Palm Desert, Calif.—Using business intelligence to help you and your company achieve profitability was the overriding theme of the Fluid Power Distributor Assn.'s Annual Convention, April 17–20, in Palm Desert, Calif.

"Business intelligence is not new, but the sources of information and the tools you use for business intelligence are new," said Bill McCleave of W.R. McCleave & Associates, a keynote speaker at the meeting. Business intelligence, he said, is knowing what information is needed, getting that information and then applying it in your business operations.

McCleave posed a number of questions for distributors to consider. He pointed out that distributors need to determine "who you are" and where their business comes from.

"What is the outlook for the markets you serve? What is the outlook for the customers you serve?" he asked.

He recommended that distributors examine what markets and customers are growing and then "what you have to do to serve them." He said once that is determined, distributors must find out if they have the resources to serve those changed markets or look to allies that can help.

In another session, McCleave moderated a "point-counter point" discussion that focused on human resources issues affecting distributors today. A panel of distributors, manufacturers and industry press debated a number of controversial issues including outsourcing of human resources; whether or not there is a need for policy manuals in an industrial distributorship; managing younger workers; and whether or not the single greatest factor in employee satisfaction and retention is the compensation package.

Eli Lustgarten, president of ESL Consultants, described the economic outlook for distributors. He said there were many positive signs that the industry was coming back strongly after the manufacturing recession. He said that the inventory liquidation under which many companies were operating has ended.

"Most major corporations today are flush with cash," he said.

He also noted that profitability for many companies would be at record levels. The industrial sector, he said, will participate strongly, if not lead, the economic recovery.

Also, residential construction will decrease, but will be "far from a disaster," and the construction equipment market which had a strong year in 2004 will continue to grow.

Lustgarten also predicted "a boom waiting to happen" in the plastic machining business, and the fluid power industry will see mid-single digit increase this year and in 2006.

Another speaker, business author Sanford Kahn, said companies "don't have the pricing power today as in most post—World War II recessions."

He went on to say that free cash flow will separate the winners from the losers.

Kahn told FPDA attendees that there was a simple way to determine how well your company is doing financially.

"The dollar revenue per employee is a very simple gage," he said. "Determine how your business is doing by dividing revenue per employee."

Steve Farber, president of Extreme Leadership Inc., detailed ways for employers to make the work environment more enjoyable for employees.

"Your people should be coming to work each day for something more than money," he said, adding that managers must generate energy and excitement for their workers. "Are you putting more energy into your work environment than you are taking out?" he asked.

Michael Marthold of Wainbee Ltd. in Vancouver, British Columbia, is the new president of FPDA. He succeeds Brian Kundinger of Kundinger Controls in Auburn Hills, Mich., who served two terms as president of the association.