Industrial Distribution

Jack Keough

Tidbits from NAHAD meeting
April 10, 2008

Here’s a little bit of this and that from the recent NAHAD convention April 5-9 in historic Williamsburg, Virginia:

* NAHAD’s Web site will soon be updated, according to executive vice president Joe Thompson. NAHAD’s site makes it easy for manufacturers and distributors to get information on how to start and implement NAHAD’s hose assembly guidelines, for example...

* Mergers and acquisitions continue to be at the forefront of the industry. There have been several buyouts in recent months and more are expected. In fact, watch for a Southern hydraulics distributor to purchase an electrical supplies distributor in the next month. We were asked to not identify the companies involved since terms haven’t been finalized...

* Also, the topic of manufacturers buying distributors was mentioned by several distributors. There have been a few such reports in recent months and it was the subject of a commentary in a recent ID e-newsletter last month by NAHAD member Cholly Snow...

* Dr. Kathy Newton of Purdue University, a speaker at the meeting, caused a stir when she asked (and I’m paraphrasing here), “How many people do you have in your employment that aren’t living up to their job expectations?” A number of hands went up. Then she asked, “How many of you were responsible for hiring them?” Nervous laughter was heard throughout the room as many members raised their hands again...

* In line with that response, Bill McCleave presented the preliminary results of a distribution study on “The Quest for Human Talent.” The results for NAHAD members show that the number one reason (75 percent) employees leave their companies is because they have been terminated. In other words, they’re not leaving for better money, bosses, etc., but simply because they weren’t the right hires and were dismissed. That’s something for distribution executives to think about. Hiring the right people and paying them a competitive salary makes good business sense. Most NAHAD distributors, by the way, are “somewhat pessimistic” about finding qualified people to fill positions...

* Speaker Bob DeStefano of SVM E-Business Solutions said that 80 percent of distributors are increasing their budgets for on-line marketing...

* Joe Lark, NAHAD’s outgoing president, drew some laughs when he told attendees that it was nice being in an environment where for once he didn’t have to explain what he did for a living. A distributor sitting beside me, who has been married for 20 years, nodded and told me, “My mother-in-law still doesn’t know what I do for a living.” I don’t know, maybe that’s a good thing. He’s proud to be a hoser. Hey, that would make a good bumper sticker or maybe on a tee shirt...

* Phyllis Russell, the executive director of the Power Transmission Distributors Assn.’s Educational Foundation, presented members with an update on the Industrial Careers Pathway program. ICP is in the midst of developing a curriculum titled “The Essentials of Distribution,” which will initially be put online but will then be developed at four community colleges next year. ICP (which is a great program by the way, designed to encourage interest in the industrial distribution business) has been working with eight community colleges in the United States and Canada to help develop future graduates in industrial distribution. Several distributor associations have joined with PTDA to make it a “collaborative” effort to meet employer needs. Good luck to Phyllis and the other participating associations. Here’s hoping more groups get involved...

* Former NAHAD president Tom Slater of Rubber Supply Co. will be retiring at the end of the year. Tom and his wife, Ethel, have been attending NAHAD meetings for many years. They will be missed...

* Another well-known industry veteran and all-around good guy, Jake Boland of Parker Hannifin, is now retired. Jake was greeted by many well wishers at Parker Hannifin’s hospitality party...

* Joe Thompson reports that more than 1,000 certificates have been issued for employees who have passed the exams for the Hose Assembly Guidelines...

* Congratulations to Chuck Connors of Omni Services for receiving the George W. Carver Award. Chuck is a worthy recipient of the award, named in memory of George W. Carver, a classy gentleman who was NAHAD’s third president...

* Speaker Tom Reilly of Tom Reilly Training, a nationally recognized expert in sales, noted the following statistic: “Fifty-six percent of employees neither understand nor embrace their company’s culture.” Or how about this one to think about: “Your competition for hiring a good salesperson is not in this room, it’s anyone who hires salespeople.”...

* Colonial Williamsburg, by the way, is a great place to visit. It was my first trip and I hope to go back soon even though the weather was, well, less than ideal. It was warmer in Boston for the Red Sox opening day festivities. Welcome back, Bill Buckner.

Posted by Jack Keough on April 10, 2008 | Comments (0)