Expanding horizons
By Joseph M. Thompson, Jr. -- Industrial Distribution, 4/1/1999
NAHAD will focus on new initiatives and renew its commitment to well-established programs over the next three yearsNAHAD executive vice president Joe Thompson sat down with Industrial Distribution recently to talk about this year's convention, the economy and some of the trends and issues affecting hose and accessories distributors. The following are excerpts from our conversation.
Q: This is NAHAD's 15th Annual Meeting & Convention. What special programs and events do you have planned for members at the San Antonio meeting?
A: Over the past three to four years, our convention attendance has grown from approximately 650 attendees to over 950! We expect that trend to continue with this 15th annual meeting in San Antonio. Along with a really great business program lineup, featuring professional speakers and industry experts, we'll be having our convention at the same time that San Antonio is celebrating its annual Fiesta. This will provide a particularly exciting opportunity for our members to take in the sights and sounds of this special annual celebration downtown. Several of the tour events will include transportation to the River Walk, and a free shuttle will be provided on Monday afternoon, April 19, for those wishing to brave the Fiesta crowds.
On the business program front, we'll be having several member open houses featuring some of NAHAD's most exciting programs on Saturday afternoon. These will include special one-hour presentations on the NAHAD Executive Forum program, and the new NAHAD Institute program, the Manufacturer and Associate Council, and our annual International Committee meeting.
Q: Many economists and industry watchers are predicting cautious optimism for this year. How are things shaping up for NAHAD members on the economic front?
A: Most NAHAD members are impacted predominately by the particular industry group that they serve, whether it be the automotive market, mining and agriculture, maritime industries, etc. As those industry segments go, so goes the market for NAHAD members serving them. I know that some members were impacted over the past several months by the dumping of imported steel on the U.S. market and fluctuations in the automotive industries. On the whole, however, the diversity of the hose and fittings market makes it a fairly attractive segment of the industrial distribution marketplace, and allows many of our members to ride out slow spots that may occur in certain segments.
Q: Last year, the association announced its new educational initiative, the NAHAD Institute. How much progress has been made and what is the status of that program?
A: The NAHAD Institute program is probably one of our most exciting initiatives in several years. The initial intent of the program was to provide very specific guidance and support to our members who need to provide ongoing training and education opportunities for employees in order to help them to become more proficient, and to help those companies keep good employees.
Beginning in early 1998, NAHAD retained the services of a team of industry consultants to help develop a curriculum development model, the final draft of which was presented to our Training & Education Committee just recently. On Saturday afternoon, we will have a special presentation outlining the program model along with our future development of educational programs, methods to help member companies to target employee training needs, and the future potential for an industry-wide certification program.
Q: NAHAD's continued effort to create hose assembly standards was also stressed at last year's meeting. What is the status of that initiative?
A: The hose assembly standards development process has been ongoing for many years, an outgrowth of our concerns about safety and quality issues related to the fabrication of hose assemblies. Most of our member distributor companies fabricate assemblies as part of their "value-added" process. The intent of the Assembly Standards Committee is to provide basic benchmarks and guidelines for assuring that all hose assemblies will meet minimum quality and safety standards. This will be a real asset and benefit to our member companies, as well as to the end-users.
In 1996, the committee completed the development of the Flexible Metal Hose Assembly Standard. We have used that initial effort to model the other standards development activities that have followed. For the past two years we have been developing, concurrently, assembly standards for industrial, hydraulic, composite and PTFE hose assemblies. We expect to have all but the industrial group completed by the middle of this year, and the industrial component in late 1999 or early 2000.
Q: The association planned to update its strategic plan last year. What are some of the key goals outlined in that plan?
A: NAHAD's first official strategic plan was developed in 1995 and was updated at a planning session held last June, projecting our goals through the year 2002. The updated three-year strategic plan includes these targeted objectives:
* Establish the NAHAD Institute as the recognized source of industry training and education.
* Finalize and package the NAHAD assembly standards, achieve member acceptance and use of the standards, and market their value to end-users.
* Position NAHAD as a global association.
* Segment and analyze the different needs of members to target association programs and benefits effectively.
* Assist members in their understanding and use of technology.
* Capitalize on the potential of the NAHAD Web site.
* Maintain the association's financial position by maximizing the potential of the convention.
* Establish a related Education Foundation to support NAHAD educational efforts.
* Market NAHAD to the end-user.
* Expand member participation in the Executive Forum program.
I can say that most of our efforts over the next few years will be focused on further development of the NAHAD Institute program and completion of the hose assembly standards process. We also will continue to serve the needs of our industry, internationally, and our diverse membership to successfully meet the challenges of the changing business environment as we enter the new century.
Q: The International Committee will meet for the third time during this year's convention. What do you expect to come out of that meeting?
A: It has been extremely encouraging to see so many members from throughout the world relying on NAHAD as their industry association. I believe that the potential of that level of support and commitment can be used for some very exciting new program initiatives to help all of our members to become more successful in doing business globally. I fully expect to see NAHAD participate in international industrial trade shows, and/or to assist members in establishing direct contacts with international trading partners. We will also be using the NAHAD Web site as a conduit for information and connections to help members to get basic information on importing and exporting assistance.
Q: Finding and keeping good employees is a top concern for many in the industry. How is this issue affecting NAHAD members?
A: Certainly one of the key issues currently facing most companies nationally is maintaining a qualified and committed work force. One of the prime reasons for initiating the NAHAD Institute concept was to help address that particular goal.
NAHAD member companies of all sizes are feeling the pinch of being able to locate and retain qualified employees at all levels, be it warehouse, sales, technical support, etc. I believe that the concept of a NAHAD-sponsored industry certification program will go a long way to help to improve the professionalism of our industry, thus enabling employees to make longer term commitments to being part of this industry.
Q: Consolidation is another major trend in industrial distribution. What impact is this having on your members?
A: Every time one NAHAD member buys another NAHAD member, the association ends up serving the same employee group, but loses the support of a paying member unit. Obviously this is a concern to the association in terms of long-term shrinkage of available member companies. On the other hand, over the past several years we have seen the continued emergence of new companies, both distributors and manufacturers, domestic and international, seeking to join the association. Consolidation in this industry, and others, is simply a business reality. NAHAD will continue to monitor the level of merger and acquisition activity, and consolidation, as we keep our long-term strategic plans in focus.
Q: How do you see the role of technology impacting hose and accessories distributors? Specifically, what about the Internet?
A: Industrial wholesalers have been slower than other industry groups to adopt technology to full advantage, for a variety of reasons. Now that the Internet is beginning to be viewed as a business reality, nearly every company of every size is finding ways to get on the "information highway" to one degree or another.
NAHAD has encouraged the use and application of technology for many years, including sponsorship of electronic CD catalogues, CD-ROM based interactive training programs and, of course, the development of NAHAD's comprehensive Web site.
At this stage of the process, the association will continue to focus on technology applications and opportunities at our annual conferences and through our ResourCenter programs. The immediate concern for most companies however is the Y2K "millennium bug" which will become a more pressing concern as the year unfolds.
Q: What are the most significant challenges facing NAHAD members and how does the association plan to meet those challenges?
A: NAHAD has proven itself to be primarily a valuable information and education resource for the industry and will continue to support members' interests in these areas. One of the main challenges the association has in being able to adequately address member needs is to be fully aware of the various challenges facing the membership on a day-to-day basis. These challenges come in many forms: technology changes, the impact and growth of mega-distributors, the need to find and keep good employees, and the ongoing demands of business management, leadership and strategic planning.
Through its affiliation with other industry organizations and cooperatives, NAHAD has been able to stay on top of emerging trends and issues. As a member of the National Association of Wholesaler-Distributors, a founding member of the Association Education Alliance, a founder of the University of Industrial Distribution, and a participant in the Facing the Forces of Change studies, NAHAD has kept abreast of key issues facing the industry, and continues to support members on their road to success.
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