Lab Safety, Grainger combining supply lines

By JIM LEUTE ( Contact )   Thursday, Nov. 20, 2008
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Lab Safety Supply and Grainger are combining supply lines. Kyle Geissler reports.

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Lab Safety Supply in Janesville.

Lab Safety Supply in Janesville.

— In an effort to prop up an underperforming Lab Safety Supply, company officials said Wednesday they will combine the business with another that operates warehouses across the country.

What that means for employment levels at one of Janesville's largest employers is unclear.

Officials of Chicago-based W.W. Grainger, which bought Lab Safety Supply in 1992, told industry and financial analysts Wednesday that the company will combine its Lab Safety Supply and Grainger Industrial Supply businesses.

While it doesn't manufacture anything, Lab Safety markets and distributes safety and other products to more than 800,000 customers in North America through catalogs, flyers and Web sites targeted to niche markets.

The company is a subsidiary of Grainger, which supplies facilities maintenance products to businesses and institutions in the United States, Canada, Mexico, China and Panama through 600 branches, 18 distribution centers and multiple Web sites.

"As you know, our Lab Safety business has underperformed," Grainger President James Ryan told analysts. " ... We're going to take more aggressive action to unlock the potential of that business."

That action includes combining Lab Safety and Grainger Industrial Supply from two supply chains into one.

Officials said the move will put more Lab Safety products into Grainger warehouses, which will improve selection and delivery efficiency for Lab Safety customers on the East and West coasts. Lab Safety, which in April employed 920 people in Janesville, also is expected to have better access to products exclusive to Grainger.

The combination will consolidate the companies' supplier networks and improve logistics and transportation efficiency, officials said.

Ryan was asked specifically if the combination should be interpreted as a phasing out of Lab Safety.

"The best way to think about this is that we're going to hold on to the Lab Safety brand, and we're going to create one infrastructure," he said.

That means Lab Safety and Grainger Industrial Supply will have one product line, one supply chain, one e-commerce operation, one catalog operation and one sales force, he said.

"What we'll end up with eventually is that almost all of the product that's in the Lab Safety warehouse in Janesville will be in the Grainger Industrial Supply warehouses across the country," he said. "When that happens, the service level on the products goes up immediately."

That statement could be interpreted two ways: Lab Safety products in Janesville will be duplicated in Grainger warehouses, or Lab Safety products will be moved out of Janesville.

Grainger spokesman Robb Kristopher told The Janesville Gazette the reality probably is somewhere in the middle.

"This could rekindle growth for Lab Safety at its core," Kristopher said. "The two companies will leverage each other's strengths."

When asked about future employment in Janesville, Kristopher said: "Based on what we know, we will maintain a presence in Janesville. We have no details and made no announcements (Wednesday) on labor levels."

Larry Loizzo, Lab Safety's president, could not be reached for comment.

A Lab Safety worker who listened to Wednesday's meeting characterized Ryan's comments as cryptic and unnerving to employees.

In July, Lab Safety bought Fort Atkinson-based Highsmith Inc., a direct marketer of library equipment, furniture and supplies. It also acquired McFeely's Square Drive Screws of Lynchburg, Va., a business-to-business direct marketer of specialty fasteners, hardware and tools for the professional woodworking industry.

Lab Safety markets Highsmith, McFeely's and other products as independent brands.

"Lab Safety is a strong group of companies, and those companies will continue to market to their customers," Kristopher said. "In Janesville, people are employed to service each of those brands."

Lab Safety got its start in 1967 as Science Related Materials, which Don and Gerry Hedberg started in their Evanston, Ill., home. The company was renamed in 1973 and opened its 614,000-square-foot facility at 401 S. Wright Road in 1992.

The Hedbergs sold the company to Grainger in 1992.

The purpose of Wednesday's meeting was to discuss Grainger's financial outlook. Ryan said the recent deterioration of several economic indicators makes it increasingly difficult to predict results.

The company said 2008 fourth-quarter sales will range from 2 percent below to 2 percent above 2007 levels, while 2009 revenues are expected to range from 5 percent below to 5 percent above 2008 levels.

Despite the slowing economy, the company said its geographic reach, sales and service network and supply chain position it to gain market share.

In 2007, Grainger posted sales of $6.4 billion.







reader COMMENTS (107)
gwwinvestor
Dec 18, 2008 at 6:10 p.m.
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Now that Grainger has made significant changes in organization, struture and reporting, I wonder why they are not being openly discussed and reported.

gwwinvestor
Nov 25, 2008 at 11:55 a.m.
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The content specific to Lab Safety, discussed in the Grainger conference call, was accurately quoted by the Gazette. However, the Gazette did add some editorial type questions to the article that people are now debating. Anyone interested in the future of Lab Safety should listen to the entire conference call for the answers to their questions. Grainger management did a good presenting the information and answering questions asked by financial analysts.

Bottom line is that Grainger is looking to raise sales by $70 - 100 million and reduce costs $20 - 30 million over the next 18 months. And they stated they expect "more to follow." By moving "almost all" Lab offered products o Grainger catalogs, stores and nation-wide distribution centers, they will get a significant sales lift and fulfill customer orders quicker and at a lower cost.

Leveraging Grainger's existing infrastructure (supply chain, HR, Finance, ecommerce and IT) is more cost effective than Lab Safety continuing to maintain their own – separately. It’s simply a necessary business move.

3_021
Nov 24, 2008 at 8:21 p.m.
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I currently am employed at LSS and it is an extremely fair and cooperative company. They do not keep us in the dark about anything and we do have the right to speak with anyone above us on any topic at any time. I think it's really ridiculous that this article has gotten so much focus. It's a poorly written article-the people commenting on it are not fully sure what they are talking about and it's turning into a grudge match for no reason. Get over it...LSS is not closing any time soon and if it does then deal with it then. I believe there are many more important topics to be discussed than this.

BeenThereDoneThat
Nov 23, 2008 at 2:42 p.m.
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Opinion80, what you said can't be further from the truth. I work at LSS (NOT in a management position) and I have gotten honest timely feedback about this collaborative effort from the get-go. If I have a question, it gets answered honestly and quickly from a VP of the company. I have expressed my opinion, and upper management has never "punished" me for doing so.

herby101
Nov 23, 2008 at 1:42 p.m.
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wow lss and simmons company sounds like they are the same, you are not able to say anything there either. GOOD LUCK EVERYONE!!!!

opinion80
Nov 23, 2008 at 12:53 p.m.
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031103, 420 and CandleLover:

You are all either in management at LSS or one of the many kiss --- people that work there. Maybe you should poll all people that work there and see how they feel about the upfront and honest nature of management at LSS. Anyone not too afraid to speak their mind will tell you that they are not informed of anything in an honest or timely matter. Management tells them exactly what they think the employees want to hear to keep them quiet. If they express their opinions too openly, management just writes them up so for the next 12 months they can't express their opinions without the threat of losing their job. It would be nice if the supervisors were even capable of forming an independent thought. They all run around like little puppets or something, all saying the same things like it is scripted or something.

I hope for the sake of all the good people that do work at LSS that the management is not just blowing smoke as usual. If your supervisor seems to be taking a lot of time off in the near future, watch out, they are probably out interviewing for new jobs all the while telling you you have nothing to worry about. Guess who will be left with nothing? The management at LSS/Grainger cares nothing for you like the Hedbergs did when they owned the business. Get used to it.

herby101
Nov 22, 2008 at 7:35 p.m.
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Get ready LSS the writing is on the WALL.

Unidentified
Nov 22, 2008 at 6:59 p.m.
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I can tell everyone here from personal experience the the concept of "moving on" is no longer in play here. In previous economic downturns that was still possible for many, including myself. I've been laid off from three previous companies during various economic periods and always found something. However, this time around there isn't anything to move on to. The job market is nearly non existent. Simply getting an eduction isn't enough or a guarantee of employment either. I don't blame anyone at LSS, or anywhere else for that matter, for being worried.

gmaof3
Nov 22, 2008 at 5:30 p.m.
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Its easy to say move on. But this story touches a lot of people's lives. I personally know people from both companies, having been a vendor of both LSS and Highsmith. Also, with the way the economy is, if you're laid off, good luck even finding another job.

This story stirred up a lot of emotions in a community suffering because of things that are out of their own control.

For many, there won't be a Christmas....or much reason to be happy.

mrcs4life
Nov 21, 2008 at 10:39 p.m.
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Seriously people! let's move on from this! Employees from LSS know the truth, why keep reading the article and get upset about it? Why keep reading the posts and get upset about it? If employees are going to get laid off, there is nothing that anyone will be able to do about; you move on and find something else. I understand that times are tough right now, but c'mon LSSer's! you know everything is ok...let's move on! Christmas is coming! :)

why_the_fuss
Nov 21, 2008 at 4:16 p.m.
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if calling it like it is, is considered inappropriate and mean then I guess I am guilty.
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There are two ways of looking at things, I was only pointing that out. I'm sure its tough to be laid off or have friends of yours laid off. I've witnessed it myself.
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Some remain bitter for a long time and get no where, others understand it and move on and are often happier.
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Ultimately it is up to you to make that decision.
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I will plan on having a postive and great weekend - how can I not. I hope you do the same.

LovinIt
Nov 21, 2008 at 4:05 p.m.
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I did not call you evil or negative. Just wanted to bring to your attention that what you said was slightly inappropriate and kind of mean; in my opinion. I am glad your healthy, have a job, your loved, positive and whatever else, KUDOS for you. Thank you for trying to refer me to one of the several posts listed, but I do not care enough to research everyone elses' posts throughout the last two days on this topic. I have better things to do, like work, or choke on marbles. Yours just stood out, as it was pretty bold. So have a "positive non-evil weekend" as I will right about NOW.

lalala - We are glad to have you, I hope MOST treat you welcomed!

why_the_fuss
Nov 21, 2008 at 3:15 p.m.
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LovinIt- obviously you didn't read my post very well. Where is the anger in my post. lalala is the one with the anger in her post.
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lalala is the one who called her information "Factual Highsmith Info from the Inside". Some of the other posts mention things from the inside as well-such as the name of a document on the intranet from CandleLover. I only pointed out that most companies would prefer you don't provide priviledged information no matter how small.
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As far as the image sharing of LSS with the town, are you blaming me for that? I said nothing bad about LSS. lalala is the one spouting his/her displeasure for the company he/she works for.
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I actually have a pretty postive outlook on life and realize that the world is not full of evil people (which I mentioned in my post to lalala). I also realize that I am very fortunate to be employed, have a wonderful family and healthy. I also realize that there are others who are less fortunate than me and I don't take any pleasure in anyone else's misfortune.

Flipside
Nov 21, 2008 at 3:06 p.m.
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spinmaster posted: "...because the state of the local/nationa/world economy."
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That has been my point EXACTLY.
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How does the public in general get their information? Through the media. This article has done nothing more that fan the flames. If people take the article written as gospel, they're going to be even further convinced the economy is to blame, and if LSS is on the chopping block, then who's next...

The situtation at LSS is no different now than at any other time. It is just like every other business at any time in history. There are no guarantees. Other than the death and taxes...

LovinIt
Nov 21, 2008 at 2:35 p.m.
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why_the_fuss- lalala sounds like you are very bitter. Maybe you should take a step back and be thankful you have a job.
With an attitude like that I don't know that I would want you on my team.

Great image to share with the town of LSS workers. Maybe some things just should remain unsaid sometimes ya think? Wouldnt you be bitter? Do you know what they went through? Maybe they channel their anger in the wrong direction briefly like you are right now. But whats your excuse?

MOST LSS people are so over this article anyway.

photogal
Nov 21, 2008 at 1:59 p.m.
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I am still unsure what was said that was not public knowledge. This was made public over a month ago. I do feel for the Highsmith reps who were laid off and wish them the best of luck and am thankful to be working with a group of wonderful people who came from highsmith. Again, this was all public knowledge and no "Secret, undisclosed, private" information was leaked.

why_the_fuss
Nov 21, 2008 at 1:40 p.m.
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My insider comment was directed at everyone not just lalala.

Most companies frown on sharing of information that is not public knowledge.

photogal
Nov 21, 2008 at 1:07 p.m.
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why_the_fuss: i believe lalala meant was this is information that is known. It is not confidential information that everyone wasnt offered a position or that Lab Safety came and "stole" Highsmith. Like they said, they were for sale and it was a good opportunity for LSS.

This has definitely stemed out of control and honestly nobody can make assumptions as to what it means or what the future holds. Take life one day at a time and enjoy and charish what you have-because as we have been proven in all aspects of life-it might not be there tomorrow.

BeenThereDoneThat
Nov 21, 2008 at 12:27 p.m.
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"Actually, underperformance was a characterization used in the webcast by W.W.Grainger. That doesn't mean LSS is doing poorly. It means LSS isn't performing as well as WWG would like." PRECISELY.

Zoom
Nov 21, 2008 at 12:25 p.m.
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dkush21 said: "I work at Lab Safety also and I don't believe a word of the company underperforming as stated in this article."

Actually, underperformance was a characterization used in the webcast by W.W.Grainger. That doesn't mean LSS is doing poorly. It means LSS isn't performing as well as WWG would like.
http://invest.grainger.com/phoenix.zhtml...
(skip to about 1 hour, 8 minutes)

why_the_fuss
Nov 21, 2008 at 12:17 p.m.
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spinmaster - before you accuse others of negative comments, you might want to look in the mirror and revisit your own postings.

why_the_fuss
Nov 21, 2008 at 12:12 p.m.
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lalala sounds like you are very bitter. Maybe you should take a step back and be thankful you have a job.
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With an attitude like that I don't know that I would want you on my team.
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I don't live life with the belief that everyone in a management position is evil and solely out for themselves. There are some but I don't think it is the majority. The bad folks get the most attention and you rarely hear about the good.
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To all of the 'insiders', I know if it was my company I wouldn't want my employees posting confidential information. I guess maybe my world is different.

spinmaster
Nov 21, 2008 at 12:10 p.m.
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See, that's what I'm talking about. Because I'm not bashing the Gazette, I must work for them. You can still stand up for something even if you have no personal investment in it. It's that simple. As for questioning news organizations, I'm all for that. I think it's what makes things the most interesting, and we should certainly do that. But what I'm talking about goes beyond questioning the media. The speculation aspect of this story is certainly what is getting most people so fired up, and I agree that it's not a good idea to publish something like this without all of the straight facts. But personally, I don't see it as pure speculation. Mostly just because the state of the local/nationa/world economy. I'm not saying my point of view is right, that's just how I see it. And I certainly don't think the Gazette (or any other news outlet) is perfect. Far from it. But as a local news outlet, you take the good with the bad. As I peruse articles on this site, I see a lot of the same names pop up and all they ever post is negative comments. But I guess when you publish negative news, you get negative comments. Take the good with the bad.

lalala
Nov 21, 2008 at noon
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Wanted to add, Lab Safety is not to blame for the acqusition of Highsmith. The owner of Highsmith is, we were for sale. But still after all the mishappenings that took place, reading this article hits the same spot Highsmith employees already had. Whether it's fully true or not, I have no doubt that it could happen. Executives our worried about their money, they don't know what it is to be a common 10.00 an hour employee and if merging together is going to "keep their customers happy" (or their pockets full) I don't see anything in the way that would stop them.

lalala
Nov 21, 2008 at 11:55 a.m.
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Factual Highsmith Info from the Inside:
Not everyone was offered a job. Employees that had been there for over 25 years who knew the company inside and out lost their jobs. The tears that happened there were unimaginable. If everyone was offered a job then Lab Safety wouldn't of had to bring people from their customer service into Highsmith's.

theguyonthecouch
Nov 21, 2008 at 11:52 a.m.
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"if you want the truth, look on our Intranet"

ha

Opinionsforfree
Nov 21, 2008 at 11:47 a.m.
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A'men

why_the_fuss
Nov 21, 2008 at 11:37 a.m.
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spinmaster sounds like you are the one with an issue.
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You make it sound like it is illegal or wrong to question the gazette or any other news organization.
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All news agencies want to be the first one to release the story even if they don't have all the facts. Hey if its wrong well just post a correction or a retraction. I guess they live by the rule why ask for permission when you can ask for forgiveness later.
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I think what many of the posters are saying is that the gazette doesn't have all the facts and are speculating the worst from the pieces of information they do have. Maybe they are just saying it isn't as bad as the paper makes it sound.
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My guess is you or Zoom will come back and say - I guess they are blindly following management or they are just denying the truth.
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Maybe, just maybe not every business transaction is bad or negative as the media so often likes to portray it.
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For those of you who think the Gazette is perfect, this is the second article they have made reference to the purchase of McFeely's in July-the fact is LSS made that purchase over a year and a half ago (search google, pretty easy to find the press release with the actual facts).
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As far as Highsmith, while it is sad that everyone from the former company did not get a job at LSS, why is there very limited information about the folks who did get jobs at LSS, or why don't you interview the previous owners of the company to find out how they are making out-it's not like LSS is a bully who took their lunch money.
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Come on people open your eyes, tragedy sells. Think about all of the people that slow down on the interstate to check out the accident. Of course the gazette made more out of this, otherwise it wouldn't be newsworthy

spinmaster
Nov 21, 2008 at 10:26 a.m.
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A lot of you are sounding like jaded schoolchildren. I'm sure the Gazette has nothing better to than "pick on" area businesses. Well, boo-hoo. Gimme a break. I continually fail to understand that if many of you hate the Gazette so much, why even bother going to its site? Usually when you hate something as much as many of you make it seem, you stay away from said product. The best thing to do would be to DIY. Domain names are cheap these days. I suggest all of you who "have issues" with things in the Gazette and on its website create your own sites to pilfer and post complaints on. Even better, you can all create the articles that you want to read. Articles that meet your expectations and support your opinions. Then, it would be difficult to complain about anything, because in happy fun world, everything is utopian.

Opinionsforfree
Nov 21, 2008 at 9:53 a.m.
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leaderofthepack I have enjoyed your well thought out posts. I also agree with everything you say about the Gazette.

dkush21
Nov 21, 2008 at 9:15 a.m.
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I work at Lab Safety also and I don't believe a word of the company underperforming as stated in this article. As far as I know we do well. Why would they be buying other companies if they were not doing well?

jbeam
Nov 21, 2008 at 8:42 a.m.
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with GM out of the pic. the gazette needs someone else to pick on.

why_the_fuss
Nov 21, 2008 at 8:33 a.m.
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Sometimes jobs aren't lost, maybe a position or two disappears from one area but other positions may open up in another due to shifting priorities and need.
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Once again you can speculate all you want about lost jobs, that is all it is though is speculation.
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My dad always told me to surround yourself with positive people, if you hang around with them you will be positive, if you hang around with negative people it will affect you negatively.
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Sounds like I should be avoiding the news all together.

LovinIt
Nov 21, 2008 at 8:06 a.m.
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bewildered19, I think you are the only one who has commented on here that "did not know". This article said nothing more than what was in your memo. Maybe you should read it a little more carefully. Do you need a sit down one on one to feel appreciated? It has not affected you you as of now, so why would they make it a bug deal to you?

BeenThereDoneThat
Nov 21, 2008 at 6:46 a.m.
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DJ: maybe. There are certain things that Grainger is good at that LSS is not, and conversely, things that LSS is good at that Grainger is not. Grainger is good at supply chain and distribution but not direct marketing. LSS's expertise is in Direct Marketing....Grainger has ALWAYS acknowledged that fact.

DJ
Nov 21, 2008 at 12:23 a.m.
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According to Grainger President James Ryan, "...Lab Safety and Grainger Industrial Supply will have one product line, one supply chain, one e-commerce operation, one catalog operation and one sales force..."

That makes me think that anyone at LSS involved in writing, designing, printing or mailing Lab Safety catalogs might be affected. Same with anyone working on Lab Safety's web site.

why_the_fuss
Nov 20, 2008 at 10:58 p.m.
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To those of you who are LSS employees, it sounds as if the basis of this story shouldn't be surprising, if you had no idea this was occurring you should either listen up in meetings or talk to your supervisor and ask why you weren't made aware. Chances are you were told something but because of the slant of this story it may not sound the same.
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The last thing any employee of LSS should be doing is putting much stock in what the Gazette is publishing or any blogger is saying because it is based on speculation on what they have been able to gather or simply their opinion.
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To those of you who aren't LSS employees, you can speculate, question, and stir the pot all you want, bottom line what you say doesn't really impact or change what is really going on at LSS or Grainger.

CandleLover
Nov 20, 2008 at 9:57 p.m.
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Bewildered19: I am so sorry that your manager/supervisor did not keep you informed what was going on so you didn't feel informed. I would have been not happy this morning either and even felt a bit mad. I suppose that can happen since every dept/division is different. That is true at LSS just like any other company. I know my manager and his peers have kept my area informed but maybe that is because my area would have more direct involvement. That is true of many corporate initiatives - some areas have more info than others depending on their degree of immediate involvement. There have also been updates on our intranet under a specific area. I know our division's admin e-mails us whenever there are posted updates. I found out today that there were some employees not in my division who did not know about this project's information posting on the intranet or even to what degree we would be collaborating with Grainger regarding distributoin center space. That is sad and explains why some employees were caught off guard by this article. I can only assume that your area's supervisor did not think it would impact your department much on a day to day basis at this time and didn't keep you up to date on the project's progress. Who knows. Check out the Project Growth tab on the intranet.

bewildered19
Nov 20, 2008 at 9:26 p.m.
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I do work at LSS and I just want to say that no matter what the outcome, I think it is horrible that LSS did not take a more direct approach to inform the employees of the meeting or the big 'plan'. There was a vague memo sent out a couple months ago saying they were setting up teams to work on the integration but... that was all. Thanks a lot.

I think a lot of people that work there would agree that this morning made us all take a second look at the company and question whether they value their employee's trust or loyalty.

Then again, I guess I should realize it's all about the bottom line...companies don't have to respect their employees as long as the employees follow blindly along and keep making them money.

BeenThereDoneThat
Nov 20, 2008 at 9:03 p.m.
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bork_bork, what you said is not true. There were many Highsmith employees who were NOT offered a position at LSS. Those people were simply told that they were going to be laid off. Some were offered jobs and chose not to take them, so were then laid off, but not every Highsmith employe was offered a position in Janesville. In fact, quite a few were not.

sangus
Nov 20, 2008 at 8:09 p.m.
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Flipside,
The time reference was only important in terms of how how long Lab Safety had to comment before we went to press. It did not have any implications for the rest of the story. The quotes from Grainger officials would not and did not change, and they were the basis for this story.

Scott Angus
Editor

Flipside
Nov 20, 2008 at 7:25 p.m.
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"Presses for the newspaper don't roll until 10:45 a.m. We can update Web stories at any time.

Scott Angus
Editor"

So, somehow the concept of 'publishing' an article on-line is different than the publishing of an article in print? Given today's technology, that's a mighty weak stick to prop yourself up with. The comments written in either format are equally inflammatory. How much so? Well, the edits of the contents posted on-line are evidence enough.

Too bad the conscience of those involved didn't kick in BEFORE the article was published - in any format.

I'll go back to professionalism... Speculation was the foundation of the message communicated to the audience. Had the message been crafted THE WAY IT SHOULD HAVE BEEN to begin with, edits after the fact would not have been needed.

You may choose to stick up for the story as it was presented. Certainly your choice. But to inflict the stresses that you have by presenting the way it was is truly reckless. Until you KNOW the FACTS, all you have is speculation. To understand why the article that was publishished and initiallly released on this forum is beyond my comprehension. From this point on, ANYTHING published by your institution is suspect.

Zoom
Nov 20, 2008 at 7:13 p.m.
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common_cents, I agree. In the long term, it sounds like they have presented a good plan, which is the whole purpose of an analysts meeting.

CandleLover
Nov 20, 2008 at 7:13 p.m.
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LSS having a more active partnership with Grainger is not news to LSS employees. We were informed several months ago about this collaboration to utilize a variety of resources both companies have including the combining of products at shared locations. This will hopefully be profitable for both companies.

We are in a tough economic crisis right now and we don't need all the doom and gloom around us. This article and the negative comments do not help a town that is suffering from recent employers closing the doors. It certainly didn't help some of the employees who are now overly concerned/confused about a change in a business model thinking we are going out of business. The unnecessary apprehension in the building was felt everywhere because of this article. LSS continues to be a profitable, money making company whose intent is to stay in business.

Please don't compare my employer to GM or the automobile industry. They don't live privileged lives on 7 figure incomes. They are not removed from the everyday work life at LSS. These are local men and women I see every day who are involved in our community. Our executive and mgmt teams are caring people who work with us and live around us. They are not out of touch with us and are not oblivious to our cares, worries and concerns. The scope of our business may change along with some business processes but I am sure there will still be a LSS business presence in Janesville in the long term future.

I may be naive but I will put my faith in our mangement team to keep us in business for a long time. They have just as much a vested interest as I do because they want a good job with good benefits and co-workers and want to live locally. I know they are doing everything possible in planning for the future of LSS because it not just my future, it is their future too.

bork_bork
Nov 20, 2008 at 7:12 p.m.
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To answer the Highsmith question that Zoom brought up. I happen to work at LSS and all the Highsmith employees were offered jobs at LSS but some for many different reasons did not want to take them. The people that choose to come to Lab kept all thier benifits and current pay. They were treated very fairly. This current "news worthy" story is not news to anyone at LSS that actually payed any attention in meetings that we had the last few months. If there is any jobs lost I would guess they would be closer to the top. We actually just hired more lower level employes in the last few weeks.

Zoom
Nov 20, 2008 at 7:12 p.m.
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skidooand & summergal, feel free to point out in any of my posts where I said or implied that the future of LSS is "not so bright". The worst thing I said was a few jobs would be lost, and that their revenue projection is overly broad (not bad). Job loss is bad for those that may lose their jobs, but good for LSS if they can accomplish what they described in the analyst meeting, which was "to deliver $70-100 MM in incremental revenue and $20-30 MM in cost savings improvement over the next 18 months".

The difference between me and you is that I am not emotionally tied to LSS (or GM, btw). You are exaggerating my remarks, just as you have exaggerated the Gazette article above. I understand that it might be difficult to hear a different opinion than what the corporate office is telling you, when it applies to your workplace.

Highsmith filed layoffs of 86 employees to the state. Whether someone chose not to transfer is immaterial. If a GM worker chooses not to transfer five states away, they are still laid off.

SummerGal77
Nov 20, 2008 at 5:21 p.m.
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I would tend to agree that Zoom wants doom and gloom to surround all Janesville companies - at least that is what I get by reading his/her posts.

SummerGal77
Nov 20, 2008 at 5:18 p.m.
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Zoom- I called it classic because they realized it was a mistake to print it and quick took it out - that is why it was classic - I am not complaining that they took it out. That is the advantage of printing stories on the Internet - you can edit misprints very quickly....

skidoo1600
Nov 20, 2008 at 5:01 p.m.
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Zoom, my last post was intended to be addressed to you.

common_cents
Nov 20, 2008 at 4:55 p.m.
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Realistic is subjective. For the sake of our city, I choose to believe in the possibility that this move will catapult sales, offer Lab Safety's parent company Grainger the opportunity to expand the facility here and generate new jobs. The bottom line is still the same - we don't know...but we are free to believe.

skidoo1600
Nov 20, 2008 at 4:53 p.m.
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Many of those employees "CHOSE" not to come to LSS to work due to a variety of reasons. Some were top management who left to pursue other business opportunities, others were outside sales reps who operated in other parts of the country. You don't know the details so quite acting like you have so much insight into the company. You rely solely on articles much like this one to base all of your opinions on.

By the way...were you a part of the GM related layoffs? It seems as though you secretly wish the same will happen at LSS, you seem to find as many reasons as possible to support the idea that the future of LSS is not so bright.

chemical_6
Nov 20, 2008 at 4:49 p.m.
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Why doesn’t everyone just let things play out? I mean, if they are going to lay people off then there is nothing anyone can do about it, unless you take the initiative to find another job…. Which is going to be hard in this economy. If you have a job, just be happy that you are one of the “lucky” people. There are so many people out there that are unemployed right now. I think that even though the article may cause concern about the position the company is taking and leaves people wondering, that no one will truly know what is going to happen until after the “merger” takes place.

Zoom
Nov 20, 2008 at 4:47 p.m.
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I think at least a few jobs will be lost. That's being realistic, not "jaded" and "paranoid".

sangus
Nov 20, 2008 at 4:44 p.m.
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Yes, I will continue to defend the article. The disputed statement that was removed was not part of the article but was written separately by someone else to promote the podcast. I understood the sensitivity to that statement, so I had it removed.
The article itself is not flawed. It accurately reflects what was discussed at Wednesday's meeting, quotes Grainger officials extensively and addresses the critical and logical question about any possible impact on employment here.

Scott W. Angus
Editor

Zoom
Nov 20, 2008 at 4:42 p.m.
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I apologize skidoo. Only 86 of 200 jobs were lost, which is not "most". I should have said "many".
http://www.madison.com/tct/news/stories/...

common_cents
Nov 20, 2008 at 4:42 p.m.
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Zoom: Just as you (and others on here) have the priveledge to find and believe the negative about this news, others have that same priveledge to find and believe the positive. Maybe when the companies say "we don't know" they really mean "we don't know." Maybe there's not really a sinister plot to mislead you. Maybe speculation is just that...speculation. I find it sad that you are so jaded by paranoia that you assume the worse about everything...but it is your priveledge.

bella
Nov 20, 2008 at 4:31 p.m.
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Mr. Angus - are you really going to continue defending this article? You've already removed some of the disputed phrases, which is pretty comical. Maybe it's time to just admit that you ran to the presses prematurely, full of glee with another negative and flawed story? After all, it's what you do best!

Zoom
Nov 20, 2008 at 4:30 p.m.
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Let me get this right. One person complains about the 900+ jobs comment, and another complains that it was removed. Now that is "classic".

I find it interesting how the "insiders" view is always so different from what the outsiders see. I listened to that webcast, and words like "leveraging cost structure" is classic business speak for job consolidation, among other things. Yet all some insiders hear is "it's going to be good for the company". I'm sure it will be.

skidoo1600
Nov 20, 2008 at 4:25 p.m.
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Zoom...I am not sure where you are getting your information, but in your comment below you make an incorrect statement. The majority of jobs at Highsmith actually survived and transferred to Janesville, not the opposite as your comment suggests.

This isn't doom and gloom, but it's a little naive to think that at least a few jobs won't be lost. After all, when Lab Safety aquired Highsmith in Fort Atkinson, most of the jobs did not survive the transfer.

LovinIt
Nov 20, 2008 at 4:24 p.m.
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Oh well its clear that LSS employees are proud of our company and have faith of our company and the execs decisions.

common_cents
Nov 20, 2008 at 4:23 p.m.
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We live in scary times.

We are reliant on employers to provide us the means to stay afloat in an unsure, sometimes hostile, economic condition. They, in turn, are reliant on us as consumers to continue to purchase their products in order for them to maintain a balance sheet that allows them to keep us employed. It's an unnerving catch-22. But it is reality.

And that's scary.

Looking at our recent history, it is only natural for us in Janesville to be preoccupied with worst case scenarios. GM, Simmons and even the Gazette have brought the fear of joblessness to our town. Each of us knows someone, or tens of "someone," who has been hit with the gutwrenching, life-changing news that they may be out of a job. We all face it every day...and it's out of our control. That's Scary.

Yet here we have a reporter who purposely preys on the scared person in all of us to generate a story. Not that Lab Safety and Grainger are going to do what every corporation, every company, every lemonade stand in the country is doing - trying to take costs out of their processes in a responsible way - but, instead, the reporter turns this into a fear mongering story about more potential (and as of right now, ficticious) job losses.

The story is that the two organizations are leveraging each other strengths to learn from one another and generate sales for the entire product line, helping to maintain the balance sheet and, thus, keep people employed. But that's not scary!

So, the second sentence of the article drags you right back into mind numbing fear, the stomach turning angst and to the place wear we have all been for so many months now...and that is the reporter's intent. Don't be fooled by the window trappings around the Analysts' Meeting or the Corporate Spokesman or the lack of returned calls...the reporter had only one agenda, to generate fear and sell papers. He brought us there with his second sentence...which had nothing to do with the event on which he was "reporting."

He wrote it, his editor's allowed it, the paper printed it and we fell right into it.

That's what's really scary.

sangus
Nov 20, 2008 at 4:16 p.m.
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Presses for the newspaper don't roll until 10:45 a.m. We can update Web stories at any time.

Scott Angus
Editor

SummerGal77
Nov 20, 2008 at 4:14 p.m.
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I also like it how after comments have been made regarding the stability of the 900+ jobs -that comment has been removed from the article... CLASSIC!

SummerGal77
Nov 20, 2008 at 4:12 p.m.
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There is no way that the execs at LSS could have been given until mid-morning today to respond - this article was posted by 8:30 A.M. - how is that mid-morning? Who knows what will happen - but this just shows the kind of negative crap the Gazette spews forward on a daily basis.... disgusting.

LovinIt
Nov 20, 2008 at 4:04 p.m.
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common_cents - I agree. They can't commit to saying yes lost jobs or no lost jobs because as of now this plan is simply a hopeful solution to a current economic dip that millions are suffering from. LSS has a reputation of doing good for their employees, this hasn't changed.

common_cents
Nov 20, 2008 at 3:47 p.m.
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Zoom:
If no jobs will be lost, why didn't they just say that? Their response was:
"Based on what we know, we will maintain a presence in Janesville. We have no details and made no announcements (Wednesday) on labor levels."

In this economy, can you provide ANY company that can guarantee employment levels? They said they don't know...I have to believe this is a process and that they're not simply going to flip a switch and everything will happen overnight! It would be a diservice to everyone involved to predict something as critical and as unknown as labor levels. Being unknown is what we all face every day...it's part of life.

This could just as easily turn into a huge opportunity for Lab Safety and Janesville...I mean, I heard they might build another Distribution Center right here and double their employee base...(okay, I really didn't hear that) but all they said is it is unknown...yet the Gazette chooses to take the negative spin. Yes they are reporting "words" but as any writer or reader knows, there is tremendous power in how it is presented...

LovinIt
Nov 20, 2008 at 3:36 p.m.
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The only fault here is people's speculations. Instead of saying we are combining lines, it should be more rightly said that we are "teaming up" to battle the economic crisis and this is the way that they have decided to do so. Its a scary time in our country right now and people are doing the most logical thing by instantly being concerned about their jobs. As of now, the plan of attack is to TEAM UP to get though. End of story. Everyone just take some meds and chill out, what will be will be. LSS is hardly comparable to the greedy auto industry execs, and I believe they are doing everything they can to keep us all employed.

Zoom
Nov 20, 2008 at 3:28 p.m.
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031103,
If no jobs will be lost, why didn't they just say that? Their response was:
"Based on what we know, we will maintain a presence in Janesville. We have no details and made no announcements (Wednesday) on labor levels."

Why is it the Gazette's fault for publishing what they said? It is not the Gazette's job to manage expectations.

leaderofthepack
Nov 20, 2008 at 3:26 p.m.
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1. "Changes to Lab Safety Supply are putting into question the fate of over 900 jobs in Janesville."

2. "That statement could be interpreted two ways: Lab Safety products in Janesville will be duplicated in Grainger warehouses, or Lab Safety products will be moved out of Janesville."

Both of these comments are speculative at best and is the tone that is reflected in this article. You used the state of the current local economy and these speculations to paint Lab Safety in a negative light and did it without regard for a highly successful companies reputation. I'm not saying there are no truths in the article. I am saying that these main points are what makes it an example of wreckless journalism. Is this such a major story that proper investigation into what was actually going to happen between Lab Safety and Grainger couldn't have been completed? The 2 1/2 hour conference happened yesterday afternoon and you just had to get this to press. I have never seen where Lab Safety has not been forthcoming with information, however, when the story also includes the mother company and a subsidary it may take a bit longer to get the facts. But, that was obviously not the goal for the Gazette.

lynda
Nov 20, 2008 at 3:17 p.m.
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Funny: That's what the auto workers thought about their top execs.

Zoom
Nov 20, 2008 at 3:16 p.m.
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Again, I invite you to listen to the webcast, specifically from 1 hour, 8 minutes onward, until the Canada stuff. From the PDF presentation:

"Combination = greater leverage

•Offer Lab’s products through Grainger’s network
•Market Grainger’s products to Lab’s customers
•Leverage purchasing synergies and cost structure

…Plan to deliver $70-100 MM in incremental revenue and $20-30 MM in cost savings improvement over the next 18 months"

One example given by Mr. Pulick was a combining of direct marketing resources, including "customer files, people, and processes" (his words).

This isn't doom and gloom, but it's a little naive to think that at least a few jobs won't be lost. After all, when Lab Safety aquired Highsmith in Fort Atkinson, most of the jobs did not survive the transfer.

Some of the reactions here were similar when the Gazette started publishing stories about GM's poor financial situation. Untold numbers of people posted that the Gazette was wrong, or the Union were telling them different, or that GM wouldn't close Janesville because they had the best productivity, or that the new Volt would solve everything, etc, etc, etc. Unfortunately for us, the Gazette was acurate.

leaderofthepack
Nov 20, 2008 at 3:08 p.m.
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This type of article reminds me of a high school student needing to get a report done that he's procrastinated on and the deadline is the next day and any old information is put down and handed in. No investigation into what the context of the negotiations and decisions are, just pick out the highlights and embelish when needed. And like the research paper this article also gets an F. If any effort was put towards this article, there would have been dialogue between J. Luete and the proper individuals at Lab Safety, however, in a failed effort to fill a space with words, this attempt to create a story was passed on to paying customers. At least there isn't too much paper being wasted, because it seems the Gazette is becoming more depleted each day and this type of effort doesn't give much hope that it will be increasing in overall content.

sangus
Nov 20, 2008 at 3:04 p.m.
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420 and others,
Please reread the article, and tell me what is inaccurate or "couldn't be further from the truth."
They are merging lines, and that clearly raises questions about employment. So we asked the question and gave the Grainger official's response.
To not ask the question would be to ignore the obvious.
We called Lab Safety for a comment several hours after the meeting, and we gave officials until mid-morning today to respond.
Scott Angus
Editor

420
Nov 20, 2008 at 2:49 p.m.
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I am an employee of Lab Safety and this article couldn't be any further from the truth. This article was based on much speculation and not accuratley portrayed. This objective is viewed as a growth opportunity for both Lab Safety Supply and Grainger. This objective is posted on our intranet where the real truth can be found. I have been putting off my decision to cancel my subcription to the Gazette but this article help me to speed up my decision.

involvedparent
Nov 20, 2008 at 2:42 p.m.
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They are NOT merging....this has been discussed with several groups of employees. Jobs are not going to be lost. Economic times make it necessary to pool resources with vendors and publishers. The gazette took a Webcast of a meeting with Grainger/Lab Execs and took what they wanted from it. No the Lab execs did not return calls because they WERE AT THE SAME MEETING! DUH! You can't call 10 minutes after the meeting is webcasted and expect a response. The gazette is a negative source of information on a daily basis, but that follows the trend of every news agency across the country. They hunt for the negative stories and occassionally throw in a heart-warmer.

Flipside
Nov 20, 2008 at 2:41 p.m.
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Reading this story only illustrates the power the media has in our lives. The speculation expressed has a certain tone. That tone certainly influences the reader, and leads them down the garden path to doom. Makes me wonder just how much the media has influenced the current economic situation? The people that write, edit and publish this information are considered professionals. How it was presented here is not consistent with that premise.

Unidentified
Nov 20, 2008 at 2:31 p.m.
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This is obviously just my personal opinion here based on what I've seen happen in the past in these situations: History tells us that any time two groups merge it typically means layoffs. This statement "one product line, one supply chain, one e-commerce operation, one catalog operation and one sales force, he said" says it all. If you combine two divisions into one, most companies will seek to reduce staff. However, should this provide more growth overall, then layoffs would be unnecessary. Though I would suggest sales growth would have to happen rather quickly. This also doesn't mean Lab in Janesville will shut down completely or that there will be massive layoffs. It could just be a few positions that could get eliminated. The fact that they won't make statements on staff levels is another telling detail. If they had no intention of laying off, they'd state that openly. They are probably taking a wait and see approach. There is some level of cost savings sought after here. For company officials to make it sound as though they are only looking out for the good of Lab Safety division seems a bit more like propaganda. If I worked at Lab, I would certainly take anything I'm told from management at face value and keep my eyes and ears open. I hope for Janesville's and Lab employees sake this doesn't result in layoffs.

mylife
Nov 20, 2008 at 2:18 p.m.
(This comment was removed by the site staff.)
3BD
Nov 20, 2008 at 2:14 p.m.
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Hey Scott, "The statements were made"? I didn't hear a statement from that meeting saying 900 jobs were in jeopardy or anything of that sort. But I see that statement has be conveniently removed from this morning's version. Maybe you should clean up your articles before you publish them.

photogal
Nov 20, 2008 at 1:46 p.m.
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i agree with 031103. Being an employee of Lab, this was a bit of a shock to some co-workers. Some departments had been informed of the "merger" for lack of better words and some had not. This is a positive turn of events in the fact that there should be no layoffs and we will continue to dominate the industry.

leaderofthepack
Nov 20, 2008 at 1:44 p.m.
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"Changes to Lab Safety Supply are putting into question the fate of over 900 jobs in Janesville."

Nope, no sensationalizing here, no sir.

"That statement could be interpreted two ways: Lab Safety products in Janesville will be duplicated in Grainger warehouses, or Lab Safety products will be moved out of Janesville."

Just good solid reporting here. Yup, no negative speculation in that statement.

Perhaps instead of backing up sketchy reporting and printing fringe truths because one understands that's what sells newspaper, it would be nice to see Mr Angus show the intestinal fortitude that an Editor is supposed to have and require articles worthy of print in the Gazette, rather than the Enquirer. Angus is more of a buddy to his staff than a true editor and boss. To make reference to a company estimating sales and revenues to be within + or -5% of last years levels and then to make is sound as if Lab Safety is in dire straights is poor reporting.

I'd like to know how long did the Gazette wait for comments from Lab Safety executives? Was it really such a hot topic that someone else would get the story out before the Gazette? My guess is that this was published with sole intention to stir things up at the Gazette, and it seems to have done what you wanted it to. I can't understand how this column does any good for either Lab Safety or the Janesville Gazette. And to say it's the Gazette's duty to report the news is the same pat answer and excuse Mr. Angus uses for all of the attempts his staff makes to create news rather than report it. If you go back and read any of his replies when the reporting is subpar or as in this case, just an attempt to damage the reputation of a business, you will see the same lame attempt to hide behind this excuse.

dvlgirl
Nov 20, 2008 at 12:55 p.m.
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031103: anyone with a brain can see that the employment at Lab is unclear due to this news. Do you really think that Lab has nothing to worry about? It's possible that business will go on as usual, but it's also possible that they will need to cut employees. No one knows at this point which is what 'unclear' means. If you hate this paper and how they publish news so much then stop reading it.

sangus
Nov 20, 2008 at 12:35 p.m.
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Gazette critics,
The meeting was held. The statements were made. The Gazette contacted Grainger officials and gave them every opportunity to provide context. The story reports what they said. Lab Safety officials chose not to return calls.
So we had two choices: Ignore the meeting and statements and pretend they never happened. Or do our best to report what was said and allow company officials to explain.
We are in the information business.
This story will play out over time, and we will cover it as it does.
For now, the facts are that Grainger and Lab Safety are combining two supply chains into one, and the impact on employment in Janesville is unknown. The story reports those facts accurately. There is no sensationalism, and we've offered as much context as company officials would provide.

Scott W. Angus
Gazette editor

Zoom
Nov 20, 2008 at 12:33 p.m.
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The Gazette article is not sensational. Where does it say people will lose jobs? By the way, the meeting the Gazette summarized is 2 1/2 hours long!

However, listen to the W.W. Grainger webcast, and skip to about 1 hour, 8 minutes in.
http://invest.grainger.com/phoenix.zhtml...

There, you will hear things like (not direct quotes):
-$70 million to $100 million in incremental revenue.
-$20 million to $30 million in cost savings over the next 18 months.
-combining our businesses.
-reduce cost structure redundances, in areas of supply chain, e-commerce, direct marketing, HR, finance, IT.

Basically, Grainger wants to offer Lab Safety products through Grainger on the east and west coasts, and consolidate cost structures to eliminate redundancies.

sxgdss
Nov 20, 2008 at 12:18 p.m.
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In a county where we are losing a employer which has employed families for generations. Which in turn will result in many other employers closing. Many people who work at Lab Safety have spouses/signifigant others/family members who are losing their jobs. Thanking God daily they work for a company which isnt GM or related, so they may be able to have food on their table and a roof over their heads. A story like this sends shock waves through those who work at Lab Safety.
"Lab Safety products in Janesville will be duplicated in Grainger warehouses, or Lab Safety products will be moved out of Janesville." "In an effort to prop up an underperforming Lab Safety Supply, company officials said Wednesday they will combine the business with another that operates warehouses across the country" These two statement alone with no true context surrounding them sounds like Lab Safety is closing. That is sensationalism and unprofessional.

bewildered19
Nov 20, 2008 at 12:04 p.m.
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What's so bad about +/- 5%? How is everyone else doing in the current recession? Anyone check Grainger's sales forecast?

chelleandlou
Nov 20, 2008 at 12:04 p.m.
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I worked at LSS when Hedbergs owned the company and after Grainger purchased the company. The difference was night and day.

The way I interpret this is that Grainger has run LSS into the ground. Which I think is sad. Hedbergs were wonderful people to work for. I bet this news will hurt them.

Zoom
Nov 20, 2008 at 11:53 a.m.
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"Zoom, they are forecasting future earnings..."

I know that. They could also pick a number, since it's only a "forcast". Seriously, plus or minus 5% is not a forcast, it's a c.y.a.

skidoo1600
Nov 20, 2008 at 11:44 a.m.
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Spinmaster...Listen to the streaming web cast of the analyst meeting that was held at Grainger yesterday (which is the where this article originates from). Once you have finished, there is no way you can tell us the Gazette isn't putting a negative spin on the comments made in that meeting. This webcast is straight from the top executives at WWG and it doesn't convey the same negative feeling the Gazette likes to create.
http://invest.grainger.com/phoenix.zhtml...

janesvillean
Nov 20, 2008 at 11:37 a.m.
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Pretty standard business story. I don't know why people are projecting their own fears about the economy onto it. They are making some conservative revenue projections, because there really isn't any way anyone can be sure at this point what things will look like a year from now.

spinmaster
Nov 20, 2008 at 11:34 a.m.
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Well, then. You're obviously more intelligent, what with using words like "pejorative" in your comment. If you think you're so smart, then maybe you should start your own newspaper. I assume it would be fair and balanced, right? I love how everyone complains about unfair/unbalanced/unethical/unprofessional coverage if it's not his or her opinion that is being upheld. Sensationalist or scandal mongering? I hardly see how. Maybe you can enlighten us...

skidoo1600
Nov 20, 2008 at 11:13 a.m.
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sxdgss...I couldn't agree with you more...the Gazette has practiced this type of journalism for years. It is unfortunate they cant figure out a new way to sell newspapers:(

sxgdss
Nov 20, 2008 at 10:51 a.m.
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yellow journalism pure & simple...yellow journalism is a pejorative reference to journalism that features scandal-mongering, sensationalism, or other unethical or unprofessional practices by news media organizations or journalists.

Opinionsforfree
Nov 20, 2008 at 10:43 a.m.
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Those are some great guys and gals

Opinionsforfree
Nov 20, 2008 at 10:42 a.m.
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I hope nothing happens to their IT Staff

skidoo1600
Nov 20, 2008 at 9:38 a.m.
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Zoom, they are forecasting future earnings...unless you are willing to share your crystal ball with company officials predictions are all we can expect. Take a look on the economic climate and ask yourself why it may be hard to come up with a sales forecast closer than + - 5%????

Zoom
Nov 20, 2008 at 9:18 a.m.
Suggest removal

"The company said 2008 fourth-quarter sales will range from 2 percent below to 2 percent above 2007 levels, while 2009 revenues are expected to range from 5 percent below to 5 percent above 2008 levels."

Wow, could they be less specific?

Cryptic and unnerving is an understatement.

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