P.M. Executive Briefing - May 3
This Afternoon's Headlines:
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Volvo Is Still on Prowl for Acquisitions and Mulls Options for Scania Holding
Still flush with cash from the 1999 sale to Ford Motor of the Volvo Cars unit, Volvo continues to seek acquisitions following its agreement last week to buy Renault's heavy-truck operations, said Leif Johansson, president and CEO.But antitrust considerations bar Volvo from considering any further truck acquisitions, so further purchases will have to be in construction equipment or buses – Volvo's main units other than trucks – or the company's two engine divisions.
There is no deadline for Volvo's divestiture of the Scania shares, some of which may be distributed to Volvo shareholders rather than sold, said Johansson. Wall Street Journal (05/03/00) P. B13A; Simison, Robert L.
Employees Can File Hazard Complaints on OSHA Website
The Occupational Safety and Health Administration has added "The Worker's Page" to its Web site at www.osha.gov, where workers can formally file complaints about workplace hazards; the agency said it will investigate whatever is filed there.Other options for employees to file complaints are mail, fax, and telephone. Companies can resolve many complaints on an informal basis, while OSHA is likely to inspect work sites if such a resolution is not reached.
The Web form can be filled out in about 10 minutes, and information entered there will be forwarded to the relevant regional OSHA office. eTrucker.net (05/03/00); Kelley, Scott
UPS Launches Online Store
United Parcel Service has debuted a new Web storefront, Brown & Brown, on its ec.ups.com e-commerce site.The store sells model airplanes, trucks, and other company-related collectibles while demonstrating the UPS OnLine Tools, which are created for customers to incorporate in enterprise applications and Web sites.
Also available there are e-commerce and transportation advice as well as information about using the UPS tools in Web sites. Journal of Commerce Online (05/03/00)
Delivery Giants in Battle for Site
United Parcel Service and the U.S. Postal Service are both eyeing a Massachusetts Port Authority site in South Boston – UPS wants to put a large distribution facility on the site, which is currently a parking lot, while the USPS wants to relocate a large local sorting operation there.UPS and the postal service frequently compete for sites in U.S. cities, and they are both interested in the South Boston waterfront location because of its easy access to Logan International Airport.
While UPS has reportedly not made a formal bid for the site, the USPS has made a proposal and needs MassPort's approval; the postal service also faces a political fight over the plan, since area politicians are raising issues about the traffic a USPS plant there would generate. Boston Herald (05/02/00) P. 25; Van Voorhis, Scott
Midland Steel Holding Own Year After Company Buyout
Midland Steel Products, a heavy- and medium-truck frame and frame-components supplier, is preparing to cope with a predicted downturn in heavy-truck sales as well as truck manufacturers' increased demands on suppliers.Company management, led by Chairman and CEO Salomao Ioschpe, bought the company from Brazilian-based Iochpe-Maxion last year with backing from Key Equity Capital.
The company is attempting to increase productivity, despite resistance to price increases in the industry, and will be helped by the $25 million in capital-equipment investments it has made over the last four years. Productivity will be raised substantially by a new roll-forming machine tool controlled by computers.
Truckmakers are consolidating their supplier lists while streamlining their own operations, which puts more demands on suppliers – frame suppliers, for example, are now expected to paint the frames themselves.
Despite a drop in heavy-truck order backlogs, Midland expects sales to be in line with last year's, because it has increased its sales of value-added parts. It has also extended its contract with United Auto Workers Local 486, which covers Midland's Cleveland plant, for another three years. Crain's Cleveland Business (04/30/00) Vol. 21, No. 18; P. 13; Prizinsky, David
Food Ads Appear on IJ Foodservice Trailers
The Tennessee-based foodservice distributor IJ Co. has launched a new marketing campaign that places suppliers' advertisements on the rear doors of the trailers at its Knoxville and Johnson City distribution sites.Selling advertising space on trailers is becoming a trend in foodservice distribution, said John Kowieski of Modagrafics, the graphics company that printed IJ's advertising details. Modagrafics, based in Rolling Meadows, Ill., used transparencies provided by the manufacturers to develop the removable Avery vinyl decals. According to Brendan O'Doherty, director of IJ operations in Knoxville, new ads will be installed every six months.
Last year, sales hit $430 million, up more than 26% from the previous year. It has a 99.6% on-time rate for its deliveries throughout its southeastern U.S. service area, and has backhauls for some 40% of routes.
IJ has a full-service lease with Ryder Transportation Services for tractors and trailers. Refrigerated Transporter (04/00) Vol. 37, No. 11; P. 25; Farrar, Foss
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