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Written by Richard Howes
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Tuesday, 29 July 2008 10:00 |
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Shareholders and rival companies alike will be monitoring the upcoming quarterly financial results of high profile US manufacturers closely. According to Global Insight, "the housing crash, credit crunch, and high oil prices have pushed the US economy into a recession." It continues: "The downturn is spreading beyond housing, as credit tightens. Home sales, prices, and construction will fall further. Consumers and businesses will spend cautiously. The export outlook still looks positive and must remain so if the economy is to avoid a deeper downturn. The Fed is likely to cut interest rates at least twice more. Fiscal and monetary stimuli will help to revive growth in the second half, not avert the recession. The Material Handling Industry of America (MHIA) forecast for Material Handling Equipment Manufacturing (MHEM) is for modest growth in 2008 leading to a contraction in the 5-7% range continuing in 2009 with a possible recovery in late 2009 or early 2010. A rebound in corporate profits, which lead investment by four quarters, will support a mixed return of investment growth late 2009, early 2010. However, Columbus McKinnon Corporation (CMCO, the latest high profile firm to release financial results) net sales for the first quarter of fiscal 2009 (that ended on June 29 2008) were $151.2million, up $9.7m, or 6.9%, over the same period in the prior year "solidly reflecting the positive impact of the company's diverse geographic and end user markets," it said. Income from continuing operations in the first quarter of fiscal 2009 was $11.8m, up 12.6% from $10.5m in the first quarter of fiscal 2008. On a per diluted share basis, income from continuing operations was $0.61, a 10.9% increase over $0.55 from last year's first quarter. Net income, which includes discontinued operations, was $9.7m for the fiscal 2009 first quarter compared with net income of $9.5m in the first quarter of fiscal 2008, reflecting losses from the discontinued Univeyor operations of $2.2m and $1.1m, respectively. On a per diluted share basis, fiscal 2009 first quarter net income was $0.50, consistent with $0.50 in the same period last year. Timothy Tevens, president and CEO, said: "A key element of our growth strategy has been to drive the top line with investments in new markets around the world. These efforts are paying off with strong product and brand expansion, which is driving double digit growth in international markets." He added: "The growth is primarily from emerging economies in Eastern Europe, Asia and Latin America, as well as in the established markets of Western Europe. In addition, our targeted marketing activities in the United States and internationally are resulting in success with the products which serve the energy industry and those in global infrastructure development, among others. Despite a slowed economic environment in the US, sales in the first quarter outpaced the same period last year," Tevens concluded. How is your company coping with the economic slow down? Richard Howes, Editor
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Written by Richard Howes
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Wednesday, 02 July 2008 12:43 |
The service of cranes and hoists in industrial applications is a hot topic, globally. Just type 'service' into the search box on our sister publication Hoist's website, for example, and a raft of articles pop up all touching on this very issue.
Konecranes president and CEO Pekka Lundmark has targeted 10% organic and 5% acquisitional growth in the service sector. Believing local markets embrace the hands-on approach to after-sales, its hunger for local service firms to add to its growing armory is seemingly insatiable.
But does an increased industry-wide focus on service, and moreover the competition within that sector, mean end users are getting a better deal? Some say not.
I had an interesting conversation with the president of a US-based service company recently, claiming that some shockingly worn sheave pins (I saw the pictures) were found shortly after a competitor completed an annual inspection of the crane and hoist.
When inspecting such equipment, one of the most important (and most overlooked) set of components to look at very closely is the upper sheave nest, he said. Whether it be a simple, single reeved hoist or a multiple part, double reeved hoist, it is imperative that the sheave nest be looked at and monitored closely, especially on hoists that have a heavy duty usage cycle.
This part of an inspection can take between, say, an additional 15 minutes or an hour, depending on the capacity of the hoist. Here's the problem: time is money. One doesn't come without the other.
If one company bids an inspection at half the price of another, how can they say they are giving the same level of service, especially when hourly rates are comparable? If it takes technicians two-three hours to inspect, say, a 10 ton double girder top running bridge crane and hoist, how does another do it in 30 minutes and give the same level of service?
The truth is, they can't. Be careful of the service package you sign up to.
Richard Howes, Editor |
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Last Updated on Thursday, 17 July 2008 09:02 |
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Written by Richard Howes
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Wednesday, 02 July 2008 09:50 |
In my previous blog, I spoke about the Material Handling Industry of America (MHIA) 2008 Fall Meeting this September, and in particular about the impact imminent change in fortunes will have on discussions there. Here, I summarize the MHIA's introductions to two notable keynote sessions that will take place during the meetings in Arizona. First, Robert Fulghum will address an audience with a keynote entitled: "What on Earth Have I Done?" We've all been there, after all. But the answer is never easy and is almost always surprising. An audience will learn from Fulghum’s experiences traveling the world - from Seattle to the Moab Desert to Crete - looking for a few fellow travelers interested in thinking along with him as he delights in the unexpected: dressing like a large rabbit trick-or-treating with your grandchildren, pots of daffodils blooming in mid-November, a view of the earth from outer space, the mysterious night sounds of the desert, every man’s trip to a department store to buy socks, the raucous all-night long feast that is Easter in Greece, the trials and tribulations of plumbing problems and the friendship one can strike up with someone who doesn’t share the same language. Fulghum will provide ground-shaking perspective that will inspire you to change yours. Fulghum has published seven best-selling books totalling more than 16 million copies in 27 languages across 103 countries. He has performed in two television adaptations of his works on PBS, and was a Grammy nominee for the spoken word award. These stellar accomplishments are far from the odd jobs of his youth as a ditch-digger and singing cowboy. For 22 years he served as a parish minister of Unitarian churches and was even a founding member of the authors' collective rock-and-roll band, the Rock-Bottom Remainders. Like his books, Fulghum travels the world to spread his good words. Also expected to attract a keen audience, is Peter D. Hart, who will discuss "New Persuasions: The Rules Have Change." New Persuasions is an intriguing and comprehensive presentation that strives to analyse the changes and shifts in communication. As one of the top analysts of public opinion in the United States, Peter Hart will contribute his own personal expertise to this keynote. New Persuasions is an acknowledgement that the world of communications has changed - dramatically, comprehensively, and permanently. Saying "the rules have changed” is, in fact, a little misleading. The real truth is that the old rules have been tossed aside and no one knows what the new rules are. The signs of change are everywhere. The network evening news broadcasts have lost 50% of their audiences in the last 20 years. At 21.00, more people are playing video games than watching CNN. Pollsters are finding it increasingly difficult to survey young people because they do not have land-line phones. So what does all this mean? Simply this: organizations that are listening and communicating as they did five years ago, much less 10 years ago, are increasingly out of touch with the people and the issues that matter. Peter Hart is a leading shaper of national trends and political messages. He has conducted strategy planning projects for clients such as IBM, Coca-Cola, and Tiffany & Co. Political clientele have included Hubert Humphrey, Jay Rockefeller, and Bob Graham. Hart appears frequently on Meet the Press, The Today Show, and The News Hour with Jim Lehrer. Richard Howes, Editor |
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Real and meaningful change |
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Written by Richard Howes
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Wednesday, 02 July 2008 09:44 |
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Change is here and, if not here, it is coming. That's the message at the top of the registration package for the Material Handling Industry of America (MHIA) 2008 Fall Meeting, which takes place at The Phoenician, Scottsdale, Arizona, 6-11 September.
"Real and meaningful change that is, and it will continue to impact our industry and our personal and business lives," the MHIA adds, citing political change, economic change, environmental change, global change and fundamental change in the demographic makeup of its labor force as the things to look out for. A rebound in corporate profits, which lead investment by four quarters, will support a mixed return of investment growth late 2009, early 2010. The MHIA has pushed its forecast out by six months believing that order rates will begin to slow the last half of the year and set the stage for 2009. While in decline and clearly predicting contraction, none of its key leading indicators are signalling the next cyclical trough at this time. "Our forecast is for modest growth in 2008 leading to a contraction in the 5-7% range continuing in 2009 with a possible recovery in late 2009 or early 2010," according to Hal Vandiver, executive vice president of business development at the MHIA, and managing director of the Crane Manufacturers Association of America (CMAA), Hoist Manufacturers Institute (HMI) and Monorail Manufacturers Association (MMA). Like the famous Saguaro Cactus of Arizona, we must adapt to this change not only to survive but to discover new opportunities for continued growth. Attending the MHIA annual meetings offers members, it says: - Top value in a short period of time via a streamlined schedule - Opportunity to influence the directions your industry, your company, and your own career will take in the coming years - Educational programs focused on relevant issues facing the material handling and logistics industry - Opportunity to network with a broad base of valuable contacts - Industry group meetings and activities The MHIA continues: "The reality is that adapting to change is hard. Even the changes we most want to make start with some kind of risk. The new position at work we labored so hard for comes attached with longer hours and the stress of additional responsibilities. The move to the new house comes with a payment twice the old one. Or the retirement we so longed for comes with a shocking feeling of disorientation, the kind we get when we lose some profound organizational structure in our lives," it continues. But confronting these risks, says the MHIA, leads to new opportunities and growth. The 2008 MHIA annual meetings are the ideal destination to begin your own transformation toward successful change, both in your business and in your personal life. This enlightening annual event will provide timeless insights into our changing industry and our changing world and the tools necessary to take advantage of this change in ways that will help you grow your business. MHIA members can visit the Fall Meeting website. Richard Howes, Editor |
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