San Antonio—The Specialty Tools & Fasteners Distributors Assn. drew 3,800 people to its 25th Annual Convention and Trade Show November 11 to 13. Though attendance was down from the previous year, association officials said the turnout was on par with that of the 23rd Annual Convention, held in Denver in 1999.

STAFDA president Jim Smith acknowledged the economic and competitive challenges facing STAFDA members in his state-of-the-industry report, given during the convention's General Session at San Antonio's Henry B. Gonzalez Convention Center. He noted the weak industrial sector, the Fed's failed attempts to jump-start the U.S economy, and the simultaneous decline of the world's three main economic engines — Japan, Europe and the United States. And while the construction industry has remained relatively strong, he said competition from big boxes and others is still a challenge for many STAFDA companies.

Smith, president of Nail Fast, Inc., Albuquerque, N. Mex., issued a challenge of his own by urging members to rethink their business models.

"We need to develop a business model that strips out services that today's customers don't need and are unwilling to pay for," Smith said. "If most of your business is in products that have become commodities, without the need for engineering, design, installation, special maintenance, operating support, and so on, then the job of your sales reps needs to change drastically."

Smith's sobering message coincided with a STAFDA milestone. The group celebrated its 25th Anniversary last year, and had just come off a 10-year record of consecutive quarterly increases.

Challenge is nothing new to STAFDA members, though, according to former executive director Morrie Halvorsen. Halvorsen narrated a special video presentation during the General Session that chronicled the group's evolution from just 18 founding companies to the 2,600-members it has today.

STAFDA's 26th Annual Convention & Trade Show will be held in Anaheim, Calif., Nov. 10 to 12.