Magline, Inc. celebrates 75 Years of Innovation, Quality and Value
Friday, August 26th marks the 75th anniversary of Magline being incorporated. The history of lightweight magnesium and aluminum-based products produced by Magline over the years has been very diverse. Today, the Magliner brand portfolio is exclusive to equipment used for material handling, focusing primarily on tools to assist in moving up to 1,500 pounds by a person rather than a machine. Built on a legacy of innovation, quality, and value, Magliner remains the brand within route delivery of soft drinks and water, beer and other craft beverages, food service products, and parcel deliveries to businesses and homes. Beyond route delivery, Magliner products are prevalent in rental and entertainment business units, vending, packaged gas, manufacturing, warehousing operations, home delivery of appliances and other large items, retail merchandising and product management, and many other niche applications. “Over the years, one thing has been consistent with our go-to-market strategy; we provide value to our customers by working with them to develop solutions that meet their material handling needs and solve problems within their operations”, states Greg Ecker, Magline’s president and Chief Operating Officer, “Many products in our portfolio are the direct result of collaborative efforts with industry end-users.” These are the things they carry “Our flagship products, including legendary two-wheeled hand trucks, available in over 4,000,000 configurations, and the original Gemini® convertible hand truck that celebrated its 50th birthday last year, are more than industrial tools”, cites Paul Adler, Magline’s Director of Marketing, “These USA-built products are an extension of men and women throughout the globe that rely on their Magliner to get the job done, day after day.” The story behind Magline and the iconic Magliner brand can be seen here: www.magliner.com/75years. Celebrating 75 Years Magline’s 75th Anniversary celebration will officially kick off on August 26th with an on-site celebration event. Over 250 employees, family members, suppliers, and neighboring businesses are expected to attend. Special promotions will be rolling out through the end of the year to many of the Magliner brand sales channels. Looking beyond the first 75 years, the vision of the company will remain very focused; to make work easier and safer by delivering professional grade moving and lifting equipment supported by world-class customer service.
Motion promotes Solomon to Senior VP-Corporate Accounts
Motion Industries, Inc., a distributor of maintenance, repair, and operation replacement parts, and a premier provider of industrial technology solutions, is pleased to announce that Lisa Solomon has been promoted to Senior Vice President – Corporate Accounts. Ms. Solomon joined the Company in 2015 as a Business Development Manager focused on an automotive industry account, before transitioning the same year into an Automotive Specialist role concentrating on a different automotive account. In 2016, she expanded her role to a Corporate Accounts Manager overseeing the entire automotive segment. In 2021, Ms. Solomon was promoted to Area Vice President – Corporate Accounts, leading a team of 16 sales professionals in the Central Group. In her new role, Ms. Solomon will lead all of Motion’s Corporate Accounts in North America, plus other Company teams, including the Corporate Accounts Support group, Corporate Accounts Development, P2 MRO, Onsite Solutions, Energy Services, and International Sales. She will report directly to James Howe, Executive Vice President – eCommerce, Sales Excellence, Strategic Pricing, and Corporate Accounts. “Lisa has been very successful in the Area Vice President role and has emerged as a peer leader for our AVPs across North America,” said Mr. Howe. “Her leadership and significant experience will further strengthen Corporate Accounts and maximize growth potential. She is well-deserving of her new and expanded position.” Motion’s President, Randy Breaux, said, “Lisa is a talented executive with a wealth of experience and drive. We’re excited to see her lead Motion’s Corporate Accounts to new heights.” Originally from Michigan, Ms. Solomon graduated from Central Michigan University with a Bachelor of Liberal Arts in Broadcasting, Communications and Marketing.
Eastey relocates production operations to a new facility in Big Lake Minnesota
Eastey, a manufacturer of shrink packaging equipment, automated case erectors, tapers, and material handling solutions, announced it has relocated its manufacturing operation to a larger building in Big Lake, MN. The building will be the new home for Eastey sealer and tunnel production operation, including metal fabrication, welding, paint, assembly, product testing, and more. The 50,000 square foot building includes over 42,000 sq. ft. of production space, an expansive product demo area, several offices, and meeting space. “The expanded space will help improve and streamline our production and manufacturing processes and help us deliver our products more efficiently,” said David Mylrea, president of Engage Technologies, the parent company of Eastey. “We continue to experience growth and demand for Eastey products. The relocation enables us to support our customers’ need for high-quality products at a fair price. It also provides our employees the benefits of a safe, world-class working environment.” Eastey, Squid Ink, and American Film & Machinery (AFM) are all divisions of Engage Technologies Corporation. Eastey is a manufacturer of heavy-duty shrink packaging equipment and automated case sealing systems for packaging applications. Squid Ink manufactures coding and marking systems for product identification and traceability, providing superior quality inks and low-maintenance printing equipment. American Film & Machinery supplies shrink labelers and tunnels, shrink sleeves, and tamper bands. Engage Technologies Corporation is headquartered in Brooklyn Park, MN, with facilities in Big Lake, MN, Spring Lake Park, MN, The Hague, Netherlands, and Shanghai, China. The Company continues to expand sales and services, with authorized distributors strategically located throughout the U.S. and the rest of the world.
Lift Truck Supply LLC
Inflation Strategy – Part 4
The summer of 2022 is not really looking better than the Spring. the business climate is still tenuous as labor issues, COVID variants, and geopolitical uncertainties create continue material and labor shortages. Our biggest obstacle is the meteoric rise in inflation. Over the past three articles, I have laid out a series of strategies that could be employed to realign the policies and practices inside your dealership. We must be pragmatic in making intelligent decisions in response to a very different distribution landscape. My prior articles have touched on different approaches to assessing progress and setting goals using a SWOT analysis. I have also suggested strategies for maintaining your revenue stream in sales, by reexamining dealership policies governing rental retirements, and long-term rental contract extensions. I offered ideas about maintaining your sales department profitability by keeping pricing policy “ahead” of the inevitable OEM price adjustments, even for units currently on order. I also touched on ways we could adjust parts policies regarding inventory decisions, vendor selection, and expense recovery. Leveraging the rise in inventory value, that is automatically created during an inflationary cycle is a key factor in maintaining profitability during these times. In this article, I want to turn my attention to the service department, and how the changes in the marketplace give rise to both opportunities and risks that we must prepare for. Labor Rate Methodology Inflation is dangerous because it feeds a vortex of two market forces. Prices rise…. but so do wages. It’s a simple cause-and-effect construct. To remain competitive and maintain your position as an “employer of choice”, you must increase your wages. As wages rise, the amount of dollars entering the economy grows ever larger, thereby forcing prices even higher. This price-wage vortex is difficult to control, and once again, we need to stay “ahead” of the curve. Inflation and wage growth do not change the long-standing “best-practice” ratios that serve as guideposts for setting (and adjusting) retail labor rates. The proven ratio is 3.2 to 3.6 times journeyman wages paid. If you are paying your journeyman technicians $35 an hour, your effective retail rate should be between $112 and $126 an hour. If you are constrained to pay $42 an hour due to inflationary wage growth, your rates need to follow suit at between $135 and $151. This will be uncomfortable, and awkward, especially if you have to enact multiple rate increases during the same calendar year. As disquieting as this can be, we must be committed to our ratio. The math does not change because the costs are rising. We must keep pace. You may want to exempt the selected customers from the increase. I get it. I’ve been there. May I suggest however that instead of exempting them completely, you instead attempt to ramp them into a higher rate over time? If they are already enjoying a discount from your effective rate, calculate the percentage increase represented by the retail rate hike, and cut it into three to six segments, enacted over a period of months. Instead of a $15 jump in rate all at once, you make an agreement to step up smaller increases every 60 or 90 days. Once your train your customers that they can expect to be insulated from rate increases, you will find it hard to unwind that expectation. If your methodology however rewards their loyalty with gradual increases over time, you may find it easier to manage this process. Callout Fees As hard as it will be for customers to stomach rate increases, it will be even more difficult for them to accept paying those rates for travel time. This is a recurring theme in dealerships all over the country. Customers can see the value when the tech is actually onsite making repairs, but not so much when they are sitting in traffic logging windshield time. I have long been a proponent (especially for customers within a 60-mile radius) of establishing a flat rate call-out fee for field repairs. Charging a different amount every time a customer contacts our dispatch desk is already infuriating your customers. Raising the bar on that price only heightens the level of frustration. Some dealers charge travel time based on “zones”. Travel charges are flat rated based on how far the customer is from our dealership. Most of the time, however, we dispatch a technician directly from his remote location to the customer’s place of business. The only time we might dispatch them directly from the dealership is for the first call of the day. So, is your zone charge accurately representing the cost of travel? Maybe…or maybe not. You may want to consider a flat-rate fee for all dispatched field calls in your service area (60 miles). Whether the technician is across the street, or across the county…. it’s the same price every time. Customers will know what to expect, and there will be much less frustration connected with service invoicing. Rural customers outside the 60-mile zone can still be charged hourly, but truth be told, they expect it, and are generally less sensitive to travel time than their in-town counterparts. Setting this callout fee is not really that difficult. If your dealership uses a GPS service provider (which most do) you can use the GPS reporting data to separate transit time from on-site time. Use the fleet average on travel to extrapolate the average total transit time per tech, per day. Apply your effective hourly rate and set your callout fee. Remember to account for things like lunches, commute time, and other anomalies. Surcharges – Fuel Our current inflationary cycle is driven by fuel prices. These prices are unpredictable. It’s not a good idea to try and recover a spike in fuel prices, with a rate increase. Wages should drive hourly rate increases…not expenses. This highlights another area of frustration for customers. During times like this, when fuel prices are running well in excess of historical norms, you have to have a way to recover the expense
TruPar America
Nitta Corporation of America
Automation Controls Group
LEDtronics new low voltage LED Bulbs are a bright solution to compact illumination
LEDtronics® adds two new low-voltage, single-contact, bayonet-based LED bulbs to its series of ultrabright, direct incandescent replacement lamps in automotive, accent lighting, and compact illumination applications that offer up to 90 percent energy savings. The 8-LED B608-SIW-006M uses only 0.8 watts and produces a luminous intensity of 63 candelas, while the 18-LED B618-SIW-006M uses 1.7 watts and produces 77 candelas. Both bipolar lamps use a 15mm single-contact bayonet for lines running 6 volts DC and readily adjust to direct-current polarity. They are ideal in maintenance-intensive and low-voltage applications such as automotive and gaming candle indicators, indicator lights for instrumentation, panel mount pilot lights, as well as accent and task lighting. They are also suitable for use in open luminaires. Both compact LED bulbs provide 3000K warm-white illumination with an inline beam angle of 55 to 60 degrees, with B608 offering more than 47 lumens at an efficacy of 57.5 lm/W, while B618 produces 85 lumens at an efficacy of 48.8 lm/W. They boast lumen maintenance of over 70 percent at 50,000 hours, operating reliably year after year within a wide operating temperature range of ~-22°F to ~+122°F (-30°C to +50°C). These energy-efficient and long-lived illuminators come with a single-contact bayonet Ba15s brass base and a white Rynite FR530 sleeve. Their solid-state design renders them impervious to electrical and mechanical shock, vibration, frequent switching, and environmental extremes. They provide sharper, higher intensity illumination and better visibility than standard lamps, and achieve full brightness more rapidly, with a faster turn-on and reaction time compared to incandescent lamps. All this translates to maintenance-free operation results with substantial cost savings. The new B6x8-SIW-006M LEDtronics compact, ultrabright, low-voltage SC bayonet-based LED lamps comes with an unconditional three-year U.S. factory warranty, and they are available through LEDtronics distributors. Options available for large quantities and qualified applications: Other colors and white color temperatures, other voltages, other miniature, and subminiature bases –E12, E14, E17, Ba15d, etc.
Don’t tolerate fog and UV rays – Spike Them!
Brass Knuckle®’s new Spike (BKADJ-5060AFP) eye protection combines a two-pronged strategy for vision protection with a legion of comfort features for the ultimate in customizable, long-wear glasses. Check out this abundance of leading features: the best anti-fog protection in the world, the highest UV protection available, and custom comfort at the temples, nose, and brow. As part of Brass Knuckle’s new anti-fog collection, of course, Spike has BK-Anti-Fog+. It’s a groundbreaking technology that’s fused directly to the lens, not simply sprayed on, to deliver better and longer-lasting fog-free protection than that of competitive anti-fog coated products. The toughest anti-fog standard in the world is the EN 166/168 standard, and this crushes it. Add to that ANSI Z87.1/U6 ultraviolet protection, the highest standard in the world, to eliminate 99.99% of damaging UV rays. This is one Spike that’s great for the eyes! Finally, loads of extra features create an easily customizable fit for virtually any face. The star of the show is a five-step angle-adjustable temple. Earpieces ratchet up and down with a five-click adjustable temple joint for the ultimate in a custom fit. It has to be seen to be believed. Also, floating, reinforced-rubber nosepieces conform to the bridge of the nose, an integrated soft brow guard brings greater fit, and soft rubber at the ends of earpieces adds extra flexibility and all-day wearability. Plus, the rimless lenses and green/black zebra striping look plain cool. With Spike, workers never have to sacrifice style for the ultimate in custom comfort and protection.
Under-promise and over-deliver
The title of my column is the mantra of many aftermarket professionals in our industry. Nobody ever wants to get a reputation for not living up to their commitments. But as easy as this guidepost is to talk about, it remains elusive and difficult to master. The reasons for not achieving this on an ongoing basis are wide and varied. No, it’s not always “Murphy’s Law”. My friend Murphy gets the blame all too often. I think that to achieve this goal we must understand that this process, is less about actual “promises” and “deliverables”, and more about managing customer expectations. That is the real goal here. It’s not simply our ability to deliver on time and under budget. It’s really about the strength of our connection to the customer, our understanding of his priorities, and the efficacy of our communication. Do we interface with our customers in a way that they feel is authentic, trustworthy, and reliable? I have found over the years that customer dissatisfaction normally starts with our inability or unwillingness to communicate, especially in situations where the customer is constrained to wait longer than they expected, or pay more than they anticipated. Assessment first In the service industry, many customers are already emotionally compromised from the first encounter. They know they have a problem. What they don’t know is HOW MUCH and HOW LONG. This frustration is evident even as we try to assess what steps need to be taken to understand the scope of the project. These customers many times want you to adopt their urgency and sense of panic. They press you to make verbal commitments very early in the process about both the repair diagnosis, the estimated costs, and the expected timeline. In these moments, service professionals need some backbone. ABSOLUTELY REFUSE to make (or even make allusions to) estimated costs and timelines for repairs until the assessment process is complete. Diagnosis and troubleshooting are a part of the repair process. We cannot manage the customer’s expectations BEFORE we are fully aware of the requirements. One of the best practices I have seen involves providing the customer with a written statement. It can be emailed, texted, handed to customers onsite, or distributed by road technicians. “We understand your urgency and your concerns about affordable equipment repairs. Please understand that we cannot and will not provide any estimated costs or timelines for any repair until a complete assessment of the machinery has been completed. This is a process that may require multiple approvals from you for disassembly and inspection PRIOR to starting repairs. We will communicate with you at regular intervals as to our progress in diagnosis.” The last sentence is the key to success. The more frequent the updates, the more control you will have in the process. Get the facts. Do we understand the entire scope of the repair? What parts are needed? Are the parts available? How will parts availability affect the timeline? Do we have the right tools (including software)? Do we have qualified technicians? Only after we have these answers should we approach the customer with a repair estimate and timeline. We cannot afford to let the customer’s urgency set the pace or accelerate our decision-making. I am fond of telling stressed-out customers that I understand their anxiety, but in the end, they will be glad we took the time to get it right the first time. Bad news on the doorstep Nobody wants to deliver bad news. Bad news sucks. So, we avoid engaging it until the last possible minute. This is a recipe for disaster. The news won’t change during our wait for the inevitable. So, put on your big boy pants, “embrace the suck”, and communicate confidently. Below, I have listed some “go-to” phrasing that may help you navigate these waters. “We discovered some difficulties with your machine, and wanted to make you aware of what your available options are”. I use the word “difficulties” because it’s the only word that doesn’t cast blame. Using words like “problem”, “issue”, or “failure” tend to leave the blame on the customer’s shoulders. “Difficulty” however is a word that simply calls everyone to action. It isn’t impossible, catastrophic, or unsolvable, it’s just difficult. I use the word “options” because it calls everyone “forward”. “Options” generally follow the same pattern in any emergency repair operation. Option 1: Order new parts now, and complete the repair ASAP Option 2: Investigate alternative options (aftermarket parts, sublet, or partial repairs). Option 3: Button it up and bill the customer for inspection and diagnosis. If possible, it helps to have estimates of the costs of all 3 options in your pocket. That should be easy to calculate on option 3. The other two options may take more time to assemble, but even without estimated pricing, our communication with the customer is about OPTIONS. When our discussion with a customer revolves around an unforeseen circumstance, the worst thing we can do is simply throw it in their lap. “Your transmission is toast”. “Your battery is completely shorted out”. “Your frame is cracked”. OK…now anticipate what the NEXT QUESTION will be. It’s not hard. They’re the same questions every time. How much? How long? What are my options? When you use the OPTIONS method, you present the bad news ALONG with at least SOME of the answers to the questions that you know are coming next. Even if you may not know the exact costs, or the timelines yet…. anticipating and laying out the framework for what comes next, let the customer know that YOU are already thinking ahead on their behalf. That gives them a degree of comfort even in the face of really bad news. Speak…then memorialize in writing So many ruined customer relationships die on the altar of “but, you said”. The verification platform for “verbal agreements” is limited to the memory of the parties involved in the conversation. It’s just my observation, but I find that memory tends to be
IDEC announces new Ferrule and crimping tool product line
S3TL ferrules improve wire connections to screw and push-in terminals IDEC Corporation has released a complete product line of S3TL series ferrules, wire strippers, crimpers, and screwdrivers. Properly installed ferrules provide dependable wire terminations to both screw and push-in terminals, but installers and technicians need suitably rated parts and associated tools for making these connections, which are provided by this new line of products. A ferrule is a metal tube crimped over the end of a stripped stranded wire to secure the strands together, preventing stray strands, increasing conductivity, and decreasing resistivity. Ferrules provide improved mechanical and electrical connections as opposed to using just bare wire. Ferrule use is identified by UL 508A section 29.3 “wiring methods”. The IDEC S3TL ferrule product line includes various sizes accommodating wire gauges from AWG 26 to AWG 8, each with one or two wires, depending on the part number. Each ferrule incorporates an electrically insulated cover, which is color-coded using the German Weidmüller standard, for easy recognition by installers. The ferrules are UL 486F certified when used together with S3TL series crimping tools. For optimal and efficient installation, IDEC offers two-wire strippers (6-10AWG and 10-28AWG ranges), three crimping tools (6-10AWG, 10-24AWG, and 12-30AWG ranges), and three insulated screwdrivers (60mm, 75mm, and 100MM shaft lengths). The strippers and crimpers are ergonomically designed for comfortable function with minimal required force. Crimping tools include a ratchet function that does not release until the connection is fully completed, ensuring work quality by eliminating errors and avoiding crimp faults. Screw drivers are IEC60900:2004 and VDE certified with insulation of up to 1000V AC and 1500V DC, providing safe user protection against electrical shock. IDEC offers a wide variety of other control panel components using push-in terminals, such as buttons/lights, relay sockets, safety relay modules, power supplies, RFID readers, and PLCs. The S3TL series ferrules and tools are an ideal way for installers and technicians to electrically connect these and other devices.
Siemens introduces the new SINAMICS G120XE series
Siemens just announced the immediate availability of a new enclosed drive system, the SINAMICS G120XE, designed specifically for the demands of industrial pump, fan, and compressor applications in a wide variety of markets. Built around the popular SINAMICS G120X infrastructure drive, this new enclosed system is ideal for fast design and commissioning in industries such as oil-and-gas/petrochemical, water/wastewater, power plants, industrial climate control, refrigeration, and chillers in harsh environments. A NEMA 1 enclosure is standard, with a NEMA 12 version optional, featuring appropriate ventilation and air filters. The base enclosure is suitable for wall-mounting to 75 hp applications, while the free-standing floor module accommodates uses to 200 hp. Standard electrical characteristics of this new enclosed drive system also include a UL508A listing, SCCR rating to 65kA, circuit breaker disconnect with flange-mounted operator handle and mechanical door interlock, plus control power transformer for internal power control and power module with PWM IGBT inverter. Overload ratings allow operation in either light or high overload duty conditions. The enclosure ventilation fans on the SINAMICS G120XE are controlled via a relay and run only as needed, a significant energy saver and noise reduction feature. Optional features on the enclosure include output filters and reduced voltage soft start (RVSS) bypass. A key feature of the G120XE is the intelligent operator panel, IOP-2. As Siemens Enclosed Drive Product Manager Chuck Fernandez notes, “One of the really exciting aspects of this new enclosed drive system is the intuitive simplicity in setup and commissioning. There’s no need for extensive parameter knowledge and the unit literally self-guides the operator with on-screen instructions on a keypad-guided menu.” Fernandez further notes every rating of the G120XE is fully tested during the development stage for shock, vibration, and electromagnetic interference (EMI) in addition to many other tests. In addition to the door-mounted IOP-2 keypad/display, the drive can also be commissioned, set up, or modified using any Wi-Fi-enabled laptop, tablet or smartphone by installing the Smart Access Module. Another option for commissioning, setup, or drive modification is to use the Siemens Totally Integrated Automation (TIA) Portal via a GSD file. The popular Siemens SIZER configuration software tool can also be provided to help with selecting and matching the G120X drive system with a Siemens motor and other system components. Communications with higher-level SCADA and PLC systems are possible via PROFINET or EtherNet/IP™ with additional communication options available like PROFIBUS, MODBUS RTU, and BacNet MS/TP. SINAMICS G120XE is ready for digitalization and remote monitoring with a built-in web server and the ability to connect to the SINAMICS Connect 300 allowing operators and maintenance personnel to access real-time status and cloud-based analytics from anywhere using the Analyze MyDrive app installed on their mobile device.
J.W. Speaker introduces the model 93 5-In-1 headlight
The Model 93 LED headlight offers 5-in-1 functionality for a wide range of applications, including original equipment manufacturer (OEM) designs J.W. Speaker Corporation has introduced the Model 93 5-in-1 functional, drop-in replacement headlight for buses, RVs, tractors, motorcycles, specialty vehicles, and more. The new LED light replaces standard 90mm headlights and integrates easily into OEM designs — offering 5-in-1 functionality for optimal versatility and cost savings. “Our customers have been demanding for more functional drop-in lighting options – and the new Model 93 does just that – it sets a new standard for all-in-one convenience and performance,” said Tim Speaker, Co-President at J.W. Speaker. “We’re most excited about how this new light will replace standard lighting. The Model 93 offers incredible 5-in-1 functionality to enhance vehicle lighting.” The multi-function Model 93 combines high beam, low beam, front position, turn signal, and daytime running light (DRL) performance in a stylish design surrounded by durable die-cast aluminum housing with a sealed integrated connector. The LED meets the tough criteria for IP67 and IP69K certification for optimal protection against dust, water, and other contaminants. In addition, it’s DOT and ECE compliant, making it the ideal LED for both on- and off-road enthusiasts around the globe. J.W. Speaker extended versatility to the Model 93’s mounting options. Customers can choose between industry-standard three-point mounting or single or double pedestal mounting brackets that position them at 90° for even more flexibility without compromising the integrity of the beam.
Ergodyne’s Aerial Bucket Series takes dangerously confined elevated worksites into a new class of safety, organization and efficiency
Ergodyne announced the launch of an all-new Aerial Bucket Series designed specifically for safer, easier work in bucket trucks and elevated work platforms. The collection features a tool board and tool bag—each engineered with extensive worker feedback and boasting a multitude of pockets and ANSI-approved tethering points for securely storing and safely accessing tools in confined work spaces. A durable aerial bucket hook for mounting the new solutions is also included. “For workers in bucket trucks and elevated worksites, every inch counts. But using a container that isn’t designed specifically for the space can actually cause more harm than good—creating a dangerous trip and drop hazards,” said Matt Hahn, Ergodyne Product Manager. “These solutions were made specifically with aerial buckets in mind, with ANSI 121-approved tethering points and durable easy-to-attach designs.” Adopted in 2018, the ANSI 121 standard is the first ever to establish best practices for tethering and transporting tools and equipment. Given their expertise in the category, Ergodyne worked closely with the International Safety Equipment Association on its development. “This new series is an opportunity for us to put our extensive knowledge of dropped object prevention toward helping an entire class of workers perform their jobs more safely and efficiently,” said Tom Votel, Ergodyne President & CEO. “There’s a lot more to come here, and we’re excited to continue bringing new innovations to this category.”
Myers Industries acquires Mohawk Rubber Sales of New England Inc.
Myers Industries, Inc. has announced that it has acquired the assets of Mohawk Rubber Sales of New England Inc., which was financed with its revolving credit facility. Mohawk Rubber Sales is a leading auto aftermarket distributor with a long-standing reputation for quality and service. This value-creating acquisition is another proof point of the Company’s successful execution of its 3-horizon strategy. “We are extremely pleased to announce the addition of Mohawk Rubber Sales to the Myers family. Mohawk and its team bring complementary geographic coverage, additional sales and customer service capability, and meaningful scale to our Distribution Segment,” said Mike McGaugh, President and CEO of Myers Industries. “Mohawk’s business model is similar to our own, and this transaction is another example of our team’s ability to find accretive opportunities to expand and grow our businesses – accelerating our progress against Horizon 1 of our 3-horizon strategy.” Paul Johnson, Vice President of Myers’ Distribution Segment, added, “I am excited to join forces with Mohawk Rubber. The company has a large and very experienced sales team and a complementary distribution network that, combined with Myers’ Distribution, will bring even better service solutions, support, and value to our customers. Together with Mohawk, Myers’ Distribution will have the largest, most experienced field and customer service teams in the tire supplies and repair industry. We believe we’ll be in an even better position to help our customers, large and small, win in their markets, every day.” Brian McGeoghegan, Owner of Mohawk Rubber Sales, said, “My team and I are thrilled to be joining the Myers family and believe Myers’ culture and values align directly with our own. We’ve long admired Myers Tire Supply and its leading position in the tire repair and retread market and believe that Mike and his senior leadership team have repositioned the business for long-term success. We bring complementary assets and services, which will help both of our businesses achieve scale and efficiencies. Our collective focus on strong service and innovative products will create the best solutions in the market today and deliver enhanced value for our customers.” Founded in 1932, Mohawk Rubber Sales has grown into one of the country’s leading providers of tire repair distribution across traditional and online channels. The Company is headquartered in Hingham, MA, and has four strategically located distribution centers across the United States located in Hingham, MA, Alpharetta, GA, Salt Lake City, UT, and Houston, TX. In 2021, Mohawk’s revenues were approximately $65 million. Mohawk will be integrated into the Myers’ Distribution segment. The transaction provides both growth and cost synergy opportunities and is expected to be accretive to earnings in 2023.
Motion launches Mi Fluid Power Solutions brand
Motion Industries, Inc., a distributor of maintenance, repair, and operation replacement parts, and a premier provider of industrial technology solutions, has announced the formation of its fluid power business brand: Mi Fluid Power Solutions (Mi FPS). Unifying top tier fluid power business units—including the former Kaman Fluid Power divisions of BW Rogers, Catching FluidPower, Intellimotion, Calkins Fluid Power, Northwest Hose & Fittings, Western Fluid Components, and Inrumec along with Hydraulic Supply Company and Motion’s OE Mobile service capabilities—Mi FPS is a complete provider of fluid power, integrated electronic controls, and electro-mechanical technologies for industrial and mobile equipment. Mi FPS’s main focuses are hydraulics, pneumatics, lubrication, filtration, process pumps, precision industrial tooling, and factory automation products. New and serviced components range widely from hydraulic pumps and motors to valves and cylinders of virtually any size. The new brand comprises North America’s largest network of over 65 on-demand retail fluid power hydraulic and industrial hose assembly stores and support facilities, including repair, build, and engineering capabilities. Mi FPS serves the automotive, aerospace, metals, logistics, mobile offroad equipment, mining, medical, pharmaceutical, and many other industries while applying the highest-quality fluid power components and engineered systems. “Fluid power combines products and engineering skills to design a system that solves a customer’s need,” said David Mayer, Motion’s Group Vice President of Fluid Power. “We have partnered with the world’s best suppliers to provide more products, more inventories, and more robust capabilities to ensure we can optimally solve a project, maintenance, or production problem. Our deep inventory of hydraulic equipment, pneumatics, pumps, filtration, motors, and lubrication products get any equipment up and running quickly. We also offer services that run the gamut from barcoded hose assemblies and VMI delivery services to pressure testing, design of mobile equipment, hydraulic manifold design, and custom power units with complete integrated controls and software.” Motion’s President, Randy Breaux, said, “Fluid power continues to be in high demand due to its unique ability to deliver high forces and torque in the most challenging applications. As North American industry and infrastructure grow, the Mi FPS team is well-positioned to offer the latest product and service innovations to meet this rising market demand. Thanks to this talented group and investments supporting the new brand, we are ready to serve our customers even better than before—offering more choices and more solutions.”
Inflation Strategy—Part Three
As 2022 grinds toward the midway point conditions have not really been improving. The climate continues to be driven by high demand, dwindling supply, rising prices, and an uninspired workforce. The Federal Reserve has been slow to take its medicine and tighten credit to try to halt what some would categorize as “runaway” inflation. Add to that, the disruption to the energy sector caused in great part by Russia doubling down on war, that by the day is looking more and more like a stalemate. In my last two columns (April and May), I laid out a series of strategies that could be employed in order to reshape and align dealership goals moving forward in light of a post-pandemic, but the sluggish and unbalanced economy. This month I want to turn my attention to how these factors affect our efforts in parts. Inflationary pressures, as well as shortages from suppliers, will force us all to think differently about our vendor choices, our stock order time frames, our cost calculations, and our pricing policies. Parts Vendor Decisions I’ve been in this business for 40 years and I have never seen a time when so many consumable parts were on backorder. The word “delay” doesn’t even begin to cover what we are facing. Many of you have long-standing relationships with your current parts suppliers. These suppliers can no longer deliver the parts you need, and in many cases cannot even provide you with an estimated delivery date. These are not 1-off esoteric parts. I’m talking about oil, coolant, filters, hoses, and belts. Inventory that we have counted on for years; inventory that will immediately affect our ability to service our customers. In these conditions, many are quick to abandon their current supplier and find another alternative. I understand the “any port in a storm” logic. There should however be some considerations given to qualifying a vendor before starting a new relationship. Throwing a PO at a new vendor just because they can deliver parts tomorrow morning, may not be a smart idea. It pays to ask WHY they have stock on hand when your current supplier doesn’t. What is THEIR source for these materials? What assurances do they provide that the quality of their parts will meet our customer’s needs? Does their oil have the proper API rating for the equipment you are caring for? What is the micron rating of the filters? Is their coolant the correct type for the equipment (IAT, OAT, Hybrid)? Just because it’s the right color doesn’t mean it meets the standards. Suffice it to say that quality matters. I’d rather try to explain why I have to reschedule the customer’s service than I would try to explain why my new oil is making their units overheat. As an aftermarket organization, your reputation is riding on the quality of the parts you choose, and the capability of your suppliers to stand behind their products if they fail. Price increases – current price or average price Right now, you are most likely seeing price increases affecting every stock order you place. One dealer reported to me that the last four oil deliveries all came in with different net costs. How do you manage the pricing policy when the costs are changing every 10 days? Usually, there is an ebb and flow to the way price increases are effectuated in the industrial marketplace. The regulating factors are easy to identify. In short, prices increase because costs become unmanageable. Your supplier raises their price. Your employees demand higher wages. Increases in health care, interest rates, insurance, taxes, and regulations give you no choice but to feed the inflationary monster. In the last 30 years, price increases have moderated year over year. Increases in efficiency and healthy competition at the wholesale level have provided price stability in the marketplace. Annual price increases have ranged between 2%-5% per year, and are mostly on the lower end of that scale. What we are facing now however is more than anomalous, it’s downright frightening. Labor shortages, supply chain interruptions, and geopolitical circumstances are affecting every market, not just ours. Retail prices can’t seem to find a resting place, as consumer products from fast food to used cars quickly become unaffordable. My point here is that if we are going to survive this disruption, we need to understand that as a supplier, there can actually be an UPSIDE to inflation. That upside is called INVENTORY. When wholesale prices increase, all the stock on your shelf becomes more valuable. There are dealers who manage their retail prices based on “average cost”. Prices are marked up based on the median “per unit” cost of the item. If I own 10 at a cost of $1.00 each, and this month I buy 10 more at a cost of $2.00 each, I now own 20 at an average cost of $1.50. If my markup is 1.55 (35% GP), then my retail price would be $ 2.33. This is a dangerous pricing strategy in an inflationary environment. It blunts the effect of rising prices by using existing inventory to dilute the net inventory value. If this is the way your ERP system is calculating parts pricing, you may want to rethink your practices. Our existing inventory value actually needs to be adjusted every time prices increase! To do this we need to design our markups based on LIST PRICE, or LAST COST ENTERED. Using this practice, a price increase automatically affects the net value of every item we currently own. My example above would now calculate differently. If the system uses the “last cost entered” as the basis for a markup my retail pricing on the item would go from $2.33 to $3.10. Extending price increases to your entire inventory is imperative in times like these. Your ability to pay your own rising expenses will be predicated on your willingness to leverage existing inventory to your advantage. Collect ALL your freight costs – by weight or by item Another
Myers Industries announce CFO transition plan
Myers Industries, Inc. has announced the upcoming departure of Sonal Robinson, Executive Vice President and Chief Financial Officer. Ms. Robinson joined the Company in February 2021, was appointed Chief Financial Officer effective March 15, 2021, and has resigned to pursue other opportunities. To support a smooth transition, Ms. Robinson will continue in her role at Myers until July 1, 2022. Monica Vinay, Vice President, Investor Relations and Treasurer, has been named Interim Chief Financial Officer and will assume that role upon Ms. Robinson’s departure. The Company has launched a formal search process to identify a permanent successor. “On behalf of everyone at Myers Industries, I’d like to express my gratitude to Sonal for her outstanding leadership, consistent partnership, and financial stewardship. Sonal has played a central role during one of the most significant periods in the Company’s history,” said Myers Industries’ president and Chief Executive Officer Mike McGaugh. “Her contributions have been a key factor in the important steps we’ve taken to transform the Company. Sonal has elevated the finance organization and strengthened the team through her commitment to excellence and talent development. We are fortunate to have benefited from her talents, and we appreciate everything she’s done for the Company. Monica Vinay is a well-respected and accomplished colleague, and she, along with our experienced finance leadership team, has my full confidence in leading the Finance function as a search for a permanent CFO is conducted.” Ms. Robinson said, “I am extremely proud of our accomplishments during this transformational period in the Company’s history. It has been a pleasure working alongside such dedicated and talented colleagues and I wish them continued success in the execution of Myers’ long-term strategy.”
KEEN Utility advances women in the trades through $1M pledge
She Builds Grants initiative supports nonprofits that empower and educate women pursuing careers in the trades KEEN Utility, the work boot division of KEEN Inc. (KEEN), launched the She Builds Grant Program to champion the next generation of tradeswomen. The program pledges $1M in much-needed product and financial support over the next five years to trailblazing nonprofit organizations in the United States and Canada dedicated to the empowerment and education of women seeking a career in the skilled trades. KEEN Utility announced the 2022 She Builds grants, selected by KEEN Utility and their fans, will go to Black Women Build-Baltimore, Girl’s Garage, Vermont Works for Women, Oregon Tradeswomen, and British Columbia Institute of Technology’s Trades Discovery for Women. Grants will help provide hundreds of thousands of hours in trade skills education, expansion of workplace inclusivity training, as well as women’s specific safety footwear. “Women are essential to the future of the skilled trades,” said Robin Skillings, VP/General Manager at KEEN Utility. “ Supporting organizations that are deeply dedicated to the empowerment and advancement of women in the trades is critical. Through the She Builds Grant Program, we are solidifying our commitment to their future, and the growth of the trades, one step at a time.” The She Builds Grant is funded through The KEEN Effect, part of KEEN’s larger mission to make Outside and the Trades accessible to all. KEEN has committed millions of dollars toward social and environmental justice since 2003. A leader in women’s safety footwear, KEEN Utility is uniquely positioned to champion the cause of welcoming more women into the trades and encouraging skills acquisition. The Tradeswomen Tested collection from KEEN Utility enlists the insights of tradeswomen working in a variety of professions from initial conception all the way through final product release and incorporates on-the-job feedback into future designs. By creating more inclusive and adaptive footwear built for and inspired by women in the trades, the brand established early on that the future of the trades is diverse and demands support. More information about KEEN Utility’s women’s specific styles can be found by visiting https://www.keenfootwear.com/work-tradeswomen-tested-collection/.