DC Velocity - January 2009

New Year. Change has never been more apparent as in the last 6 months; the banking industry was slammed by sub-prime lending, the stock market

dropped under 8000, oil prices dramatically rose - then plummeted, the automobile market was devastated, the bail out reached ridiculous levels with no end in sight, steel prices escalated at record pace and new construction is at an all time low. And…we have a new administration.

Fairview Avenue Long Valley, NJ 07853 (800) 614-4162 www.frazier.com

With a new President casting some doubt on how he will support business, more anxiety is added to an already sensitive market. Although the market will eventually improve, many companies will go down in the process. It’s almost a natural correction where only the strong survive. It may take the rest of the year to see what direction the market will take. Buckle up; it will get worse before it gets better.

Unlike the downturn after 9/11, when time healed wounds, these new market conditions are not as easily repairable and will take longer to correct. Business will need to downsize, improve operations and increase service levels if they are to survive. You can embrace this market condition by looking at it as an opportunity and refusing to become a victim. Faced with these challenges, distribution will be asked to be even more flexible (Gumby comes to mind), by an already demanding customer base. As more SKU’s are added, case and each pick order selection will increase in demand.

Innovation will not be negotiable. You will have to avoid the pitfalls of using the same old solutions. Innovate before your competitors do - Be more open to new ideas and concepts - Get educated. The industry does a wonderful job of providing the resources.

So how can we help? Frazier is in a unique position to be able to sell unique material handling solutions for distributing everything from food products to paper clips, in conventional facilities to highly elaborate automated storage and retrieval systems. Our sales executives participate in the solution model by reviewing your product mix and throughput and developing the best handling system possible. Finally, our 11 plants offer the largest manufacturing capacity in North America with sales offices across the US, Canada and Mexico. Frazier’s project implementation capabilities guaranty on time delivery...