ASA executive shares new strategies, direction

BY MARY JO MARTIN

Editorial director

In September 2007, Michael Adelizzi was named executive vice president of the American Supply Association. Adelizzi succeeded Inge Calderon, who had served as ASA’s chief of staff since 1995 and who had moved into the role of executive director of the ASA Education Foundation earlier in the year.

Adelizzi was selected from a field of more than 75 applicants, and underwent a series of interviews with ASA’s search committee. He had spent the past 18 years as executive director/ceo of the Mason Contractors Association of America, where he was pivotal in taking a group that was “in a freefall” and making it one of dynamic influence He is also heavily engaged in political and government affairs, and is a local gop chairman in suburban Chicago.

Adelizzi recently concluded his first meeting of the ASA Board of Directors, which charted new direction and strategy for the association. In an exclusive interview with The Wholesaler’s editorial director Mary Jo Martin, Adelizzi shared information on these new developments, as well as providing an update on existing ASA programs and benefits.

MJM: What was it about the opportunity at ASA that peaked your interest during the interview process?

Adelizzi: I was excited about some of the challenges that the industry is facing and the absolute dedication of the membership to affect change. The more I met with ASA board members to talk about the industry, the more I could see that I would be working with a visionary group of leaders that looked long term at the future. These members understood that solutions to problems wouldn’t always be found in short-term fixes. That excited me, especially coming from the industry where I was -- the view of long term was the upcoming construction season. In addition, ASA’s Executive Committee exhibited their commitment to the staff as partners in the management of the association’s future. I became a huge fan and knew that I wanted to be a part of this.

MJM: Were you at all concerned getting involved in a mature industry that has been facing a great deal of consolidation in recent years?

Adelizzi: Not at all. Let me address the consolidation first. Consolidation is not always a bad thing. It can often lead to greater innovation as a result of consolidated resources. Firms have more money and can use those resources to perform at a higher level, investing in new technology, products and systems that ultimately benefit the entire industry. Several decades ago, there were roughly 4,000 wholesalers and today there are just over 1,000 -- with a very healthy core of independents operating at a very competitive level. I see the industry as still robust and highly effective, not one that is mature.

In addition, I think that a case can be made that our industry is on the verge of new growth. I believe that our industry is on the cusp of a major explosion as a result of the emergence of the green and sustainable movements. Water conservation and resource management will provide a strong renaissance for our industry as Americans become more acutely aware of our limited water resources and the importance of protecting those resources through innovative products.  That’s one of the reasons ASA has signed on to epa’s WaterSense program.

MJM: In light of all that, is there room for consolidation among associations, as well?

Adelizzi: Good question. Both ASA and HARDI are a result of a consolidation of groups. I can see how the industry could be better served if industry groups worked in more integrated ways with each other.  I definitely see opportunities for combining our resources and efforts in areas where it makes sense. We can make a greater impact working together, and serve our members better by not reinventing the wheel. 

Every group has its strengths and the industry will only benefit if we can leverage those strengths through partnering. In fact, we already are on some fronts -- ASA and HARDI, along with the PHCC, are conducting a joint Washington Fly-In where our members will travel to Washington, D.C., to meet with members of Congress to discuss key issues facing the industry. 

ASA will hold our convention in Washington, D.C., in 2009 and we expect to make a part of our program a government affairs effort where we will bring 1,000 people up on Capital Hill to educate our elected leaders on our industry’s issues. This will be a huge event and I could see how it would be monumental if we had members of allied groups all there at the same time. So I feel where it makes sense, we should pursue partnerships and even consider mergers for the greater benefit of all our members.

MJM: During the interview/transition process, were there any particular initiatives the Executive Committee shared with you that are of top priority?

Adelizzi: There were several. The first was to build ASA’s advocacy efforts and to become more active in affecting things in Washington, D.C. And the way things are going with the national elections, we can’t become involved fast enough. If certain changes come to Washington, we will need to be prepared for an onslaught of new federal regulations and tax hikes. A strong phcp/pvf government affairs effort could soften the sting if ASA can engage the industry.

Advocacy also involves promoting the industry through workforce development. You will see us become more involved in educating young people on the career opportunities that exist in our industry. I heard an interesting statistic from Dr. Adam Fein, who said that one out of every 20 Americans works in some type of distribution. We need to make sure that we get our fair share.

One final priority was to build our membership strength. We have an aggressive campaign set to build our membership in 2008.  I’ve done a lot of travelling in the first three months of this year and talked to distributors and manufacturers who aren’t members. What I’ve discovered is that most of them aren’t aware of all that we do for the industry, or everything ASA offers to help them run their businesses. We’re determined to change that and are already seeing an influx of membership applications from some firms that will bring a lot to our organization.

MJM: You just completed your first ASA Board of Directors meeting. Can you give me sort of a broad overview of your impression of the meeting as a whole?

Adelizzi: An absolute huge success. The focus at the meeting was to engage not only the ASA Board but other association leaders from numerous committees in developing a new strategic vision for the association. I was highly impressed at the depth of knowledge that our members had of the issues and the absolute commitment to advancing our industry. We worked everyone extremely hard for three days and they were all volunteers who gave their own time to be there. In fact, we held the meeting in St. Petersburg, Fla., and everyone saw the outside for about two hours total -- now that’s commitment!

MJM: Were there any specific major goals identified that you can share with our readers?

Adelizzi: We are still compiling all of the data, and so far we are looking at a 50-page-long strategic plan for ASA that is full of great ideas and strategies.

One thing I can tell you that came out of the meeting is our “Big Audacious Goal for the American Supply Association”: Be Indispensable to Prosperity in Our Industry. Our strategic principles that will take us there are:

• Promote our brand as the standard of excellence by which the market judges credibility
• Contribute to business growth and profitability greater than the cost of membership
• Provide innovative programming that improves the whole supply chain and offers value to all supply chain partners
• Earn the appreciation of all populations touched by the products we sell
• Be the recognized and responsible advocate for all segments of the phcp/pvf industry.

Obviously some lofty goals. The meat of the strategic plan is in the objectives portion that we will publish once we have vetted the document with our leadership.

MJM: How important is input, ideas and opinions from board members?

Adelizzi: It’s extremely important. In strategic governance, it is the members and their views and ideas that govern the process. I read a study that cited that when comparing between experts/futurists and people engaged in an industry, those that ran businesses have a far greater success rate in predicting what the future will bring. So, therefore, when we set out to redevelop ASA’s long-range vision, our member input is what is paramount. After all, it’s their future that we are predicting.

During our planning process we made the facilitator’s job hard, expanding the size of our group to include more than just the Board. A group of 63 people, including wholesalers, vendors, national and regional staff gave us a wide range of ideas and viewpoints on issues. We could not have accomplished this monumental task without the input of everyone involved.

MJM: How will ASA’s new strategy impact the future of the association and its program and services?

Adelizzi: I believe that what we started at ASA’s Board Meeting in St. Petersburg will profoundly impact not only the future of the association, but the future of the entire industry. I think that this was the first time in a long time that our leadership looked well into the future horizon and envisioned a strong industry, and then mapped out a plan to get there. Even more exciting was that we looked outside of our traditional boundaries and asked the questions “Can this affect our future and ASA’s ability to affect change?” If the answers were yes, then we need to become involved. So I believe you will see ASA become engaged in areas such as code, standards and workforce issues that can hinder our industry’s ability to thrive. Ultimately, you will see resources and programs allocated in those areas.

MJM: You have said that within your first year at ASA you hope to personally speak with or visit every member. Why was this important to you and how are you progressing with this goal?

Adelizzi: It was very important to me for several reasons. I wanted all members to know that I care enough to speak with them personally. Secondly, what better way to learn about the industry, its personality and the issues we face than to talk directly to our members?

It has been a daunting task considering all of the other tasks that I piled on myself to accomplish. It’s going well so far, I’m probably better than half-way and hope to reach my goal by the end of June. It has been very rewarding.

MJM: What types of responses and conversations have you had? Please share any details that you can regarding members’ input.

Adelizzi: The responses have been extremely positive and enlightening. It didn’t take long to identify a consistent picture of what our members were facing. One of their biggest issues is finding enough quality people to hire. Consolidation has helped mask the need short-term for more people. As the wholesalers are bought out and staffs are downsized, independents are finding quality people to hire. But the long-term need for good people, committed people, is out there.

The need for greater sales at a decent markup is uniform, but more importantly the need to know what the future is going to bring is very important, and not just things such as the price of raw materials, but rather where are the customers going? What will they be doing differently in the future? Those wholesalers that can figure that out will be successful. Those that can’t will be playing catch up all the time. Hopefully, ASA will be able to help.

MJM: What are some of the key issues facing wholesalers in today’s marketplace that ASA can provide some assistance with?

Adelizzi: Sales are flat, costs for materials are increasing, and too many companies competing for the same jobs have put unbelievable pressure on the supply channel. The economy has at least helped stem the tide for needing more people in the short term. But the economic pressures have put a major emphasis on getting the profit margin that our members need more difficult.

We are positioned now to help. As a result of our $14-million Karl E. Neupert Endowment Fund for the ASA Education Foundation, we have been able to develop educational programs to help our members. Educating our members’ employees to work smarter, more productively -- giving them a greater understanding that just because a wholesaler may buy a product at $1 and sell it for $2 they are not making a $1 profit -- these things can be a huge plus for a wholesaler. People are their number one resource. If they can get their employees to care and become part of the solution to earning a profit, they can get through economic downturns.

MJM: With a membership that truly spans the gamut from small, one-location family businesses to multi-billion-dollar national giants, how does ASA balance the varying needs of its members?

Adelizzi: It’s really not that difficult. We view our members in the most common denominator and that’s at the branch level. There’s that old saying that “If it will play in Peoria, it will play anywhere.” Well, if a program or service is good for one branch, then it should be good for all branches. The issues every branch -- regardless of being an independent or having national ties -- are the same. Get a sale and deliver the product to the customer as efficiently and effectively as possible, making the highest markup while meeting the customer requirements. Whatever ASA can do to help that process is good for everyone in theory. Of course, it’s not as simple as that, but you get the idea.

MJM: In recent years, ASA has concentrated on four core functions: education, advocacy, benchmarking and networking. Is there an area that is particularly of interest to you personally?

Adelizzi: I think that advocacy interests me the most, which is the essence of a trade association. Members coming together to do something collectively they could not do independent of one another. This cannot be more true than in government affairs. There isn’t one wholesaler in our industry that can impact what the federal government does all on their own -- not even the largest national wholesalers. But collectively we can have an impact. If we don’t all come together with one voice and get involved, it will be a rocky road for us after November, which is shaping up to be a wild election.

Nothing can impact an industry faster and in a more negative way than government regulation and intervention. Advocacy can be all that stands between Washington and our members’ doorsteps. Taking on that challenge intrigues me, and I’ve already dove into developing member interest in getting involved.

MJM: I would imagine that new member recruitment has been, at the very least, challenging in recent years. Do you have any thoughts on new efforts to boost ASA membership?

Adelizzi: No one can recruit new members more effectively than a motivated current member. We have already begun to invite key association members to help us recruit new ASA members and it’s paying dividends. Last year ASA recruited 15 new members. We already reached that mark at the end of March.

ASA is already a very strong and effective force for this industry; imagine how much more we could do if our membership grows both in member companies and engaged branch locations.

We will all be dealing with a lot of uncertainty over the next few years, maybe longer.  But as I have said to non-member after non-member, if we all band together under the American Supply Association banner we will all be better suited to deal with that uncertain future together, and hopefully find success in partnering with one another.