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PTDA unveils new look at Industry Summit

Staff -- Industrial Distribution, 12/1/2004

The Power Transmission Distributors Assn. emphasized the importance of industrial distribution to the nation's economy as it met for the newly named Industry Summit, held Oct. 14–16 at the Contemporary Resort in Orlando. The theme of this year's summit was, "Distribution: What do you do again?" and speakers at seminars and workshops answered the question by providing more than 800 attendees with information geared to help manufacturers and distributors survive and thrive in today's marketplace.

In addition to the new name, the association introduced a number of changes to this year's summit (formerly the PTDA Convention). The format was restructured and condensed, a new logo and tag line titled "Channeling the Power of Industry" was introduced, and PTDA also displayed its redesigned Web site.

Overall reaction to the changes was "extremely positive," according to Mary Sue Lyon, executive director of PTDA, who explained that the changes came as a result of feedback from association members.

Keynote speaker Howard Putnam, former CEO of Southwest Airlines, described ways to transform an organization successfully and profitably. He said there were "new rules of engagement for businesses today," that focused on vision, business, culture and a renewed emphasis on long-term relationships and customer service.

He stressed the importance of "growing your people and developing and leading them," in order to achieve success.

One of the most well attended sessions was a panel discussion moderated by Mark Dancer of Pembroke Consulting, in which three distributors explained how they had increased sales and profits by charging for services they provide.

The panelists, Jeff Pickelman of Northern Industrial Products, Brad Fitzgerald of Binkelman Corp., and Stephen Crain of Apache Hose and Belting, described in detail the results they have achieved from selling services.

Pickelman, for example, said that in 1997 his company refocused its efforts on selling, servicing and repairing industrial air compressors. The results were remarkable: Revenues from the compressor business soared from $300,000 seven years ago to $2.5 million this year. Today, he said his company has seven service technicians on the company's payroll and a number of new customers who look to Northern for selling and servicing compressors.

Crain, president of Apache Hose, said his company realized years ago that their customers had fewer and fewer maintenance personnel on their payrolls. They recognized that situation as an opportunity, and today Apache provides a total maintenance program for conveyors for many of its leading customers. Those services include everything from vulcanizing belts to changing gearboxes.

Fitzgerald said that, three years ago, his company increased revenues and reduced costs for one major customer by instituting a spare-parts management program, which has saved that customer substantial money on repair services. He said employees should always be looking for ways to sell services.

"The best salespeople are the service technicians who have rapport with those in maintenance," Fitzgerald said.

Other speakers included consultant Bill Hodgdon, who described strategies for growing sales in specific targeted markets; Doug Levin of Prophet 21, who provided details on how to increase sales through technology; and Stephen Gold of the National Assn. of Manufacturers, who spoke on manufacturing trends occurring across North America.

Jack Neal of Root Neal & Co. was elected president of PTDA. He succeeds Don Latham of Canadian Bearings Ltd. Andy Nations of Bearings & Drives Inc. was elected first vice president, Jeff Pickelman of Northern Industrial Supply was elected second vice president, and John Masek of Bearing Service is the new treasurer.

Bill Demmel of Martin Sprocket & Gear is the manufacturer council chair, and Rick White of Flexible Steel Lacing Co. is manufacturer council vice chair.

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