|
| PVF e-news, November 1, 2007 |
|
|
|
Sponsored by ...
For more information click the logo or ipd@asa.net
|
|
|
|
 |
|
|
PVF Aplenty At Network 07
by Jim Olsztynski, Editor
Network 07, which included the annual convention of the American Supply Association, took place last week in Anaheim, and included quite a bit of PVF programming. Highlighting the list were programs sponsored by ASA's Industrial Piping Council (IPD) and a roundtable discussion put on by the
PVF Roundtable.
The IPD program featured the outspoken Dr. Donald McNeeley, president of Chicago Tube & Iron Co. and a professor at Northwestern University's School of Engineering. Highlights from McNeeley's presentation:
- The average recession lasts about a year. The one that waylaid the PVF industry from 2000-2003 last so long because its roots weren't cyclical, but instead was caused by a confluence of globalization and industry consolidation. "Recession is God's way of correcting excess capacity," McNeeley quipped.
- That recession caused attrition of about one-third of the industry and the average age of industry personnel to jump by about 10 years. That's because companies that survived did so by cutting expenses, but in so doing tended to lop off the youngest performers. "Those layoffs will impact the future," said McNeeley.
- McNeeley castigated the private equity companies as paying too much for many distribution companies. He thinks returns on the investment are stretching to around two decades and "the numbers are not sustainable."
The PVF Roundtable panel featured three industry players drawn from the ranks of manufacturers and distributors. Their key insights were as follows.
 Legend Valve's
Robert Vick (left) issued a clarion call for manufacturers to enhance value in order to reestablish brand identity. "The value we once provided has either decliend or become obsolete," he noted. "We have become an industry of order takers ... Unless we give the wholesaler reason to market our brands, they will sell private labels." Can brands be resurrected? Said Vick: "If (the market) can create brand preferences for (bottled) water, we can do it for anything."
Wholesaler Mike Abeling of L.A.'s Consumers Pipe & Supply (right) focused his talk largely on the
 threat from overseas manufacturers. "Third-party logistics companies on the West Coast can get LTL shipments from overseas in less than two weeks. Some (domestic) manufacturers can't fulfill a full order in two weeks," said Abeling. "Let's keep our eye on the ball and protect the business from those overseas manufacturers."
Dan Westbrook of Westbrook Manufacturing (below, right) addressed oil
 patch prospects from the perspective of his home base in Houston. He noted that the drilling business is booming like never before, which has led to an OCTG shortage increasingly being filled by China, even though "drilling companies have some quality concerns about product from China." Nonetheless, "if that drops off, the situation will be critical. We've got a lot of
work to do with sourcing."
More details about these speakers' remarks and other PVF happenings will be presented in the Dec. 2007 issue of Supply House Times. |
|
|
|
|
Smith-Cooper Buys Sharon Piping, Fine Stainless
Smith-Cooper International has acquired
Sharon Piping and Equipment Inc. from owner and founder Alfy Nathan. Terms were not disclosed. The deal includes Sharon's
Sharpe Valves unit. Both companies will operate as a division of Smith-Cooper under the name Sharon Piping & Equipment LLC, retaining present management and employees. Last October, the New York-based private equity firm
ZS Fund LP purchased an equity interest in Smith-Cooper. ZS Fund has focused on transactions that provide liquidity to business owners while enabling them to maintain significant ownership stakes and keep their companies independent. Shortly before going to press, we also received information that Smith-Cooper has purchased
Fine Stainless Piping Products of Paramount, CA. We will provide more details in subsequent editions of PVF e-News, as well as
Supply House Times magazine.
Cianbro Wins Texas Refinery Project
Cianbro Constructors, based in Brewer, ME has been awarded a module assembly contract for the
Motiva Enterprises
refinery expansion project in Port Arthur, TX. Cianbro’s contract calls for the construction of approximately 50 large modules weighing in excess of 500 tons. Motiva’s entire project will create a 325,000 barrel-per-day (b/d) capacity expansion at its Port Arthur refinery, increasing its crude oil throughput capacity to 600,000 b/d to make it the largest refinery in the U.S. and among the top 10 in the world. Motiva has contracted with a joint venture of Bechtel Corporation and Jacobs Engineering Group to manage engineering, procurement and construction for the entire Port Arthur refinery expansion project.
Key Safety Systems Hooks Up With supplyFORCE
Key Safety Systems has selected
supplyFORCE to be its national integrated procurement provider, covering PVF, electrical, industrial and various other supplies. Key is a $1 billion global designer and manufacturer of safety-critical components and systems including airbags, seat belts, and steering wheels.
Goldman Sachs To Own 60% Of McJunkin Red Man
This according to the Charleston (WV) Daily Mail, citing a report in McJunkin's in-house newsletter. It also quoted McJunkin CEO Bernie Wehrle saying an initial public offering "is likely down the road if the capital markets support such an offering."
NW Pipe Gets New CFO
Northwest Pipe Co. announced that Stephanie Welty has been named chief financial officer as of Nov. 1, 2007. As announced previously, John Murakami, the current CFO, is leaving the company, but will assist in the transition. Prior to joining Northwest Pipe, Welty was CFO at TriQuint Semiconductor from 2005 to 2007.
|
|
|
|
|
|
|
|
|
Beware Of Greenwashing
Everyone is jumping on the environmental bandwagon, but some green purchasing claims aren't all they're cracked up to be. Find out why. |
|
|
|
Just Updated
 Mathematics for Plumbers and Pipefitters, 7E
Fully updated for optimal learning, Mathematics for Plumbers and Pipefitters, 7E remains a trusted resource for essential math concepts in the plumbing and pipefitting trades. With an emphasis on real-world examples that will prepare readers to successfully transfer their knowledge to on-the-job situations, this book utilizes the most currently used fitting materials to demonstrate key concepts. Simplified, clear explanations and a straightforward approach, combined with new units on changes of state, pressure and heat, and mechanical advantage, make this an ideal tool for anyone entering the field.
Check out the entire line of products at AECStore.com or call Stephanie Weingartz at 248/244-1275 with any questions. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AEC Store Offers Tools For The Trades
Newest Addition
Plumbing Technology, Design & Installation
A popular book for anyone preparing for a career in the plumbing or pipefitting trades. Covers both residential and commercial, updated to reflect the very latest advancements in the pipe trades industry. Plumbing Technology: Design and Installation, 4E has also been restructured to begin with instruction on the major, introductory concepts, and then progressing to more specific, advanced lessons, allowing readers a complete and thorough understanding of the material.
Check out entire line of products at
AECStore.com or call Stephanie Weingartz at 248/244-1275 with any questions. |
|
|
|
|
Clear Seas Research is a subsidiary of BNP Media Co. that specializes in capturing information about BNP Media's magazine audiences via panels of industry experts and advanced research methods. Industries served include the Architecture & Construction and Mechanical Systems gro |
|
| | | |
