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Petroleum Quality Institute of America

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November 10, 2010

The First and Only Independent Newsletter to Focus on Lubricant Distributors.

Your needs, your concerns, your outlook. No bias, no fluff and no punches pulled. Whether it's buy backs or brand battles, allocation of co-op ads, operating costs or turf wars, Jobbers World keeps you on top of the issues that matter to YOU: The Lubricant Marketers!

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Mid-town Petroleum, Oil Distributing Company, The Hurt Company, and Pumpelly Oil, Join Forces To Provide First-Of-Its Kind Equipment Reliability Products and Services Platform

A rapid transformation is taking place among commercial and  industrial businesses that rely on critical manufacturing, transportation and process equipment in the United States, prompting an unprecedented response from four leading lubricant product and services companies. Backed by the international private equity investment firm AEA Investors LP, Mid-town Petroleum, Oil Distributing Company, The Hurt Company, and Pumpelly Oil have joined forces to form RelaDyne, Inc. The new company offers an industry-leading comprehensive platform of products and services to fulfill the unmet customer needs of industrial and commercial equipment users, as well as service centers in the automotive sector.

According to RelaDyne Board Chairman Tony Castor, research shows U.S. industry wastes at least $600 billion per year on inefficient and ineffective equipment maintenance. RelaDyne was formed to create the market leader in providing the necessary products and services to help companies achieve "best-in-class" equipment reliability performance levels and a greater return on commercial and industrial equipment assets, which is vital to their business profitability and success.  "In addition to the company's established distribution network and customer service capabilities, RelaDyne will distinguish itself from competitors with a focus on value-added services," said RelaDyne Chief Executive Officer Larry Stoddard.   These Field Reliability Management (FRM) service offerings are organized as a separate group within the company and provide customers with a suite of comprehensive solutions to improve equipment up-time, production output and bottom-line profitability.

RelaDyne was built upon the solid foundation of four successful businesses - Mid-Town Petroleum, Inc. (Bridgeview, IL); Oil Distributing Company (Cincinnati, OH); The Hurt Company, Inc. (Houston, TX) and Pumpelly Oil Company (Sulphur, LA).  Combined, they have more than 225 years of experience in the lubricant products and related equipment reliability services industry.   "These RelaDyne founding businesses have been successful because they've always listened to their customers' needs and provided innovative solutions to make their business operations more reliable, productive and profitable," Stoddard said. "This is the solid, customer-centric foundation upon which RelaDyne is built."

Industry Focused Sales, Market Expansion

The initial RelaDyne sales, distribution and services platform is strategically located within the central corridor of the United States, a territory that accounts for approximately 50 percent of the U.S. lubricant market.  RelaDyne operates 12 distribution centers in eight states within this corridor throughout the Midwest and Gulf Coast regions, and is expected to deliver more than 16 million gallons of lubricants in 2010.

RelaDyne is investing in industry-dedicated sales professionals, field technicians, reliability solutions specialists and associate training, all of which will provide new career opportunities for existing employees, according to Stoddard.  There also are plans to eventually hire additional personnel to service its customer base, which is expected to grow significantly in the coming years, he said.

"One of the most attractive features of RelaDyne is that each organization brings a distinctive value proposition and core competency to customers," Stoddard said.  Mid-Town Petroleum excels in industrial sales and marketing, as well as the manufacturing of custom-blended specialty niche lubricants; The Hurt Company has built unparalleled expertise in FRM services and will be championing this offering at RelaDyne; Oil Distributing Company brings nearly three decades of sales and marketing experience in the automotive industry; and Pumpelly Oil Company has unmatched expertise in the commercial market and is a leading seller of diesel exhaust fluid (DEF), used to lower harmful diesel emissions in new truck engines.  The owners of each of the four founding businesses are assuming leadership roles at RelaDyne best suited to their skills and experience.

"I am excited about the potential to work with such a terrific group of entrepreneurs and help them take their successful platforms to the next level," continued Stoddard, who brings to RelaDyne significant experience in growing distribution companies.

Stoddard started his career with Ferguson Enterprises Inc. During his 27-year tenure, he was a vital part of Ferguson's growth which rose from $140 million to $11 billion in distribution of plumbing and construction-related products. During his career, he ultimately became COO of Ferguson's parent, Wolseley, which at the time was a $34 billion distributor of building products. He also has served as CEO of Bradco Supply, a leading roofing supply company in North America, and currently he is chairman of Crescent Electric Supply.

Jeff Hart, executive vice president of business development, added that the RelaDyne management team and its sponsors are committed to growing the company through a variety of initiatives, including exploring acquisitions in the distribution channel to further expand in targeted geographies and service-related businesses where there is opportunity to leverage RelaDyne's comprehensive business model.

Field Reliability Management

According to Jay Hurt, executive vice president for RelaDyne's FRM services platform, its rollout is the first of its kind in the industrial and commercial markets.  He said while most other lubricant distributors only distribute products, some try to provide training or consulting, but they cannot offer the scale nor breadth of solutions needed.  With its FRM capabilities, RelaDyne certified lubricant technicians work in the field at customer locations implementing innovative processes and services that keep plants, vehicles or machinery performing reliably, Hurt said.

The FRM platform includes such services as contamination control, assessing storage and use of lubricants, flushing and filtering lubricants for extended life, plant turnarounds, oiler outsourcing, as well as designing and implementing lubrication programs that create measurable results for greater uptime and cost savings.

"FRM will appeal to companies that in the past have lost valuable production time due to equipment failures, as well as organizations trying to increase profit margins by using fewer products and improving their efficiency," Hurt said.  "This includes companies involved in process manufacturing, utilities, food and beverage processing plants, mining equipment and commercial fleets, to name a few."

Hurt said one Texas oil refinery documented more than $1 million in cost savings over four years because of proactive steps recommended by his company. "Our customer was able to reduce equipment failures by 25 percent using only a piece of what we now call FRM," he said.

Stoddard said, "This is the first time that a one-stop lubricant product and equipment-reliability services provider has been available to customers in this industry.  RelaDyne makes it easier for our customers to acquire lubrication products and services.  Working with us, there is no longer a need to source from multiple distributors."

Click here for more about RelaDyne.

Say Good-bye to Mr. Goodwrench
Mr. Goodwrench, an automotive icon that became shorthand in American popular culture for anyone who can fix things, has gone the way of the rumble seat. GM said on Monday that it will retire the Goodwrench brand name on February 1 to "better connect" its customers with its four core auto brands.

The news was met with sorrow in the Motor City, with some writers noting that "Mr. Goodwrench is joining the ranks of Detroit's unemployed." But in reality, GM dropped the "Mr." in 1996 when the brand morphed into GM Goodwrench Service Plus.

"As part of the initiative to better connect General Motors' brands with customers, Chevrolet, Buick, GMC and Cadillac will each receive its own certified brand," said GM in a statement.

Automotive News reported that GM's North American marketing boss, Joel Ewanick, fired Goodwrench to clear out the "brand clutter."


Diesel Exhaust Fluid and Coolant Producer has an
Opening for Regional Account Manager/Outside Sales

Due to expanding business opportunities, we have a need for a Regional Account Manager / Outside Salesperson in Southern California as well as in Southern Texas to sell our branded antifreeze, coolant, and diesel exhaust fluid lines.  The Regional Account Manager works within the sales organization and their support teams for the achievement of revenue generation, and customer satisfaction that is in line with the company vision and values. 
 Click for more

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Copyright   2010 Petroleum Trends International, Inc.