GLG News by Council Members who distribute and/or sell light industrial equipment

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

Mexico Border Crossings Demand Knowledge & Resources: Do You Really Need a 3PL?

October 15, 2007

Analysis of:Logistics providers increase focus on Mexico | www.purchasing.com

Operating cross border shipments is not as complicated or troublesome as some would suggest. What's needed is knowledge of US and Mexico Customs laws, a commitment to compliance, and understanding the distance specialized truckers like/want to travel. The question is: are you up for it or do your infrastructure constraints dictate handing it off?

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

Ship Order Secrecy Shifts Forecasting from Capacity to Performance

October 8, 2007

Analysis of:Ship order secrecy could tip supply and demand balance, says analyst | www.compairdata.com

Facing increased barriers to accessing new vessel building data, perhaps the maritime industry has awakened to the reality of their own achilles heal: why deliberately contribute to the ease of collecting data on global TEU operating capacity? Historically, new capacity implied reduced operating costs for the carrier, which strengthened the shippers' argument for flat or falling rates during contract negotiations. With more of the new capacities revealed closer to maiden voyage, advance planning in rate negotiations will have a bit smaller universe of factors to consider, something that could begin a potential shift away from traditional negotiation strategies on both sides of the table.

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

GM Tackles Strategy in Wake of Souring Commodities

October 8, 2007

Analysis of:GM looks to substitute materials to reduce costs: Purchasing VP calls price increases "scary" and outlines upcoming plans | www.purchasing.com

To say that GM sees the next horizon of cost savings within commodity substitution only paints a narrow view of the larger issue facing GM, Ford and Chrysler. North American automobile marketplace success dictates the need for innovative products with styling and performance demanded by its customers. Forward reaching innovation of established and new components / composites, engineered for safety and reliability, are just one step needed for these 3 to survive, and is good for the global industry at large.

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

Innovation vs. Rationalization: What Keeps Automotive Companies Rolling

October 4, 2007

Analysis of:Mazda develops catalyst to slash precious metal use | uk.reuters.com

Japan's Mazda Motor Corp announcement of reducing the use of palladium and platinum by 70-90% in their new single-nanotechnology automobile catalyst is proof that with rising prices comes innovation, that embracing change is good for the company and good for the consumer, and that Mazda may, in fact, have a better idea, something that has Ford and the rest of the automotive industry thinking. 

John CoatesPresident and Chief Executive OfficerThe Fennimore Group

What's NOT to expect within the 2007 Heavy Duty Truck Market

May 29, 2007

Analysis of:More Layoffs at N.C. Freightliner Plant | biz.yahoo.com

The impact of clean air initiatives has landed in the laps of its participants. The old adage of "no pain, no gain" is an unfortunate reminder that any change intended for a greater good will generate short term consequences. In this case, 2006 Class 8 purchases reflected more of advance buys normally aggregated over several years versus scheduled replacements, resulting in record sales for less environmentally friendly engines with purportedly better fuel mileage than the cleaner burning 2007 models mandated by federal law. The results: look to '07 Class 8 new truck sales to number in the 160,000 unit range compared to last years nearly 290,000 units. This doesn't bode well for production numbers for DC's Freightliner; Paccar's Kenworth, Peterbilt, and Western Star; Navistar's International; or Volvo's Mack and Renault badges. But to offset this real "pain" is the promise of improved fuel economy, lighter truck cab and frame designs, and the prospect of breathing a bit easier.

Arlen SwensonGeneral ManagerBOBCAT ENTERPRISES, INC.

Positive Outlook Increases Meeting Attendance

January 24, 2007

Analysis of:2007 AED Annual Meeting & CONDEX | www.aednet.org

At the conclusion of the AED’s 88th Annual Meeting & CONDEX, held in Las Vegas on January 16-18, the enthusiasm and optimism for the year ahead was mentioned by many attendees.  This year’s show was one of the highest attended on record in fact.

Total registrations climbed 17 percent from last year’s convention, bringing the number of attendees up to 3,000.  Distributors, manufacturers and service firm attendees from the United States, Canada, and abroad met to discuss the issues and opportunities facing the equipment industry.

Mr. Les Bebchick, President & CEO, Equipment & Systems for Industry, Inc. of Hopkinton, Mass., was inaugurated as the 2007 AED Chairman. Mr. Bebchick delivered an appreciative message on the strengths of the AED organization and how its network is an important bridge to the success of dealers -- big or small -- across North America.

Outgoing 2006 Chairman, Mr. Dale Leppo, President, Leppo Rents/Bobcat of Akron, of Tallmadge, Ohio, was noted for his successful leadership of AED during 2006 and was recognized for his contribution to a successful annual meeting and CONDEX.

The annual meeting concluded on Thursday with a review of the Outlook for the Construction Equipment Industry and a series Executive Seminars on processes for improving dealership business success.

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