Month: May 2019

Mouser Electronics Expands Local Customer Service Support in Brazil

Post author By David Mazor
Post date May 16, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc., the industry’s leading New Product Introduction (NPI) distributor with the widest selection of semiconductors and electronic components, is expanding its Customer Service Center operations to Brazil.

The new customer service team — Mouser’s first in South America — will support electronic design engineers, buyers and hardware innovators across Brazil, helping them to locate the newest products for their designs.

“This is a very exciting expansion of our services. We see offering a local customer support presence here as an important contribution to innovation, design and manufacturing in a thriving region,” said Mark Burr-Lonnon, Mouser’s Senior Vice President of Global Service & EMEA and APAC Business. “We look forward to the opportunity to serve our customers in Brazil with best-in-class local service and fast delivery of the newest products and leading technologies from more than 750 manufacturers.”

Mouser’s new customer service operations in Florianópolis, Brazil, will have a full-service staff of team members, conversant in Portuguese and English, onsite to personally assist with orders, answer technical questions and respond to customer calls from across country.

Unlike many distributors, Mouser takes a centralized approach with a single distribution center that streamlines operations, helping customers get their vast selection of the newest products and overall inventory first and faster. After experiencing several years of record business growth, Mouser is breaking ground on another major expansion at its global headquarters and distribution center in Texas. Once complete, Mouser’s campus at its global headquarters will encompass more than one million square feet of office and warehouse space, stocking over one million different electronic components for quick delivery worldwide.

With its broad product line and unsurpassed customer service, Mouser strives to empower innovation among design engineers and buyers by delivering advanced technologies. Mouser stocks the world’s widest selection of the latest semiconductors and electronic components for the newest design projects. Mouser Electronics’ website is continually updated and offers advanced search methods to help customers quickly locate inventory. Mouser.com also houses data sheets, supplier-specific reference designs, application notes, technical design information, and engineering tools.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Tags Mouser Electronics

Acquisitions Marmon Group

Berkshire Hathaway Acquires Transco Railway Products

Post author By David Mazor
Post date May 14, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway’s Marmon Holdings, Inc. has announced the acquisition of Transco Railway Products Inc., a railcar repair business with operations across the northern U.S., from Transco Inc. Financial terms were not disclosed.

Chicago-based Transco Railway Products provides railroad tank car and freight car repair and maintenance, auto-rack certification, and hopper car cleaning at seven repair shops located in the Great Lakes region, Iowa, and Montana. The company also provides components to the freight car industry from a fabrication site in Ohio. The business was founded in 1936 as a provider of replacement parts for railcars.

The acquired company will continue to operate as Transco Railway Products within Marmon’s Rail & Leasing sector, whose companies provide railroad tank car manufacturing, leasing, and repair services; intermodal tank containers; in-plant rail switching and loading/unloading services; track installation and maintenance services; and steel tank heads and cylinders for markets including energy, chemical, petrochemical, agricultural, and transportation.

Marmon’s Railcar Repair Services group offers the largest railroad tank car repair and maintenance network in North America.

“We are excited to acquire a company with such a solid reputation in the railcar repair arena,” said Bill Merrill, President of Marmon Railcar Repair Services. “Our goal is to leverage Marmon’s resources to help Transco Railway Products expand its business in both freight and tank car repair.”

Bob Nelson, current President of Transco Railway Products, will continue to lead the business. “We have significantly invested in our repair network over the past several years, allowing us to grow,” Nelson said. “With Marmon’s backing, we look forward to further growth to better serve our existing and new customers.”

Marmon Rail & Leasing is part of Marmon Holdings, a global industrial organization comprising 10 diverse business sectors and more than 100 autonomous manufacturing and service businesses with revenues of more than $8.1 billion in 2018.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Tags Marmon Group

Mouser Electronics

Mouser Electronics Opens Customer Service Center in Poland

Post author By David Mazor
Post date May 14, 2019

(BRK.A), (BRK.B)

Mouser Electronics, Inc., the New Product Introduction (NPI) leader empowering innovation, has announced the opening of a new European Customer Service Center.

Situated within the historic city of Wrocław in western Poland, the new center will support increasing design activity driven by Poland’s ever-growing number of engineering experts as well as its established industries.

Mark Burr-Lonnon, Mouser’s Senior Vice President of Global Service & EMEA and APAC Business, noted, “In 2018, Mouser’s business in Poland grew significantly. Poland is a major manufacturing area with a large amount of activity, especially in the original equipment manufacturers (OEMs) and electronics manufacturing service (EMS) sectors. We are looking forward to growing our business and supporting our customers with a local office and staff.”

In 2018, Mouser saw its European business surge by almost 50 percent with an 18 percent increase in customers. To meet this growing demand, the company’s new Customer Service Center in Poland will have a full-service staff of team members onsite to personally assist with orders, answer technical questions and respond to customer calls, all in local language, time zone, and currency.

The Poland center is Mouser’s 10th office in Europe and 24th globally.

As the global authorized distributor with the newest semiconductors and electronic components, Mouser gives design engineers, buyers and innovators easy access to the newest electronic components and comprehensive design resources. The Services and Tools site available on mouser.com makes it simple for customers to search for products, personalize their orders and access their previous purchases, helping to speed time-to-market.

Tags Mouser Electronics

BNSF

BNSF Recovers from Midwest Flooding, but Rising Waters Still Limits Some Routes

Post author By David Mazor
Post date May 13, 2019

(BRK.A), (BRK.B)

While much of BNSF Railway’s traffic has been restored to normal after this spring’s record flooding, BNSF continues to have flooding issues in some areas.

According to the company, BNSF teams have been responding to flood-related track outages in Oklahoma and Kansas following heavy rainfall from a mid-week storm. Several inches of rain in a 24-hour period caused track washouts, or high water locations, on multiple BNSF subdivisions.

The Walnut River at Winfield, Kan., where our Douglass and Arkansas City subdivisions intersect in southeastern Kansas, rose by nearly 30 feet in less than 36 hours and peaked at eight feet above flood stage Wednesday evening.

Portions of both subdivisions, which serve as key route links for traffic moving between the Midwest and Texas, are out of service. The La Junta Subdivision, which runs between southeastern Colorado and eastern Kansas, is also out of service at Halstead, Kan., just west of Newton, due to flood gate closures. BNSF is re-routing some traffic to minimize these disruptions as much as possible.

In the Midwest, service was restored this week on a portion of the Hannibal Subdivision running between Burlington and Fort Madison, Iowa. Approximately 120 miles of the Hannibal Subdivision north of St. Louis remains out of service due to current Mississippi River water levels and flood gate closures. Nearly 100 miles of the River Subdivision, running adjacent to the Mississippi River south of St. Louis, also remains out of service.

As the river recedes, BNSF currently estimates 90 miles of the Hannibal Subdivision to reopen next week, with the remaining 30 miles between Keokuk, IA and La Grange, Mo. reopening the following week. Any significant rainfall or storm events, however, may affect service restoration estimates.

In Nebraska, restoration work on the Napier Subdivision between Pacific Junction, IA and Napier, Mo. continues to progress on schedule. Another 20-mile zone is expected to reopen next week and the full subdivision by the end of the month.

The average number of trains holding increased significantly versus the previous week due to the additional flooding-related outages as well as track work taking place on our Galveston Subdivision, which has caused delays to traffic moving through central Texas. BNSF crews have been conducting ballast replenishment and surfacing work on our main line in two locations southeast of Temple. We expect to generate improved velocity and train flows through this area during the next few days once restoration work is completed.

They also note that excessive rainfall is likely through the weekend across southeastern Texas, including in the Houston complex, Louisiana and other areas of the lower Mississippi River Valley. Much of this region could receive more than one month’s worth of rainfall by the end of the weekend. BNSF operations teams are monitoring water levels in flood-prone areas and are ready to quickly respond to any service disruptions.

Tags BNSF

Dairy Queen

China Key to Dairy Queen’s Dramatic Growth

Post author By David Mazor
Post date May 10, 2019

(BRK.A), (BRK.B)

That most iconic of American brands, Dairy Queen, is growing fast far from American shores.

Of Dairy Queen’s 394 new locations, 331 are international, and China is the number one market for growth with 194 new outlets.

The growth in China isn’t new, as the frozen treat purveyor added 150 locations in China in 2017.

“This year we will open our 1,000th location,” President and CEO Troy Bader explains. “And we opened our 500th location in China and 100th in the Philippines.”

While frozen treats remain the primary attraction, the tea and smoothie lines are a big hit in China. DQ has worked hard at tailoring products to local tastes. While the All-American hot dog is a hit, it’s been flavored and spiced for the Chinese palate. The same has been down in the beverage category, with Okinawa Black Sugar especially popular.

Fruit flavors such as apricot, peach and durian are also popular.

Tea is also used in its frozen desserts, with Ceylon black tea blended in with ice cream as one of its Blizzard menu items.

Much like in the U.S., DQ in China is doing well with food, frozen treats, beverages and cakes. However, they feature additional snack items, such as chicken wings and bone-in drumsticks. They also have a popular spiced gravy that goes on French fries.

Bader believes there’s lots of potential for growth in China, and the numbers clearly back that up.

Tags Dairy Queen

Acquisitions Clayton Homes

Clayton Homes Acquires Ninth Site Builder

Post author By David Mazor
Post date May 9, 2019

(BRK.A), (BRK.B)

Berkshire Hathaway’s Clayton Homes, the leading builder of manufactured homes, is quickly becoming a big player in the site built home business. Clayton has acquired Highland Homes, a Florida home builder that is the ninth home builder acquired by Clayton in just three years.

In its 23rd year, Highland, which is based in Lakeland, Florida, is headed by the father and son team, Bob and Joel Adams. Both will be staying on to run the company under Clayton.

The builder will join Clayton Properties Group, a division of Clayton Home Building Group that is based in Maryville, Tennessee.

Highland’s focus is on the low and midprice market, which fits with Clayton’s market approach for its site built homes.

“We are thrilled to join Clayton Properties Group’s family of builders,” said Joel Adams, Highland Homes’ executive vice president, in the statement. “The partnership with Clayton opens up tremendous opportunity for our team members to continue our focus on building high-quality, affordable homes in Central Florida with a strong emphasis on customer experience and market growth.”

Ranked 75th on the 2018 Builder Magazine’s Builder 100 list, Highland built 800 homes in 2018, and is aiming to construct 980 in 2019.

Tags Clayton Homes

Insurance

Berkshire Launches New Comprehensive Small Business Insurance Brand, “THREE”

Post author By David Mazor
Post date May 8, 2019

(BRK.A), (BRK.B)

Why is small business insurance so complicated? It’s a question that Berkshire Hathaway’s out to answer.

Boasting a simple, plain English approach, Berkshire Hathaway’s new insurance Brand, THREE, is looking to make small business insurance a more straight forward and lower-priced product.

Traditionally, small businesses seek separate coverage for business property, professional liability, worker’s compensation insurance, commercial vehicles, cyber coverage, and directors and officers coverage, but THREE is looking to modernize coverage by offering comprehensive insurance that covers all of these areas.

THREE is a brand of Berkshire Hathaway Direct Insurance Company, and a company representative says it will save customers roughly 20% over the cost of these insurances purchased separately.

With an inclusive policy, the company notes that customers will be less likely to find that they have gaps in coverage despite owning multiple policies.

“Most policies take pages and pages of legalese to tell you what’s not covered,” a THREE representative noted. “Our three-page, plain-English policy eliminates all that by making it comprehensive.”

For now, THREE is available in Connecticut, Illinois, Nebraska and Texas, with the plan to be available in most states by 2020.

Tags Insurance

Brooks

Brooks Running Company Opens New Distribution Center

Post author By David Mazor
Post date May 7, 2019

(BRK.A), (BRK.B)

Brooks Running Company has opened a new, world-class distribution center that allows it to deliver product to runners and retailers faster than ever before.

Based in Whitestown, Ind., the facility serves as the Brooks North American distribution center and will employ more than 130 people by 2023.

“Opening our new distribution center is an exciting and crucial step on our journey to become the No. 1 choice for all who run,” said Jim Weber, CEO, Brooks Running Company. “We don’t want anything to get in the way of a great run, and that includes excessive wait times for new gear. Our team has thoughtfully created a center that streamlines this part of our supply chain, benefitting our retail partners, runners and the environment.”

With almost 60 percent of the U.S. population living east of the Mississippi River, the new distribution center allows Brooks to get product to more runners and retailers in less time. Additionally, the majority of orders placed on BrooksRunning.com are shipped east of the North Dakota-Texas line. By moving the Brooks distribution center to the Midwest, most orders will now arrive to runners within three days via ground shipping. Energy efficiencies in the building’s design and the proximity to more runners will result in an approximate 50 percent reduction in carbon emissions when compared to operating out of the previous distribution center in Sumner, Wash.

The new distribution center spans more than 400,000 square feet with expansion capability to facilitate future growth of the brand. It features state-of-the-art systems and automation to improve order accuracy and more efficiently flow inventory in and out of the center and better meet demand. Brooks’ new distribution center is fully operating now and servicing customers across the continent.

Tags Brooks

Acquisitions Clayton Homes Special Report

Special Report: Kevin Clayton Transforms Clayton Homes

Post author By David Mazor
Post date May 6, 2019

(BRK.A), (BRK.B)

“Would you believe where we are after just three years,” Kevin Clayton, president and CEO of Clayton Homes, says about the company’s move into the site builder business.

It’s a business that Clayton is growing rapidly, and he just acquired Highland Homes in early May, a Florida home builder that is the ninth home builder acquired by Clayton in just three years.

It’s all part of an increasing emphasis on site built homes for the low and midprice market, notes Kevin Clayton.

“It’s a market that has an average price point of $318,000, Clayton says, “which is well under the national average of over $400,000.”

Clayton Homes, which runs its site builders under its Clayton Properties Group, a division of Clayton Home Building Group that is based in Maryville, Tennessee, is already ranked 18th on Builder Magazine’s Builder 100 list and rising fast.

Clayton Homes has been named “Builder of the year” for 2019. It’s an award that really pleases Kevin Clayton.

“To think we weren’t even in that business three years ago,” Clayton says proudly.

Clayton is looking to acquire more site builders, but notes they must meet four criteria.

“First, the owner must be willing to stay around and work,” Clayton says. “Second, they must have survived the last recession; third, they must focus on building low and midprice houses, and fourth, but not least, they must be customer focused and really care about the customer experience.”

Clayton Homes was founded in 1956, by Kevin Clayton’s father Jim Clayton, and Kevin Clayton has led the company since 1999, when he took over from his father.

Acquired by Berkshire Hathaway in 2003 for $1.7 billion, Clayton Homes has grown into a diverse builder offering traditional site built homes, modular homes, manufactured homes, tiny homes, college dormitories, military barracks and apartments.

Improvement in Manufactured Homes

Kevin Clayton is also positive about his manufactured homes business, which he emphasis use the same 30-year shingles as a traditional site built home.

“We don’t have metal roofs anymore,” Clayton says. “Our manufactured homes have a lifespan that’s the same as a site built home.”

Clayton is also building a new type of manufactured homes, for now dubbed New Class Homes, which meet Fannie Mae and Freddie Mac standards. By qualifying, borrowers have lower down payment requirements and lender fees. The homes qualify for a MH Advantage loan, and must be “designed to meet specific construction, architectural design and energy efficiency standards,” according to Fannie Mae.

The move dramatically reduces the amount of down payment borrowers have to come up with. MH Advantage loans require a 3 % down payment, down from 5% previously. In addition, Fannie Mae does not charge its 50-basis-point loan-level price adjustment for manufactured housing loans.

“New Class Homes represent only a couple of percent of our revenues right now,” Kevin Clayton says, but he sees lots of rooms for growth.

The overall manufactured home business is strong.

“The manufactured home business is up 6-7 percent this year,” Clayton says.

Clayton emphasized the environmental advantages manufactured homes, which produce far less waste than traditional site built homes.

“All our 42 facilities are ISO 14001 certified, which is all about environmental standards,” Clayton says.

ISO 14001 is the international standard that specifies requirements for an effective environmental management system.

Clayton has moved much of its supply chain in-house, building more of its own components.

“We build our own windows,” Clayton notes.

Why Consumers Buy Manufactured Homes

It’s a type of housing that opens home ownership to a broad range of consumers that are locked out of housing market as traditional home prices have skyrocketed.

“Fifty percent of people we help with a home would not qualify for Fannie Mae or Freddie Mac mortgages,” Clayton says.

A big part of that access to homes is the greatly lower price point. A manufactured home can be purchased for $69,000 and has an average cost of only $116,000 with land.

“In rural America there’s not a lot of apartment options,” Kevin Clayton notes. “Many of our customers have been living with family, and are looking for an affordable way to live on their own.”

Clayton especially notes the popularity of manufactured homes for five-acre ranches.

“Where there’s land, we shine!”

Tags Clayton Homes, Special Report

Berkshire Hathaway Energy

NV Energy CEO Lauds New Nevada Bill Increasing Renewable Portfolio Standard to 50 Percent

Post author By David Mazor
Post date May 3, 2019

(BRK.A), (BRK.B)

NV Energy officials were on hand last week as the Governor of Nevada signed into law Senate Bill 358, which increases Nevada’s renewable portfolio standard to 50 percent by 2030.

“NV Energy has been vocal about our aspirational goal of providing our customers with 100 percent renewable energy, and this is an important next step in accomplishing that,” said Doug Cannon, NV Energy president and CEO. “We announced our support of the renewable standard increase in 2018 and are honored to have worked closely with Governor Sisolak, Senator Chris Brooks, who was instrumental in leading this effort; and other stakeholders to accomplish this so early in the legislative session.”

The company’s 2018 announcement that it planned to add six more large-scale solar projects, three of which will include battery storage for the first time, reinforced its commitment to add more low-cost solar to its energy mix.

NV Energy also recently submitted its annually-required renewable portfolio standard (RPS) compliance filing to the Public Utilities Commission of Nevada, which stated that the company had exceeded the current RPS requirement for the ninth-straight year. Instead of the 20 percent required today, 24 percent of the energy the company provides is generated from renewable resources.

Nevada is a leader in renewable energy, ranking fourth in solar and second in geothermal.

NV Energy has fostered renewable development since before a renewable standard was put into place, having signed its first geothermal contract in 1986. Thanks to expanding renewable energy serving its customers and the retirement of coal-fueled generation in Nevada, Nevada experienced an 85 percent reduction in coal-fueled carbon emissions from 2005 to 2015.

During that same period, Nevada reduced carbon emissions from the electric industry by 44 percent.

“Our company has made great strides over the last decade to increase our use of clean energy resources and reduce our carbon footprint, all while keeping costs low for our customers. Today signifies another step in building Nevada’s a clean energy economy and we’re proud to be one of the leaders in that effort,” added Cannon.

Tags Berkshire Hathaway Energy