual production capacity to 2 million tons at its Maoming ethylene plant in southern Guangdong province. Last September, Sinopec...

Dow to change focus, expand MDI capacity.
March 1, 2007... By Staff The dow chemical you know today may look very different a year from now. CEO Andrew Liveris said recently the company will seek out acquisitions and sell some businesses this year. According to a recent Bloomberg story, Dow...

Prices Paid Slide.(Brief article)
March 1, 2007... By Staff The mid-America prices-paid index, which tracks the cost of raw materials and supplies in a region of the U.S., hit 67.8 in January, its lowest level since July 2005, compared with 68.3 in December and 69.4 in November. It's...

Coal Prices Remain Low.(Brief article)
March 1, 2007... By Staff Central Appalachian coal prices have declined 30% in the past year with 12,500 Btu material stuck around $47/ton. "As much as 20 million tons of annual production capacity needs to be closed to remove market oversupply and...

Winter Boosts Natgas.(natural gas )(Brief article)
March 1, 2007... By Staff The return of normal winter weather and temperatures in mid-February is expected to push U.S. natural gas prices to an average $7.35 per million British thermal units (Btu) for February, compared with daily prices as low as $5.56...

No Trend In Oil Yet.(Brief article)
March 1, 2007... By Staff A mixture of investment interest and bullish news reports about such supply issues as refinery fires have overshadowed an otherwise well-supplied crude oil market, making daily trading extremely erratic early this year. Analysts...

Rubber Prices Slipping.(Brief article)
March 1, 2007... By Staff Natural rubber prices, which surged to record highs last year, may fall this year as car production growth slows in China, suggests analyst Feng Zhengyu at Jingyi Futures in Beijing. A government clampdown on motor vehicle...

ABS Increase Flops.(acrylonitrile butadiene styrene )(Brief article)
March 1, 2007... By Staff Market prices for acrylonitrile butadiene styrene (ABS) have remained flat since November and producer price increases for February have been rejected by buyers. Buyers say Dow Chemical's 7Ao increase for North America will flop...

PVC Pipe Prices Soften.(Brief article)
March 1, 2007... By Staff The 10% reduction in polyvinyl chloride resin prices over the past year have begun to reduce costs of processed PVC pipe, which now are selling at an average 6% below year-ago levels.

Tin Prices Rise On Deficit.(Brief article)
March 1, 2007... By Staff There will be a 2,000 metric ton tin deficit in 2007, according to the latest prediction from Natexis Commodity Markets. Upshot: The London-based commodity researcher has raised its prediction for the average 2007 cash price to...

Copper Product Prices Dip.(Brief article)
March 1, 2007... By Staff Prices of copper tubes and fittings used in plumbing and refrigeration have slipped in the face of slowing demand from a slumping housing sector. Also cathode prices have skidded around 15% since the beginning of the year. Brass...

Zinc Rebound Seen.(Brief article)
March 1, 2007... By Staff World zinc prices fell to $1.38/lb in mid-February from the January average of $1.72 but they are expected to rebound soon as demand growth, especially by China, strains global supply. So says analyst Malcolm Southwood at Goldman...

Higher Gold Expected.(Brief article)
March 1, 2007... By Staff Gold bullion has been selling for as much as $50/oz higher than the 2006 average of $604 this winter. "We believe bullion could drop back to the $625/oz level in the late winter/early spring period," forecasts analyst Michael...

Industrial Gases Float Up.(Brief article)
March 1, 2007... By Staff Industrial gas producer Praxair has increased several of its gas prices, citing rising energy and logistics costs. Prices of nitrogen, oxygen, argon, hydrogen, and carbon dioxide were increased by 10-20% and helium prices by...

Benzene Prices Flat-line.(Brief article)
March 1, 2007... By Staff Producers have been talking up the benzene market in an attempt to push contract and spot prices skyward. It isn't working. There's been "a lack of business," reports ICISpricing.com , due to "a lack of interest" by buyers...

Sugar Prices Have Soured.(Brief article)
March 1, 2007... By Staff Sugar prices have tumbled almost 35% to $322/metric ton, the lowest since December 2005, after reaching a record $497 last May. Further declines are possible as bumper crops from India, Thailand and Brazil outpace demand. Helmut...

Prices.(Statistical table)(Brief article)
March 1, 2007... By Staff Energy, aluminum costs are the highest in February (Current prices paid) -------------------------------------------- Up Down Same Index Energy 54% 15% 31% 69.7...

Slow Growth Predicted.(Brief article)
March 1, 2007... By Staff The u.s. economy will grow slowly during the first half of the year, but may pick up strength in the summer, says the Blue Chip Economic Indicators panel, which sees real GDP increase at 2.7% this year.

Building Goods Demand Off.(Brief article)
March 1, 2007... By Staff Manufacturers of building products complain that softer-than-expected demand is due to reduced orders from housing contractors and an oversupply of inventory at retailers. Analysts are split whether producer-sought improved demand...

Inventories Are Rising.(Brief article)
March 1, 2007... By Staff Inventories at u.s. wholesalers increased in 2006 for the third straight year. Wholesalers said inventories were up 10% in 2006 after a 7.7% rise in 2005. The inventory-to-sales ratio, the number of months it would take to deplete...

LNG Imports Will Increase.(liquefied natural gas)(Brief article)
March 1, 2007... By Staff Increasing natural gas demand, coupled with rising gas prices and limited North American production portend substantial growth in U.S. imports of liquefied natural gas, according to a recent Department of Energy forecast.

Honda Plans Small Jets.(Brief article)
March 1, 2007... By Staff Honda aircraft will enter the world of small executive jets by investing $100 million in a manufacturing plant in North Carolina. The two-engine HondaJet will weigh 10,000 lbs at a cost of $3.65 million each when they start flying...

Business Spending Slows.(Brief article)
March 1, 2007... By Staff Analysts suggest that business spending will expand by 6%, slower than the 7.4% jump in 2006. Economists believe information technology hardware and software expenditures--not brick and mortar or new equipment--will lead the 2007...

Chile Could Up Copper.(Brief article)
March 1, 2007... By Staff Chile, the world's biggest supplier of copper, said its miners could increase the country's production of the metal by as much as 13% by 2010 to meet rising demand. Production could rise to 6.1 million tons in 2010, from 5.4...

Consumer Index Up.(Brief article)
March 1, 2007... By Staff The conference board index of consumer confidence edged up in January to 110.3 from 110 in December. But don't get too excited: The gain was led by improved assessments of current job and business conditions while expectations for...

Housing Could Weaken.(Brief article)
March 1, 2007... By Staff Wall street investors and analysts are worried the housing slowdown--which some builders fear could get worse--might further damage broad economic growth. After receiving earnings warning from luxury home builders, Jim Paulsen,...

China May Cut Tin Exports.(Brief article)
March 1, 2007... By Staff China, the world's biggest producer of tin, may cut exports of the refined metal by 10% this year. China's exports of tin, used to solder electronic components, dropped 12% in 2006 on rising domestic demand and higher export...

Appliance Outlook Slows.(Brief article)
March 1, 2007... By Staff Major appliance industry shipments dropped 8% in the fourth quarter, reducing full-year shipments by 1%. Looking at 2007, with lower demand in the U.S. and higher costs now projected, industry leader Whirlpool has recalculated...

2006 GDP Up 3.4%.(Brief article)
March 1, 2007... By Staff Economic growth accelerated to a 3.5% annualized pace in the fourth quarter of 2006, up from 2% in the third quarter. Real gross domestic product (GDP) increased 3.4% for all of 2006 over 2005 from strong consumption by consumers,...

Grid May Lack Power.(Brief article)
March 1, 2007... By Staff Utilities may be pressured to produce even more electricity soon. Even at just 3% economic growth, demand for power soon may overwhelm the power grid by 2010. Reason: There are barely enough big power generators and transmission...

CEA: Short-term Is Bright.(Council of Economic Advisers )(Brief article)
March 1, 2007... By Staff According to the President's Council of Economic Advisers the short-term outlook for the economy is bright, but the group says real GDP will decelerate from about 3.1% now to 2.9% after 2008, due to several factors, including...

The Newest Blackberry.(Brief article)
March 1, 2007... By Staff Blackberry maker Research In Motion has unveiled a new version of its top-end e-mail phone for business users, replacing the signature side navigation wheel with a front trackball that first appeared last year on the...

Economy + Supply.(Statistical table)(Brief article)
March 1, 2007... By Staff Fabricated metals purchasing is perking up (Buyers' near-term buying plans) -------------------------------------------- Up Down Same Index Steel 40% 15% 45% 62.5...

How to Analyze the Supply Market.
March 1, 2007... By Staff Strategic sourcing is at the heart of the purchasing function. Yes, there are plenty of other important skills that purchasing professionals must possess, but analyzing the supplier market, identifying potential suppliers to work...

5 'musts' for justifying IT budgets.(applying procurement software)
March 1, 2007... By Paul E. Teague The first step is to understand how your company operates. Then, quantify the savings and show the qualitative improvements the software can bring. When the vice president of global procurement and the director for...

Electrogalvanized is easy to get.(Brief article)
March 1, 2007... By Staff With flat-rolled steel demand off from the motor vehicle, appliance and construction products industries, deliveries of electrogalvanized sheet are down to barely five weeks. This scenario probably will continue for some time as...

Light structurals are in excess.(Brief article)
March 1, 2007... By Staff Delivery of light structural steel shapes now are barely more than four weeks. Demand for structural steel on construction projects will continue to grow in 2007, but probably only by 2%, according to an industry forecast by the...

Titanium leadtimes fly high.(Brief article)
March 1, 2007... By Staff Delivery of titanium sheet continues to average almost three months and nobody inside the industry expects supply to tighten anytime soon. Titanium demand from the aerospace market, for both aero-engine and airframe applications,...

Molded plastics stuck in neutral.(Brief article)
March 1, 2007... By Staff Demand for custom injection-molding has improved from last summer, when deliveries took a week or two. However, with deliveries for non-aerospace uses slowing in recent weeks, delivery times have stabilized at about six weeks....

Linerboard leads have plateaued.(Brief article)
March 1, 2007... By Staff It hasn't taken four weeks to get linerboard delivered since September of 2005, a clear indication that there's too much capacity for existing demand from box makers and firms that build their own corrugated containers. Market...

Ethylene is a just a little tighter.(Brief article)
March 1, 2007... By Staff Ethylene, the benchmark chemical, is in oversupply worldwide. That has kept prices down. As for North American market leadtimes, buyers appear to have worked off some excess inventories, as deliveries have increased from just four...

Nylon leadtimes are trending down.(Brief article)
March 1, 2007... By Staff Producers keep saying that nylon demand is strong and see another year of 2% growth. However, supplies are plentiful because some key markets are slumping and there's excess capacity making the engineering thermoplastic....

Leadtime Report.(Statistical table)(Brief article)
March 1, 2007... By Staff SLOWEST DELIVERIES (leadtimes in weeks) ------------------------------------- 1 Polyester, thermoplastic 15.5 2 HDPE extrusion/blow molding 14.9 3 Vinyl chloride monomer 14.8 4 LDPE...

Truckload capacity expands, shippers reap the benefits.
March 1, 2007... By David Hannon The pre-buying frenzy of trucks prior to the 2007 EPA engine regulations going into effect hit truckload capacity harder than expected in late 2006, carriers report, and the impact on truckload capacity and pricing could...

Business Intelligence.
March 1, 2007... By David Hannon $2.60 Forecasted average diesel price in 2007 Source: U.S. Department of Energy WHAT IT MEANS: That's roughly a 4.2% decline from the average price in 2006, but an uptick from the $2.43 range for the...

Pamida Stores looks to truckload carrier for transition help.
March 1, 2007... By David Hannon Sometimes starting from scratch can be the best possible option. Retail pharmacy chain Pamida Stores of Omaha, Neb. focuses on serving small-town markets where it's not competing against the national mega-chains. The...

Swift Transportation agrees to buyout offer from founder.(Jerry Moyes buyout offer)(Brief article)
March 1, 2007... By David Hannon Swift Transportation announced in late January that it would accept the buyout offer from its former CEO Jerry Moyes for $2.74 billion in cash. In a statement Moyes said, Swift, which he founded in 1966 now has more than...

STB issues fuel surcharge ruling for railroads.(Surface Transportation Board)
March 1, 2007... By David Hannon The surface transportation Board issued a final rule in January on the way railroads calculate fuel surcharges, declaring it an "unreasonable practice for railroads to compute fuel surcharges in a manner that does not...

Air cargo to triple globally by 2025, price-fixing suit filed.
March 1, 2007... By David Hannon The airports council International (ACI) predicts air freight will triple by 2025, fueled by growth in Asia. In its recently released Global Traffic Forecast, the ACI said global air freight volumes will grow from 76...

Detours.(Saia AG acquires Madison Freight)(EGL Company Inc. acquires General Atlantic Corp.)(Brief article)
March 1, 2007... By David Hannon Saia buys Madison Freight Less-than-truckload carrier Saia has acquired Wisconsin-based Madison Freight Systems for $2.5 million. Madison provides full coverage in Wisconsin and limited coverage in Illinois and...

Composites bring Boeing's buyers, engineers and parts suppliers closer.(Boeing Commercial Airplanes )
March 1, 2007... By Tom Stundza With its 787 Dreamliner, purchasing is adapting to new technology and a new supply chain that includes more than just the familiar metals suppliers. Buyers at Boeing Commercial Airplanes are flying high because of the...

Buyers will pay even more than they planned in 2007.
March 1, 2007... By Tom Stundza "Price containment has been a challenge," a senior buyer of nonferrous metals reports from Florida. "The upward pressure is growing." He's correct, according to market analysts, who have changed their minds and now see...

Business Intelligence.(Prices for oil country tubular goods)(China's copper trade)(Tantalum price)(Brief article)
March 1, 2007... By Tom Stundza $1462 OCTG per-ton price Source: PipeLogix WHAT IT MEANS: Prices for oil country tubular goods (OCTG) showed signs of leveling off in January after three months of solid declines. Reasons: Steel pipe service...

Chips.(Indalex close its aluminum extrusion plant)(Mittal Steel USA to upgrade the facility)(Superior Essex acquired magnet wire operations )(Brief article)
March 1, 2007... By Tom Stundza Indalex plans to close its aluminum extrusion plant in Watsonville, Calif., in late March or April because of high costs, especially for energy, and low regional demand causing reduced sales prices. Mittal Steel USA is...

Boom in world prices may be nearing an end.
March 1, 2007... By Tom Stundza The price boom in the global stainless steel sector is under serious threat, according to analysts at British market research house MEPS (International) Ltd. and executives at Finnish stainless giant Outokumpu. Two...

MRO purchasing pros demand more personal buying experience.
March 1, 2007... By Susan Avery A new report from Pembroke Consulting shows distributors expect more buyers to use online tools to source their MRO products. According to Facing the Forces of Change: Lead the Way in the Supply Chain distributors...

Business Intelligence.(salary of a woman maintenance, repair and operations buyer)(power transmission suppliers demand)(maintenance, repair and operations buyers' corporate level position)(Brief article)
March 1, 2007... By Susan Avery 80% Power transmission suppliers predicting increased demand in 2007 Source: Power Transmission Distribution Association survey WHAT IT MEANS: It's good news for MRO buyers. Suppliers that have good sales years...

MRO Briefs.(Indirect-MRO Buyers group to holds 10th annual conference)(Will Oberton of Fastenal Co. named 2006 chief executive officer of the Year by Morningstar)(SKF USA acquires Preventive Maintenance Co. Inc.)(Maintenance, Repair and Operations)(Brief article)
March 1, 2007... By Susan Avery Facing the Forces of Change: Lead the Way in the Supply Chain report provides wholesaler-distributors, manufacturers, suppliers and their customers with strategic insight into key business and economic trends affecting the...

Fastenal expo to have more training for MRO buyers.(Maintenance, Repair and Operations)(Fastenal Industrial and Construction Expo )
March 1, 2007... By Susan Avery The fifth--and largest ever--Fastenal Industrial and Construction Expo will be held on April 3-5 in Nashville, Tenn., and is expected to feature more training geared specifically toward its customers, many of whom are MRO...

Outsourcing.(outsourcing predictive maintenance services )(Brief article)
March 1, 2007... By Susan Avery Purchasing pros considering outsourcing predictive maintenance services should look to distributors they already partner with, says Bill Moore, sales development and channel management vice president for SKF Service...

Grainger publishes new catalog with more than 138,000 MRO items.(Grainger Industrial Supply)(maintenance, repair and operations)
March 1, 2007... By Susan Avery Grainger has released its 2007 product catalog which features more than 138,000 MRO products, an increase of 23,000 items over last year's record offering. MRO stands for maintenance, repair and operations. A year ago,...

The bucks stop at MRO.(Maintenance, Repair and Operations purchasing)
March 1, 2007... By Susan Avery Savings in direct materials are important, but they're not enough in a slowing economy. Leading companies are now focusing on their MRO spend. Here is how Dow Chemical, Hallmark Cards and Owens Corning are making their MRO...

MRO strategy steering teams share forecasts.(Maintenance, Repair and Operational )
March 1, 2007... By Susan Avery Global purchasing at The Dow Chemical Co. in Midland, Mich., takes a long-term strategic view of its MRO supply chain. J. Brad Gray, global purchasing director, leads the company's capital/MRO sourcing activities. He's based...

Suppliers have interest in improving the business.(Maintenance, Repair and Operational activities)
March 1, 2007... By Susan Avery At Hallmark Cards, the purchasing team takes a strategic approach to the MRO buy. In so doing, team members frequently communicate with MRO suppliers to learn of their capabilities, says Darren D. Wright, a former MRO...

MRO suppliers help uncover hidden factory.(Maintenance, Repair and Operational)(purchasing operation at Owens Corning )(Brief article)
March 1, 2007... By Susan Avery The purchasing operation at Owens Corning in Toledo, Ohio, got its arms around the MRO buy in 1996 and, since then, it's been a process of continuous improvement, says Gene Zychowicz, global MRO sourcing leader. "We get...

MRO gets its day in the sun.(Maintenance, Repair and Operations)
March 1, 2007... By Paul Teague, Editor in Chief It's about time. Finally, MRO buyers are getting the attention they deserve. Until recently, they've labored in the background in companies of all stripes, content to let their brethren who buy the direct...

Corey G. Timm, purchasing agent, Milltronics Manufacturing.(Brief article)
March 1, 2007... By David Hannon PLAYER: Corey G. Timm, purchasing agent, Milltronics Manufacturing BACKGROUND: Timm actually went to school for architecture, but says, "That didn't hold my interest and I ended up in distribution management, then...

PLM gets buyers under the hood.(product lifecycle management software)
March 1, 2007... By Paul E. Teague Automotive firms implement systems to ensure buyers get information they need for strategic sourcing. "Now, purchasing and the supply base will be able to come into the design process." That's one of the benefits that...

Dock Levelers.(Blue Giant introduces Mantis)(Brief article)
March 1, 2007... By Staff Blue Giant introduces Mantis, a new line of 25,000- to 40,000-lb capacity dock levelers with hydraulic or mechanical activation. The mechanical dock levelers have a walk-down operation that requires three pounds of pull on a...

Square Washer.(Brief article)
March 1, 2007... By Staff Thomas & Betts has expanded its line of square washers to include the AB241L Series Located Square Washer for Kindorf and Superstrut channels. The new AB241L Series Located Square Washer features locators that extend down into the...

Power Analyzer.(Brief article)
March 1, 2007... By Staff Elcontrol Energy has recently introduced the Jupiter Power Quality Analyser. It provides measurement capabilities for the detection of harmonics, dips, swells, spikes and other transients that can cause difficulties for sensitive...

Lightpipes.(Elma Electronic Inc.)(Brief article)
March 1, 2007... By Staff Elma Electronic offers lightpipes in a wide range of colors. The variable lightguides are available in protruding styles or versions that are mounted flush with the front of an electronics panel. The lightpipes are visible and...

Clarified Tubes.(TricorBraun)(Brief article)
March 1, 2007... By Staff TricorBraun announces clarified propylene tubes that the company says have transparency that rivals the clarity of other PET rigid packages. The tubes are manufactured in a two-step process by Weener and have a high-gloss surface...

Small Switch.(NKK Switches Inc.)(Brief article)
March 1, 2007... By Staff NKK Switches introduces a new SmartSwitch that is 25% smaller than industry standard size, requiring less panel area real estate. The small footprint of the programmable LCD switches features the same electrical and performance...

Halide Lamps.(Brief article)
March 1, 2007... By Staff TCP introduces a complete line of energy efficient metal halide lighting products. The Pulse Start Pulse Plus metal halide lamps are available in 50 watts through 450 watts and last up to 20,000 hours. TCP also offers UV Guard...

Lift Truck.(Jungheinrich Lift Truck Corp )(Brief article)
March 1, 2007... By Staff The Jungheinrich Lift Truck Corp announces the EFG D30, designed with a full 180* rotating cabin that allows the operator to rotate the cabin to face the direction of travel. The EFG D30's design allows the truck to handle loads...

Avoid a mess, clean your data.(spend-analysis program )
March 1, 2007... By Maria Varmazis The hidden time and financial costs before even using a spend-analysis program can be a thorn in your side--it pays to be prepared. Ken Hartman's tale is a cautionary one to anyone about to dive into the world of...

Basics of the software buy.(improving purchasing operations)(Brief article)
March 1, 2007... By Staff Picking the right software tools for improving your purchasing operations is a time-consuming and sometimes-daunting task. Which, of course, makes it similar to the process for buying any critical component, whether a commodity,...

Procurement crossroads: Where you should be headed.(Column)
March 1, 2007... By Paul Price Do you catch yourself wondering why your management keeps wanting more and more from you and your purchasing colleagues? "We need more savings (short term) to help contribute to the bottom line," they say. After all, wasn't...