OPINION
Special Issue
FACILITIES / SAFETY / PPE
WELL PLACED TO SUCCEED?
Absolutely
Special Issue BREAKROOM
SPECIAL
Most independent dealers have dabbled in the broad category of facilities supplies and all it entails. But there’s every reason for them to lean forward and make the most of the opportunities in today’s market, says ISG’s Frank Hoard
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n a recent conversation, OPI Editor Heike Dieckmann asked me whether ISG dealers have really been embracing the facilities, safety and PPE segment, particularly compared to pre-COVID times. The short answer: absolutely, they have. There are still many OP channel dealers that are new to this segment, but their enthusiasm is unparalleled. It’s been about three and a half years since ISG’s CEO Mike Gentile brought me on board to fill the newly created position of Director of the Facility Supply Channel (FSC). This forward-thinking position was originally developed to assist ISG members in the category. The real question was: what does it take to get them really involved in a channel versus just dabbling in it? The answer is education; our members needed to understand that the category produces plenty of dollars and big margins. Many simply did not know how to effectively move within the spaces of PPE, jan/san, safety as well as breakroom supplies. My role is to help them develop strategies and learn where the pitfalls are.
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COVID WAKE-UP CALL I had been working at ISG for about 15 months when COVID-19 hit. Even for those independents already experienced in selling in FSC, it was a massive wake-up call; it forced all members to think differently about the category. Obviously, pandemic-related items were instant movers, with waves of varying demand. But for more than 18 months, our members battled larger companies, established relationships and misconceptions that “my local office supplies guy doesn’t have access to those products”.
ISG members were smart enough to capitalise on the opportunity of disruption, and many of those that had dipped their toes prior to the pandemic are now full-fledged jan/san houses. I would go as far as to say our dealers have grown stronger amid the supply chain disruption and a new landscape of customers. Thus far in 2022, now pandemic products have fallen off sharply again, we’re seeing our membership selling twice as much in FSC compared to 2019.
Many of those that had dipped their toes [into facilities supplies] prior to the pandemic are now full-fledged jan/san houses Most of the US – from retail to commercial distributors – are now sitting on a mountain of wipes, masks, disinfectants and maybe even a few COVID tests. Although the disposable glove supply chain has normalised and prices have fallen off their peak, the freight aspect has continued to keep costs high compared to pre-COVID levels. Nitrile gloves sales have levelled off, but are still well above those of 2019, and there is an expectation that demand will continue in an upward growth pattern of about 7-10% for the next ten years. Current conversations with dealers suggest foodservice and MRO products are in high demand. The ISG team is constantly talking to manufacturers, suppliers and rep groups within all channels to make sure we have solutions in place prior to potential disruptions.
