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Cleanlink News 8/17/2009

Report: Inventory/Stocking Levels Declining


According to recent reports from the second quarter Baird Industrial Distribution Survey, destocking may be coming to an end in the last half of this year.

The report indicates that inventory levels continue to decline with no restock expected in the near-term. In fact, nearly 7 out of 10 distributors continued to reduce levels during the quarter and more than half expect to maintain current levels during the third quarter. The survey goes on to say that distributors are more hesitant about upping their inventory levels while the future remains so uncertain.
 
Given the weak demand trends, tight credit and general uncertainty, distributors appear to be waiting for significant demand improvement before increasing their invintories. But, most distributors surveyed were unsure what will ultimately increase demand from current levels.

Click here to read this complete survey.


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