A 10-day UPS strike could cost the US economy more than $7B, with $4B in losses for consumers & small businesses
East Lansing, Mich. – According to a new analysis by the consulting firm Anderson Economic Group (AEG), a threatened strike by 340,000 members of the Teamsters union against UPS could become one of the costliest in at least a century.
Based on information available to AEG as of the date of this release:
A 10-day strike would likely furlough 340,000 workers, who are currently earning annual wages of approximately $90,000 per year (excluding benefits), resulting in wage losses of $1.1B.
Only a fraction of impacted deliveries would be filled by FedEx, USPS, other carriers, or direct delivery.
UPS customers could incur losses in excess of $4 billion.
Patrick Anderson, AEG’s principal and CEO, notes a UPS strike would be unique, resulting in “lost parts and goods within just a few days.” This interruption would trigger near-immediate lost sales and lost wages, along with “significant and lasting harm for small businesses, household workers, sole practitioners, and online retailers across the country.”
AEG analyst Shay Manawar further explains that the delivery of critical medical supplies and similar essential items would almost certainly be interrupted.
“In addition to having potentially severe consequences for those who need these supplies, this sort of interruption in service could prove very costly due to required intervention and emergency medical services,” Manawar said.
Estimating Economic Losses from a Potential Strike To determine the economic impact of a potential UPS strike, Anderson Economic Group estimated losses that include:
Lost wages to workers, including striking workers and others who are temporarily laid off or forced to decrease hours worked;
Lost earnings for UPS, taking into consideration that the company would not be paying wages to the striking workers;
Lost goods, services, and worker wages in other industries; and
Direct losses to consumers that cannot be absorbed by adjusting noncritical timelines or substituting goods.
These loss estimates do not include strike pay or assessments for strike pay; unemployment benefits or unemployment taxes; income taxes on wages; any settlement bonuses (which are transfers from shareholders to workers and do not represent U.S. income lost); or any reputational damage to the union or the employer.
Source: Anderson Economic Group, LLC. Notes: Loss figures in $millions. 2023 events are conjectures. Strike-caused economic losses include only direct losses to affected workers, businesses, and customers. Estimated losses do not include settlement bonuses, transfer payments, strike pay, unemployment insurance taxes or benefits, or income tax changes. Presumes no permanent change in production or employment caused by strike. Company losses are direct economic losses and will differ from accounting charges.
Because there is no way to quantify the costs associated with non-delivery of critical medical supplies, this estimate does not incorporate this important potential consequence.
2023 Research Methodology The firm’s consultants followed the same proven, accurate methodology used to estimate impacts from the 2019 UAW strike, the threatened 2022 rail union strike, two West Coast port shutdowns, the 2003 East Coast electrical blackout, the 2022 Türkiye-Syria Earthquake, and other significant events in the firm’s 27-year history.
Interruptions of comparable scale in the past century include the 1970 postal workers strike; the 1959 steel union strike; the 1992 rail strike; and the 2019 UAW strike against GM. The 1922 UMW strike against coal mining companies, which involved at least 425,000 striking workers, could be the largest beyond the last 100 years.
October 9 – 11, 2023 | Mandalay Bay Convention Center, Las Vegas, NV
Attention fastener professionals! Get ready for an exhilarating and informative experience at the 2023 International Fastener Expo. IFE will offer attendees a series of informative and engaging sessions designed to provide fastener professionals with valuable knowledge and insights. The IFE 2023 agenda is packed with incredible sessions, and here’s a sneak peek at what you can expect:
Starting on Monday, October 9, the IFE 2023 will kick off with “Fastener Fundamentals – The Nuts and Bolts for Fastener Professionals,” a comprehensive class presented by the Fastener Training Institute with instructor Carmen Vertullo, Founder of Carver Engineering. This interactive session covers everything from the basics to advanced topics, providing you with a solid foundation and valuable take-home resources. Make sure to secure your spot by registering in advance.
On Tuesday, October 10, the morning will begin with a keynote presentation by Jake Hall, The Manufacturing Millennial. Jake will explore “The Future of Manufacturing: Technology and Workforce.” Discover how the industry is evolving, the challenges it faces, and how leveraging automation and engaging the new workforce can drive success.
Throughout the expo, you’ll have the opportunity to attend engaging panel discussions and fireside chats hosted by industry leaders and experts. IFE is introducing Fireside Chats this year, which will include sessions hosted by the Fastener Training Institute instructors in an insightful “Ask Me Anything” session, cloud considerations for fastener distributors, and trends in fastener finishings.
The knowledge-sharing continues on Wednesday, October 11, with thought-provoking panels and presentations. Gain valuable insights into the process and importance of planning for business succession in “Succession in the Fastener World,” led by industry business managers with personal experience in developing transition strategies.
Explore the transformative power of technology in the distribution landscape with “Three Sci-Fi Technologies That Are Ready for Distributors Now.” Discover how 3D computing, AI, and sensing technologies are reshaping the industry, unlocking new possibilities for efficiency and customer experiences.
Prepare for an unforgettable experience at the 2023 International Fastener Expo where you’ll expand your knowledge, network with industry professionals, and discover cutting-edge solutions. Mark your calendars, register for your favorite sessions in advance, and get ready for an awesome experience at the International Fastener Expo!
See the full schedule and secure your spot for the programs, please visit FastenerShows.com.
Don’t miss out on this opportunity to be part of the most exciting fastener event of the year.
We can’t wait to see you there!
IFE 2023 SESSIONS SCHEDULE
Monday, October 9
8:30AM – 4:30PM Fastener Fundamentals – The Nuts and Bolts for Fastener Professionals Instructor: Carmen Vertullo, Founder, Carver Engineering
In partnership with Fastener Training Institute, this one-day class will bring the basics of fasteners and beyond to industry professionals at the 2023 International Fastener Expo. This class includes the best of Fastener Training Institute’s Fastener Basic Training and Certified Specialist Training™ programs.
Carmen Vertullo has been teaching Fastener Training Institute programs and many others for over 20 years – and he has taught it all! This class is full of his favorite topics and must-knows for every fastener professional and is interactive with learning exercises, case studies, and valuable take-home resources.
CURRICULUM INCLUDES:
Types and applications of various threaded and non-threaded fasteners
Fastener standards organizations
Your fastener technical library
Basics of fastener materials
Plating, coatings, and corrosion prevention for fasteners
Best methods for properly tightening fasteners – there’s more to tension than torque
Dealing with fastener customer complaints – from small screws to structural bolts
Fastener failure investigation – what you need to know to sleep at night
Ten things every fastener supplier can do to add value, reduce risk, and increase profits in the fastener supply transaction.
8:30AM – 9:30AM Keynote Presentation: The Future of Manufacturing: Technology and Workforce Jake Hall, The Manufacturing Millennial
The industry is changing. Boomers are retiring from manufacturing, companies are scrambling to fill production demands, keep equipment running, and automate their organizations and processes. As a whole, we must work together to engage with the general public to change misconceptions of manufacturing and drive awareness to new solutions such as digitization, automation, and robotics. In this keynote, we will highlight how manufacturers are finding success in:
Leveraging automation in new ways to support manufacturers.
Adapting new types of automation from Industry 4.0
Engage the new workforce to attract and retain younger generations.
10:15AM – 11:00AM Panel Discussion: Reducing Risk, Building Resilience and Adapting to Change in the Fastener Industry Moderated by Lonni Kieffer, Co-Founder, Customer Success, SmartCert Panelists include Carmen Vertullo, Founder, Carver Engineering; Kristy Irungaray, Senior Logistics Manager, INxSQL; Will Snyder, Co-Founder, WTC Services
In this session, we will explore strategies for identifying and mitigating risk, as well as best practices for building resilience and adapting to changing circumstances. We’ll also discuss how emerging technologies and trends may impact risk management in manufacturing and distribution.
11:15AM – 11:45AM Panel Discussion hosted by YFP More details coming soon!
11:20AM – 11:40AM Fireside Chat: Ask Me Anything with FTI Instructors
Bring your questions and get ready to learn from the experts in this Ask Me Anything Fireside Chat session with Fastener Training Institute instructors. Hosted in the IFE Lounge in the Exhibit Hall.
1:30PM – 1:50PM Fireside Chat: TBD More details coming soon!
An automotive tier in Michigan installing aluminum frames for a large electric vehicle truck manufacturer was facing problems on the assembly line with round body rivet nuts spinning out in its frames. Over half of the installations were spinning out when brackets were installed with high torque values. With 36 installations points combined in both rails, the OEM had a decision to make: Spend six-figures to redesign the application to accommodate a hex hole and switch to a full hex or half hex rivet nut or move to a costlier method of fastener or installation.
Sherex had a solution, but would the tier embrace it after the current solution wasn’t holding up? This presentation takes you through the steps Sherex, its distributor, and the OEM took to resolve the issue, how the supplier won its trust with the assembler, and how two new solutions helped save the tier money and keep the line moving.
Wednesday, October 11
10:30AM – 11:00AM Panel Discussion: Succession in the Fastener World Moderated by Gary Cravens, President, Advance Components Panelists include Heidi Volltrauer, COO, President of Marketing Volt Plastics; Jon Queenin, COO, Specialty Bolt; Adam Derry, President, Field Fastener
Join this informative panel discussion, where attendees will gain a comprehensive understanding of the process and importance of planning for business succession. Led by industry business managers with personal experience in developing transition strategies, this presentation will explore the steps involved in a successful transition and provide attendees with practical strategies to ensure a smooth transfer of ownership.
Participants will learn the key factors that drive successful business succession planning, including understanding the different types of succession plans, how to identify and groom potential successors, and the importance of effective communication among stakeholders. Through real-life examples, participants will gain valuable insights into the potential pitfalls of inadequate planning and learn how to avoid common mistakes, providing attendees with a solid foundation for developing a comprehensive and effective succession plan.
At the end of the session, participants will leave with a clearer understanding of the critical components of a successful business succession plan and a roadmap for implementing these strategies within their own organizations. Don’t miss this opportunity to gain the knowledge and tools necessary to ensure the future success of your business!
11:15AM – 12:00PM Three Sci-Fi Technologies That Are Ready for Distributors Now Anders Green, Founder, ALOX ERP
The distribution landscape is changing rapidly, driven by the rise of new technologies such as 3D computing, AI, and sensing. These technologies are enabling new ways to design, manufacture, and deliver products to customers, with the potential to improve efficiency, reduce costs, and create new customer experiences.
This session will explore how these technologies are being used to transform the distribution industry. We will discuss examples of how 3D computing is being used to design products, AI is being used to optimize supply chains, and sensing is being used to track products in real time. We will also discuss the challenges and opportunities associated with these technologies, and how they are likely to impact the future of distribution.
11:20AM – 11:40AM Fireside Chat: Cloud Considerations for Fastener Distributors Todd Daubenberger, Senior Director – Sales and Strategic Alliances, EPICOR
Fastener Distributors are increasingly looking for ways to advance their business via technology, but at the same time concerned over the also increasing threats. Join for a discussion about how to leverage Cloud technology as part of their digital transformation while maintaining or increasing security via their ERP system.
Learning objectives:
1) How can the Cloud help my company’s digital transformation?
2) How can the Cloud help protect my company from cyber attacks?
3) What else should be considered for a modern Cloud-based ERP system?
1:15PM – 1:45PM Cyber Security – The NEW normal has CHANGED! Will Snyder, Co-Founder, WTC Services
Cyber security has become a legitimate business in other countries. Their sole purpose for being in business is to hijack business networks for Ransome. We will review the 6 key points to keeping your fastener business secure and keeping you off the radar of the criminals. The landscape for cyber security is constantly changing to adapt to new threats and we will make sure you are aware of the new technologies and how simple they are to adopt.
1:30PM – 1:50PM Fireside Chat: Trends in Fastener Finishings Andrew Pfeifer, Business Manager – Corrosion Protection, ATOTECH USA LLC.
This Fireside Chat session will explore various fastener finishes and which ones would be most appropriate for each application. Each industry has different requirements, which can utilize Phosphate, Zinc, Zinc Nickel or Zinc Flake. We will also cover hybrid systems (combining Plating with Dip-Spin to achieve higher performance).
Don’t miss out on these fantastic sessions at the International Fastener Expo 2023.
Register now to secure your spot and expand your knowledge in the fastener industry!
Accomplished Executive, Scott Feldbush, Joins Martin Leadership Team
Martin Inc., one of the nation’s leading providers of custom-tailored solutions for maintenance, repair, operation, and production supplies, welcomes Scott Feldbush as Executive Vice President, IT and Operations. In this crucial role, Scott will be responsible for spearheading the company’s technological advancements, streamlining operations, and driving the achievement of business objectives.
Scott brings a wealth of experience in IT leadership, with a proven track record spanning over 30 years. His expertise encompasses a wide range of technology domains, including strategy development, Cloud computing, data analytics, ERP systems, artificial intelligence, and Agile methodologies. Scott has spent his entire career in large global manufacturing and distribution companies. His exceptional performance and accomplishments in these roles have solidified his reputation as a distinguished leader in the industry.
“I am delighted to welcome Scott to the Martin team,” said David Ruggles, President at Martin Inc. “With his extensive background in IT and operations, Scott is well-equipped to drive our company’s technological transformation and enhance our operational efficiency. I am confident that his expertise will contribute significantly to our continued success and enable us to better serve our customers.”
Scott’s appointment reflects Martin’s commitment to staying at the forefront of technological advancements in the industry. By leveraging his exceptional leadership skills, strategic vision, and in-depth knowledge of cutting-edge technologies, Scott will play a pivotal role in enhancing the company’s operational capabilities and driving sustainable growth.
Step into the future of fasteners, machinery, and industrial products at the most anticipated event of the year – the 2023 International Fastener Expo (IFE) at Mandalay Bay in Las Vegas, from October 9-11, 2023.
The International Fastener Expo (IFE) is the ultimate business-to-business expo for all things fasteners, machinery & tooling, and industrial products. As the largest fastener event in North America, IFE caters to every level of the supply chain, making it the go-to event for fastener industry professionals like you.
Here’s what’s happening in fastener industry news, acquisitions, and upcoming events the week of July 17, 2023.
Watch Now on FastenerTV at YouTube: (13:54)
The seasonally adjusted Fastener Distributor Index (FDI) survey for June rebounded slightly to 45.6 compared to 44.7 in May. Respondents pointed to increased quoting activity as the primary driver of the m/m improvement. The Forward-Looking Indicator (FLI) regressed slightly, moving further below the neutral-50 reading to 39.3 vs. May 40.6. Overall, results were mixed, with a slight improvement in the FDI offset by further retrenchment in the Forward-Looking Indicator suggest conditions could get weaker ahead. The FDI is a monthly survey of North American fastener distributors, conducted by the FCH Sourcing Network and Baird with support from the National Fastener Distributors Association.
The Great Lakes Fasteners Group has acquired Connection Service Company of Benton Harbor, Michigan, and continues its rapid growth plans serving manufacturers in the greater Midwest region. Connection Service provides standard, metric, and special fasteners to print and is a boutique manufacturer of standard and special U-bolts, threaded rods, and special threaded studs.
Commercial Metals Company has acquired EDSCO Fasteners LLC (“EDSCO”), a leading provider of anchoring solutions for the electrical transmission market, from MiddleGround Capital. EDSCO’s custom engineered line of anchor cages, bolts, and fasteners are manufactured principally from rebar and used primarily to secure high voltage electrical transmission poles to concrete foundations. EDSCO serves the North American market from four manufacturing plants located in Texas, Utah, Tennessee, and North Carolina. Since its founding in 1985, the company has grown to become the nation’s largest provider of anchor cages for concrete reinforcement and has developed a strong reputation for customer service and reliability.
The Würth Group Continues to Grow Despite Economic Slowdown. The Würth Group, world market leader in the development, production and sale of assembly and fastening materials, reports sales of 10.5 billion EURO for the first half of 2023. This corresponds to an increase of 5.9 percent compared to the same period last year. Adjusted for currencies, this is equivalent to 6.6 percent increase.
Fastenal Company’s Q2 digital sales topped $1 billion. Sales through Fastenal’s Digital Footprint was 55.3% of sales in the 2nd Quarter of 2023, versus 47.9% in the 2nd Quarter of 2022. They forecast their Digital Footprint to reach 60% at some point in 2023. With a long-term expectation of 85%.
The Fastenal Company announced the publication of their 2023 ESG Report. The report, which recaps Fastenal’s performance and progress in 2022. One of the initiatives detailed in the report is Fastenal’s completion of a materiality assessment to define and prioritize key ESG issues impacting the company and its stakeholders, including employees, customers, suppliers, shareholders, and local communities. Based on this exercise, Fastenal has defined its ESG vision, pillars, and strategic objectives, and has begun to create a roadmap for each of the ESG topics found to be most significant.
Happening this week is the Fastener Training Institute’s Webinar Understanding Fastener Technical Drawings on Thursday, July 20th, 11 a.m. to 12:30 p.m. PT. The webinar Instructor is Carmen Vertullo, Fastener Consultant and Trainer. The webinar will teach the fundamentals of drafting terminology and will examine actual fastener drawings and specifications, both the good and the bad. Attendees can send fastener drawing or specification illustrations in advance for explanation. For Register info go to: https://fastenertrainingevents.com/understanding-drawings.htm
Next generation advanced planning and scheduling is here! Optessa’s AI-driven optimization ushers in a new way for manufacturers to generate optimal plans and schedules in a fraction of the time. Respond to disruptions, meet delivery dates, reduce excessive parts inventory, eliminate costly idle time, and stabilize your supply chain. Request a live demo of Optessa’s NextGen APS platform today! Visit https://www.optessa.com/for more information!
ATTN: Women in the Fastener Industry! WIFI honors the memory of Edith Cameron, a pioneer in the fastener industry for 55 years with a scholarship to attend the International Fastener Expo in Las Vegas this October. Edith was an industry trailblazer and was the first woman to be inducted into the Fastener Hall of Fame in 1993. She encouraged many women to excel in the fastener business. Submission deadline for the applications is: August 11, 2023. Go to https://www.fastenerwomen.com/scholarships for more info.
Registration is open for the 2023 International Fastener Expo at Mandalay Bay in Las Vegas from October 9-11, 2023. The International Fastener Expo (IFE) is the ultimate business-to-business expo in North America for all things fasteners, machinery & tooling, and industrial products. Attendees can participate in special events like the IFE Annual Golf Tournament, the Welcome Reception Party, Keynote Speaker, informative sessions on the show floor. And the prestigious Fastener’s Hall of Fame & Young Fastener Professional Award Ceremony, where industry excellence is celebrated.
Get ready to network with fastener industry professionals from around the world, discover the latest innovations, and take your business to new heights. Register now Use promo code FND50 to save $50.00 on registration. Go to FastenerShows.com
Tee off with fastener industry leaders and fellow enthusiasts at the highly anticipated annual International Fastener Expo Golf Tournament. This premier event provides an excellent opportunity to network, build relationships, and have a fantastic time on the greens. Whether you’re a seasoned golfer or just starting, this tournament promises a day of camaraderie, friendly competition, and unforgettable memories. Mark your calendars and practice your swing because this is an event you won’t want to miss! The tournament will take place on Monday, October 9th at the Bali Hai Golf Club. The IFE Golf Tournament presents an array of sponsorship opportunities designed to put your brand at the forefront. By sponsoring different aspects of the tournament, you can ensure maximum visibility to your target audience. Go to FastenerShows.com for registration and sponsorship opportunities!
2023 Southwestern Fastener Conference & Expo July 25th – July 27th | Houston, TX
Attendees will experience a site visit to Houston Fastener Manufacturing, a night at the ballpark as the Houston Astros take on the Texas Rangers, association conference, keynote speaker, industry table-top expo, lots of networking and a lively Round Table discussion with the SFA board to wrap it all up. To register and get more info go to: https://www.southwesternfastener.org/
Registration is OPEN for MWFA FSTNR Week which will take place in Chicago August 20-24, 2023!
Members and attendees will experience:
A Bed Build event at Abbott Interfast to support the Sleep in Heavenly Peace organization,
MWFA Member Plant Tours
Print Reading Seminar
the 41st MWFA Fastener Show
Retro 80’s Fastener Bash
MWFA 70TH Golf Outing & Mixer.
For all the details and to register go to www.mwfa.net
Are you planning to be at the MWFA FSTNR Week? Come early and get muddy with fastener industry friends in the Rugged Maniac Race! It’s 3.1 miles and 25-plus obstacles of teambuilding fun!! Fastener friends start together, finish together, and leave with a bond that cannot be broken. The event will be held on Saturday, August 19th 10:00am – 1:30pm. So, plan to arrive in Chicago early for the show and tackle this fun-filled event. Register today use discount code RUGGEDNUTS23
The Fastener Training Institute Announced Fastener Training Week will be held in Chicago on August 21st-25th, coinciding with the Mid-West Faster Association’s FSTNR Week! The Fastener Training Institute and the Industrial Fasteners Institute (IFI) continue their partnership to present Fastener Training Week — five intensive days of education and plant tours as part of the acclaimed FTI Certified Fastener Specialist™ (CFS) advanced technical training program. After completing this invaluable industry training in a small group environment and passing a final exam, attendees are eligible for the CFS designation. For more info go to: FastenerTraining.org
SPONSOR: Join the Fastener Training Institute for an all-day training program on Monday, October 9th, at the International Fastener Expo! Fastener Fundamentals, The Nuts and Bolts for Fastener Professionals, will offer the best of the Fastener Basics Training and Certified Fastener Specialist™ Training programs. The one-day class will bring the basics of fasteners and beyond to industry professionals. Take advantage of early bird pricing through October 7, 2023. Register now: https://fastenershows.com/fti-class/
The stories featured in this week’s episode of IN THE NEWS can be found in our Twitter feed @FastenerNew, LinkedIn in the Fastener News Group!
If you would like to share your company’s news or events contact me, lisa@fastenernewsdesk.com. Thanks for tuning in to this week’s episode of ‘IN THE NEWS’ with Fastener News Desk. Until next week, be well and keep it fastenating.
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Hey there DYK! We have 4 million manufacturing jobs to fill by 2030! Let’s work together and inspire the next generation of manufacturers by hosting a #MFGDay23 event! So Save the Date: Friday, October 6th for Manufacturing Day 2023. Celebrated nationally on the first Friday in October and throughout the month. MFG Day is manufacturing’s biggest annual opportunity to inspire the next generation, positively shift perceptions about our industry, and build the foundation for the manufacturing workforce of the future. Resources and toolkits available: https://mfgday.com/resources/
Registration is now open for the Industrial Supply Association’s (ISA) highly anticipated Fall Summit, the channel’s premier professional development experience. Taking place from October 18 – 20, 2023 in Orlando, FL, this year’s Fall Summit offers attendees tailored agendas with three tracks: Women in Industry, Emerging Leaders, and Channel Pros. Packed with engaging sessions, interactive breakouts, and exciting networking activities, the Fall Summit is designed to captivate and empower professionals, unlocking their full potential for career growth. For registration and details go to https://www.isapartners.org/
Do you work in the Fastener Industry? Sign up for the free FND newsletter designed to keep busy fastener professionals like you up-to-speed on “All things FASTENATING”!
WINONA, Minn., July 13, 2023 (BUSINESS WIRE) — Fastenal Company (Nasdaq:FAST), a leader in the wholesale distribution of industrial and construction supplies, today announced its financial results for the quarter ended June 30, 2023. Except for share and per share information, or as otherwise noted below, dollar amounts are stated in millions. Throughout this document, percentage and dollar calculations, which are based on non-rounded dollar values, may not be able to be recalculated using the dollar values included in this document due to the rounding of those dollar values. References to daily sales rate (DSR) change may reflect either growth (positive) or contraction (negative) for the applicable period.
QUARTERLY RESULTS OF OPERATIONS
Sales
Net sales increased $104.6, or 5.9%, in the second quarter of 2023 when compared to the second quarter of 2022. The number of business days were the same in both periods. We experienced higher unit sales in the second quarter of 2023 that contributed to the increase in net sales in the period. This was primarily due to growth at our Onsite locations, particularly those opened in the last two years, which more than offset lower revenues in construction and reseller end markets related to the execution of our go-to-market branch strategy. Foreign exchange negatively affected sales in the second quarter of 2023 by approximately 40 basis points.
The impact of product pricing on net sales in the second quarter of 2023 was 190 to 220 basis points compared to the second quarter of 2022. This largely reflects the impact of general inflationary conditions in the marketplace over the past twelve months and the carryover of targeted actions taken in the first quarter of 2023 to address gross margin pressure for non-fastener and non-safety products. The impact of product pricing on net sales in the second quarter of 2022 was 660 to 690 basis points. From a product standpoint, we have three categories: fasteners, safety supplies, and other product lines, the latter of which includes eight smaller product categories, such as tools, janitorial supplies, and cutting tools.
2Q23 GROWTH DRIVER UPDATE
• Onsites: We had 86 signings in 2Q23. Active sites finished at 1,728, +15.1% from 2Q22. Daily sales, excluding transferred branch sales, grew at a high-teens rate from 2Q22. Based on the pace of signings in the first six months of 2023, we anticipate signing approximately 350 Onsite locations in 2023, adjusted from our prior range of 375 to 400 sites.
• FMI Technology: We signed 6,794 weighted devices (106/ day) in 2Q23, versus 5,490 (86/day) in 2Q22. Our installed base was 107,115 weighted devices, +10.6% from 2Q22. Activity through our FMI technology platform represented 39.8% of sales in 2Q23, versus 35.6% of sales in 2Q22 and 30.7% of sales in 2Q21. Our 2023 signings goal remains 23,000 to 25,000 MEU of FASTBin and FASTVend units.
• eCommerce: Daily sales rose 44.7% in 2Q23. Large customer-oriented electronic data interface (EDI) was up 37.3%, while web sales were up 67.7%.
• Sales through our Digital Footprint (FMI technology plus non-FMI-related eCommerce) was 55.3% of sales in 2Q23, versus 47.9% in 2Q22. We currently believe sales running through our Digital Footprint will reach 60% at some point in 2023, a revision from our previous figure of 65% due to lower FASTStock conversions than anticipated. Our long-term expectation of 85% is unchanged.
Würth Group grows: sales increased by 5.9 percent to EUR 10.5 billion in the first half of 2023
• More than 1,000 new employees since the beginning of 2023 • Operating result slightly below previous year’s level • Würth adheres to its social commitment • Economic development dampens outlook for the second half of 2023
The Würth Group, world market leader in the development, production and sale of assembly and fastening materials, reports sales of EUR 10.5 billion in the first half of 2023. This corresponds to an increase of 5.9 percent compared to the same period last year. Adjusted for currencies, this is equivalent to 6.6 percent.
The Group remains on course for growth, albeit at a much slower pace than in the previous two years. “We feel the slowdown in the economy in the first half of 2023: After two years of record sales and operating result, the economic slowdown is becoming apparent,” summarizes Robert Friedmann, Chairman of the Central Management Board of the Würth Group.
After almost three years of the COVID-19 pandemic and related supply chain problems, the supply situation is improving for the Group. At the same time, interest rates remain at a high level, which, in turn, hampers the demand in the construction industry. Geopolitical challenges such as the smoldering conflict between China, Taiwan and the USA, as well as the war in Ukraine and the associated high energy prices influence the economic growth in Germany. “Against this backdrop, we are very satisfied with the development in the first half of 2023,” emphasizes Friedmann.
Companies in Germany and abroad The companies of the Würth Group in Germany generated sales of EUR 4.2 billion and with almost double-digit growth (+9.6 percent) reported a positive development overall. It is pleasing to see that well-established companies of the Würth Group such as Würth Industrie Service in Bad Mergentheim, tool distributor HAHN+KOLB in Ludwigsburg and electrical wholesaler FEGA & Schmitt in Ansbach have made a decisive contribution to this successful result, which was achieved without acquisitions. The companies abroad generated sales of EUR 6.3 billion (+3.5 percent). Growth drivers were the companies in southern and eastern Europe.
Looking at the different industries in which Würth operates, we see a split picture: The Electrical Wholesale unit seamlessly continues the successes of the previous year growing by 17.3 percent in the first half of the year. This sector continues to benefit from the boom in renewable energies, especially in the field of photovoltaic installations. The companies of the Chemicals unit can also look back on strong growth in the first half of 2023. On the other hand, companies such as Würth Elektronik eiSos, manufacturers of fittings and the Trade unit are affected by the global economic slowdown.
Adolf Würth GmbH & Co. KG, the largest individual company in the Würth Group, generated sales of EUR 1.5 billion including intra-Group sales (+8.6 percent).
Focus on digitalization Digitalization of processes is indispensable for the competitiveness of companies. The procurement of goods via digital channels such as the online shop or Würth App makes our customers’ day-to-day work easier. This is proven by the growth of e-business in the Würth Group: Sales went up by 15.2 percent compared to the previous year, accounting for 22.1 percent of total sales.
Employees The Würth Group hired 1,409 employees in the first half of 2023. Currently, the Group employs 87,046 people, 43,859 of which work in sales. At the beginning of 2023, the number of employees worldwide came to 85,637. In Germany, the Group has 26,784 employees on the payroll.
Operating result After six months, the operating result of the Würth Group amounts to EUR 680 million, which is slightly below the same period under review of last year (EUR 720 million). Apart from higher personnel expenses, this development is due to increased costs for mobility and maintenance, as well as the ongoing price pressure. The rating agency S&P Global has confirmed the Würth Group’s A rating for over 25 years. This rating confirms the Group’s financial stability and sound financial footing. It is an expression of a positive credit rating as well as the continuous and successful development of the Group and thus a sign of the stability of the business model.
Social commitment is an integral element of Würth “As a family business, we see it as our duty to grant support wherever possible. We want to live up to the Würth family’s commitment to ownership,” adds Friedmann on the voluntary commitment of roughly 100 Würth employees at the 2023 Special Olympics World Games, the world’s largest inclusive sports event, in Berlin. The Würth volunteers supported the competitions soccer, futsal and beach volleyball. As presenting partner, Würth also represented the beach volleyball competition with its logo. The commitment to people with disabilities is based on an initiative of Carmen Würth.
Outlook for the second half of the year It is currently difficult to predict how the many conflict hotspots and their consequences such as high energy prices will affect the Würth Group. Even though the German economy is weakening, the global economy is slowly recovering according to the Organisation for Economic Co-operation and Development (OECD). “On a positive note, the transport markets have clearly recovered and the COVID-19 pandemic is not as prevalent as before. In general, it can be said that supply chains have stabilized significantly again, which means that availability has almost reached the pre-crisis level. Procurement prices, which are still well above the pre-crisis level, remain problematic. Provided conditions do not deteriorate drastically, we expect mid-single-digit sales growth and a slight decline in operating result,” Friedmann says.
The next Press Conference on the Annual Financial Statements of the Würth Group will take place on 14 May 2024.
About Würth Group The Würth Group is the global market leader in the development, production and sale of assembly and fastening materials. Other trading and production companies, known as the Allied Companies, operate in related business areas, ranging from electrical wholesale and electronics to financial services. The Group currently employs more than 87,000 employees in over 400 companies with more than 2,500 pick-up shops across 80 countries. The Group achieved sales of EUR 19.9 billion in the 2022 fiscal year. With over 7,700 employees, Adolf Würth GmbH & Co. KG in Künzelsau is the largest single company in the Würth Group.
Industrial Supply Association Announces 2023 Fall Summit: The Channel’s BEST Professional Development Event
July 11, 2023 – Registration is now open for the Industrial Supply Association’s (ISA) highly anticipated Fall Summit, the channel’s premier professional development experience. Taking place from October 18 – 20, 2023 in Orlando, FL, this year’s Fall Summit offers attendees tailored agendas with three tracks: Women in Industry, Emerging Leaders, and Channel Pros. Packed with engaging sessions, interactive breakouts, and exciting networking activities, the Fall Summit is designed to captivate and empower professionals, unlocking their full potential for career growth.
“Professional development is the lifeblood of growth in any industry, and this sector is no exception. ISA’s Fall Summit is precisely what our industry needs to empower individuals, upskill their talents, and foster a culture of continuous learning, ensuring sustained growth and success,” said Maria Ford, President of Commercial Sales & Marketing at Stanley Black & Decker.
The Fall Summit provides an opportunity for companies and individuals to thrive by investing in themselves and their teams. Attendees will gain game-changing insights, fresh perspectives, and cutting-edge skills while mastering industry-best practices and forging invaluable connections that last a lifetime.
“Investing in our staff to attend Fall Summit is a game-changer for our organization as it equips our team with invaluable knowledge, skills, and industry insights that fuel growth and success. This investment pays dividends in terms of enhanced productivity, heightened expertise, increased confidence, and a broader network,” emphasized Rafael Astacio, President of PFERD North America.
The Fall Summit offers three tracks that cater to diverse professional goals, allowing attendees the flexibility to “track hop” and select sessions that best align with their objectives:
Women in Industry Track – BE THE CHANGE
This empowering track designed specifically for women will ignite the drive for positive change. Inspiring speakers, impactful discussions, and sessions will empower attendees to make a difference in both their professional and personal life. Sessions include topics such as:
Change the Conversation – Change Your Life
Do the Thing
Ignite Change: Conquering Imposter Syndrome’s Real Triggers
The Mentorship Effect: Empowering Others, Transforming Lives
Perspectives in Progress: Women’s Needs and Priorities Across Careers [A Panel Discussion]
Navigating Life’s Transitions: Embracing Personal and Professional Change
Emerging Leaders Track – IGNITE YOUR LEADERSHIP
Designed to equip the next generation of leaders with essential skills and knowledge, this immersive program propels participants toward excellence in their roles and careers. Interactive sessions include topics like:
Visionary Mindset: Cultivating Vision and Achieving Success Against All Odds
Productivity Unleashed: Master Your Day, Master Your Career, Master Your Life
Uncover the Valuable Leader in You: Leadership Is an Inside Job, First
Ignite Your Presence: Mastering the Art of Commanding the Room or the Zoom!
Essential Strategies for Resolving and Managing Conflicts
From Emerging Leaders to Executive Powerhouses: A Panel Discussion
Channel Pros Track – CHANNEL-SPECIFIC HARD SKILLS
This new, game-changing Channel Pros track for business leaders, middle managers, and everyone in between, is designed to enhance industry-specific hard skills and equip attendees with practical insights and knowledge from field experts. Session topics include:
Building Successful Channel Marketing Collaborations: Best Practices for the Industrial Channel
Demystifying the Industrial Distribution Business Model: Understanding How Distributors Make Money
Navigating Channel Conflict: Strategies for Managing Relationships with Suppliers and Customers
Category Management in Industrial Distribution: Maximizing Profitability and Customer Satisfaction
Modernizing Pricing Strategies for Industrial Companies: Unleashing Profit Potential
Rebates Reimagined: Unveiling the Reality, Avoiding Regrets and Maximizing Results
Founded in 1902, the Industrial Supply Association (ISA) is the channel association for the industrial MROP industry – Leading the Channel Forward®. As the only trade association that connects all partners within the industrial supply channel, ISA provides networking opportunities, education, strategies, analytics, and tools for companies to stay relevant – and competitive – throughout industry change. Members are comprised of industrial Manufacturers, Distributors, and Independent Manufacturer Representative (IMR) companies around the world. More at www.isapartners.org.
, /PRNewswire/ — Commercial Metals Company (NYSE: CMC) (“CMC”) today announced the purchase of EDSCO Fasteners LLC (“EDSCO”), a leading provider of anchoring solutions for the electrical transmission market, from MiddleGround Capital. EDSCO’s custom engineered line of anchor cages, bolts, and fasteners are manufactured principally from rebar and used primarily to secure high voltage electrical transmission poles to concrete foundations. EDSCO serves the North American market from four manufacturing plants located in Texas, Utah, Tennessee, and North Carolina. Since its founding in 1985, the company has grown to become the nation’s largest provider of anchor cages for concrete reinforcement and has developed a strong reputation for customer service and reliability.
“This acquisition further advances CMC’s leadership position in construction reinforcement and extends our capabilities to new and growing applications,” said Barbara R. Smith, Chairman of the Board and Chief Executive Officer. “EDSCO’s innovative reinforcement solutions are well-positioned to benefit from the long-term transition to renewable energy, which will require extensive investment in electrical transmission capacity and wind power installations.”
About Commercial Metals CompanyCommercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products and provide related materials and services through a network of facilities that includes seven electric arc furnace (“EAF”) mini mills, three EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland. Through its Tensar division, CMC is a leading global provider of innovative ground and soil stabilization solutions selling into more than 80 national markets through its two major product lines: Tensar® geogrids and Geopier® foundation systems.
Forward-Looking StatementsThis news release contains forward-looking statements within the meaning of the federal securities laws regarding (i) the acquisition of EDSCO and its expected benefits, including with respect to CMC’s competitive position, and (ii) trends in the energy industry. The statements in this release that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management “believes,” “expects,” “will,” or other similar words or phrases, as well as by discussions of strategy, plans, or intentions.
Our forward-looking statements are based on management’s expectations and beliefs as of the time this news release was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, “Risk Factors” of our annual report on Form 10-K for the fiscal year ended August 31, 2022 and Part II, Item 1A, “Risk Factors” of our subsequent quarterly reports on Form 10-Q, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of our downstream contracts due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of the Russian invasion of Ukraine on the global economy, inflation, energy supplies and raw materials; increased attention to environmental, social and governance (“ESG”) matters, including any targets or other ESG or environmental justice initiatives; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; impacts from global public health crises, including the COVID-19 pandemic, on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers’ abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third party consents and approvals; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.
Reshoring + FDI manufacturing job announcements are continuing to outpace recent records, adding 101,500 jobs in 2023 Q1.
Top takeaways:
2023 Q1 reshoring + FDI jobs announced are up 11% from 2022.
If the current rate continues, reshoring and FDI will total over 400,000 jobs in 2023.
Electrical Equipment remains the top industry due to continuing large investments in EV batteries. The industry moved from 42% of total jobs announced in 2022 to 47% in 2023 Q1.
Supply chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. The risks of a Taiwan-China conflict or China voluntarily decoupling are focusing those concerns. Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them. The White House responded with the Inflation Reduction Act, Chips Act and Infrastructure Bill, offering some direction and financial security to the companies and industries intent on filling the gaps. These government actions are necessary in the short run but are not sufficient since they do not improve the U.S.’ uncompetitive cost structure. A true industrial policy would level the cost playing field via comprehensive actions such as massive skilled workforce investments, a 25% lower USD and retention of immediate expensing of capital investments.
“The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40%, 5 million jobs. Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant and resilient,” said Harry Moser, Founder and President of the Reshoring Initiative.
The Reshoring Initiative’s 2023 Q1 Data Report contains data on U.S. reshoring and FDI by companies that have shifted production or sourcing from offshore to the United States.
“We publish this data quarterly to show companies that their peers are successfully reshoring and that they should reevaluate their sourcing and siting decisions,” said Harry Moser, founder and president of the Reshoring Initiative. “With 5 million manufacturing jobs still offshore, as measured by our $1.2 trillion/year goods trade deficit, there is potential for much more growth. We also call on the administration and Congress to enact policy changes to make the United States competitive again.”
About the Reshoring Initiative
A 55-year manufacturing industry veteran and retired President of GF Machining Solutions, Harry Moser founded the Reshoring Initiative to move lost jobs back to the U.S. He was named to the Industry Week and Association for Manufacturing Excellence (AME) Halls of Fame for his efforts with the Reshoring Initiative. Additional information on the Reshoring Initiative and its many sponsoring associations and companies is available at www.reshorenow.org.
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The Reshoring Initiative provides the media with custom analyses of specific regions or industries.
Princeton, NJ, July 13, 2023 — The Industrial Supply Association (ISA) proudly announces the remarkable success of its groundbreaking Emerging Leaders Channel Certification (ELCC) program, which has exceeded all expectations in terms of enrollment. Responding to the overwhelming interest from young, high-potential leaders within the industry and member companies that value continuous development and growth, ISA has opened an additional cohort, scheduled to start mid-August, to accommodate the influx of talent. This remarkable achievement underscores the vital importance of a certification program tailored to nurture and cultivate the next generation of leaders.
The Emerging Leaders Channel Certification program launched with the primary objective of addressing the industry’s growing need for skilled and forward-thinking professionals. The overwhelming response from member companies and young professionals eager to partake in this innovative program serves as a resounding testament to its relevance and impact on the industry.
“This tremendous reception for ISA’s Emerging Leaders Channel Certification program highlights the industry’s hunger for skilled and forward-thinking leaders,” said Christina Bertino, ISA’s Director of Marketing & Communications and Emerging Leaders Staff Champion. “We are thrilled to announce the opening of an additional cohort to accommodate the influx of talent, reaffirming the program’s crucial role in nurturing the next generation of industry visionaries. This remarkable achievement solidifies the program’s relevance and underscores its profound impact on shaping the future of our industry.”
By providing a comprehensive curriculum that combines both channel-focused knowledge and practical skills, the Emerging Leaders Channel Certification program equips participants with the essential tools and expertise required to excel in their roles and make a difference in their company. ISA’s commitment to supporting emerging leaders extends beyond the virtual classroom. The program also fosters a collaborative environment that encourages networking, idea exchange, and professional connections through in-person professional development events, book clubs, and regional meet ups.
This exceptional level of interest serves as a testament to ISA’s dedication to fostering talent development, leading the channel forward, and securing a prosperous future for its member companies.
Founded in 1902, the Industrial Supply Association (ISA) is the channel association for the industrial MROP industry – Leading the Channel Forward®. As the only trade association that connects all partners within the industrial supply channel, ISA provides networking opportunities, education, strategies, analytics, and tools for companies to stay relevant – and competitive – throughout industry change. Members are comprised of industrial Manufacturers, Distributors, and Independent Manufacturer Representative (IMR) companies around the world. More at www.isapartners.org.
