Getting down to business
At the I.D.A. Business Expo, 1,700 distributors and manufacturers showed up to find out what's happening in the world of industrial distribution
By Victoria Fraza Kickham, Managing Editor -- Industrial Distribution, 1/1/2004
As they do each year just before Thanksgiving, members of the Industrial Distribution Assn. and the Industrial Supply Manufacturers Assn. gathered in Chicago to talk business, network and learn about the newest trends and issues affecting the distribution industry. This year's meeting, called the I.D.A. Annual Distributor and Manufacturer Business Expo, saw a strong turnout, with 1,700 individuals representing 625 companies. The meeting was held at the Hyatt Regency O'Hare in Rosemont, Ill., Nov. 22–24.
Among the convention's highlights were a full day of workshops, a special seminar for small distributors, a keynote speech by former Harley-Davidson executive Ken Schmidt, and the conference booth program, where distributors and manufacturers met for one-on-one business discussions.
"This is the place where business gets done," I.D.A. president Jim Beckstein told attendees during the General Session on Sunday, Nov. 23. He emphasized the new name of the convention, calling it a streamlined, all-business event that is focused on "the three C's": cost-effectiveness, convenience and content.
Beckstein, who is president of Mill Supplies, Inc. in Ft. Wayne, Ind., went on to talk about the state of the industry, saying the economy is improving, manufacturing activity is up, and that industrial and construction sales are expected to rise this year. Though that is good news, he also pointed to employment problems and manufacturing moving offshore as business realities that distributors must deal with.
"We are witnessing a fundamental shift in world trade and competition," Beckstein said. "The fact is, this is a global economy—and it's here to stay."
He urged distributors to redefine their value in the marketplace—in particular, by providing more services to help customers save money and increase productivity.
"We are in a resurgent economy," he told attendees. "Get on board."
ISMA president Ray Reynertson talked about the state of the industry, as well. Reynertson, president and CEO of Sturtevant Richmont Div., Ryeson Corp. in Franklin Park, Ill., expressed frustration over the negative messages that pervade the news media—stories about excessive executive pay, insider trading, the spiraling cost of insurance, manufacturing moving offshore—and focused his remarks on the many opportunities available to ISMA and I.D.A. members as American companies.
"In our industry…it has never been more difficult to succeed," he said. "The market requires us to keep up—or better yet, step ahead, of the changes."
Addressing manufacturers, he said innovation has never been more important to their business; that efforts to export products have taken on a new sense of urgency; that's it's important to embrace international standards; and that they must show customers why American manufacturing is good.
As for distributors, he said they must get closer than ever before to end users; invest in technology; make sure customers know the value of domestic manufacturing; and consider exporting their expertise by working with customers offshore.
Both men said they were pleased with the convention turnout and urged attendees to make the most of the three-day meeting.
The General Session ended with keynote speaker Ken Schmidt, former head of communications at Harley-Davidson, who talked about the fall and subsequent rise of Harley-Davidson from the 1970s to the present. His motivational talk centered on the idea of doing things differently, connecting with customers and building your brand.
Content = ValueA key part of the "content" Beckstein referred to in his speech was the all-day workshop series, which took place on Saturday, Nov. 22. The workshops covered everything from succession planning to inventory management. A special roundtable session on market challenges was particularly well attended. Led by Brian Reynolds of Texas A&M University, the workshop was in a "rap session" format, with manufacturers and distributors identifying the most pressing issues facing their businesses and then discussing ways to address those challenges.
Attorney and CPA Bart Basi led a session on succession planning titled "Passing the Baton: Succession Planning for the Family or Closely Held Business;" Barry Lawrence of Texas A&M ran a session called "Inventory Management: 2-3 Controls for Improved Asset Management;" author and former salesperson Jim Pancero addressed sales issues in his workshop titled "Addressing the Challenges of Leading an Experienced Sales Team;" CPA Bob Langdon covered profitability issues with his session, "How to Get Paid: Are You Tired of 60+ Daze?"; and consultant Ann Phillips rounded out the day of workshops with her session on customer service, titled "Creating Raving Fans: Three secrets from Concept to Reality."
Small distributors had the added bonus of a special session geared towards their unique issues and concerns. Held first thing Sunday morning, the Small, Specialty & Emerging Distributor Roundtable Breakfast focused on distributors with less than $7.5 million in sales per year, and interested manufacturers. The session was titled "Delivering a Different & Better Message to Your Customers." It was moderated by consultant Bill McCleave, with a presentation by John Connor of Smartwords, a consulting firm that helps its clients develop better ways to deliver their message to customers.
Connor listed several ways to improve upon and deliver a corporate message. They included the need to be bold, capture the "big idea" in simple terms, and the idea that a company should take its message personally—and hope that others do, too. Two other highlights of the convention were the Supplier Booth Program, held on Sunday afternoon, and the Distributor Conference Booth Program, held all day Monday. Both sessions allowed trading partners to meet face-to-face.
I.D.A. and ISMA will meet next in May for the Industrial Supply Convention, or ISCON—formerly called the ISMA/I.D.A. Spring Convention. The meeting will take place in Orlando, Fla., May 23–25.


















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