The changing face of safety

By Staff -- Industrial Distribution, 1/1/2001

Change is rocking the distribution community, and the safety sector is no exception. Consolidation has caused larger companies to come on the scene and technology has allowed new players to enter the market.

The heightened competition is keeping many safety distributors on their toes as they renew their commitment to being specialists and implement new technologies to become more efficient. The bottom line is that channels are changing, according to many industry watchers, and distributors must adapt to the evolving, customer-driven models of distribution.

Distributors like Orr Safety, based in Louisville, Ky., are meeting those challenges head-on.

Five years ago, Orr Safety embarked on a strategic plan to stay focused on its core competency-safety products and their application. A key part of that plan was to re-emphasize that specialty to the marketplace.

Orr combined that strategy with a series of company-wide computer upgrades aimed at helping the firm adapt to the changing business landscape. Those upgrades are ongoing, say company president Jerry Nichter and director of marketing and planning Ron Gassman.

The plan has paid off. Orr has seen double-digit growth in each of the last four years, accompanied by improved profitability and a growing customer base.

While technology has helped make it easier for customers and suppliers to do business with Orr Safety, the real clincher has been the firm's commitment to its specialty.

"Safety does require knowledge ... knowledge that goes beyond 'how much is the product and how quickly can I get it?'" says Nichter. "We're seeing a lot of players trying to come into the distribution of safety products, but not coming into the support side of it."

Smaller distributors like On Hand Safety Supplies, Bloomington, Ill., are facing similar challenges.

Art Mier, vice president of On Hand Safety, lists consolidation as one of the major trends he's dealing with in his marketplace. That trend is being driven by customers who ask their distributors how they plan to serve their needs nationally and internationally, says Mier. On Hand Safety has responded to such requests by aligning with other suppliers and working more closely with its manufacturer partners.

It also helps, says Mier, that On Hand Safety has solid relationships with customers like Caterpillar and Mitsubishi. On Hand Safety is an in-house supplier to 25 Caterpillar plants and several Mitsubishi plants in the United States.

"We've had a chance to grow with those programs," Mier explains. "We've built [that business] over time and feel pretty solid with those relationships."

Like Orr Safety, Mier's company has seen substantial growth in the last few years, recording its best year ever in 2000.

Mier says he's prepared for a less than booming economy this year, however. A softening in the automotive sector will affect business this year, but the firm hopes to counter that with business in other key areas-such as the agricultural industry, local government, schools and hospitals.

"I'm cautiously optimistic about [2001]," says Mier. "We're anticipating continued sales growth, just not at the level we've been [seeing]."