Purchasing articles from October 2007

Purchasing archives from October 2007

"Your margin is too high".
October 18, 2007... By Staff Among the possibilities: continue to pay the high margin; change distributors; insist on more support from the distributor. What would you have done? See purchasing.com/negotiations for the solution. An electronics...

Suppliers play bigger role in product development and cost-reduction.
October 18, 2007... By David Hannon Buyers in the ever-more high-tech coatings industry are increasing their roles as the link between customers' expanding requirements and supplier capabilities when developing new high-tech coatings products. As...

Sodium chlorate prices continue up on tight supply and high costs.
October 18, 2007... By Gordon Graff The upswing in sodium chlorate prices that began around the middle of this year is likely to extend well into 2008, driven by flat supplies and an escalating demand for the product in its largest application, pulp...

Business Intelligence.
October 18, 2007... By Staff 25% MTBE capacity shut down between 2001 and 2006 Source: CMAI WHAT IT MEANS: CMAI's recent forecast says that trend will slow to 5% of MTBE capacity being taken off-line this year. Some of the capacity will be...

Chem News.
October 18, 2007... By Staff BASF CEO: More consolidation coming "The chemical industry is still highly fragmented," said Juergen Hambrecht, CEO of German chemical giant BASF in a recent interview. According to a Reuters report, Hambrecht bases that...

PPG sells its auto glass business to focus on coatings.(PPG Industries Inc.)(Brief article)
October 18, 2007... By Staff PPG in September said it was selling its automotive glass business to Platinum Equity of Beverly Hills, Calif. for an estimated $500 million. PPG said the move was part of its increasing focus on the coatings industry and away...

Catalog electronics distributors look to expand their role.
October 18, 2007... By James Carbone Catalog electronics distributors have enjoyed above industry average growth rate over the last several years and have no plans to rest on their laurels. Catalogers realize it will be a challenge to maintain strong growth...

Distribution Briefs.(Nearson )(Betronik)
October 18, 2007... By Staff Avnet to acquire German firm Avnet has announced it has entered into an agreement to acquire the Berlin, Germany-based passive components distributor Betronik. The acquisition is subject to the final approval by the German...

EMS industry goes car shopping.(electronics manufacturing services)(Company overview)
October 18, 2007... By James Carbone Contract manufacturers target automotive industry as a new growth area. But, buyers at OEMs and EMS providers will have to learn each other's special needs. The electronics manufacturing services (EMS) industry enjoys...

The EMS top 50.(electronics manufacturing services )(Brief article)
October 18, 2007... By Staff Can anything stop revenue growth for the Top 50 Contract Manufacturers? Probably not, as the amount of electronics manufacturing outsourced is only about 23% of the market today and is predicted to grow to about 60% over the long...

Buyers can expect stable pricing, delivery for resistor networks.
October 18, 2007... By Gina Roos Buyers can expect stable pricing and leadtimes for resistor networks and arrays through the rest of the year although some suppliers reported mixed pricing trends earlier in the year. Some suppliers say prices increased...

Business Intelligence.
October 18, 2007... By James Carbone 36% Electronics purchasers who say business is improving Source: www.purchasingdata.com WHAT IT MEANS: Business appears to be softening as fewer buyers say business is improving. 36% Buyers who say...

Quality needs to be top priority in China.(Brief article)
October 18, 2007... By James Carbone Electronics manufacturers need to take steps to avoid any potential risk in doing business with suppliers in China, says William Mitchell, president and CEO of Arrow Electronics. "Companies that want to be successful...

Memory IC price erosion weakens semiconductor industry's growth.(integrated circuit)
October 18, 2007... By James Carbone The dramatic decrease in integrated circuit prices in the first half of 2007 has caused market researcher iSuppli to revise its semiconductor market growth forecast for the year. iSuppli says the global semiconductor...

Electronics Briefs.(briefs)(Brief article)
October 18, 2007... By James Carbone Chip sales risein August Worldwide sales of semiconductors increased 4.9% over August 2006 as revenue totaled $21.5 billion, according to the Semiconductor Industry Association (SIA). Sales of NAND flash memory...

Apple cuts BOM cost for new iPod nano.(bill of materials)
October 18, 2007... By James Carbone Apple has reduced the bill of materials and made some changes to its supplier roster in its latest version of iPod nano, according to researcher iSuppli. The new device recently introduced is virtually a completely new...

Spansion opens new NOR flash factory.(Brief article)
October 18, 2007... By James Carbone Flash memory manufacturer Spansion has begun production of MirrorBit flash memory chips at 65nm using 300mm wafers at its new plant in Aizu, Japan. It will begin shipping parts to customers in volume by the end of the...

Analog IC market to drop 2% in 2007.(integrated circuits)(Brief article)(Market overview)(Statistical data)
October 18, 2007... By James Carbone After five consecutive years of growth, the analog semiconductor market will decline in 2007 as revenue falls 2% to $36.2 billion from $39.9 billion in 2006, according to a report by researcher IC Insights. The analog...

Prices.(Statistical table)(Brief article)
October 18, 2007... By Staff Paper, corrugated getting more expensive (National, recent price trend) -------------------------------------------- UP DOWN SAME INDEX Transportation 51% 7% 42% 72.0 Energy...

Wire Rod Suppliers Want Hike.(Brief article)
October 18, 2007... By Staff Steel wire rod buyers are peeved that steelmakers ArcelorMittal, Keystone Steel & Wire and Gerdau Ameristeel are pushing a $30/ton price hike this quarter. Market prices entered October in a range of $550 to $560 but mills are...

DDR2 Tags Keep Falling.(double data rate)(Brief article)
October 18, 2007... By Staff Spot market prices for double data rate 2 DRAMs keep falling: At the beginning of September, the average price of a DDR2 512 megabit (64Mx8) DRAM was $1.86. By the end of the month, the price fell to $1.43, according to researcher...

Aluminum Prices Drop.(Brief article)
October 18, 2007... By Staff World aluminum ingot prices have started to slide and some analysts believe this is the beginning of a decline that will continue through 2010. "The price of aluminum should become moderate in coming quarters due to improvements...

TiO<EMPHASIS TYPE="SUBSCRIPT">2</EMPHASIS> Prices will Stay Flat.(titanium dioxide)(Brief article)
October 18, 2007... By Staff U.S. buyers of titanium dioxide (TiO2 ) insist that demand is too weak to support any price hikes the rest of this year. With dmeand from the housing industry dropping, producers' price hikes have not stuck. Prices for...

Economy + Supply.(Statistical table)(Brief article)
October 18, 2007... By Staff Steel buying slows down (National, buying plans, 30 days) -------------------------------------------- UP DOWN SAME INDEX Semiconductors 23% 17% 60% 53.1 Energy ...

Inspect Chinese Tubing.
October 18, 2007... By Staff Buyers are being urged to re-inspect Chinese-made hollow structural sections (HSS), a steel rubbing product used in construction, after HSS fabricated for school construction projects in California has been found to have defective...

PT Demand drops.(power transmission )
October 18, 2007... By Staff After rising for two months, purchasing demand for power transmission and motion control products fell off this summer, according to latest figures available from the Power Transmission Distributors Association in Chicago. U.S....

Economists: 2% Growth.(Survey)(Brief article)
October 18, 2007... By Staff The economy will grow 2% this year, the least since 2002, according to a Bloomberg survey of economists taken the first week of September. Economists had projected a 2.5% expansion at the start of the year.

Durable Goods Fall.(Brief article)
October 18, 2007... By Staff The Commerce Department reported that orders for durable goods items expected to last three or more years, fell by 4.9% in August-the biggest decline since a 6.1% fall in January. Many analysts believe the overall economy, after...

Signs the economy may be slowing enough for a second Fed rate cut:.(Brief article)(Statistical data)
October 18, 2007... By Staff Housing construction fell 12% in the second quarter, a sixth quarter of declines. The U.S. economy shed 4,000 net jobs in August. Factory payrolls slid by 46,000, the most since July 2003. The National Association of...

Producer Price Index Dips.(Brief article)
October 18, 2007... By Staff The government's producer price index for August, a signal of inflationary pressures, fell 1.4% in August-four times faster than the 0.3% decline expected by economists and the sharpest fall since October last year. The decline...

Electronics Leadtimes: Electronics components are much harder to source this month.(Statistical table)(Brief article)
October 18, 2007... By Staff (monthly weighted average in weeks) --------------------------------------------------- September August July SHORTEST LEADTIMES Carbon film resistors, 25W 9.7 4.0 8.8...

Titanium Supply to be Tight.(Brief article)
October 18, 2007... By Staff Buyers take note: supply of titanium and titanium alloys will be tight through 2010, according to Dawne Hickton, vice president and CEO of titanium producer RTI International Metals. Hickton told the Basic Industries Group's...

New Oil Refinery Planned.(Motiva Enterprises)(Brief article)
October 18, 2007... By Staff Motiva Enterprises, a refining joint venture between Shell and Saudi Aramco, said it plans to expand capacity at its Port Arthur, Texas refinery by 325,000 barrels/day, bringing the refinery's total capacity to 600,000...

Will Fed Cut Rates Again.(Federal Reserve )(Brief article)
October 18, 2007... By Staff Some analysts are predicting a second interest rate cut from the Federal Reserve on top of its Sept. 18 cut, as signs of slowing manufacturing emerge on top of the housing and credit crunches. Gary Thayer, chief economist with...

PC Shipments to Rise in 2008.(personal computers)(Brief article)
October 18, 2007... By Staff Worldwide PC shipments are on track to grow 12.3% to 259.8 million units in 2007, according to researcher Gartner Inc. In 2008, PC unit shipments will grow another 11% to 288 million. Emerging markets are driving growth. Emerging...

Bimba Buys Mead.
October 18, 2007... By Staff Bimba Manufacturing Co. has acquired Mead Fluid Dynamics in Chicago. Mead designs and develops valves, cylinders and pneumatic components for the industrial automation market. Mead will continue to operate at its present location....

Paper Distributor Expands.(Unisource Worldwide Inc. )(Brief article)
October 18, 2007... By Staff Unisource Worldwide, a distributor of paper, packaging and facility supplies in North America, is expanding its packaging business. The company's new Technology Packaging Group designs precision packaging for technical assembly...

Lead Prices Hit Peak.(Brief article)
October 18, 2007... By Staff Lead prices on the London Metal Exchange set an all-time high of $3,520/metric ton in late September. Barclay's raised its lead price forecast for the fourth quarter to $3,300 from $2,850, with prices dropping in early 2008.

Vinyl Acetate Prices Spike.(Brief article)
October 18, 2007... By Staff Buyers of vinyl acetate monomer (VAM) have been able to source the material they need, but ICISnews.com says supplies remain "extremely tight" since all four U.S. producers-Celanese, Dow Chemical, DuPont and Lyondell-now are on...

Copper Prices to Stay High.(Brief article)
October 18, 2007... By Staff Copper prices averaged $3.30/lb in the first nine months of 2007, nearly 10% higher than in the corresponding period of 2006. "Strong demand in China and a number of small supply disruptions provided continued support for prices...

GE: Metals Prices A Concern.(General Electric Co.)(Brief article)
October 18, 2007... By Staff A general electric executive said in early October commodity prices-especially metals prices-are a continuing concern for the company. "The supply chain is challenging right now," said John Rice, CEO of GE's infrastructure unit.

Uranium Price Forecast Cut.(Brief article)
October 18, 2007... By Staff National bank financial analysts in Montreal have scaled back their spot price expectations for uranium to $100/lb for 2007 (from $120/lb previously), to $120 for 2008 (from $150) and $125 for 2009 (from $135). In a note to...

Chip Price Declines to Ease.(Brief article)
October 18, 2007... By Staff Expect microprocessor price erosion to ease through the rest of this year and in 2008. The good news is that prices will still decline, but not as steeply as last year. The average microprocessor price will fall about 8% for 2007,...

NOR Flash Prices to Fall.(Brief article)
October 18, 2007... By Staff Look for the price of NOR flash memory to fall by about 20% over the next year. Prices have been falling almost every quarter since January of 2006 when the average price for a NOR chip was $2.46, according to researcher IC...

Buyers drop in on the plant floor.(Herman Miller Inc.)
October 18, 2007... By Maria Varmazis Herman Miller goes beyond basics for improved supplier efficiency. Company buyers looking to go lean leave their cubicle desks and go elbow-to-elbow with their suppliers, in the suppliers' own plants. When some...

How IBM buys HR services globally.(International Business Machines Corp.)
October 18, 2007... By Susan Avery The human resources spend is complex. But Big Blue's procurement staff is getting its arms around it, and is rolling out agreements with suppliers capable of providing services to the company's employees around the world....

Lenovo does global supply chain right.(Lenovo Group Ltd.)
October 18, 2007... By David Hannon PC maker's supply chain organization and global manufacturing footprint provide best practice example of globalization in action. When it comes to finding a truly global company with a truly global supply chain, it's...

When deciding to outsource logistics to a 3PL, read the signs.
October 18, 2007... By David Hannon There are many reasons to outsource either part or all of your logistics operations and there are as many reasons not to outsource your logistics. Purchasing recently polled a list of third-party logistics providers, asking...

Business Intelligence.
October 18, 2007... By Staff $148B Amount needed to increase rail freight capacity for the next 30 years Source: Association of American Railroads WHAT IT MEANS: AAR says an expected doubling of freight demand in the U.S. over the next 30 years...

Panama Canal expansion breaks ground.(Brief article)
October 18, 2007... By Staff The massive construction project to expand the capacity of the Panama Canal got underway in September in Panama (see photo). The plan to add a second lane to the canal though the construction of a new set of locks was originally...

Buyers press for on-time deliveries.
October 18, 2007... By Tom Stundza The copper market is adjusting to reduced demand, consolidated mill suppliers and growing concern among buyers that needed materials won't be available when needed. Even in this time of reduced commodity purchasing,...

Spot prices are rising 35% this year as supply has tightened.
October 18, 2007... By Tom Stundza Domestic steel scrap prices are on pace to increase by 35% this year because of solid domestic demand combined with explosive global demand that has tightened supply. Supply is tight even as domestic demand has dropped 5%...

Gerdau Ameristeel makes downstream acquisitions.
October 18, 2007... By Staff Steel bar producer Gerdau Ameristeel of Tampa has acquired construction products maker Enco Materials of Nashville and Re-Bars of Savannah, Ga. Enco fabricates concrete-forming steel at eight different locations. Re-Bars is an...

World supply giants seeking 30% price hike for 2008 fiscal year.
October 18, 2007... By Staff Companhia Vale Do Rio Doce, Rio Tinto and BHP Billiton, the world's three largest iron-ore exporters, may try to increase iron ore prices 30% next year as demand driven by steelmakers in China outpaces growth in supply. Mining...

Business Intelligence.
October 18, 2007... By Staff 2.8 Service centers' supply in months Source: MSCI WHAT IT MEANS: Metals Service Center Institute members in the U.S. reported in August that 13 million tons of inventories was 18% lower than a year earlier and the...

Metals Chips.(Metalweb)
October 18, 2007... By Staff Metals service center company Reliance Steel & Aluminum of Los Angeles is buying Metalweb , a Birmingham, England, processing distributor of aluminum products primarily for aerospace components. Hydro Aluminum Metal Products...

Mesabi Nugget project gets the green light.(Brief article)
October 18, 2007... By Staff Steel Dynamics of the U.S. and Kobe Steel of Japan soon will begin construction of a $235 million iron nugget plant on northern Minnesota's Iron Range that is expected to supply 96% pure iron nuggets to steel mini-mills next...

Steel Dynamics buys recycler OmniSource to insure supply.
October 18, 2007... By Staff Steel Dynamics of Fort Wayne, Ind., has agreed to purchase privately held scrap recycler OmniSource for slightly more than $1 billion, a move applauded by steel industry analysts for its cost-cutting potential. OmniSource accounts...

Cargill, Robinson Steel form sheet-processing venture.(Cargill Steel Service Centers )(Brief article)
October 18, 2007... By Staff Cargill Steel Service Centers of Minneapolis and Robinson Steel of East Chicago, Ind. have created a joint venture to produce and distribute 200,000 tons/year of hot-rolled steel sheet that is cold-reduced, processed and...

Trent Tube bought by Plymouth Tube.
October 18, 2007... By Staff Plymouth Tube Co., Warrenville, Ill., has acquired Trent Tube from Crucible Materials Corp. The transaction includes the Trentweld plant in East Troy, Wis., and the Trent Processing Plant in Chicago. Trent Tube's Trentweld Plant...

Perryman adds hot-melt capacity.(Brief article)
October 18, 2007... By Staff Perryman Co., a privately held manufacturer of titanium specialty products in Houston, Pa., since 1988, now is operating its own melt shop in nearby California, Pa., with a vacuum-arc remelt (VAR) furnace and an electron-beam...

Supply will be tight through 2010; expansions won't help immediately.
October 18, 2007... By Tom Stundza Even though producers are dusting off expansion blueprints for titanium sponge and mill product capacity, buyers should worry about supply of titanium and its alloys through 2010, says Dawne Hickton, vice president and CEO...

Business Intelligence.
October 18, 2007... By Susan Avery 79% Distributors that expect sales to rise in 2007 Source: www.inddist.com WHAT IT MEANS: While lower than in 2006, the suppliers still are optimistic about the year. 13% Expected rise in distributor...

Distributor technology tools can remove costs from supply chain.
October 18, 2007... By Susan Avery Results of Industrial Distribution magazine's 61st annual survey of distributor operations are in. The data show distributors expect sales to grow 13% this year, after rising 9.8% to $320.5 billion in 2006. Other...

Purchasing at UNICCO gathers suppliers for employee tradeshow.(Unicco Service Co organised UNICCO tradeshow )
October 18, 2007... By Staff Unicco Service Co. recently hosted its first UNICCO tradeshow and Green Cleaning learning seminar in Washington, D.C. The tradeshow brought together the company's suppliers with UNICCO management, supervisors and cleaners from the...

MRO Briefs.(Hagemeyer has acquired Bryant Electric Supply Co)(Grainger continues its market expansion )(DXP Enterprises is acquiring Precision Industries)(Brief article)
October 18, 2007... By Staff Should distributors manufacture and market their own products? Executives at Graybar and Grainger weigh in on both sides of the private-label issue in a story, To sell private-label brands or not? Read it at www.purchasing.com... .

Role model for supply chain executives.
October 18, 2007... By Paul Teague, Editor in Chief "He brought suppliers into the Boeing family so all members of an airplane team could talk to them. His leadership has been critical." "He has taken supply chain management to a whole new level. He is a...

It's a buyer's market for NOR flash.(NOR flash memory)
October 18, 2007... By James Carbone A lack of new applications means slower growth and lower prices for memory IC. Good times for buyers of NOR flash memory: Prices are falling and analysts say they're not likely to go back up. The reason: fewer...

IBM enters the open-source foray with new office software.
October 18, 2007... By Maria Varmazis Computer giant IBM recently teamed up with OpenOffice.org to orchestrate IBM's entrance into the office software world with a new product suite called Lotus Symphony. The new suite runs programs familiar to most office...

Business Intelligence.
October 18, 2007... By Staff 5 Years Xerox spent developing "crayon-like" solid color ink sticks Source: Xerox WHAT IT MEANS: Xerox claims that its new color printing technology will reduce the total cost of printing in color by half to the...

Procurement organization goes global at midmarket tech firm.
October 18, 2007... By Nancy Hitchcock * AMI Semiconductor Size: $605 million * Business: Silicon wafer fabrication AMI semiconductor (AMIS) is not the same company it was five years ago. After making about one acquisition a year for the past five...

At Boeing, supplier collaboration takes off.
October 18, 2007... By Susan Avery Boeing has taken the concept of supplier collaboration to new heights in development of the 787 Dreamliner. The trust that underlies that collaboration is helping the company and its suppliers cope with some pesky parts...

How to manage your procurement career.
October 18, 2007... By Safia Ahsan Managing one's procurement career is obviously not easy in an age of mergers and acquisitions, rapid technological changes, frequent re-organizations, increased global risk management activity, procurement process...

No Vacancy: Travel buyers facing a seller's market.
October 18, 2007... By Susan Avery Corporate travel buyers are preparing for a tough season negotiating hotel room rates for 2008. It's October and travel buyers should be well into the request for proposal (RFP) process. In fact, most buyers began...

Business Intelligence.
October 18, 2007... By Staff $93M Amount Ariba is paying for Procuri Source: Ariba WHAT IT MEANS: The procurement software market took a major consolidation step when Ariba said in mid-September it was acquiring Procuri. Ariba cited Procuri's...

Johnson Controls outlines supply chain skills assessment.
October 18, 2007... By William Atkinson While the right supply chain technology is an important component of supply chain success, technology cannot replace hiring the right supply chain professionals. In fact, without the best and brightest in your supply...

Forecasts emerging for 2008 energy prices.
October 18, 2007... By Staff More and more commodity buyers are becoming concerned with the direction of energy prices, keeping their eyes open for 2008 energy price forecasts that could help them plan commodity buying strategies. According to a recent...

EMS firm Plexus leverages integrated inventory optimization.
October 18, 2007... By William Atkinson If ever there was an industry that had to balance inventory right, it was contract manufacturing. While most manufacturing companies face challenges in trying to maintain ideal inventory levels to meet ever-changing...

Wal-Mart to poll suppliers on energy use.(Wal-Mart Stores Inc.)
October 18, 2007... By Staff Retail Giant Wal-Mart is once again pushing the supply chain envelope, this time in the area of energy use. The company recently said as part of a partnership with the Carbon Disclosure Project, it will ask suppliers in seven...

Best in class procurement orgs provide 10x ROI.(Brief article)
October 18, 2007... By Staff A new report from Accenture found that best-in-class procurement organizations (or "procurement masters" as they are called) save their companies nearly 10 times as much as it costs them to operate their organizations. "For a...