ASA REVIEW A year-end recap of association activities.
ASA President CHRIS FASANO addresses members at NETWORK PVF: What you need to know about the renewable energy landscape Members identify GREAT IDEAS during special roundtable session An interview with ASA’s 2022 president Bill Condron
Q1 22
From the CEO
Quarterly ASA Review providing quality content you can’t get anyplace else
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I am amazed at the resiliency of our members and our industry’s ability to respond to unprecedented disruption, which we certainly haven’t had shortages of over the past two years. And as we turn the page to another year, there’s little doubt that we will face yet another year of uncertainty. After taking trips this year to our Emerging Leaders’ event in Nashville, two buying group meetings and most recently to NETWORK in Las Vegas, I am confident that we have turned the corner on the pandemic. Oh, don’t get me wrong, the political elite isn’t done with the pandemic, but as I saw hundreds of industry professionals interacting in personal meetings, we are clearly done and ready to reconnect face to face. After all, our industry is a very social one and we need to see each other in person. I am equally amazed at our association and the strong volunteer leaders that have forged ASA into a dynamic organization that is expanding to serve our members and their ability to compete profitably. Part of that service is to provide features and educational content that you cannot find anywhere else. We launched this ASA Review six months ago to do just that. We hope that you have found value in the editorial content we have provided. In this third installment of ASA Review, ASA’s Chief Economist Dr. Chris Kuehl gives his 2022 economic forecast. We take a look at how successful distributors are measuring for success and how ASA’s Operating Performance Report is helping them benchmark their firms’ success against fellow distributors. On the industrial side, we take a look at how renewable energy is providing opportunities for our Industrial Piping Division members. ASA Chairman Chris Fasano reflects back on the success of ASA, plus we bring you the year in review by the numbers. And lastly, 2022 ASA President Bill Condron takes a look ahead in an interview with our own Mike Miazga. We hope that you will enjoy these great articles. One thing that I am particularly proud of with this new mini-magazine is our ability to deliver each issue without advertising, which was something that our leadership challenged us to do. While we deeply appreciate our manufacturer partners and the support that they provide our association, we have been working hard to deliver great content and only the content.
April 20-22,2022
ELEVATE
Hyatt Regency | Louisville, Kentucky
EMERGE2022 SPRING FORUM
JW MARRIOTT
New Orleans, LA MAY 16-18, 2022
NETWORK2022 November 9-11, 2022 Fairmont Chicago Millennium Park | Chicago, IL
So far, we have delivered three ASA Review publications since July of last year — each issue offering you great content from thought-leaders. We hope you have found each issue to be valuable to you and your teams. While we are delivering a limited number of printed reviews to each member, we are delivering a virtual issue to more than 7,000 professionals. If you want to make sure your key people/teams are getting the virtual issue, email us at info@asa.net. Thank you for reading and thank you for being an ASA member. Michael Adelizzi, CEO 2
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NETWORK roundtable
session provides great ideas
A fter-hour lockers for customer pickup.
By Mike Adelizzi, CEO
B e open on Saturdays.
At ASA’s NETWORK2021 “Great Ideas” roundtable discussion session, nearly 150 people met to discuss great ideas addressing six of the most pressing issues facing distributors as identified by conference attendees. More than 100 Great Ideas were identified and captured by the session’s participants during the one-hour session in Las Vegas. This new NETWORK session was a benefit of attending ASA’s annual conference, and each attendee received the full list of ideas that were generated. Below are a few of the Great Ideas that were captured:
How are companies using technology in their business to enhance productivity?
E xpand service to good customers — 24-hour opening and deliveries. “White glove treatment” for contractor loyalty. L ook to automate the sales process, which will result in less room for error, better customer service and faster quotes to the customer.
How are firms attracting and retaining top talent? Evaluate your website — does it reflect an exciting place to work? A great culture will attract great employees. Blended workdays (in office and work from home). Consider four 10-hour days instead of 5-day work week. Daycare subsidies.
1) Website for internal employees is easier for product search than company’s own ERP.
C reate recruitment cards. Maybe with a QR code taking people to a company careers site — give cards to employees to hand out.
2) E-commerce search engines and key wording are changing relationships to more transactional.
U se videos and testimonials of recent hires. Why they joined the team and why they like the company.
3) Concern of salespeople who fear losing commissions, but customers should get best pricing without having to call a salesperson. 4) Identify “associated items” when ordering product. 5) Product data standards in the channel.
What are innovative ways to outperform the big box stores with their advantage of hours of service? What do you see coming from competitors or new technology that will impact the way companies can win in the future? S ome distributors offer better service such as taking old product like water heaters. O ffer wide range of rebates such as a designer rebate based on number of products bought from a distributor. ASA REVIEW
What marketing and promotional activities have proven to be successful in building a company’s brand and sales success? T ake good care of your employees. They are your brand. They talk to everyone. M easure what got people into your door — ask how they found you. E stablish customer focus groups to help identify opportunities or areas that need to be improved by your company. L oyalty is motional. All your interactions are relational. C ommunicate what you are doing to everyone (employees, customers, vendors, etc.). Don’t miss the 2022 Great Ideas session at NETWORK2022 in Chicago, Nov. 9-11. Watch for program details in April. KEEPING MEMBERS INFORMED, ENGAGED AND LEADING
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Photo by Bob Levy, ASA
The Granite Group President and CEO Bill Condron sees ASA’s value continuing to increase. “ASA has invested in new and exciting areas to both sustain our industry, but also help take it to the next level. I really think the best days lie ahead for our industry and our association.”
Meet 2022 ASA President Bill Condron New ASA President Bill Condron, president and CEO of Concord, New Hampshire-based The Granite Group, recently chatted with ASA’s Mike Miazga about the pandemic, the value ASA brings to its members and the industry, as well as what challenges may be lurking ahead for companies that do business in the PHCP-PVF supply chain.
Over the past several years ASA has engaged in three major goal areas: talent, technology and innovation, and preparing members to remain competitive in the future (growth assessment). Now that the association is fully engaged in offering programs to support members in these areas, what’s next?
The industry has weathered much of the pandemic storm, although it looks like we will still be dealing with supply disruptions for much of 2022. Looking back, what about ASA are you most proud of as we all navigated the pandemic over the past 18 months?
BC: ASA has done a great job creating the tools for our members to use in these critical areas. I think the next step is to see our membership now fully use those tools to build stronger companies, and therefore, a stronger industry overall.
BC: I think the calm response by both ASA and the industry overall throughout the depths of the pandemic was the most impressive thing to me. In those early, frankly scary days when everyone was home and in quarantine, our industry got up every day and went to work as an essential business. When uncertainty reigned, our people calmly went about doing their work and serving their customers. As things improved and we learned more about the virus, most people started to re-engage in their daily lives. But the people in our industry never stopped, which I think is impressive.
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Over the past year, ASA has looked at our governance structure and how we might be able to restructure how we are governed to more effectively serve our members. What benefits will this new structure have for how ASA is led and how we strategically look to the future? BC: The more streamlined org chart fits the association we are today and who we want to continue to be moving forward. By updating our structure, we were able to alter some legacy arrangements and include the exciting new initiatives into our governance structure and org chart.
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What barriers do you think remain that can keep ASA from fulfilling its mission? BC: Frankly, none. We have an engaged and dynamic team led by a very experienced leader in Mike Adelizzi. We have invested in new and exciting areas to both sustain our industry, but also help take it to the next level. I really think the best days lie ahead for our industry and our association.
and try to meet demand. The relationships built up over years that ensure open lines of communication are more important now than ever as we all navigate all these issues. A phone call or a text can save hours of headaches, and you just don’t get that via a click and order from Amazon. About three or four years ago, you were one of the original Issue Strategic Action Team members that provided the association a glimpse at our future and what was keeping you and other leading distributors up at night. What’s keeping you up at night now? BC: I do think the future is quite bright for our industry overall. However, all business is under constant pressures today. The fight for talent is an issue we are all facing. I remain hopeful we will continue to promote what an incredible career opportunity we offer in our industry. I also think digital disruption is always a fear — what is unknown today that becomes a disrupter tomorrow. But if I had to pick one, it would be the continued march towards digitization of the transaction. The converging forces of increased technology, the rise of tech-savvy customers and the need to root out costs in our transactions due to a tight labor force and razor-thin margins are driving towards our basic transactions moving online or mobile.
Photo by Mike Miazga, ASA
Condron says the evolution of online transacting will continue in the PHCP-PVF industry. ”If you do not have a robust online offering, or at the very least are investing in building one, I think you could risk being taken out of the transaction by a competitor who does,” he says. Has the pandemic given our industry unforeseen opportunities over major competitors such as Amazon and the big box stores or has the pandemic expanded the divide between our customers and competitors?
That doesn’t mean you lose the relationship — quite the opposite. By moving orders online, it frees up our talented people to help their customers when they need it most. But if you do not have a robust online offering, or at the very least are investing in building one, I think you could risk being taken out of the transaction by a competitor who does. I think as an industry we may see this pending storm, but I am not sure we have taken the steps or made the investments to best weather it. With a strong need for our industry to unite to counter the threats from competitors such as Amazon and the big box stores, how could ASA, as the only true national industry association, get everyone rowing together? BC: I think by continuing to lead for the future through the various new initiatives — D.NEXT, Project Talent, Project Vitality, etc., ASA has built the framework for its members to prepare for the future. We don’t know if we have all the answers, but through these initiatives, ASA is allowing it members to ask the questions necessary to be sure we are thinking about what it will take to survive and thrive into the future.
BC: I think the pandemic has strengthened the thing that matters most in our business — relationships. The supply chain woes are ubiquitous in global commerce today. They are not relegated to our industry. However, the constant communication between vendor and wholesaler and wholesaler and customer is more vital now than ever as we juggle delays
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What industrial PVF distributors need to know about renewables By Greg Parra When one speaks of renewable or clean energy, there can be a misconception that there is limited requirements for pipe, valves and fittings. Electrical energy production involves chemical reaction or mechanical motion of steam generators. Renewable or clean energy includes wind, solar panels and mirrors, geothermal, hydro-electric, nuclear and hydrogen fuel. All these industries require PVF products in order to produce, store and transfer energy. In addition, the minerals and chemicals required to produce renewable and clean energy include but are not limited to copper, rare earth minerals and chemicals — just to name a few. The design processes are similar to existing industries. Here are a few examples of the equipment designed to produce renewable/clean energy. The process equipment includes compressor stations, pumps skids, chemical process equipment, water filtration and heat transfer units. The processes begin by obtaining 1) The key chemical elements required to convert chemical to electrical energy; 2) Converting liquid to gas (i.e. water to steam); and 3) Battery storage to store excess electricity for future use.
The scope of supply for the PVF industry is limitless. A common question is where does the PVF industry fit within renewable or clean energy? Chemical process equipment consists of producing catalysts and reactants. Water filtration requires the use of ion and cations, reverse osmosis and filter media. Steam generators require heat exchangers. Any one of these units require pipe, valves, fittings and pumps. Pressure ratings range from vacuum to high pressure, temperature range from cryogenic to high temperature. Pipe and tubing can be from sizes 1/8-inch to 36 inches, and pipe schedules from 5 to 160. The same is true for all pipe fittings. The type of valves includes ball, butterfly, check, gate and globe valves. All manual valves can be supplied with pneumatic or electric actuators to accommodate the requirements of the control system. Pumps and
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compressors require the same pressure and temperature ranges as pipe, valves and fittings. Materials of construction for all equipment consists of copper/bronze, carbon steel, chrome moly and stainless steel. Renewable or clean energy is produced from solar panels that convert sunlight to electricity via chemical reaction. Concentrating solar panels (CSP) require heating salt from @500˚F to more than 1000˚F to produce steam for steam generators. The salt is produced from salt flats or underground mines, once again additional pipe, valves and fittings are required. Producing steam is the conversion of a liquid to a gas. Steam is converting water to steam and repeating the cycle. There are two processes of geothermal energy, the first is the process of heating water through a series of pipe buried in the ground. The second is utilizing geothermal steam to rotate steam generators. Nuclear power generates electricity through nuclear fusion. This process generates heat to produce steam from water. The steam is used to spin generators to produce electric power. The latest renewable/clean energy is hydrogen fuel. Europe has led the industry with developing commercially available power units. The United States is beginning to produce commercial units that are cost-effective. As with all other renewable/clean industries, the processes require a variety of pipe, valves, fittings and pumps. The renewable/clean energy industry is open for the PVF supplier to explore and seek out new opportunities to increase its customer base and generate new sales. As with all industrial markets, the PVF industry will not go away. We need to adapt and overcome the challenges that are brought to us. The future is at hand and we must grab hold of the opportunities. Gregory Parra is vice president of ASA Industrial Piping Division member Alloy Valves & Control based in Santa Ana, California.
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One major takeaway from the first study conducted by ASA business intelligence partner Industry Insights is that labor market pressures continue in full force. More than half the respondents to the survey say the labor market has worsened during the recent three-month data-reporting timeframe. Looking ahead, over the next six months more than 50% still think the labor shortage will remain the same or worsen, but 61% anticipate improving conditions over the next 12 months. The first study focused heavily on drivers and warehouse workers where 45% of respondents say they have significant difficulty recruiting drivers during the three-month-datareporting timeframe. Above-market salaries was the top strategy utilized to attract and retain drivers, while incentive compensation and flexible work schedules rounded out the top three. Signing bonuses and retention bonuses are beginning to be utilized more frequently as well.
ASA commissions special compensation report to help members attract and retain talent By Mike Miazga, Vice President Sales-Membership To help member companies in their talent recruitment and retention journeys, the American Supply Association commissioned two special compensation studies ahead of the major cross-industry compensation study this spring. The first study, which contains data from 117 responding distributor organizations with the majority being ASA members, was completed late last fall and the results of the study were made available to ASA member companies. The second study concluded data collection just before publication and highlights of those results will be available in the Q2 edition of ASA Review.
59%
of respondents used above-market salaries to attract and retain driver positions.
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On the warehouse side, 53% of respondents say they have difficulty recruiting warehouse personnel, while the average turnover (10.3%) and quit (8.4%) rates for warehouse employees are very much in line with the national averages of 11.8% and 8.3% for the reporting timeframe, Industry Insights pointed out. Flexible work schedules ranked second behind above-market salaries when talking about attraction and retention strategies for warehouse workers. The study also does a deep dive into specific positions, such as Class A CDL delivery drivers (startinginexperienced and experienced), selector/picker (day shift and night shift) and stocker. Additionally, the study looks at showroom salespeople, inside sales (entry level and experienced) and outside sales (entry level and experienced). In all instances, base hourly wages and effective gross rates are listed for all positions listed in the study. The second study will take a closer look at those salesoriented positions. To purchase a copy of the first compensation study, contact Mike Miazga at mmiazga@asa.net. It is available to ASA members that did not submit data for the survey for $299.
$1,000
The median dollar amount for a warehouse personnel signing bonus.
$16.72
The median base hourly wage for a starting/inexperienced Class A CDL delivery driver with no helper (according to ASA distributors that took the survey).
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Photo by Bob Levy, ASA ASA Chief Economist Dr. Chris Kuehl delivers his 2022 industry forecast at NETWORK2021 in Las Vegas.
2022 economic outlook: Does all of this go away in the new year? By Dr. Chris Kuehl, ASA Chief Economist Does all of this go away in the new year? Of course it doesn’t! The changing of the calendar may have meaning to us, but the economy just keeps on chugging along as it has been. We can expect to see in 2022 much of what we saw in 2021, but there are always some differences and shifts that may improve certain situations and, in some cases, make them worse. As we transition into the next year, we will have to contend with the same four issues we dealt with in the past year – inflation, labor shortages, supply chain breakdowns and the impact of the pandemic.
Inflation There have been nearly hysterical assertions regarding inflation and these need to be dismissed as nothing more than hype and scare mongering. It is true that inflation has not been this high in 30 years as the U.S. has experienced almost no inflation at all in 30 years. The main factor in this long period of stable prices has been globalization. When the price of labor got too high, companies moved overseas. When the costs of production became excessive, companies outsourced to overseas suppliers.
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In the last three decades those overseas prices climbed and changes in the domestic production community allowed U.S. companies to be competitive. This year, the issue was supply chain and there will be more on this later. The fact is that production started to push back to the U.S., and that also meant higher prices. The last several months added pressure from wages and higher commodity prices and the influence of excess money supply. The reality is that old-fashioned inflation has returned — averaging around 5.0% the last several months. This is NOT hyperinflation and it is NOT stagflation — not even close. It is a problem serious enough to prompt the Fed to start talking about an interest rate hike, and the consensus view is that these rates will start to go up by second quarter of 2022. By the end of the year, they could be as high as 1.25% or 1.5%. Still historically low, but far higher than has been experienced in years.
Labor quandaries Then, there is the whole issue of labor shortage. The latest data suggests this will be an issue that is with us for a long time. There are more than 11 million jobs on offer and around
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One question that continues to be on ASA members’ minds is the status of the supply chain. “The good news is there has been an opportunity for the producers to catch up with demand and they will be able to maintain that position into the coming year,” Dr. Kuehl says. seven million people available to work. The vast majority of those people lack the skills needed by those that are hiring. The primary problem is that workforce participation rates are at the lowest level seen since the 1970s (61%). The culprit is retirement and the fact that some 10,000 boomers reach retirement age every day. This has resulted in the loss of some three million workers per year for the last several years. The combination of retirements, lack of training and the fact that some seven million women are struggling to get back in the workforce due to childcare issues creates an issue that will not be dealt with anytime soon. Traditionally, the U.S. has turned to immigration, but what is needed now are skilled and educated workers from around the world, and every nation in the world wants that same person. All of this labor shortage results in higher wages — most companies now expect to issue substantial raises in the coming year.
Supply chain outlook There may be some better news as far as the supply chain is concerned. The maritime sector has started to see freight rates decline as the peak shipping season has come and gone, but
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they are still almost 60% higher than they were even seven or eight months ago. There has been little improvement elsewhere along the supply chain as there are still shortages of truck drivers and too little overall capacity in trucking or rail. The load-to-truck ratio is still 7.5, and that is as high as it has been in two decades. There is not enough warehouse space either. Right now, Amazon accounts for one-third of all the warehouse construction in the U.S., and they still can’t keep up. The good news is there has been an opportunity for the producers to catch up with demand and they will be able to maintain that position into the coming year. Even the chipmakers assert they will be able to meet the demand from the auto sector and others that have been requiring these chips.
Pandemic prognostication And finally, the elephant in the room. What can we expect as far as the pandemic? To be honest, there is no way to answer that question. We thought we had an understanding and then we were visited by the delta variant. Now we have omicron and it is undoubtedly not the last. This is the way that viruses work: the reason we have a new flu vaccine every year. The virus adapts and morphs and survives. All that can be done is to protect against what we know and be ready to respond to something new. From an economic perspective, it seems we have recovered and are better prepared to respond without destroying the economy in the process, but that remains to be seen. Dr. Chris Kuehl is ASA’s chief economist. Each month Dr. Kuehl hosts a live economic update webinar for ASA members and produces a quick, 5-10-minute economic update podcast on the weeks he does not do the live webinar. Have a question for Dr. Kuehl? Contact Mike Miazga at mmiazga@asa.net.
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2022 marks the 40th consecutive year ASA will publish its industry-standard Operating Performance Report.
Why successful distributors measure their success By Mike Miazga, Vice President Sales-Membership One of the many robust benchmarking benefits available to ASA members is the Operating Performance Report, better known as OPR. The annual nearly-100-page OPR, conducted with ASA business intelligence partner Industry Insights, represents the most complete, accurate and up-to-date comparative financial performance data and 20-year trends published anywhere about the PHCP and industrial and mechanical PVF supply chain. 2022 marks the 40th consecutive year the ASA OPR has been compiled, tabulated and analyzed by Industry Insights. “The OPR provides you with an efficient methodology to identify strengths and weaknesses within your business,” Industry Insights Senior Vice President Greg Manns says. “Much like those who only go to the doctor when something is wrong instead of doing regular checkups, that is flawed strategy for running your business. By conducting regular ‘checkups’ using the OPR, a company can often recognize issues before they become painful or irreversible problems.” Manns says many business owners can fall into the seemingly innocent “trap” of overlooking inefficient operations solely because they are profitable. “For instance, over the years, I have had numerous survey respondents indicate they don’t need to participate because their sales are up, and they are profitable,” he explains. “Without a comparison, they have no way to know whether they are leaving money on the table.” Manns notes the typical respondent to the OPR reported a net profit before tax to net sales of 4.5%. “You might feel 10
KEEPING MEMBERS INFORMED, ENGAGED AND LEADING
good if you had a profit margin of 3%, but in reality, you are underperforming your peers,” he says. “I have had other people tell me they can ‘sell their way out of any problems.’ What if your gross margins are off or you are mismanaging inventory levels? Without proper margin management, you may be selling your way out of business.” Manns cautions avoiding being an operator who assesses their entire firm based on a single performance metric. “You can utilize the OPR in conjunction with your firm’s historical figures and internal budget plans to gain a complete understanding of your business performance,” he suggests. “By participating year after year in the report, you can begin to build a library of company performance reports that allow you to quickly look at your historical performance, but also how you performed vs. the industry over the same period.” Greenville, South Carolina-based Eastern Industrial Supplies has been a frequent OPR participant over the years. “Benchmarking our annual results against our peers and highest performers has steered our team to pinpoint drivers behind the data,” Eastern President and CEO Kip Miller says. “Every company has areas in which it needs to focus, and the OPR has helped us to identify where our attention must be to improve our performance.” Rick Schweinberg, chief financial officer at Addison, Illinoisbased Porter Pipe & Supply, gets right to the point about the company’s continued participation in OPR. “It is a valuable benchmarking tool for our business and provides information as to where we stand in the marketplace,” he says.
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Getting comfortable Manns admits assessing the financial end of a business beyond top-line sales and bottom-line profit can be daunting. “Luckily, you do not have to be a financial expert to benefit from this information,” he says. “Even a relatively simple analysis of your firm’s own figures using the data for comparisons can yield important insights into your business.” The OPR provides each participating distributor with a report card within their confidential company performance report (an interactive report card also is available to participants online). This feature provides respondents with grades for their performance across 23 key performance indicators. “In today’s day and age where attention spans are getting shorter, this is one of the most effective methods to quickly identify where additional scrutiny is needed for your firm,” Manns says. “The report card will identify those areas where your firm is weak or strong.”
“The annual OPR and monthly ASA report give Worly a benchmark to judge our monthly and annual performance against industry leaders in not only our geographic area, but nationwide,” she says. “It’s a helpful tool that all companies should take advantage of.”
Where to start Manns says to take a top-down approach with the OPR by looking at the high-level key performance ratios first, such as asset turnover (net sales to total assets), return on assets (net profit before tax to total assets) and return on equity (ROI or ROE). “These give you a great overall barometer of the financial performance of the company,” Manns says. “These are the ratios that marry the income statement and the balance sheet. Asset turnover lets you know how much revenue is being generated by your asset base. Return on assets provides you with a view of profit in relation to the equity/investment by the shareholders.” Manns likens benchmarking to an airplane. “An airplane in flight relies on navigational feedback and constant adjustments to finally reach its destination,” he explains. “Benchmarking is much the same. It is providing the feedback necessary to let you know what areas might need further adjustment in order to reach your destination — whether it be increased profitability, increased cash flow, improved inventory turns or lowering your debt. With the OPR you can learn a lot about your company in 10-15 minutes that would simply not be possible without using the report as a benchmarking tool.”
2022 ASA Operating Performance Report
Eastern Industrial Supplies President and CEO Kip Miller (right) has been a longtime participant in the OPR.
“Every company has areas in which it needs to focus, and the OPR has helped us to identify where our attention must be to improve our performance,” Eastern’s Kip Miller says. Judith Tompkins, controller at Columbus, Ohio-based Worly Plumbing Supply, submits company data for both the OPR and ASA’s monthly sales report that measures distributor performance in multiple sales/inventory-related categories.
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2019 Operating Performance Report (OPR) 2021
Data collection begins: March Note: To be added to the OPR data collection distribution list, contact Mike Miazga at mmiazga@asa.net.
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Photo by Bob Levy, ASA Current ASA Chairman Chris Fasano has this bit of advice to ASA members. “Let this be my ‘ask’ — to make the choice to give back. There have been few experiences more rewarding than my time spent in ASA,” he says.
A look back at a great year By Chris Fasano, ASA Chairman It was an honor to serve as your ASA president in 2021, especially at a time when our industry needed an active, strong and vibrant national association.
ASA leadership and staff worked tirelessly to expand all four of our core value propositions: Advocacy, Benchmarking, Education and Networking.
We are in unprecedented times, and we have not and will not retreat. Not ASA. We seized the opportunity to expand our role as the voice of our membership, even in the face of a global pandemic. Guided by the vision of our strategic plan and the determination of engaged volunteer leaders and a committed ASA staff, we are building a stronger future for our members with new initiatives to advance the interests of our members. It’s clear to me, and I hope to all of you, that ASA has been extremely resilient in meeting the challenges and disruptions from the lasting effects of the pandemic and resulting economic uncertainty.
After the election of 2020, ASA’s advocacy team leapt into action. That election placed many important issues on the table, including business taxation, labor laws and environmental regulations. We engaged in state and local battles like never before.
Our association has never been stronger and that is because of the commitment of all of us — distributors, suppliers, manufacturers representatives, associated businesses, staff and a strong balance sheet. Believe it or not, ASA’s growth didn’t just start yesterday. What we see today started more than a decade ago. Over the past 10 years, ASA has invested more than $6.4 million to expand the value our association delivers to support our members. 12 KEEPING MEMBERS INFORMED, ENGAGED AND LEADING
We represented ASA members and our industry in California where a new lead law would have cost ASA members millions in inventory that would not have been able to be sold. Our members in California and ASA’s leadership retained a leading California lobby firm to help us reach a compromise that will have impact nationally, just as it did nearly 10 years ago. ASA’s advocacy goes beyond legislative and regulatory affairs. We are a strong voice in the codes arena as well. This year, ASA took positions on 99 separate code issues, and I am happy to report that we prevailed on 80% of those issues — a remarkable success rate. ASA’s business intelligence programs remain a strong value and benefit to our members. The economic forecasting and
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insight offered by our economist Dr Chris Kuehl, who was with us in Las Vegas at NETWORK2021 to deliver his 2022 industry forecast, has been a guiding light as we look for clarity in the economy and markets.
plenty of rubber chicken dinners.
ASA participates in a cross-industry, distribution trade association compensation study offered every other year. The last one was offered in May of 2020 with the next one due to start data collection this spring. With strong demand for labor and the dramatic changes in compensation, ASA stepped up to offer an industry-specific compensation survey for the fourth quarter of 2021, as well as again in this first quarter of 2022.
All of what I just shared with you makes many of you wonder… how does all of this get done? Our association really is remarkable. This is truly the product of a very engaged group of volunteers, but more so, the effort of an ASA team that is innovative, hard-working and always looking out for all of us. No one is more passionate than our own Mike Adelizzi. He really is the not-so-secret, not-so-quiet but incredibly humble leader of ASA. He has attracted a staff of individuals that amazes me with what they accomplish and what they have planned next. For that, I would like to recognize our own ASA staff.
Did you know that ASA University now offers 200 courses! Not a single member isn’t faced with the challenge of educating newcomers and up-and-comers. Based on an ASA survey in 2015, our industry will need to train thousands of employees as businesses grow and our workforce ages out of our businesses.
I’m lying. I haven’t lost any sleep, haven’t flown much and haven’t missed eating any rubber chicken dinners.
ASA’s efforts began as Karl Neupert’s vision more than 40 years ago. Because of that vision, the financial support of so many members and the work of the ASA Education Foundation, we are in a unique position to help our members like few associations can. In 2020, you heard former ASA President Bill Glockner (Hirsch Pipe & Supply) introduce two bold new initiatives — Talent and D.NEXT. These two innovative programs are designed to support ASA members in two critical areas — attracting new individuals to our industry and preparing them for the future. PROJECT TALENT builds our brand both as an association as well as our individual businesses and connects future employees to local businesses. The D.NEXT innovation lab, under the direction of ASA’s Beth Ladd, is supporting both of these goals. ASA didn’t stop there. ASA recently launched PROJECT VITALITY, a tool for businesses to plan with a new level of strategic vision and a growth mindset. NETWORK attendees in Vegas heard from Pam Henderson, CEO of New Edge, our partner in providing this unique program. ASA did not stop with its networking opportunities. In the height of a time when people wanted to avoid connecting in person, ASA launched CONNECT — a virtual monthly peer-to-peer networking program that affords participants an opportunity to share best practices in a virtual environment. Add that to our highly successful Emerging Leaders, Women in Industry and our NETWORK conference, and there are no shortage of ways to leverage the value of networking.
Fasano (right) with 2021 ASA Chairman Bill Glockner at NETWORK2021 in Las Vegas.
I would also like to spend a moment to recognize the team back at Torrco for allowing me the opportunity to serve not only as your ASA president, but for the many years of serving WANE (now ASA Northeast), Emerging Leaders, the ASA Education Foundation and on the ASA Executive Committee. Our Vice President of Sales and Marketing Don Polletta, who was with me in Vegas at NETWORK, has been one reason I have been able to take this role in ASA. I also want to take this opportunity to thank my wife, Emily, and her parents, Nancy and Joel Becker, for instilling in me the value of service to your industry.
Lastly, ASA has been highly effective in increasing the flow of information through our growing social media programs and with this very ASA Review you are reading.
Let this be my “ask” to all of you reading this article — to make the choice to give back. There have been few experiences more rewarding than my time spent in ASA.
How impressive!
To current ASA President Bill Condron and those who are in line to serve in the coming years, trust me, it’s not that bad. It’s a lot of fun if you take the time to enjoy it.
I get asked a lot about what it was like to be ASA president. To be honest, it’s a lot of late nights, hours on planes and
ASA REVIEW
KEEPING MEMBERS INFORMED, ENGAGED AND LEADING
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2021: A year in review by the numbers 2021 has been another strong year for the American Supply Association as we engage at an even deeper level to support our members. Through ASA News in Supply House Times (ASA’s official media partner), our weekly e-newsletter Insights and our expanding social media networks, we work hard to keep you informed of all the great things ASA is doing to protect your interests and support your ability to operate profitably. We can’t list all the ways, ASA has helped you in 2021, but here are a few:
70
ASA delivered nearly 70 virtual educational and economic sessions
2020 Year In Review We’re in the Growth Business
ASA REVIEW ASA REVI EW A quarterly recap of association activities.
Q3 21
A quarterly recap of association activities .
INSIDE THIS ISSUE: THE AMAZON THREAT:
Q4 21
Time to reevaluate your marketplace strategy
INFLATION: What goes up, must come down. Or does it?
ASA INNOVATION CORNER: Disrupt yourself
2021 FRED V. KEENAN LIFETIME ACHIEVEMENT AWARD
ASA honors First Supply’s Joe Poehling & InSinkErator ’s Joe Maiale
ALSO IN THIS ISSUE:
23 ASA hosted 23 networking and educational sessions at NETWORK2021 in Las Vegas.
WHY DIVERSITY IN THE WORKPLACE EQUALS PROFITABILITY 2022 ECONOMIC OUTLOOK
3
STATE OF THE INDUSTRIAL PVF SUPPLY CHAIN
3 ASA Review mini-magazines were published in 2021 — loaded with content distributors can’t get anywhere else.
78,000
150
ASA’s SupplyIndustryCareers.com job-posting site for ASA members generates 78,000 click-throughs.
ASA’s Emerging Leaders’ EMERGE conference in Nashville draws 150 attendees — ASA’s first in-person event in more than two years. 14
KEEPING MEMBERS INFORMED, ENGAGED AND LEADING
ASA REVIEW
13,000
On the industrial PVF front, ASA relaunches the PVF Outlook e-newsletter that is seen by more than 13,000 individuals each month. Additionally, ASA launches the ASA Commodities Twitter account to keep its Industrial Piping Division members and their customers informed on the latest price changes, news and analysis related to industrial and mechanical PVF commodities.
10 Million
26,264
ASA’s PROJECT TALENT careers recruitment platform generates more than 10 million social media ad views from 3 million interested career seekers.
The total number of ASA University courses completed in 2021.
10 Top 10 states that have visited SupplyIndustryCareers. com thus far: CA, NY, IL, OH, FL, TX, NJ, WI, PA and MA.
2,931
The number of students enrolled in ASA University this year.
150K
ASA invested more than $150,000 to develop and launch the VITALITY growth readiness assessment survey.
9,053
9,053 manufacturer-specific courses were completed in 2021 through ASA University.
10,000
ASA’s PROJECT TALENT e-newsletter mailed monthly to more than 10,000 members and key staff — highlighting careers recruitment best practices.
ASA REVIEW
125
ASA tracked roughly 125 pieces of legislation and regulations introduced by federal, state and locally elected officials, directly impacting our industry.
100
During the code change cycle in 2021, ASA took positions on 100 different code change proposals and was successful on more than 80% of them. 15
ASA WOULD LIKE TO THANK ITS SUPPLIER PARTNERS PLATINUM
GOLD
BRONZE
SILVER
ASA WOULD LIKE TO THANK ITS SUSTAINING SUPPLIER PARTNERS M A N U FAC T U R E R S R E P R E S E N TAT I V E S
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Solutions Since 1916
*Supplier Partners as of November 1, 2021
2022 ASA Association Partners