Purchasing articles from September 2007

Purchasing archives from September 2007

The cable guys' dilemma.(Fibro Inc purchases flexible cables )(Brief article)
September 13, 2007... By Staff Fibro, Inc. provides modular technology and robotics for industrial-automation applications. The company learned that the cables it had purchased for robotic gantries for one large customer were failing. The cables had worked for...

Chemicals distributors get high marks.(Survey)
September 13, 2007... By Susan Avery While chemical prices pester some purchasing pros, most are satisfied with performance of chemical distributors-and plan to give them more business as their business grows. Ninety-two percent of buyers responding to a...

Sulfuric acid is suddenly scarce and expensive.
September 13, 2007... By Gordon Graff Vigorous demand, a static supply and declining imports have combined to drive up U.S. sulfuric acid prices for much of this year. And market watchers say these conditions are likely to continue for at least another year....

Business Intelligence.(Brief article)
September 13, 2007... By Staff 12% Buyers planning to increase chemical inventories Source: www.purchasingdata.com WHAT IT MEANS: That may not seem like a lot, but it's the highest percentage for all of 2007, indicating that more buyers are...

Plastic additives supply shifts as prices ease.(Townsend Polymers Services and Information)
September 13, 2007... By John Borchardt Supply of plastic additives for the next 12-18 months looks secure and pricing spikes are beginning to ease. But buyers may have to look to new regions for continued supply. Fred Gastrock of Townsend Polymers Services...

How electronics distributors buy.
September 13, 2007... By James Carbone There is a lot happening at electronics distributors that buyers need to know. Our new Electronics Distribution section, launched here, covers the details. The first detail: how they operate. The challenges that buyers...

Connector prices to drop on slow demand but supply remains firm.
September 13, 2007... By Gina Roos Electronics buyers can expect ample connector supply and lower connector prices by the end of the year as demand slows in North America. While connector prices increased in 2006 because of higher raw material costs, they are...

Business Intelligence.(Brief article)
September 13, 2007... By James Carbone 41% Electronics purchasers who say business is improving Source: www.purchasingdata.com WHAT IT MEANS: End equipment demand is solid, as 80% of buyers say business is either up or the same as the previous...

Look for more price pressure on memory, microprocessors.
September 13, 2007... By Carol Rosen Buyers can expect more price erosion for memory chips over the next six months although the rate of decline will ease compared to the first half price plunge of 2007. The Semiconductor Industry Association, market...

Prices drop for plasma display panels.(Brief article)
September 13, 2007... By Staff Display buyers can expect prices to continue to fall for plasma display panels (PDP) because of stiff competition. While demand has been strong and supply tight, plasma display manufacturers have been able to reduce prices...

Nokia to replace batteries.(Nokia Corp)(Brief article)
September 13, 2007... By Staff Cell phone manufacturer Nokia is offering to replace 46 million rechargeable batteries in its cell phones because they could overheat while being charged. The company has issued a product advisory saying there have been 100...

Electronics Briefs.(Qimonda AG)(Brief article)
September 13, 2007... By Staff Qimonda transfers technology Memory IC manufacturer Qimonda will transfer its 80nm DRAM trench technology to foundry SMIC under a new production agreement. Qimonda will transfer its DRAM trench technology to SMIC's 300mm...

Prices.(plastic resins)(Table)(Brief article)
September 13, 2007... By Staff Plastic resin prices top the list (Buyers' 90-day price expectations) -------------------------------------------- UP DOWN SAME INDEX Plastic resins 51% 9% 40% 71.2 Energy...

Chemtura Hikes Specialties.(Brief article)
September 13, 2007... By Staff Specialty chemicals maker Chemtura implemented a temporary surcharge of between 4Acents and 22Acents/lb on all organotin stabilizers in September. The specialties supplier also pushed a 10Acents/lb price increase for its Drapex...

BASF Wins Pricing Dispute.(Lyondell Chemical Co )(Brief article)
September 13, 2007... By Staff A new jersey jury found that U.S. chemicals supplier Lyondell was overcharging German buyer BASF for propylene oxide and must pay BASF $170 million. In 1998, BASF and Lyondell signed a contract under which Lyondell would deliver...

Distributors could Charge Fees.(Brief article)
September 13, 2007... By Staff Don't be surprised if industrial distributors charge a fee for some services. According to Industrial Distribution magazine's 61st Annual Survey of Distributor Operations, purchasers are most likely to be charged a fee for these...

Ethylene Prices Up.(Brief article)
September 13, 2007... By Staff Spot prices of ethylene being purchased from Gulf Coast producers were averaging 45Acents in August, an increase of 4Acents above the national average in July because of higher energy costs, healthy demand from polyethylene...

Economy + Supply.(Table)(Brief article)
September 13, 2007... By Staff Light-metals purchasing could rebound this half (Buyers' near-term buying plans) -------------------------------------------- UP DOWN SAME INDEX Molded plastics 32% 11% 57% 60.9...

Fed Maverick Spend Triples.
September 13, 2007... By Staff A congressional report estimates that federal spending on contracts awarded without "full and open" competition has tripled to $207 billion as government officials take advantage of provisions allowing them to sidestep competition...

Alcoa Declares Force Majeure.
September 13, 2007... By Staff Alcoa declared force majeure on alumina after a 1.4 million metric ton/year Jamalco alumina refinery in Jamaica remains closed while its owners assess damage caused by Hurricane Dean. The world aluminum market has hardly blinked,...

Roofing Goes Plastic.(Brief article)
September 13, 2007... By Staff Johns manville will start manufacturing thermoplastic polyolefin (TPO) roofing membrane in Scottsboro, Ala., beginning in the second half of 2008. The Denver-based firm will manufacture TPO in 10-foot widths for use in commercial...

AbitibiBowater Awaits U.S. Ok.(Brief article)
September 13, 2007... By Staff Only U.S. justice department approval is needed to complete the merger of North American papermakers Abitibi-Consolidated and Bowater into a single powerhouse company called AbitibiBowater. Canadian antitrust officials have...

Detroit's Woes Continue.(Brief article)
September 13, 2007... By Staff Automotive output is headed for a longer and more painful downturn in the U.S. than had been expected. Economists say sharp declines every month since June have hit Detroit's Big Three and the Japanese-owned automakers. Morgan...

Productivity Bounces Back.(Brief article)
September 13, 2007... By Staff Non-farm business productivity growth bounced back in the second quarter, coming in at 1.8%, up from 0.7% in the first quarter. Despite the rebound, productivity growth has slowed in recent quarters, and is up just 0.6% over the...

Economy Ok.(Brief article)
September 13, 2007... By Staff Economists at the Congressional Budget Office say the U.S. economy is likely to remain sound. But, they add that the collapsed housing market and recent financial and credit disruptions may dent the rate of growth. Near-term...

Housing Index weakens.(National Association of Home Builders)(Brief article)
September 13, 2007... By Staff Homebuilder optimism continued to decrease in August another two points to an idex reading of 22, representing a total drop of 14 points total since March. Overall, the National Association of Home Builders index looks to stay...

Distributor Sales Up.(Financial report)(Brief article)
September 13, 2007... By Staff Latest data from the Power Transmission Distributors Association show U.S. distributor sales of power transmission and motion control products continue to rise-2.2% from May to June. Year-to-year comparisons are also positive,...

Fed Rate Hike Unclear.(Brief article)
September 13, 2007... By Staff Market watchers say the uncertainty the Federal Reserve feels over the credit crunch's toll on U.S. growth makes it unlikely the Fed will cut interest rates before its Sept. 18 meeting. The Fed has left the benchmark federal funds...

Titanium Supply Expands.(Brief article)
September 13, 2007... By Staff Allegheny technologies is expanding titanium sponge capacity to meet continued strong demand from the aerospace and power generation markets. CEO L. Patrick Hassey says the Pittsburgh firm's facility in Albany, Ore., should have...

Lead Demand Outpaces Supply.(Brief article)
September 13, 2007... By Staff Global lead demand was greater than supply by 73,000 tons in the first six months of this year, according to a recent report from the World Bureau of Metal Statistics. The deficit compared with a surplus of 34,000 tons in the same...

PPI Rise Slows.(Brief article)
September 13, 2007... By Staff Buyers got a break in July when core producer prices for finished goods rose by only 0.1%. Looking ahead, economist Michael Helmar at Moody's Economy.com says "the slowing of the U.S. economy means that prices will start to ease...

Crude Oil Cheaper in August.(Brief article)
September 13, 2007... By Staff Crude oil in the U.S. slipped under $70/barrel in late August, the lowest price level in almost two months, following an unexpected summertime rise in crude oil inventories in the U.S. Futures prices also were trading around Labor...

Polystyrene Retreats.(Brief article)
September 13, 2007... By Staff Buyers are watching polystyrene prices see-saw: After rising 5Acents/lb in July, general-purpose grade used to make rigid plastic parts fell back to 87Acents in August. Buyers had predicted the slide, noting that costs were...

Acrylonitrile Slips.(Brief article)
September 13, 2007... By Staff Suppliers insist that supplies of acrylonitrile remain tight and spot deals are non-existent. So why did August average pricing slide 2Acents after settling in at 72Acents for the previous two months? Buyers say prices are soft...

Credit Woes Slow Prices.(Brief article)
September 13, 2007... By Staff Prices of many nonferrous and precious metals have gone into a freefall since investment banks and commodity speculators began tightening their belts-along with mortgage lenders and insurers-to ride out the turmoil in the credit...

Aluminum Prices Dip.(Brief article)
September 13, 2007... By Staff Global primary aluminum inventories at the end of June were down 124,000 metric tons from year-earlier levels at 1.467 million metric tons, according to the International Primary Aluminium Institute. At that time, the world ingot...

Package Rates Stable.(Brief article)
September 13, 2007... By Staff Don't expect small parcel rates to dip anytime soon. "In the domestic package business, we have seen a rational approach to pricing in the market," says Scott Davis CFO of United Parcel Service. "Looking forward, I see nothing on...

LTL Pricing is Soft.(less-than-truckload)(Brief article)
September 13, 2007... By Staff Any weakening of less-than-truckload (LTL) demand could drive volume levels lower and increase the risk of "irrational pricing," says a report by Fitch Ratings of Chicago. Fitch adds that although current expectations indicate...

How to Negotiate with Suppliers.
September 13, 2007... By Staff This is the fifth installment in our series on how purchasing staffs at various companies implement strategic sourcing. You can find the other installments in the Strategic Sourcing channel at our website, www.purchasing.com . ...

Business Intelligence.
September 13, 2007... By Staff 12% Twelve-month jump in China Containerized Freight Index Source: Reuters WHAT IT MEANS: Demand for ocean container shipping remains at record highs in and out of Asian ports. Global container rates will remain...

GE, Alcoa get the most from their top-rated LTL carriers.
September 13, 2007... By David Hannon If you were a less-than-truckload carrier, you'd want to be on Ron Painter's "A" list. Painter, the manager of corporate transportation services at General Electric in Fairfield, Conn., typically classifies GE's LTL...

Buyers take note: LTL market is "soft" right now.(Less-Than-Truckload)(Market overview)
September 13, 2007... By Staff To get a clearer picture of where the LTL market stands today, Purchasing asked both Ron Painter and Ed Hamorsky to provide their view as major LTL buyers and shippers. "I think right now the market is soft," Painter says....

EMS industry targets mechatronics systems.(Electronics manufacturing services)
September 13, 2007... By James Carbone As EMS providers build more systems that blend electronics and mechanical parts, buyers face new purchasing challenges. The electronics manufacturing services (EMS) industry made a name for itself in the supply chain...

Buyers still want quality products delivered on time.(delivery of quality products is of more important acoording to buyers purchasing habits)
September 13, 2007... By Tom Stundza Buyers says they need continued support from the metals supply chain in a very trying time where smooth purchasing performance is being challenged by mill consolidations, sometimes explosive pricing and erratic production...

Global demand heading up; North American demand going down.
September 13, 2007... By Tom Stundza Aluminum is a tale of two markets this year: While global purchasing is on pace to increase by 10%, North American aluminum demand is contracting 6%. And, while analysts such as Scott Burns at Morningstar in Chicago...

Analysts see price slide near bottom.
September 13, 2007... By Tom Stundza Four veteran steel market analysts believe that the latest downward drift in steel pricing will bottom out this autumn. While all three agree that demand has been softer than expected this summer and prices are past the peak...

Clearinghouse statistics have slipped in '07.(London Bullion Market Association)(Brief article)
September 13, 2007... By Tom Stundza Actual ounces of gold-ounce transfers fell 19.7% to a daily average of 17.5 million ounces in July from the previous month, the London Bullion Market Association has reported. The number of transfers fell to a daily average...

No sign of purchasing expansion seen in buyers' polls.(Survey)
September 13, 2007... By Tom Stundza U.S. steel consumption is on pace to decline 8% this year, according to a review of data available from government and industry sources. And, based on surveys of steel buyers, they have decided to continue low-key purchasing...

Novelis gets hood sheet contract for Cadillac CTS.
September 13, 2007... By Tom Stundza Novelis will supply aluminum sheet for the hood of the 2008 Cadillac CTS luxury sport sedan, expected to launch in late August. The General Motors vehicle has been redesigned for 2008 with high-grade components and extremely...

Asian wire firms go on a buying spree as August prices drop.(London Metal Exchange )(Brief article)
September 13, 2007... By Tom Stundza Despite summer holidays where most Asian manufacturing plants were closed, buyers in mid-August at wire manufacturing plants had suppliers open their copper wirebar order books to take advantage of falling cathode prices on...

Midyear distributor shipments are off by 8.4%.(Brief article)
September 13, 2007... By Tom Stundza Continued cutbacks in new-housing construction starts have reduced need for copper and brass mill products this year. The housing industry is by far the largest end user of copper, around 40%. And that's why midyear...

Earthquake disrupted many nonferrous operations in Peru.
September 13, 2007... By Tom Stundza A 40,000 metric ton/year Funsur tin refinery in Pisco has been closed indefinitely because of damage from a major earthquake that struck Peru in mid-August. Also closed for now is Minsur's tin mine at San Rafael, which...

Cleveland-Cliffs selects Michigan for Japanese-technology nugget plant.(Brief article)
September 13, 2007... By Tom Stundza Mining company cleveland-cliffs of the U.S. and joint-venture partner Kobe Steel of Japan will construct a commercial-scale iron nugget production facility at the Empire Mine in Michigan's Upper Peninsula. Production of the...

JSW Steel buys U.S. steel plate, pipe mills.(Jindal United Steel Corp., Saw Pipes USA Inc. and Jindal Enterprises to merge)(Brief article)
September 13, 2007... By Tom Stundza Indian steel producer JSW Steel said it has bought the three U.S. companies of Jindal United Steel, Saw Pipes USA and Jindal Enterprises for a combined value of $900 million. JSW Steel plans to merge the three companies into...

Roskill: Prices should hold at $6,000 until 2010.
September 13, 2007... By Tom Stundza Antimony prices should increase to around $6,000/metric ton during the fourth quarter, and then remain elevated around that level to 2010, forecasts metals consultancy Roskill Information Services, citing a close long-term...

Business Intelligence.(Brief article)
September 13, 2007... By Tom Stundza $740/ton Average beam price Source: www.purchasingdata.com WHAT IT MEANS: Mills have been struggling to keep prices of medium-sized wide-flange beams at $770/ton but in August, transactions dipped $30 under...

Relocated DRI plants about to open.(Al-Tuwairqi Group )(Brief article)
September 13, 2007... By Tom Stundza Saudi Arabian steelmaker Al-Tuwairqi Group is nearing full capacity for the first of two relocated direct-reduced iron (DRI) pellet plants at Dammam, Saudi Arabia. DRI is baked and deoxidized iron used as a scrap supplement...

Worthington, Magnetto form processing JV U.S. steel processor.(Brief article)
September 13, 2007... By Tom Stundza Worthington Steel and Italian sheet steel distributor Magnetto Group are creating a joint venture to operate a steel processing facility in Kosice, Slovakia, expected to begin operations this autumn. The plan is to provide...

Proposed legislation would allow changes in composition of small coins.(Brief article)
September 13, 2007... By Tom Stundza The explosion in prices of nonferrous metals means that it costs more for the U.S. Mint to manufacture pennies and nickels than the face value of the coins-1.7Acents to produce a penny and 8.2Acents to stamp out a nickel....

World's producers increase output by 5.3%.(steel production increasing overall)(Statistical data)
September 13, 2007... By Tom Stundza World crude steel production increased 5.3% year on year in July to 109.9 million metric tons, according to the International Iron and Steel Institute in Brussels. This brings the seven-month total to 761.8 million metric...

Metals Chips.(Brief article)
September 13, 2007... By Tom Stundza Novelis is investing $9 million in its Oswego, N.Y., plant to increase production of aluminum sheet ingot, the starter stock for the rolling process. The new ingot production will be brought online by next summer. ...

Metal framing has fallen victim to new-housing recession.(Worthington Industries Inc.)(Brief article)
September 13, 2007... By Tom Stundza Worthington Industries says market conditions in its Metal Framing segment haven't improved-due largely to the housing construction malaise-and it's unlikely it will be profitable anytime soon. The company's Dietrich Metal...

"Access Novelis" expands sheet mills' online ordering process.(Brief article)
September 13, 2007... By Tom Stundza Earlier this year, aluminum sheet producer Novelis launched an updated online ordering tool labeled "Access Novelis'' through the firms' Cleveland-based specialty products business unit. The online depot stocks common alloy...

Macquarie analysts lift 2008 copper, aluminum price forecasts.(Brief article)
September 13, 2007... By Tom Stundza Analysts Jim Lennon and Adam Rowley at Macquarie Bank's offices in London have raised the investment bank's 2008 price forecasts for aluminum, copper, lead and zinc. Copper prices will average $3.50/lb, compared with...

Buyers won't slow global sourcing despite product recalls.(Survey)
September 13, 2007... By David Hannon Buyers in a recent Purchasing.com survey said that the recent rash of product recalls out of China will result in a closer focus on supplier quality and management throughout the various tiers of the supply chain. But...

Chinese steel mills expect stable 2008 prices.(Brief article)
September 13, 2007... By Tom Stundza A slew of global investment banks recently forecast that iron ore prices would continue to rise in 2008, boosted by strong demand from China. However, steelmakers in China, the world's largest iron ore consumer, expect raw...

Substitution of low-nickel grades has accelerated.
September 13, 2007... By Tom Stundza Increased use of low-or no-nickel steels continues to erode the market share of nickel-bearing 300-series stainless grades, the workhorse of the industry, at a time when the collapse of world nickel prices to half what the...

Eaton preaches, practices, masters the fundamentals.(Eaton Corp.)(Company overview)
September 13, 2007... By Paul E. Teague From strategic sourcing to supplier management, the Cleveland-based diversified manufacturer shows that fierce adherence to principles and to business basics wins supply chain success-and Purchasing's Medal of...

Business Intelligence.
September 13, 2007... By Susan Avery 2/10/08 Start date for NAPP 16th annual conference Source: www.nappconference.com WHAT IT MEANS: The National Association of Purchasing & Payables conference will be held in Marina Del Rey, Calif., this year,...

MRO purchasers look to authorized distributors for leadtime help.
September 13, 2007... By Susan Avery As leadtimes for some critical MRO components such as bearings stretch out, buyers managing relationships with authorized distributors may find it easier to get the parts they need to keep their facilities up and running....

Rockwell Collins looks to suppliers for help meeting MRO objectives.
September 13, 2007... By Staff "Ultimately, our success is a reflection of our suppliers," says Steve DeFord, commodity manager, enterprise sourcing-indirect operations, at Rockwell Collins in Cedar Rapids, Iowa. DeFord is a member of Purchasing's All Star MRO...

MRO Briefs.(manufacturers to set minimum prices for their resellers )(10th annual conference of purchasing agents)(Motion Industries of Birmingham acquired Gerrish Bearing Co)(Brief article)
September 13, 2007... By Staff A recent Supreme Court decision making it legal for manufacturers to set minimum prices for their resellers will have little impact on distributor pricing, say manufacturers contacted recently by Purchasing . Spokesmen for SKF...

The traits of a winner.(Eaton Corp)
September 13, 2007... By Paul Teague, Editor in Chief Our sincerest congratulations to Eaton Corp. and to Rick Jacobs and his entire supply chain team for winning the Purchasing Medal of Professional Excellence. You can read about all the procurement...

Color, marketing drive demand for print on-demand services.
September 13, 2007... By Maria Varmazis On-demand document printing has come a long way. It's not just for small, locally-printed jobs anymore-major office suppliers and print service companies like Staples and FedEx Kinkos report exploding growth in use of...

Business Intelligence.
September 13, 2007... By Staff 85% Federal Strategic Sourcing initiative awards won by small businesses Source: U.S. General Services Administration WHAT IT MEANS: Eleven of the 13 office suppliers awarded one or two year contracts to the...

How Kennametal ended paper invoicing.(Kennametal/AMT)
September 13, 2007... By Maria Varmazis First step, after selecting the software tool: Show suppliers the benefits. It's a seemingly simple problem with a simple solution: increase payment efficiencies by automating the procure-to-pay process. Only, as...

Business Intelligence.(Brief article)
September 13, 2007... By James Carbone 41% Electronics purchasers who say business is improving Source: www.purchasingdata.com WHAT IT MEANS: End equipment demand is solid, as 80% of buyers say business is either up or the same as the previous...

Sun's e-auction evolution.(Sun Microsystems Inc introduces Reverse auctions )
September 13, 2007... By James Carbone Reverse auctions are not new at Sun Microsystems, but the company is taking their use to a new level by employing them to award business to contract manufacturers. Sun Microsystem's strategy in using reverse auctions...

Procurement takes on meetings buy.(Pfizer Inc)
September 13, 2007... By Susan Avery "Our supplier base is stronger now, and that's a big plus," Connie Bocchieri, senior manager of global meeting management at Pfizer in New York told travel managers and buyers attending an educational session at the National...

Fluor works to formalize buyer-supplier conflict resolution strategy.(Fluor Nuclear Power Group)
September 13, 2007... By William Atkinson The procurement profession has generally done a good job of creating formal processes to attempt to maintain order in what could otherwise be a completely disorderly supply chain process. Now, J. David Alewine,...

How buyers are reacting to product recalls.(Mattel Inc)(Brief article)
September 13, 2007... By Staff Buyers in industries of all kinds are intensifying their supplier-management efforts in the wake of a rash of recent product recalls by Mattel of toys made in China. From setting more rigorous supplier-selection criteria, to more...

Business Intelligence.(Brief article)
September 13, 2007... By Staff 42% Buyers reporting higher commodity prices in August Source: www.purchasingdata.com WHAT IT MEANS: That's a continued decline from July when 49% of buyers said commodity prices were up. In June it was 53%. It...