Describe Bluegrass Tool's geographic coverage and customer base. How has business been lately? We cover primarily central Kentucky, southern Indiana and southern Ohio. We have stores in Louisville, Cincinnati and Lexington. Our customer base is about 80 percent electrical/mechanical contractors. Our business has been very strong.

Has the slowdown in the residential housing market affected your company? It really has not. Our focus is the commercial/industrial segments of the market. So the residential slowdown has not affected us at all, fortunately.

What are your concerns for 2008? I have several. Increasing commodity prices have led to, in some cases, rather dramatic supplier cost increases. This began in 2004 and continues to be an issue today for us and our customers.

Secondly, increasing fuel costs are a concern because we, like many of our competitors, deliver product to customers at their job sites. The end result, of course, is the potential for margin erosion.

Another concern is what is going on with health insurance in this country. We have received premium increases of 15 to 20 percent annually the last three years and are being told to expect another one in '08.

What is the most misunderstood aspect of your industry? I don't think our customers really appreciate and understand the breadth and depth of product coverage required to service their needs. And more importantly, the cost and the investment in inventory necessary to cover that broad range of products.

Secondly, I don't think our customers fully understand the operating costs that are incurred, particularly in light of the economic factors we've discussed. They don't fully understand the cost of product and services.

On a personal note, why did you choose a career in industrial distribution? I started on the supplier side of the business. I had a friend and mentor, Bob Baker, who at that time was president of Magna Industrial Tools. Bob offered me a position, which I accepted, and I have been in this industry ever since.

What has kept me in the industry is the people. I've found people in this industry to have high integrity, a very strong work ethic and truly are the epitome of the term entrepreneur.

DO you recommend the industry as a career choice for younger people entering the workforce? I absolutely do. They must have a very strong work ethic, have patience and be willing to learn. I think it can be a very rewarding career for a young person.

Ralph Cox is general manager of Lexington, Ky.-based Bluegrass Tool Warehouse, dba Jiffy Fastening Systems, www.jiffyfastening.com . He can be reached at Ralph@jiffyfastening.com