Retail imports to increase 3.5% in May
Import volume at the nation’s major retail container ports is expected to increase 3.5% in May as negotiators prepare to begin talks on a new contract for West Coast dockworkers, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates.
“We’re expecting a lot of cargo to move through the ports this summer and we want to make sure there aren’t any supply chain disruptions that would impact the cargo flow,” said NRF VP for supply chain and customs policy Jonathan Gold. “We hope there won’t be any issues, but the sooner labor and management can agree on a new contract, the better it will be for everyone who relies on the West Coast ports.”
Representatives of the Pacific Maritime Association and the International Longshore and Warehouse Union are scheduled to begin negotiations next week on a new contract to replace the current agreement that expires June 30. NRF has urged both sides to avoid any disruptions that could affect the flow of back-to-school or holiday season merchandise.
West Coast ports handle more than two-thirds of U.S. retail container cargo each year, including the bulk of cargo from Asia. The last major shutdown there occurred in the fall of 2002, closing ports for 10 days and creating a weeks-long backlog to be cleared.
U.S. ports followed by Global Port Tracker handled 1.3 million twenty-foot equivalent units (TEU) in March, the latest month for which after-the-fact numbers are available. The number was up 5.1% from February, traditionally the slowest month of the year, and up 14.5% from March 2013. One TEU is one 20-ft. cargo container or its equivalent.
The total for 2013 was 16.2 million TEU, up 2.3% from 2012’s 15.8 million TEU.
“Most economic fundamentals are pointing in the direction of continued, sustained recovery in consumer demand and import volumes,” Hackett Associates founder Ben Hackett said. “This is turning out to be the longest period of growth for some time now.”
Global Port Tracker, which is produced for NRF by the consulting firm Hackett Associates, covers the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston, Savannah, Port Everglades and Miami on the East Coast, and Houston on the Gulf Coast.
New start for General Tools & Instruments
New York City-based General Tools & Instruments is beginning a new chapter in its colorful (black and yellow) history.
The company was acquired by New York City-based investment firm Highroad Capital Partners in February. Terms of the deal were not released. But in an interview with HCN at the National Hardware Show, principals from Highroad Capital said they liked what they saw in the tool company, and vice versa.
"What we look for in a company profile is a great brand name and great management team," said Jeffrey M. Goodrich, partner of Highroad Capital. "That’s what we see here in General."
Goodrich described the acquisition as a "platform" investment, meaning it is the first in a specific field, setting the stage for add-on acquisitions in related businesses.
Highroad acquired the company from Gerald and Martin Weinstein, grandsons of founders Abe and Lillian Rosenberg.
The company was founded in 1922 as General Hardware Manufacturing, and it has rolled out thousands of products since its first — interestingly, an egg slicer — hit the market. General Tools helped found the early version of the National Hardware Show back in 1946, and now stands as the last tool manufacturer in a Manhattan neighborhood that once thrived with tool makers.
Plans now call for taking the company to a new level, as well as moving headquarters out of the city to Secaucus, New Jersey.
CEO Joe Ennis expressed enthusiasm for the company’s new direction.
"General Tools was a great family-owned business, with all the good traditions that go with the family company," he said. "But we were bumping at the top of where we could grow. We needed capital, and we needed resources to take the company to the next level."
The company’s mission to develop new products will not change, he said. And the opportunity for growth with the acquisition is real, he added.
A big part of the company’s culture of development is a metric called the vitality index, what Ennis described as "the measure of newness. The intent is to have 20% of our sales in products that we did not have three years before."
The company’s booth here at the National Hardware Show promoted a variety of products, including moisture meters, multi-bit screwdrivers, lighted precision handtools, boroscopes and digital T-bevels.