To get a clear-eyed view of how the general sealant and gasket industries are doing, the Independent Sealing Distributors — and its executive director, Joseph Thompson, Jr. — always are good sources of information.

Based in Annapolis, Md., the ISD was started in 1992 by a group of sealant industry leaders who wanted to create a forum where distributors and manufacturers could present information and share related data and advice on issues affecting the sealing and gasket industry.

Many of ISD's members are small- to medium-sized companies, Thompson explains. Several are family-owned businesses. Today, many of these companies find themselves up against a number of economic hurdles.

"They are very focused on their own niches and unique markets," Thompson says. "Economically, some have suffered more than others. For instance, oil and gas-related fields in the south and southwest have had problems at some point. Many of them will rebound for a short time but just as rapidly go back into a decline."

By definition, small to mid-size distributorships "have little [economic] cushioning and, as a result, will have difficulty absorbing a hit in one area of the business while trying to keep focus on another area," he said. "It's easy to say they should concentrate on their core competencies, but if something impacts that specific niche, it strongly impacts that overall company."

ISD helps its members keep up with related news and resulting changes in its industries. Towards that aim, they are finalizing a survey done in conjunction with the Gasket Fabrication Assn. The ISD/GFA 2003 Industry Survey of Compensation and Key Performance will show members how their companies compare with their peers in the sealing and gasket distribution industry.

When reached at his Annapolis office in late September, Thompson was about to leave for ISD's 12th annual Meeting and Convention being held at the Coeur d'Alene Resort in Coeur d'Alene, Idaho. Informative workshops and comparing notes with peers are always beneficial, but certain realities will face ISD members when they return from their Idaho meeting. Competing when you're a small to mid-sized company is foremost among those concerns, Thompson says.

"Things have changed, such as the influence of integrated supply," he points out. "Companies that have staked their reputations on quality personal service with established clients and customers see these customers leaving and going elsewhere, mainly because they can be buying in quantities to save money or to lower transaction costs."

But as less can sometimes be more, Thompson says that many of the smaller distributors have a unique advantage, given the products they sell.

Many of the general sealant and gasket-related products, Thompson says, "aren't typically products that you simply take off a shelf and ship to customers. They are engineered products with critical applications that require precise and specific installation advice. That can make a difference in down time and injuries, for example."

The service a smaller company provides will, he hopes, see most of them through any economic crisis.

"Everyone has to work so much harder to make that sale these days," he says. "But while the product is one thing, being able to provide services and the technical expertise to go along with it is just as critical. And that's a big part of what we're about."