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ISA Business Expo Update

-- Industrial Distribution, 11/29/2005

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ID editors Jack Keough and Victoria Fraza Kickham were on hand to cover the recent ISA Business Expo in Chicago. The meeting was held at the Hyatt Regency O’Hare and the Rosemont Convention Center Nov. 19-21. Here are their reports highlighting the convention’s activities.

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ISA looks to the future

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With convention attendance down 10 percent compared to last year, Industrial Supply Assn. leaders were focusing on the future at their recent Business Expo in Chicago. A comprehensive plan to grow membership, increase convention attendance and focus on the association’s “value proposition” was unveiled during the meeting’s General Session on Sunday, Nov. 20. 

ISA president Tim Tevens revealed a mix bag of news in his speech to the membership. Though convention attendance was down 10 percent compared to the 2004 Business Expo, he said turnout was higher than it was at the group’s spring meeting in Toronto earlier this year. 

In addition, though ISA has added close to 200 members in the last 15 months, it was not enough to offset the decline in membership due to a lack of member renewals in recent years. According to Tevens, the new members include 90 new companies along with 98 members of the NorthAmerican Industrial Representatives Assn., a group that closed its doors this year and whose members were welcomed to join ISA.

Tevens told members that the association has been “unable to plug the hole in the bottom of our boat,” stating quite simply that ISA is losing too many members. 

ISA is taking steps to remedy the situation, Tevens said, pointing to the association’s new one-convention format, which begins next year, and an incentive-based membership drive aimed at increasing convention turnout.

Beginning next May, ISA will hold one spring convention per year, a change that was previously announced. (This year’s Business Expo is the last fall meeting ISA will host.)The new membership drive puts the burden of increasing ISA’s numbers on all current members. Called “Member get a Member,” the program rewards members with free registration, airline tickets and hotel stays for the group’s May 2006 meeting in San Antonio, depending on the number of new members they recruit.

Tevens implored members to, “Ask not what your association can do for you; ask what you can do for your association,” borrowing a line from President John F. Kennedy and keeping with his presentation theme of “founding fathers.”

Tevens, who is also president of manufacturing firm Columbus McKinnon Corp., drew parallels between the country’s history and that of ISA during what was considered by many to be a turning point in the group’s more than 100-year history. The Chicago convention is the last of its kind, noted Tevens, but the association’s strong group of supporters can see it through to a bright future.

He introduced ISA’s member volunteers by calling them, “…our own band of radicals and visionaries.”

Tevens also explained ISA’s new value proposition, which is: “To assist all members to increase sales, decrease expenses and increase profitability.” 

To do that, ISA will focus on four key areas: sales and marketing; cost reduction; productivity; and the yearly convention. 

One of the biggest changes next year will be to the convention. The conference booth program will become a conference and trade fair, combining “the best of the conference booth program with a trade show,” as Tevens explained. The education portion of the convention will be different as well, with an expanded program covering three tracks: management, sales and operations. 

The changes will add up to an event packed with more information and more focused workshops, Tevens said.

ISA’s spring convention will be held May 20-22 at the Marriott River Center in San Antonio.
YEF awards industry scholarships

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ISA’s Young Executives Forum announced four winners of the John R. Stallings Memorial Scholarships during the Chicago Business Expo. Each winner received a scholarship to the University of Industrial Distribution, a continuing education program for industrial distribution professionals.

The winners are: Lara Collier, associate product manager, Tenaquip Ltd.; Dennis Hill, sales manager, DeLeon-Thompson, Inc.; Heath Honbarrier, territory manager, Lane Supply Co.; and Lori Palatine, adhesives and sealants specialist, Loctite Industrial Division, Henkel Technologies.
China takes center stage
One of the highlights of this year’s ISA Business Expo was a workshop on doing business in China hosted by Steve Thiry of The Assn. for Manufacturing Technology.

Titled, “China: The Evolving Opportunity and Threat for American Business,” the session gave a brief history of the evolving Chinese economy, dispelled some myths about doing business in China, and offered advice to companies looking to enter the market.

Thiry talked about economic growth and tax issues, and honed in on specific market opportunities, such as automotive, railway and construction, that appeal to manufacturers and distributors. He also talked about the various legal structures for operating in China, including representative offices, joint ventures, wholly owned foreign enterprises, and foreign invested commercial enterprises. 

Thiry told attendees that there is help available for U.S. companies looking to expand abroad, such as the International Trade Administration, the American Chamber of Commerce, and export.gov, the U.S. government’s export portal on the Web.

“The U.S. government actually does some very good things in this area,” Thiry said.

Thiry’s 27-year career in industrial sales, management and operations includes five-and-a-half years working in Tokyo and Hong Kong managing manufacturing, sales and distribution operations in Japan, Australia, Korea, Singapore and India. During that time he established joint venture operations in India and China, as well. 

Thiry worked for Ingersoll-Rand for 21 years and for Crane & Co. for five years before joining AMT.
Small distributors talk business

Another highlight of the ISA Business Expo was the Small, Specialty & Emerging Members’ Breakfast, held Sunday morning, Nov. 20. This convention staple featured moderator Dr. William McCleave of W.R. McCleave & Associates and a panel of industry professionals.

The panel featured manufacturers Bill Matthews of 3M and Steve Lippert of The Hamilton Caster & Mfg. Co.; distributors Matt Thompson of Deleon-Thompson, Inc. and Glenn Korff of Tooling Solutions, Inc.; and manufacturers’ rep Jim Surpless of Surpless Dunn & Co., Inc.

Topics covered included the role of the small, specialty and emerging ISA member (SSEM) and how they should be treated in the channel; joint marketing innovations and opportunities; the threats to channel relationships; and resolving conflict, among others.

The convention’s Opening Session followed the SSEM meeting, and featured a keynote presentation by Michael Abrashoff, author of “It’s Your Ship,” a leadership book based on his experience as Commander of the U.S.S. Benfold. 

Abrashoff took that post at the age of 36, becoming the most junior commanding officer in the Pacific Fleet. He inherited a host of problems, including low morale and high turnover. He was able to turn it around, however, with a concept he calls “GrassRoots Leadership”—a theory that empowers every individual in an organization to share the responsibility of achieving excellence.

Abrashoff’s story of the U.S.S. Benfold was largely inspirational, and was met with a standing ovation by attendees.

Other presenters at the three-day conference included Jim Handy of Purdue University Technical Assistance Program, whose workshop was titled, “Learn the Skinny About Lean Part II: Administrative Value Stream Mapping;” Melvin L.Smith, Ph.D, of Case Weatherhead School of Management on “Emotionally Intelligent Leadership;” Steve Willis of VitalSmarts, “Crucial Conversations, Tools for Talking when the Stakes are High;” and Bill Hodgdon, Bill Hodgdon Consulting, on “Managing the Sales Process.”

A pre-convention workshop by ID’s Strictly for Sales columnist Tom Reilly took place on Friday before the official opening of the show. Titled “Crush Price Objections,” the seminar gave attendees insight and ideas on ways to handle what remains one of the sales professional’s biggest challenges—price objections raised by existing and potential customers.

ISA’s Business Expo ended with the Manufacturer/Supplier Booth Program on Sunday, Nov. 20, from 11:30 a.m. to 5 p.m., and the Distributor Conference Booth Program on Monday, Nov. 21, from 8 a.m. to 4 p.m.

ISA, by the numbers

Industrial Distribution’s 59th Annual Survey of Distributor Operations is chock full of information on distribution, and respondents’ opinions on sales, technology spending, acquisitions and customers moving to China. In a special report, we boiled down the numbers to represent just the Industrial Supply Assn.’s results, giving respondents a more detailed look into their own membership. 

To see the report, click here

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