Purchasing back issues from October 2007:
"Your margin is too high".
Oct 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 manufacturer was procuring $25 million ...
Suppliers play bigger role in product development and cost-reduction.
Oct 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 coatings makers continue to develop ...
Sodium chlorate prices continue up on tight supply and high costs.
Oct 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 bleaching. That's the word from industry sources ...
Business Intelligence.
Oct 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 converted to produce ...
Chem News.
Oct 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 forecast on the fact that the world's ...
PPG sells its auto glass business to focus on coatings.(PPG Industries Inc.)(Brief article)
Oct 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 from the automotive market. ...
Catalog electronics distributors look to expand their role.
Oct 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 rates and are trying to expand their role ...
Distribution Briefs.(Nearson )(Betronik)
Oct 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 anti-trust authority. Following ...
EMS industry goes car shopping.(electronics manufacturing services)(Company overview)
Oct 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 double-digit growth nearly every ...
The EMS top 50.(electronics manufacturing services )(Brief article)
Oct 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 term, says market researcher iSuppli. ...
Buyers can expect stable pricing, delivery for resistor networks.
Oct 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 for some devices earlier in the ...
Business Intelligence.
Oct 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 they ...
Quality needs to be top priority in China.(Brief article)
Oct 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 in China and around the world ...
Memory IC price erosion weakens semiconductor industry's growth.(integrated circuit)
Oct 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 market will rise only 3.5% to $269.9 billion ...
Electronics Briefs.(briefs)(Brief article)
Oct 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 devices led the growth as ...
Apple cuts BOM cost for new iPod nano.(bill of materials)
Oct 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 design, re-uses almost no ...
Spansion opens new NOR flash factory.(Brief article)
Oct 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 year. The plant is called SP1 ...
Analog IC market to drop 2% in 2007.(integrated circuits)(Brief article)(Market overview)(Statistical data)
Oct 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 IC market slump will be brief ....
Prices.(Statistical table)(Brief article)
Oct 18, 2007 ... By Staff <Pre> Paper, corrugated getting more expensive(National, recent price trend) -------------------------------------------- UP DOWN SAME INDEX Transportation51% 7%42% 72.0 Energy54% 14% 32% 70.0 ...
Wire Rod Suppliers Want Hike.(Brief article)
Oct 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 ...
DDR2 Tags Keep Falling.(double data rate)(Brief article)
Oct 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 ...
Aluminum Prices Drop.(Brief article)
Oct 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 ...
TiO<EMPHASIS TYPE="SUBSCRIPT">2</EMPHASIS> Prices will Stay Flat.(titanium dioxide)(Brief article)
Oct 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 ...
Economy + Supply.(Statistical table)(Brief article)
Oct 18, 2007 ... By Staff <Pre> Steel buying slows down (National, buying plans, 30 days) -------------------------------------------- UP DOWN SAME INDEX Semiconductors23% 17% 60% 53.1 Energy22% 19% 59% 51.9 ...
Inspect Chinese Tubing.
Oct 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 seam welds. The California Division of ...
PT Demand drops.(power transmission )
Oct 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. distributor sales dropped 7% from June to ...
Economists: 2% Growth.(Survey)(Brief article)
Oct 18, 2007 ... By Staff The economy will grow 2% this year, the least since 2002, according to a Bloomberg survey of ...
Durable Goods Fall.(Brief article)
Oct 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 racing ahead at ...
Signs the economy may be slowing enough for a second Fed rate cut:.(Brief article)(Statistical data)
Oct 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. ...
Producer Price Index Dips.(Brief article)
Oct 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 reported by the Bureau of Labor Statistics ...
Electronics Leadtimes: Electronics components are much harder to source this month.(Statistical table)(Brief article)
Oct 18, 2007 ... By Staff <Pre> (monthly weighted average in weeks) --------------------------------------------------- September August July SHORTEST LEADTIMES Carbon film resistors, 25W 9.74.0 8.8 Ceramic chip capacitors 9.94.9 ...
Titanium Supply to be Tight.(Brief article)
Oct 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 ...
New Oil Refinery Planned.(Motiva Enterprises)(Brief article)
Oct 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, ...
Will Fed Cut Rates Again.(Federal Reserve )(Brief article)
Oct 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 ...
PC Shipments to Rise in 2008.(personal computers)(Brief article)
Oct 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 ...
Bimba Buys Mead.
Oct 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 ...
Paper Distributor Expands.(Unisource Worldwide Inc. )(Brief article)
Oct 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 and ...
Lead Prices Hit Peak.(Brief article)
Oct 18, 2007 ... By Staff Lead prices on the London Metal Exchange set an all-time high of $3,520/metric ton in late September ....
Vinyl Acetate Prices Spike.(Brief article)
Oct 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 ...
Copper Prices to Stay High.(Brief article)
Oct 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 over ...
GE: Metals Prices A Concern.(General Electric Co.)(Brief article)
Oct 18, 2007 ... By Staff A general electric executive said in early October commodity prices-especially metals prices-are a ...
Uranium Price Forecast Cut.(Brief article)
Oct 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 ...
Chip Price Declines to Ease.(Brief article)
Oct 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, compared to 14% in 2006 ....
NOR Flash Prices to Fall.(Brief article)
Oct 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 Insights ....
Buyers drop in on the plant floor.(Herman Miller Inc.)
Oct 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 companies set out to overhaul their ...
How IBM buys HR services globally.(International Business Machines Corp.)
Oct 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. Purchasing professionals at ...
Lenovo does global supply chain right.(Lenovo Group Ltd.)
Oct 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 hard to out-globalize Lenovo. When ...
When deciding to outsource logistics to a 3PL, read the signs.
Oct 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 them to provide supply chain ...
Business Intelligence.
Oct 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 will not come ...
Panama Canal expansion breaks ground.(Brief article)
Oct 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 announced in April 2006, after a detailed ...
Buyers press for on-time deliveries.
Oct 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, buyers of copper and brass mill ...
Spot prices are rising 35% this year as supply has tightened.
Oct 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% because exports have been surging 24% ....
Gerdau Ameristeel makes downstream acquisitions.
Oct 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 independent fabricator of concrete ...
World supply giants seeking 30% price hike for 2008 fiscal year.
Oct 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 companies and customers begin annual ...
Business Intelligence.
Oct 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 lowest months worth ...
Metals Chips.(Metalweb)
Oct 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 North America , based in ...
Mesabi Nugget project gets the green light.(Brief article)
Oct 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 spring. The iron nugget project ...
Steel Dynamics buys recycler OmniSource to insure supply.
Oct 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 for roughly 8% of the North American ...
Cargill, Robinson Steel form sheet-processing venture.(Cargill Steel Service Centers )(Brief article)
Oct 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 cut-to-length at a 100,000 sq. ft. facility in ...
Trent Tube bought by Plymouth Tube.
Oct 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 produces ...
Perryman adds hot-melt capacity.(Brief article)
Oct 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 cold-hearth furnace. Until now, ...
Supply will be tight through 2010; expansions won't help immediately.
Oct 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 of titanium producer RTI International ...
Business Intelligence.
Oct 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 sales ...
Distributor technology tools can remove costs from supply chain.
Oct 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 findings demonstrate distributors are ...
Purchasing at UNICCO gathers suppliers for employee tradeshow.(Unicco Service Co organised UNICCO tradeshow )
Oct 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 Washington area. At the ...