Sales in the power transmission distribution industry have been up and down this year, much like the economy, according to industry reports and the Power Transmission Distributors Assn. Two distributors agreed and said continued success would depend on keeping current customers satisfied and deepening the relationships they have with those customers.

A small distributor with one location, Rowland Co., sells brake and clutch components for MRO markets that include naval shipyards and steel mills. Sales have been spotty, according to general manager Helen Yost.

"We've had a half year that was very bad followed by a half year that was quite good. Still, 2002 will be down one or two percent," Yost said.

She noted that the company's most consistent business is due to orders in its niche market: assembling components, supplying custom-application assemblies and engineering redesigns for customers. Customers who depend on complex items and engineering expertise are more likely to stay with the distributor who fulfills those needs in the most timely manner, she said.

Consolidation of vendors has not been a problem for Rowland, Yost said. However, if another distributor gets comparable lines of products, or is given the lines Rowland has due to consolidation, she admits it could mean trouble.

"I can see that doubling up distributors in an area could affect the situation very badly for someone like Rowland," she said.

Yost expects more of the same in the coming year: customers who have deep, long-term relationships will continue to support independent distributors.

"We know there are good orders out there just about to be approved," she said. "We expect those to help, but the real upswing will be customers' new projects opening up and the world quieting down."

Dave Witwer, general manager of Minarik Corp. Midwest in Cleveland, Ohio, said his company experienced a sales year much like that at Rowland. Minarik experienced slow sales until July, when some OEM orders from two large customers helped boost sales figures substantially. Witwer said that his company's sales in 2002 spotlight the importance of adding value and deepening relationships with current customers.

"What will keep all distributors going is better service to their current customers," he said.

Minarik has not experienced problems from the consolidation of vendors or customers. Two of the company's customers left the area, but two new ones set up plants recently and the net effect is negligible, he said.

"Actually, vendor consolidation has opened opportunities for us because we have 18 locations and can get most products, stock them and deliver very quickly," Witwer said.

The most important tenet to follow in the economy is the deep relationship with the customer, which Minarik and Rowland both nurture. Minarik's OEM contracts involve modifying, assembling and testing DC motors and drives for longtime customers.

"We built the drives for a long time, then the customer asked if we could supply the motors, too," Witwer said. "We did everything we could to get that accomplished."

In the coming year, Witwer expects the same roller coaster ride in the economy but, hopefully, with higher ups and not as deep valleys.

"It's the good relationships that will keep us going," he said. "I wouldn't want to be out looking for a bunch of new customers today."

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