Alan Gilbert is CEO of Quality Mill Supply, a Franklin, Ind.-based general-line MRO distributor. Alan can be reached at agilbert@qualitymill.com.

Describe Quality Mill Supply's geographic coverage and customer base. How has business been lately? We have added salespeople this year and now cover the entire state of Indiana as well as parts of Kentucky and Illinois. Despite the slowdown in automotive-related business, we have expanded into new markets, added several new major lines and expect a solid year in both sales and earnings growth. We have benefited from our large market basket of products and the desire by many of our customers to consolidate their supply base.

Where are the bright spots on the economic horizon? The general manufacturing climate in our market area seems to be coming back at a slow but steady pace. We see local investment in machine tools, diversification in manufacturing by many of the traditional auto parts manufacturers, and … some major investment in Indiana by Honda, Cummins and Subaru. This type of major investment will boost the local economy as well as provide a positive impact on others looking to relocate to our state. The aerospace, medical and energy sectors all show significant growth opportunities and have been targets for our growth.

What are your concerns for the remainder of the year? There seems to be a total disconnect between how the market is performing and our current perception. Media and political pandering continues to focus on the negative. I fear that the perception may become the reality and cause the consumer to lose confidence and reduce spending. Reduced spending may also cause manufacturing to be more conservative in their expansion and investment in new equipment. For manufacturing in our trading area to remain competitive in the global economy, there needs to be continued investment in new equipment and improved processes.

What is the most misunderstood aspect of your industry? I think people don't understand the cost involved in carrying slow-moving inventory and receivables. Sometimes we're asked to stock an item for a customer and they may not take it as often as they originally thought [they would]. This puts a strain on cash flow and makes it difficult to invest in other inventory or other requirements for the customer. Likewise, slow payment may limit our ability to buy better, take advantage of payment discounts or make investments that will, in the long term, reduce our costs. In the end, slow payment and poor inventory management will add cost to the channel and make all of us less competitive.

You're vice president of the Industrial Supply Assn. How important are such groups to the industry? I believe industrial associations as well as other groups can be a direct positive influence to the distributors, reps and manufacturers of today. As for ISA, we've honed in on our mission, which is to help our members increase sales, reduce expenses and improve profitability. Let's face it, if we can do that through seminars, webcasts, conventions and general networking, then I feel we're on the right track.

why did you choose a career in distribution? Are you kidding? My father, uncle, three brothers and mother have all been in the business. Dad started with Vonnegut in Indianapolis in 1927 and Mom had duties of receptionist and mail girl around 1940. The rest is history. By the way, my youngest son sells industrial tape for 3M.

Would you recommend the industry to young people entering the workforce? Absolutely! Personal traits such as self-confidence, self-esteem, loyalty, integrity and trust are a few key notable areas that I've seen industry men and women aspire to throughout my 34 years in [distribution]. Of course, like any industry, you get out of it what you put into it.