ASA Quarterly Review - Q4

ASA REVIEW A quarterly recap of association activities.

Q4 21

2021 FRED V. KEENAN LIFETIME ACHIEVEMENT AWARD ASA honors First Supply’s Joe Poehling & InSinkErator’s Joe Maiale

ALSO IN THIS ISSUE: WHY DIVERSITY IN THE WORKPLACE EQUALS PROFITABILITY 2022 ECONOMIC OUTLOOK STATE OF THE INDUSTRIAL PVF SUPPLY CHAIN

From the CEO

We hit the mark with members Back in July, we launched the first ASA Review, delivering hard-hitting features from thought-leaders along with quarterly news highlighting how association programs and services are helping members.

Based on the feedback we received after the inaugural launch, we hit the mark with this exciting new publication. We hope that we hit the mark again in this second (more extensive) edition of our ASA Review with new features on topics members have told us that they have interest in hearing about.

By now, you all should have received information about Project VITALITY, a bold strategic tool to help you confidentially assess your readiness for growth and success in the future. ASA’s VITALITY Growth Assessment Tool was introduced after nearly a year in development, and we believe that it will be a game-changing tool that will challenge you to think differently about your business.

We believe this assessment tool will help raise your awareness about your positioning for the future, identify your strengths and weaknesses, and help you decide where to invest to support your company’s future success. More importantly, the confidential Growth Assessment Report, generated by our partner NewEdge, can serve as your company’s self-assessment (based on your team’s input) of where you are and how your team assesses where you need to be in order to remain relevant and successful in the future. And through this new program, ASA is investing in your future by providing this assessment free of charge.

This fall, the ASA D.NEXT team at the University of Illinois is partnering with the University of Illinois Geis College of Business to conduct research, explore, document, and explain digital technologies currently available in the small/medium size business space that distributors could use to communicate with their customers regarding product order status, availability, and delivery. They will also look at adjacent or even unrelated industries for inspiration; conduct primary and secondary research; and speak to business owners (of varying industries) to understand the digital tools they use today and what problems those tools solve and for whom. Look forward to a report on this project in the Q1 2022 issue of ASA Review.

Labor compensation has become a hot topic as stark labor shortages continue to plague businesses throughout our nation.

Every other year, ASA participates in a major cross-industry compensation study. The new report is slated to come out next spring with ASA joining 15 other distribution associations in developing a comprehensive report. However, that valuable report is more than six months away and the need for more compensation clarity is needed now more than ever.

So to help our members bridge the time until the cross industry report is completed, ASA has partnered with Industry Insights to provide a Q4-2021 and Q1-2022 compensation survey in hopes of providing greater clarity about compensation in a distributor company’s at a time when data of this nature is needed the most.

Labor compensation is not the only labor issue featured in this issue. The Granite Group’s Tracie Sponenberg writes about diversity as a way to both enhance your team’s profitability and to fill key roles in your company, and Beth Ladd, ASA’s vice president of innovation, writes about how to create an effective internship program to help you attract and retain the best talent.

Lastly, on the front cover and featured in this issue, we honor two industry icons who will receive the ASA Fred V. Keenan Lifetime Achievement Award at NETWORK2021 in Las Vegas, highlighting a lifetime of service to building a stronger industry channel.

Thank you for taking a few minutes to read the great content in this issue of ASA Review. If you have a topic that you’d like to read in a future issue, please contact Mike Miazga, vice president of sales and membership, at mmiazga@asa.net.

Thank you for your membership and continued support.

Sincerely, Michael Adelizzi, CEO

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ASA Economic Update

Be careful what you wish for: You just might get it

By Dr. Chris Kuehl, ASA Chief Economist

We all fervently desired an end to the lockdowns and pandemic protocols, and then we got some of that wish.

But with that, there have been three issues or concerns at the very top of the economic watch list in sectors as varied as manufacturing, construction, accounting, retail, transportation and others. ASA members touch these and more.

The very top of that list has been labor supply. This is certainly not a new issue, but it has reached a crisis point for many. This is mostly an issue with the more skilled positions, but even lower-skilled jobs have become impossible to fill.

There have been many factors at work. The fact is that the government extension of unemployment was not the prime reason for this shortage. Workforce participation has been falling for years and is now as low as it was in the 1970s. This is due to retiring boomers, reduced immigration levels, skill mismatch, location issues, etc. Those who assert that all that is needed is higher wages are wrong. Even the promise of good pay and benefits has not been enough to draw people into the workforce, but more often they simply do not qualify for the job on offer. It is impossible for a company to continually offer higher wages if they have any hope of protecting their profit margin.

The second issue is inflation. The surge in demand corresponded with a collapse in the supply chain and suddenly the commodities markets were exploding with hikes as high as 180% (lumber). Oil gained by more than $40 a barrel in four months, metals have been up as well. Wages did not rise at first as there were still many unemployed, but they rose for the people that had the skills.

The surge in commodity pricing was to be expected and is likely to be transitory as the producers strive to catch up. Wages are another story. Once these come up, they don’t come down and companies have to adjust to these higher labor costs by hiking their own prices. The Federal Reserve asserts the current inflation situation is transitory. They assume inflation threats will ease once the suppliers are able to meet demand.

anywhere between 5.0% and 7.5% (depending on the holiday spending season). Next year is expected to be solid as well, but with growth at around 4.5%. After that, the pace slows to the normal annual average of 2.5%.

There is a temptation to do what is required to meet current demand, and that would mean paying higher wages, accumulating commodities and inventory to ensure supply, investing in extra capacity, and so on. What happens when growth slows? It is an awkward choice — either to leave money on the table this year and risk losing market share to competitors or risk having far too much capacity, inventory and labor when the economy slows down. They end up paying a premium for all this expansion — costlier machines, expensive construction and people paid higher wages than before.

Looking into 2022

At this stage I see three developments. The first is that labor shortages will remain as a major issue for the next several years.

There are no quick solutions — training and education takes time. Dealing with the labor issue will mean accelerating reliance on technology, automation and robotics. The second development is that inflation is here to stay, but it is not likely to hit hyperinflation levels. The Fed has tools to affect the money supply and has started pulling back on stimulus. The inflation levels will drop a little, but will stay higher than they have been in most of the last decade.

Finally, we see growth slipping as early as Q2 of 2022, but not collapsing. Returning to normal will feel like a slowdown as compared to what we have been seeing in the last year, but it will really be just getting back to a more sustainable pace. The bottom line is that it is going to be tough to compare to either the truly miserable 2020 or the unusually robust 2021.

Dr. Chris Kuehl, managing director at Armada Corporate Intelligence, is ASA’s chief economist. Dr. Kuehl does a monthly live economic update webinar for ASA members and produces three economic update podcasts each month. Have a question you would like Dr. Kuehl to answer? Email Mike Miazga at mmiazga@asa.net.

The third issue revolves around how long all this growth continues. The estimates for this year verge on the spectacular —

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WII making diversity a part of division’s value proposition to help industry close the labor gap

By Rebecca Falish, InSinkErator Chairwoman, ASA Women in Industry ASA’s Women in Industry Division was formed as a response to the 2015 Labor Study that sited only 26% of the PHCP & PVF industry consisted of women.

Expanding profits through diversity

By Tracie Sponenberg The Granite Group Women in Industry, Executive Council member

When you read the word “diversity” what image pops into your head?

And with 50% of Americans being female and a pending 100,000 employee shortage facing the industry by 2025, association leaders needed to build a bridge to women career-seekers by highlighting the great careers being built by women in our industry.

If you answered a person of color, you are not alone.

Our industry is very white, and very male.

Creating diversity in our industry can have very strong benefits to companies that employ a more diverse labor force. In her article in this issue of ASA Review, The Granite Group’s Tracie Sponenberg, also a member of the Women in Industry Advisory Council, outlines the profit benefits from employing a diverse labor force.

If you answered that you felt uncomfortable, and if reading the sentence before it made you feel uncomfortable, you are not alone.

During our most recent WII Executive Council meeting held at ASA headquarters in suburban Chicago, the volunteers agreed to begin offering education on why firms should look to create greater diversity on their teams, with adding more women employees being a primary target. Being a woman in a maledominated industry, we know that adding diversity to teams makes sense because diversity means diversity of minds, ideas and approaches — which allows teams to find a solution that takes into account multiple angles of the problem, thus making the solution stronger, well-rounded and optimized.

Creating more diverse teams doesn’t have to mean starting over or hiring varying nationalities. It’s also important to hire professionals from a range of industry backgrounds and diversified levels of experience while paying attention to gender balance. The beauty of diversity is there is no perfect formula. Every team will look unique.

While Tracie’s article will deliver a strong, compelling profit case for adding diversity, here are a few stats I found in a recent Forbes magazine article (authored by Sheryl Lyons on the benefits of employing diverse labor teams) to consider as you look to fill out your labor shortages.

When you read “diversity, inclusion and belonging,” how does that make you feel?

Diversity goes far beyond what someone looks like — beyond race, gender identity, age and sexual orientation.

Merriam-Webster defines “diverse” as simply, “differing from one another.”

There are many types of diversity in the workplace. In fact, a company called builtIN has identified 39 (yes, THIRTY-NINE) dimensions of diversity in the workplace!

In 2020, companies that were not already putting diversity efforts at the forefront of their organization were forced to take a good, hard look at how they were working. And change it. Change is uncomfortable, but we need to push through that discomfort and talk about diversity in the workplace.

In our industry.

And more than that.

We need to act and create a culture of belonging.

Why? Embedding diversity, inclusion and belonging into your company is just the right thing to do. When you bring a diversity of thought and experiences into your teams, your employees will be challenged to think differently.

I nclusive teams make better business decisions up to 87% of the time.

Going beyond diversity, when your employees are treated fairly and equitably, when they are included in all aspects of the company, they will feel like they belong.

T eams that follow an inclusive process make decisions twice as fast with half the meetings.

But let us look at some additional reasons to embrace a diverse culture.

D ecisions made and executed by diverse teams delivered 60% better results.

According to Indeed.com, there are five major benefits of diversity in the workplace: Expanded creativity and problem-solving; better decisionmaking; increased profitability and productivity; enhanced employee engagement and retention; and better company reputation.

If you have women on your team that can benefit from engaging with ASA’s Women in Industry division, contact Merrill Green at mgreen@asa.net.

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2021 ASA Association Partners

Each of these benefits can be helpful to your organization as you embrace a diverse culture. Taken together, they can be transformative.

2021Platinum, Gold, Silver and Sustaining SUPPLIER PARTNERS* PLATINUM

And there is data to support this.

Extensive research from McKinsey, Bersin by Deloitte, Glassdoor and more has demonstrated the impact of diversity on companies. Here is just a small sample of data demonstrating diverse companies equal successful companies: D iverse teams are 87% better at making decisions.

(People Management) B usinesses with the highest levels of racial diversity achieved 15 times the sales revenue. (Science Daily) I nclusive companies are 1.7 times more likely to be innovative, and get 2.3 times more cash flow per employee. (Josh Bersin) C ompanies identified as more diverse and inclusive are 35% more likely to outperform competitors. (McKinsey)

GOLD

C ompanies with above-average diversity had 19% higher innovation revenues. (Harvard Business Review - “The Economic Imperative of Diversity in Tech”) T wo out of three jobseekers look for companies that have diverse workforces. (Glassdoor) R acially diverse executive teams led to 35% higher EBIT and 33% more long-term value creation. (MarketWatch)

SILVER

And consider this....

T he national GDP would increase by $25 billion if just 1% more disabled people were hired. (McKinsey)

Where do we start?

According to McKinsey, we need a bold, systematic and businessled approach that ensures the representation of diverse talent; strengthens leadership accountability and capabilities for diversity and inclusion; enable equality of opportunity through fairness and transparency; promote openness and tackle micro-aggressions; and foster belonging through unequivocal support.

SUSTAINING ™ Solutions Since 1916

Said another way: Weave diversity, equity, inclusion and belonging into every aspect of your company.

Do not make diversity an initiative – change the culture of your company.

M A N U FAC T U R E R S R E P R E S E N TAT I V E S

Tracie Sponenberg is the chief people officer at Connecticut-based The Granite Group and is a member of ASA’s Women in Industry Executive Council. *Supplier Partners as of June 15, 2021

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ASA conducting special industry compensation reports Anyone that employs people understands that today’s market for labor is highly volatile and with that comes a disruption in compensation needed to attract and retain top talent.

The American Supply Association is one of 17 distribution trade associations that biannually publish the crossindustry compensation study, reporting compensation from more than 1,000 distribution firms. Unfortunately, the last published report was issued in May 2020, two months after the start of the worldwide pandemic, and the next major cross-industry study is not slated until May 2022.

To help ASA members over the next several quarters gain greater clarity on compensation being paid, ASA has partnered with long-time business intelligence partner Industry Insights to conduct two quarterly compensation studies within our industry. The first one, dealing mainly with warehouse employee and driver compensation levels, was slated to publish in late October. The second study will begin data collection Dec. 1 with that report set to be published at the beginning of January 2022.

Both studies are designed to provide current information about changes and trends in members’ compensation and benefits. Labor issues are common across all industries, and ASA member companies want to know what others are doing to attract new and retain existing talent.

“With the volatility of compensation within the economy as firms heavily compete for labor, waiting for data on what is happening in the industry with regards to what firms are paying to attract talent was not helpful for our members,” ASA President Chris Fasano (TORRCO) said. “This is why the leadership approved conducting two quarterly compensation surveys (Q4-2021 and Q1-2022) to help members understand what was happening until the full comprehensive cross-industry report is ready. This is one

more way that ASA is helping our members with access to the important data that they need to effectively compete.”

The studies are in advance of the larger-in-scope 2022 biannual cross-industry compensation and benefits study. Data collection for that highly anticipated report begins in the spring.

Both special reports are free to ASA member distributors that participate by contributing data to the study, otherwise

the report will be available for $299 for those who did not participate.

Want a copy of each report? Contact Mike Miazga at mmiazga@asa.net.

ASA University’s ‘Intro to the Industry’ training tracks help new team members get started The ASA University team continues to create new programs and resources for ASA member companies as they navigate the essential business of training employees to improve productivity and profitability.

‘Intro to the Industry’ training tracks

The industry continues to see the introduction of new talent into the supply chain — younger hires who may not know much about what the PHCP-PVF industry is all about to individuals seeking new career opportunities in new industries. Through conversations with key distributor members, ASA University developed “Intro to the Industry” training tracks.

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These foundational training tracks provide baseline expectation-setting and guidance on getting to know the industry, how wholesaler-distributors operate and how to ensure a profitable bottom line at any role in the business.

Armed with these tools, ASA members can feel confident about hiring the very best talent that walks through their front doors – whether or not they come from the PHCP/PVF wholesale-distribution industry.

“Our members are hiring at an incredible pace,” ASA University Vice President of Education Taylor Kenney said.

“This newly packaged resource from ASA University gives

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Save the Dates

managers the power to hire the very best candidates they can find – no matter which industry or experience they hail from.”

NB Handy’s Johnson newest MDM graduate

ASA University is proud to announce another new graduate of its Masters of Distribution Management program.

“MDM taught me skills to be a great manager, how to critically assess challenges and develop solutions, and the program’s teachings have allowed me to self-reflect on the things that I needed to work on for my growth personally and professionally,” Johnson said.

NB Handy’s Greg Johnson completed the leadership program with his presentation to the Graduate Review Committee, showcasing his innovative capstone project.

Johnson recognized the need for change based on customer feedback at his Virginia branch, and positioned his capstone project to help improve the product picking process and communication between the sales and warehouse departments and the customer.

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Keenan Lifetime Achievement Award

Two industry icons to receive the prestigious Fred V. Keenan Lifetime Achievement Award

By Mike Miazga, Vice President Sales, Membership First Supply Chairman Joe Poehling says the Madison, Wisconsin-based distributor’s motivation for becoming involved with the American Supply Association was a simple one.

“We got involved to learn from others,” he says. “We would hear ideas from other distributors that we could take back into our business and make it better. I truly believe I learned more from ASA while I served as ASA president traveling to visit other members than in almost any other time in my career.

ASA has given us the opportunity to see things differently and grow as a distributor.”

associations such as ASA, I didn’t have to explain anything.

Being involved in ASA has always been a privilege. I always have considered it an honor to work with ASA and to work with the (former ASA presidents) Frank Finkels and Scott Robertsons of the word and sit next to them at board meetings and executive councils and go through whatever challenges there were. Being part of ASA never felt like work.”

Poehling and Maiale’s support of ASA over the years has been unwavering and their contributions to the association’s growth and prosperity are immeasurable. As such, they were unanimously approved as the recipients of the 2021 ASA Fred V. Keenan Lifetime Achievement Award. They will be honored at the ASA member lunch at NETWORK2021 in Las Vegas Nov. 10.

The Keenan Award is presented to individuals with a long history of service and dedication to the PHCP- PVF industry.

To be considered, individuals must have exhibited strong influence on the current status of the industry, project a positive industry image, be responsible for positively affecting the industry in general, and have provided a history of dedicated service to the American Supply Association.

Joe Maiale

For InSinkErator Vice President of Wholesale Supply Joe Maiale, involvement in ASA, he jokes, was a “get out of jail free” card. “If I said, ‘I have an ASA meeting,’ and because InSinkErator was so supportive of our involvement in

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“Joe Poehling’s time with the ASA Executive Committee and with the Education Foundation was huge,” Maiale says. “Joe is a great man. His passion and his compassion stand out for the industry and for the business. He’s a very busy man and he always found time to volunteer himself and his people and take the lead. Joe did great things with the Education Foundation and certainly as president of ASA and with the various committees he was on.”

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KOHLER Kitchen & Bath Group Vice President of Marketing Jim Lewis notes Poehling was the first distributor to partner with the K&B giant on the KOHLER Signature Store concept, opening the inaugural KOHLER Signature Store by First Supply in Edina, Minnesota, and several others since.

“I have witnessed firsthand the many roles, the countless contributions and lasting impact Joe has had on our industry — always done with sincere class and professionalism,” he says. “He is never afraid to step up, to be first and to think big because he believes in his people and in this industry.

He is passionate about delivering first-class experiences to customers, and he is a beacon of ingenuity and innovation.”

InSinkErator, is the only member of the ASA Vendor Member Division to have served two stints on the association’s Executive Committee. In addition to his four years of service with the association’s top leadership group, Maiale has served seven years on the ASA Education Foundation Board of Trustees where he led this committee in 2013 and 2014. As president and chairman of the ASA Education Foundation, he was only the second manufacturer to hold that leadership role.

“What makes Joe an asset to everyone who meets him, not only within our industry or within our company, is his commitment to treating everyone with respect,” says Rebecca Falish, InSinkErator’s director of East Coast sales and the current chairwoman of ASA’s Women in Industry division.

“For those who have been fortunate enough to cross paths with Joe, they walk away knowing they have been looked upon as a person. From the owner of the company to the counterman, Joe looked at everyone like they mattered.

He has qualities we need more of — kindness, integrity, honesty and humility. Joe is not an industry great; he’s an industry example of what we should all try to be.”

InSinkErator Senior Vice President of Sales Rob Grim gathered a collection of comments from InSinkErator employees on Maiale. Here’s one that sums up Maiale to a tee.

Joe Poehling

Poehling served as ASA president in 2009 and as chairman of the board in 2010. Additionally, his efforts in leadership roles with the ASA Education Foundation helped bring the Karl E. Neupert Endowment Fund past $10 million through his personal outreach to companies. As a result, the endowment fund today has opened up countless opportunities for the Education Foundation to provide cutting-edge, relevant and timely training programs that have revolutionized the way the industry looks at training.”

“Joe is the type of person, the type of leader and the type of parent who builds a natural following — you just want to participate in whatever he has going on,” Poehling’s daughter and First Supply President and CEO Katie Poehling Seymour says. “I’ve often thought that the Sheryl Sandberg quote about joining Facebook describes it: “When you’re offered a ticket on a rocket ship, you don’t ask what seat you just get on.”

People want to work with Joe because you quickly realize he genuinely cares about your success. So many people — employees, customers, friends, family — all have stories about how he helped them along the way, whether it was extending terms for a customer that got in a pinch, making a donation to get a charity event off the ground, or finding an unconventional solution to help someone.”

Maiale, who has been involved in ASA for four decades, the last 20 years coming during his second stint at

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“Joe Poehling is never afraid to

step up, to be first and to think big because he believes in his people and in this industry.”

-Kohler’s Jim Lewis

“Joe is a driven, fearless and tireless worker. Nothing stands in his way as evidenced by the numerous InSinkErator and industry awards he has received over the years. Whether at InSinkErator or at ASA, if you need something done, it would be a great idea to get Joe involved. He truly cares about making our industry the best it can be. He does this without wanting to be in the limelight and has always been willing to support others in their efforts.”

Poehling and Maiale join a select group of 10 other distinguished individuals who have received this award since its inception: Fred Keenan (for whom the award was named), Karl Neupert, Ed Felten (of First Supply), John McDonald, John Martin, Frank Finkel, Nick Giuffre, Morris Beschloss, Joel Becker and Dottie Ramsey.

The ASA Executive Committee accepted the unanimous recommendation of the Keenan Award Selection Committee to add Poehling and Maiale to this exclusive club. Ramsey was the last recipient of the award, which is not annual, back at NETWORK2017 in New York.

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How to implement an internship program to build your team

By Beth Ladd, ASA Vice President of Innovation

The American Supply Association conducted a national labor study in 2015 to identify the size of the PHCP and PVF labor force and the anticipated state of labor over the next 10 to 20 years.

Not surprisingly, association leaders found that nearly one-half of the industry’s labor will be out of the industry, primarily through retirement, over the next 20 years. The association has engaged an aggressive marketing plan to build a narrative about the exciting career opportunities available in the industry and to deliver that laser-focused narrative to the next generation of our industry’s labor. This branding effort will be a long and sustained, but necessary effort to recruit the nearly 100,000 people needed to sustain our vitality as an industry.

Near-term efforts, such as ASA’s PROJECT TALENT platform, are needed to attract talent to backfill the workers retiring in the next few years. One method that some distributors and manufacturers employ to raise awareness of industry opportunities and attract talent to narrow the gap is a quality internship program.

What follows are some best practices and considerations for creating a top-notch internship experience.

Before you begin an internship program

First, an internship program is a branding opportunity for you and a professional development experience for an intern. It is an opportunity for you to demonstrate the variety of roles in our industry and in your company, as well as show off opportunities for professional growth and satisfaction. It offers the intern a practical experience to learn firsthand about the breadth of industry careers, “real world” professional expectations, and a chance to experience the workplace and expected skills.

Second, the implementation of an internship program can offer an opportunity to exercise your team’s expertise in mentoring and teaching. Building relationships with interns is a golden opportunity to utilize the strengths of your people and the diversity of individuals and roles in the industry. Teaching and mentoring strengthens your own leadership skills and builds enthusiasm in a four-generational workplace.

According to an NACE study, 40% of employers reported a higher five-year retention rate among employees hired via their internship program.

Third, remember that the most successful internship programs create real opportunity to experience roles, acquire skills, connect with your corporate culture and build relationships between people. It is also a try-before-you-buy opportunity to get to know the intern, their personality, work style and potential fit for your company.

ASA’s D.NEXT Innovation Lab was part of the University of Illinois Research Park Block Party where students were able to interact exclusively with Research Park companies, including ASA, and learn what internship opportunities are available to them.

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Finally, internships require budget, time and resources as well as allocating time of your leadership team as you develop and subsequently implement a program. Although there is no guarantee that you will find a new employee, a strong

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Authoring a job description for an internship necessitates a different kind of thinking. Consider focusing on the kinds of characteristics valued in a teammate.

internship program that attracts the right person, can pay your firm dividends with a potential pipeline of new team members.

Types of intern programs

One of the first considerations is the type of experience. One type is a project-based internship. In this style of experience, the intern is assigned to a single project. Often times these projects are business-relevant tasks that require many hours of dedicated attention to produce the necessary consistency, such as cataloging, counting or data entry.

Another type of experience is role based. Often times this experience pairs the intern with a variety of the individuals who perform a single role in the business. This provides a look at the different personalities, work styles and skills that may comprise a single role.

An additional type of experience is rotational. In this experience, an intern spends a fixed amount of time in two to four roles. This experience can illuminate the variety of necessary roles in the business, giving a broad-strokes view in a relatively brief period of time.

Considerations for designing a great program

One of the first considerations is the duration of your internship program. Assuming you have committed to a summer internship, many summer programs last eight to 12 weeks.

It would be wise to gather information about academic schedule(s) of the high school, community college or university from which you may recruit or employ interns.

Another consideration is whether your internships will be fulltime only or will also include part- time options. Part-time hours may enable opportunities for those who are taking summer courses. Additionally, part-time hours may enable internships concurrent with fall or spring semester attendance.

Be aware, should you choose to extend a part-time intern for a fulltime summer internship, you will need to consult your HR

leader as the Affordable Care Act requires that any employee with 90-plus days tenure, working 20-plus hours a week must be provided with benefits by the employer. Consequently, if you extend a part-time spring semester intern into a full-time intern for the summer, they may be due full benefits offerings.

Paid internships typically provide an hourly wage between $10 and $28 an hour, depending on the geography, desired level of education and role. Further, if the individual does not reside in your geographic area, it is not uncommon for companies to suggest, arrange, provide or subsidize housing for the duration of the internship.

Authoring a job description for an internship necessitates a different kind of thinking. Although many of the usual requirements may apply, (e.g. ability to lift 50 pounds, valid driver’s license) some will need rethinking. For example, asking for experience in shipping, receiving or delivery, familiarity with industry products and terms or working knowledge of warehouse safety is likely to disqualify many potential intern applicants. Instead, consider focusing on the kinds of characteristics you value in a teammate, perhaps dependability, initiative or customer focus, and get creative with your questions to elicit stories that demonstrate them in a candidate.

A written expectations document can be an invaluable tool in setting a positive tone and providing clear guiderails for an inexperienced young professional to have success. What seems intuitive to an individual who has been in the world of work for several years should not be assumed to be known to an intern.

Consider writing out expectations for areas such as: C onfidentiality/discretion – verbal and written C ommunication expectations – informal, formal, written, electronic M eeting preparation, attendance, follow-up, conflicts and cancellation A llowable attire and necessary PPE continued on next page

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Safety and security – day to day as well as in case of a natural disaster Typical hours of work, schedules or shifts Access to buildings, offices, warehouses, vehicles Time reporting methods and approvals Securing time off: preplanned vacation, sick or unplanned personal emergency Work environment cleanliness and etiquette – including break room Acceptable use of company assets, including digital Conflict resolution and who to ask for help Such expectations are not intended to replace or extend in-place human resource policies. They are a more down-to-earth, howwe-do-things-around-here guide. The process of sitting down and turning these kinds of expectations into the written word is often a very revealing exercise, illuminating assumptions you didn’t even know you had and offering an opportunity to simplify processes.

What you offer an intern

Interns seek out internships for many reasons. Some seek to defray living expenses at home or at school. Some seek to begin to build a resume that will demonstrate previous experience or create professional references. Some are looking to make a connection with an employer that might create a leg up toward fulltime employment in the future. Some seek handson experience outside their academic pursuits. Some simply want work experience. Whatever the individual reason, inviting an intern to join your company should not only fulfill their expectations but exceed their imagining.

It is useful to ground a young mind in the rich history of your company, why you exist, an organizational structure and values, the customers you serve, products you sell, the markets that you compete in, the value you create and your vision of the future. Find a team member with some legacy and demonstrable knowledge of your company and give them an opportunity to demonstrate what videos and books can’t fully communicate; pride in work that contributes to something greater than one’s self.

In a limited-time engagement, it is unlikely that an intern will interact with all of the existing roles in your company. A pictorial summary of the variety of roles and a synopsis of their day-today tasks will illuminate the breadth of career opportunities in your company and in the industry.

Another option to consider is providing interns with access to job related-training or videos. Options such as seminars, onsite training or online classes add depth to their internship experience and breadth of industry understanding.

Purposefully facilitate relationships with professionals at multiple levels of your company. For example, each intern should have a mentor/single point of contact. This is someone to whom the intern can ask any and all questions. A reoccurring half-hour for 12 KEEPING MEMBERS INFORMED, ENGAGED AND LEADING

coffee or a weekly lunch will go a long way to tethering the intern to your company. Scheduling a weekly lunch or job shadow hour with a 3-5-year employee, a 10-year employee and an executive offers a young professional multiple windows into your company’s greatest assets, its people. The more touch points you create, the more positive the experience.

Concluding an internship experience

Once the intern’s time is complete, there are several things that will help to tie a bow on the experience. Interns often have difficulty turning their activities into a resume-worthy description.

Consider creating an activity with a mentor or human resources representative to sit down with the intern and edit their resume to include their company experience and highlight learned skills. In addition, consider providing a letter of reference from a significant supervisor to accompany their resume.

This is, of course, the time when many companies would conduct an exit interview. Rather than focusing on, what for an intern, is an intimidating personal interaction, consider asking the intern to answer these open-ended questions:

What surprised you most during your time with us?

What should we keep doing in our internship program?

What should we stop doing in our internship program?

What should we start doing in our internship program?

Don’t forget to let your intern know when and how they will receive a W-2 and whom they should contact with questions after they have left your employment.

Closing

Operating an internship program will most certainly create a variety of demands on some members of your team while simultaneously creating rich opportunity to teach, mentor and coach. Setting clear expectations, and about roles and responsibilities for all involved is a key to success.

According to the National Association of College Employers 2009 Experiential Education Survey: 6 7.7% of interns were offered a subsequent full-time position

83.6% of these offers were accepted 35.3% of employer’s fulltime, entry-level college hires came from internships 40% of employers reported a higher five-year retention rate among employees hired via their internship program There’s no time like the present to begin test-driving your future talent!

Beth Ladd is ASA’s vice president of innovation and runs the ASA D.NEXT Innovation Lab located at the University of Illinois Research Park in Champaign-Urbana. The D.NEXT Innovation Lab, which opened during the pandemic in 2020, has produced multiple research studies aimed at helping ASA members compete in an ever-changing marketplace, including the perceptions distributors and contractors have of each other and contractor buying habits. To learn more about these studies contact Beth at bladd@asa.net.

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ASA members utilizing recruitment tools to build their brands ASA’s PROJECT TALENT careers recruitment platform continues to help ASA member companies in their journey of hiring new talent to their teams.

PROJECT TALENT, one of three mega initiatives in ASA’s long-term Building One Future strategic action plan, features two key components, one being a free jobs posting board at SupplyIndustryCareers. com where ASA member companies can post open positions. That website, in turn, is then strategically marketed through social media and other digital mediums that attract job seekers.

In fact, ASA recently chronicled the success story of member distributor Equipment Controls Co., which used SupplyIndustryCareers.com with great success and hired a new warehouse associate.

To date, ASA members have posted nearly 150 jobs to the SupplyIndustryCareers.com job board. That job board has attracted more than 13,000 page views. During the Aug. 1-Sept. 15 timeframe, SupplyIndustryCareers.com had 7,484 unique site visitors.

The other key component to PROJECT TALENT is a recruiter’s toolbox where ASA member companies have access to thousands of free digital marketing assets to assist them in their hiring journey. As of this writing, 54 ASA member companies have requested access to the toolbox.

A new PROJECT TALENT e-newsletter was launched in August loaded with recruiting tips and best practices. More than 1,500 unique ASA members opened that first edition.

PROJECT TALENT’s social media campaign that spans Facebook, Instagram, Snapchat and Twitter resulted in more than 1.4 million impressions nationally during a recent six-week time period, targeted to categories such as hourly worker, college student, second career seeker and military members.

Dakota Supply Group members meet with with members of North Dakota Senator John Hoeven’s office during the recent ASA-NAED virtual fly-in event.

ASA-NAED virtual fly-In connects members with their elected officials ASA recently teamed up with its friends at the National Association of Electrical Distributors to host a virtual fly-in that allowed member companies to meet with their elected officials via a series of Zoom meetings.

More than 30 ASA and NAED member companies advocated on a number of critical issues included corporate tax rate, estate tax and infrastructure.

With the multitude of tax and spending proposals making their way through Washington, ASA has been active in supporting commonsense legislative approaches to the challenges facing the industry. On the taxation front, ASA has fought against initiatives that seek to raise the top income tax bracket from 37% to 39.6%, raise the corporate income tax from 21% to 28%, raise taxes on pass-through businesses (with a full 199A deduction to 35.5% or if the 199A deduction is eliminated to 43.4%), institute a “double death tax” on family businesses, and requiring banks to report all business and personal financial transactions over $600 (including transfers between the accounts with the same owner).

When it comes to federal spending, ASA continues to monitor and support the Senate version of the Bipartisan Infrastructure Framework (BIF) as it makes its way through the House. The bill currently contains language supporting a DRIVE Safe pilot that would establish a 3-year/3,000-driver program with the Department of Transportation to allow drivers between 18 and 21 to haul interstate commerce.

While legislators on both sides of the aisle try to agree on a sorely needed public works infrastructure bill, an epic budget resolution makes its way through Congress, bringing with it changes to the social and economic fabric not seen since the Great Society programs of the 1960s.

In California, ASA has continued its efforts to achieve a reasonable solution to AB 100, a bill that regulates the manufacture and sale of endpoint fixtures that conform to the NSF 61 2020 standard. ASA worked with a broad coalition of organizations to make changes to the bill that will give distributors and manufacturers an appropriate amount of time to supply compliant fixtures, while selling remaining stock.

As of this writing, the bill passed the California Senate (37-0) and the Assembly (63-0) and has been sent to the governor for his signature.

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KEEPING MEMBERS INFORMED, ENGAGED AND LEADING

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Industrial PVF outlook: No easy answers

While business is strong, underlying issues are creating complications in the overall supply chain.

By Mike Miazga, Vice President Sales, Membership Richy Milligan, senior vice president at Greenville, South Carolina-based Eastern Industrial Supplies, has this advice on the current individual PVF landscape.

“Continue to ride the wave as long as you can and press on,” he says. “Business is very good right now in ‘most’ markets; there are a few exceptions — specifically speaking about the Southeastern United States — but most of our customers have continued to stay busy. What makes me say that? One word. Backlog. We stay in touch with our customers regarding future work, both on the bid chart and business booked. This wave looks like it will last, at least, through second quarter 2022.”

Milligan’s observations are echoed by those throughout the PVF distribution side of things. “I would classify the current industrial PVF market as strong,” says Paul Andruszkiewicz, president of East Windsor, Connecticutbased The Collins Companies. “Our open order has never been stronger, so demand is there and growing.”

Mike Abeling, president and CEO of Fontana, Californiabased Consumers Pipe and Supply, calls the current landscape this way: “I think we are living an experience of a lifetime,” he says. “We have never seen the market so active and an opportunity to make more investment in time and money than ever before. The current market price increase has created an environment that is driving prices upwards and not getting any pushback from the marketplace because everything is going up.”

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Rob Raban, president of Southern California-based industrial PVF master distributor Industrial Valco, says natural gas prices and oil prices are having a hand in the prosperity. “The industrial PVF sector is steady,” he says.

“With natural gas and oil prices at near annual highs, there is an economic incentive to produce. Thankfully, that production involves the use of pipe, valves and fittings.”

Raban says the current landscape is challenged with respect to imported material. “That’s been going on for quite a while with the supply chain disruptions and shipping container pricing increases,” he says. “Even domestic suppliers are challenged as they may use imported pipe and forgings in the production of their finished products.”

Koltin Stratiner, president of Kent, Washington-based Puget Sound Pipe and Supply, calls the industrial segment a tale of two different worlds right now. “Projects outside the energy sector seem to be moving forward full steam ahead, and anything related to renewables seems to be moving forward as well. The energy sector has a lot of projects that are funded through engineering but have not moved to procurement. The question is will these move forward to procurement and construction or will they be placed on hold?”

On the manufacturing side of the equation, Joe Pro, president of Penn Machine, is seeing steady improvement for the industrial PVF sector over the previous two quarters.

“There have been difficulties for manufacturers due to supply chain disruptions and rapidly rising raw material costs,” he says. “Fittings and branch connection process have been increased along with many other products needed by PVF distributors for their end-user customers.

There was a lot of optimism heading into the late third quarter and fourth quarter of 2021. That has been tempered with the latest COVID-19 surge, trucking shortage and a near impossible labor shortage throughout the country. There are a lot of projects that are approved, funded and ready to go, so we are expecting a steady increase in business as raw material availability improves.”

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Gary Yambor sales and marketing manager at PVF manufacturer The Phoenix Forge Group, says one thing to keep an eye on is maintaining margins on products with the month-after-month continuation of price increases.

“If you do not keep up with the cost escalations, you will soon find your business with an ugly P & L statement with negative cash flow,” he says. “In discussion with many long-time industrial professionals, they all say they have never experienced this type of economic experience in their career. Many businesses have a full order book with back orders of the magnitude they have never seen. Seamless steel mills and SBQ hot and cold roll steel mills are booked into the second quarter of 2022. As prudent care-keeper of your business, you must take into consideration your inventory replacement cost.”

From an overall supply chain perspective, Alan Lipp, CEO of master distributor Merit Brass, notes global rebound from the pandemic has outpaced expectations, and insufficient supply is impairing efforts to address current demand levels. He adds everything from mining of raw materials through labor shortages has impeded recovery of a broad array of finished product. Plus, he notes, the impact of current shortages are further amplified by extended lead times — particularly from Asia where COVID continues to impact the output of several manufacturers in the southwest part of that continent.

Lipp adds another wrench thrown into the mix is that freight costs from Asia remain extraordinarily high and lead times are no longer predictable. Lipp says the catalyst for change has been consolidation within the ocean vessel shipping industry. Take that lack of vessels and add in a lack of containers and related equipment and Lipp says global PVF supply chains will remain disrupted for the foreseeable future.

“As the peak season unfolds, the situation is getting worse,” he says. “I can’t come up with a word to describe how the industrial PVF sector is right now. Confusing? Chaotic? I have never seen this before in 40 years of business. It’s a perfect storm.”

Commercial outlook

Tom LaGuardia, vice president of sales and marketing at Milwaukee Valve, reports much of the commercial PVF industry is having “a very good 2021.”

“For us, demand remains above plan volumes,” he says.

“I think it is due, in part, to the pent-up demand from the pandemic shutdown on both the construction side and the MRO side of our business. Raw material increases and the corresponding market price increases helped fuel some of the volume, but the market is very strong currently.”

As noted earlier, LaGuardia cautions challenges to the supply chain will need to be monitored for the foreseeable future in many cases.

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“The most significant for us is inbound container shipping times from overseas,” he says. “We are finding that containers that were taking 30 days from port to port are now 60 to 75 days, not to mention the cost is up more than 300% in the past six months. These two factors will cause issues for many industries, including PVF over the coming months.”

Crystal ball 2022

Josh Aberman, executive vice president at Miami-based Lehman Pipe & Supply, labels the current landscape as incredible, yet filled with uncertainty.

“We are extremely busy and moving a tremendous amount of amount of product, however we are facing many real issues,” he says. “We are continuously having to manage price increases with limited allocations.”

And Aberman says, at this point and time, he doesn’t see things slowing down for Lehman. “We are trying to be very ‘inventory’ conscious while anticipating some market corrections on both steel and plastics,” he says.

Chicago Tube and Iron’s Russ Coughlin labels customer forecasts for the beginning of 2022 as strong.

“However, mill maintenance outages in Q4 will likely limit the overall steel supply in the marketplace,” he says. “This will continue to make it a challenge to meet industrial PVF demand and should keep pricing afloat in the short-term.”

Penn Machine’s Pro says to also keep an eye on Washington. “We see more projects moving forward,” he says. “A wildcard remains the size, scope and timing of the infrastructure bill being debated in Washington. That bill could become another distributor as infrastructure projects compete for raw materials and employees.”

Industry legend Ernie Coutermarsh (retired from F.W. Webb and now an industry consultant) notes a renewed focus on the environment emphasizing clean air, clean water and contaminant containment will provide “lots of growth in PVF.” “Pipes are the veins and arteries,” he says. “Valves are the control and safety, fittings are the secure connection and pumps and instrumentation as well as skid packages provide total package flow solutions that will be in high demand, and this bodes well for 2022. The cautionary note is that continue material shortages, supply chain interruptions and escalating prices will more than likely continue.”

Eastern Industrial Supplies’ Milligan says now wouldn’t be the worst time to take a shot at the end zone when it comes to a company’s talent roster.

“We will remain optimistic and aggressive, but cautious and strategic regarding inventory levels and wants with regard to expenses,” he says. “Take some of your profits and invest in your people. Now is a great time for enhanced training, building of culture and coaching. This will pay dividends when the tidal wave becomes a normal wave.”

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ASA’S VITALITY

GROWTH ASSESSM E NT TOOL

A Bold Strategic Tool to Equip You for Growth into the Future

New assessment tool helps ASA members’ growth strategies to compete in a rapidly changing market Given today’s rapidly changing business environment, strengthening a company’s ability to compete will require leaders to think about their businesses like they never have before.

Today’s environment requires a new level of strategic vision, growth mindset, planning, investment, expanding skill sets and taking risks to stay relevant and compete.

This survey can then be distributed to the very highestlevel decision-makers, all the way down to frontline workers. Once feedback has been submitted from the company’s stakeholders, a confidential, company-specific Growth Assessment Report will be generated, which will provide insight and benchmarking to understand the company’s position for future growth.

Preparing American Supply Association members for future success in the face of all this disruption has been a driving factor for the association’s leadership to invest and launch several new programs, including the D.NEXT Innovation Lab (at the University of Illinois in Champaign-Urbana) and the workforce recruitment effort, Project TALENT – both of which are already providing ASA members a wide array of benefits. Both are part of ASA’s long-range Building One Future initiative.

Whether a company is facing a potential merger or acquisition or is simply in need of getting serious about strategic planning, this multifaceted report will provide a high-level view of a company’s readiness state for future change and growth.

Now, ASA is launching the association’s newest program — the VITALITY Growth Assessment Tool — a game-changing tool that will challenge ASA members to think differently about their business and assist them in positioning their company to compete in the future.

No other association can match the overwhelming value that ASA has provided over the past few years, and this program will only continue to bolster that value being provided to the ASA membership.

Each company that opts to participate in this program will receive access to a confidential survey link, which will guide them through the discovery process as they share information about their business’ current approach to growth and future-state planning.

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KEEPING MEMBERS INFORMED, ENGAGED AND LEADING

Even more exciting, through the significant investment from both ASA and the ASA Eduwcation Foundation, this tool is being provided on a complimentary basis in 2021.

Now, it’s time for members to do their part and take advantage of this program. An informational brochure was recently mailed out to the ASA membership, outlining the VITALITY Growth Assessment Tool and how to get started.

To learn more about the tool, contact ASA’s Mike Miazga at mmiazga@asa.net.

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New partnerships with Dell and Carhartt offer ASA members valuable discounts ASA is proud to announce a pair of new partnerships that will give member companies the opportunity to enjoy discounts on small business IT and computer equipment solutions, as well as workplace uniform apparel.

ASA partners with Carhartt Company Gear

Dell Technologies is ASA’s newest Association Partner and is the recommended provider for small business IT and computer equipment solutions. In addition to a robust marketing and promotional effort to further familiarize ASA member companies with Dell’s vast suite of products and services across ASA’s many communication platforms, ASA member companies will be able to take advantage of exclusive ASA-members only discounts on Dell-related products.

Through a partnership that started earlier this month, ASA member companies will have the opportunity to receive exclusive uniform benefits for their business needs through http://companygear.carhartt.com by logging into their MyASA portal at www.asa.net, and visiting the Carhartt partnership page.

“We are thrilled to partner with ASA to offer our technology products and solutions to their members,” said Mobolaji Sokunbi, director of small business alternate routes to market at Dell Technologies. “ASA members can now receive healthy savings on Dell Technologies’ vast range of products, including the award-winning Latitude laptops and the durable Rugged laptop line. We are passionate about helping small businesses grow and believe together we can support ASA and their members in their business journey.

We are confident that ASA and its diverse membership will receive great value from this partnership.”

ASA also announced a partnership with Carhartt Company Gear™, the uniform solution business unit of the 132-yerold Carhartt apparel manufacturing brand.

Carhartt Company Gear™ will also be partnering with ASA to build a variety of educational topics and initiatives, including the industry’s continued push to attract and retain new talent. Carhartt Company Gear™ will host a webinar for ASA members later this year and will also provide relevant apparel content for ASA’s various print and digital mediums.

To learn how your company can receive the Carhartt Company Gear™ ASA members only benefits, contact ASA’s Mike Miazga at mmiazga@asa.net.

For more details on the Dell discount program for ASA member companies, visit www.dell.com/supply.

SAVE THE DATE

NETWORK2022 November 9-11 | Chicago, IL

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17

How distributors are automating the customer journey

By Jonathan Bein, Distribution Strategy Group The sharp increase in online engagement with customers in March and April 2020 was more than just a one-off blip due to COVID-19. Surveys have reinforced the idea that while COVID-19 spurred the shift to digital, neither businesses nor their customers in B2B see a full return to how things were done pre-COVID-19.

A big opportunity for distributors is to automate even more of the customer journey than what is covered through ecommerce. With the advent of ecommerce around 2000, automation in the customer journey took a large step forward. Customers were now able to shop and buy online without interaction from a rep. The entire customer journey includes: S hopping B uying I nvoicing/Payment F ulfillment S upport Now, in 2021, many exciting new technologies show promise in dramatically changing how distributors operate and engage with customers through these five steps.

These technological advancements incorporate both information and knowledge to perform tasks automatically or to augment human beings in their work, allowing the distributor to continue offering higher-value experience, expertise, creativity and higher-level solutions.

We recently conducted research where we asked how distributors are using newer technologies to guide the customer journey, from when customers begin looking for solutions through fulfillment, delivery, payments and any related support and service. We looked at where technology

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KEEPING MEMBERS INFORMED, ENGAGED AND LEADING

can automate the customer experience, so the customer can operate without interacting with the distributor’s team.

Based on our research into the evolving role of technology in transforming the customer journey, we found the following:

Shopping

The most significant improvements have occurred in how customers shop. Newer technologies such as AI for cross-selling and product recommendations, product selectors/configurators, item recognition and chatbots are addressing the shopping experience in ways that are more personalized and that take advantage of shopping patterns.

This is shortening the time it takes for customers to find the right products with a distributor, driving significant efficiency and productivity gains. Though some of these technologies will see significant adoption by mid-decade, the highest value imparted by customer service and field sales reps in finding the right solution and the right product category will go beyond just technology for many years to come.

Buying

Distributors need to make the purchasing process easy for customers. Many surveys of business customers have indicated that their experience in B2C environments has established the standard for what they expect in a B2B context, and that’s especially true when they make purchases.

Significant automation already exists in the buying stage of the customer journey, including ecommerce, EDI, punchout and email order automation. Many distributors have already adopted some form of touchless ordering such as ecommerce. By mid-decade, voice-ordering like what is available through Alexa at Amazon may reach the early adopter stage.

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Next steps

Some surveys indicate more than 85% of customers would pay more for a better customer experience, from shopping and buying to the support after the sale.

Fulfillment

The process for fulfilling customer orders is a big opportunity to use advanced technologies to optimize the experience for the customer, while improving the internal operations of the distributor’s business.

There are fewer examples of distributors using advanced technologies to improve fulfillment for the customer, with some exceptions such as self-service. While there is plenty of technology to support warehouse automation, technologies that are visible to the end customer such as drones and autonomous vehicles are in very early stages of adoption in this industry.

Invoicing/payment

Distributors are ripe for a major transformation by leveraging new technologies that automate financial transactions, eliminate paper and leverage financial resources. Automating invoicing and accounts receivable improves productivity for the distributor and the experience for the customer.

Some surveys indicate that more than 85% of customers would pay more for a better customer experience, from shopping and buying to the support after the sale.

Because customers experience more through digital platforms now compared with just a few years ago, we expect advanced technologies will be critical to establishing, maintaining and improving the overall experience for customers long into the future. Already, digitally mature competitors are gaining share, and customers are quickly shifting to digital shopping and buying.

That disruption is accelerating, with marketplaces proliferating, and product availability and fulfillment now commoditized.

Supplier power is growing, and with it, a growing risk of forward integration and preference for alternate channels.

Those who win in this new market will prioritize and deploy some of the new technologies outlined in this article over the next few years to support the customer journey.

Download the full State of Technology in Distribution survey results at distributionstrategy.com.

Jonathan Bein is managing partner of Distribution Strategy Group.

He has developed and applied analytic approaches for customer segmentation, customer lifecycle management, positioning and messaging, pricing, and channel strategy for distributors. Before Distribution Strategy Group, Jonathan has successfully led and been part of executive management for software product and services companies in information technology, healthcare and communications. Reach Jonathan at jbein@distributionstrategy. com or visit distributionstrategy.com.

Very few distributors (less than 5% in our survey) say they have any experience with cryptocurrency or blockchain to enable alternatives to contract management, conventional cash instruments and credit facilities.

Support

We don’t expect adoption of technology in the support phase of the customer journey until later this decade at the earliest. These technologies support the delivery of value-added services such as training, product returns and customization, and are powerful ways to differentiate, compete and solidify a relationship with the customer. Any technology that allows a customer to easily self-serve a more complete solution will benefit all parties.

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A HARD-WORKING PARTNERSHIP THAT HAS YOUR CREW’S BACK

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9/21/21 8:52 AM