What’s the value? Why go there?
BY JOHN MARTIN
PVF industry veteran
Thanks for checking in again readers. It’s a good feeling to have all you folks coming back to the “Corner” to see what is on my mind each month! I have really truly enjoyed getting to address a few issues with you that I care about. Just like in my house here in Colorado, I never have the final — and I mean final — word on hardly anything, but I do get to state my opinions on issues that have an effect on our family stability in everyday life. Being able to state my opinions here in the “Corner” on issues that have an effect on our industry stability is a pure pleasure!
Having said the above, I want to go right into an issue that has been burning in the depths of work life and thoughts for many moons (that’s cowboy for “a long time!”) — industry associations.
American Supply Association
Anyone reading The Wholesaler should certainly be familiar with the American Supply Association. ASA was officially founded in December 1969 via the merger of two existing groups at the time (Central Supply Association, founded in 1894, and American Institute of Supply Association, founded in 1940). The historical membership of CSA stretched from Pennsylvania to the Rockies, and from the Canadian border to Tennessee. They had quite a void on the map for representation, and hooking up with a group like AI sure seemed like a good idea.
The merger was not easy to orchestrate. During early talks in the fall of 1964, the groups decided there was just no way, but in 1967, two new leaders came on the scene — Robert Taylor of Taylor Engineering from Detroit was made president of CSA, and Glen Turbeville of Morrison Supply Co. in Fort Worth, Texas, became president of AI. Both had a high degree of prestige, were members of their own group associations, had well served the industry, and had a high degree of positive thoughts about a single organization to serve the industry. Their vision for a national association and the need for unification never wavered.
ASA started with a base of approximately 1,100 member companies (along with all their branches). This number made the new association the second-largest association of wholesalers in the nation — second only to the auto parts jobbers at that time. This truly was the first national organization for plumbing, heating, cooling and piping wholesalers in our country.
Now fast forward to recent history and current times. WOW! What a difference. With the growth of the economy, the great never-ending positive attitude of the U.S. business folks, and the advent of roll ups, mergers and buy outs causing huge changes in most every aspect of our industry, everyone could see having associations ran with a “business as usual” kind of attitude going by the wayside. To that point, the wholesale distributor (all classes) membership within ASA today has fallen to 253 member companies.
What did they see 40-plus years ago that we as an industry can/ should try to ignite again, or is it a lost cause? I don’t believe it is. I would be the first to agree (as a manufacturer), that when two or more wholesalers are assembled together, we should be there to look for opportunities to service or be part of an industry function. Having said that, in today’s world, there are so many one-on-one meetings available to us today via the buying groups and other association meetings, that it becomes a real thought process as to “how many” we can support.
Today’s economic hassle we are in makes it even tougher to justify expense dollars for meetings that may be seen by some as “redundant” and with no meaning. If any of you feel that way, I’d ask only that you step back and think it over for a moment. Not for me or about me, but about your company and yourself. Do I have my ASA hat on right now? Yes, but I also wear my heart on my sleeve when it comes to breaking tradition, giving back/paying back, industry support, expectations and being involved at all levels possible. These issues should concern you no matter if you are a manufacturer or a wholesaler. I know there is duplication today in the work and agenda of the marketing/buying groups v/s that of the ASA. I also am comfortable in my belief that ASA as a national association does more good — daily good — at the political level and the efforts at our industry education (just to name a couple) than any independent manufacturer or wholesaler could or can ever do. That’s not being critical; it is just being truthful. Please look at the following facts as I have had explained to me. Did you know the following:
• Political support — This past year, ASA alone was responsible for having gotten the W.A.T.E.R. Act sponsored in the House and Senate. Then the coalition was formed with all the other partners! If I read the current ASA annual dues chart correctly, it says a $1-million single independent wholesaler pays annual dues in the amount of $625.00. A $50-million wholesaler pays an annual dues total of $3,100.00.
It is my opinion that any wholesaler fitting into any range of related dues on this matrix based on size, etc. would get their dues back in spades with new sales of water efficient/water saving products as a result of stimulus that comes by the way of rebates from this legislation, know what I mean?
• Education commitment — If you are an individual or a company (wholesaler or manufacturer) that gave from the start and/or ongoing to this Education Foundation, I thank you, and I know you have seen benefits from your investment. From learning modules, to Essentials on Profitable Warehousing, to on line training, to turn-key packages of education needs to fit your needs, to really great 3-D visuals solutions, to packaged product training, to An Overview of Wholesale Distribution, you can get it all from ASA.
So here is my summary on this association called ASA: To me their effort has always been to support the industry manufacturer and the wholesale distribution channel (even before it was called that). You see, I subscribe to the fact that if belonging to an association was good for you (your company) and the industry in the “old days,” it should still be good for your company today. They have progressed, they have had to address shrinking membership (which means shrinking dues revenue, etc.) due to large and strong independent wholesalers (one by one) becoming part of the larger national chain companies. These firms don’t go away, they just stop paying dues and are included at the corporate national structure. No ax to grind here, just stating fact. Having to deal with that is a real bummer, winding down if you will with structure instead of building staff, yet having to produce an agenda to suit all. Not easy!
If you are not a supporting member or if you are only a member and wondering if you should be or not, pick up the phone and call the ASA office in Chicago (312-464-0090) and ask for Mike Adelizzi. Tell him “Martin’s Corner” sent ya! He will blow you away with true confidence in what the ASA Board has charged him to do — and he is good at it. He believes in the future of the association and is driving changes in actions and thinking to carry on what Mr. Turbeville and Mr. Taylor started some 40+ years ago. The industry needs you and ASA needs you.
Mechanical Contractors Association of America
From the union contractor point of view — a substantial portion of all full-range wholesaler’s customer base volume — they look to the MCAA (Mechanical Contractors Association of America) as their sustaining “front office” if you will, in all governing matters across the U.S. reference union contract labor, education, training and national representation. As an association, they have been active for this market segment some 115-plus years. I have been deeply involved in MCAA a long time for our company, and continue to be impressed at how the membership supports this association.
While these are contractors, and their needs may be different and deeper into industry segments than the typical wholesaler, their desire and need to be a part of the group are the same as a wholesaler’s are with ASA. Things like being able to read the monthly alerts on the latest in industry events, getting offered the best in education and training, being treated as equals in meeting roundtables, etc., and having another chance to see leading industry manufacturers along with competitors in a product/education setting are really great. Drawing from $10-million plus endowment education funds is really something. Having a voice that speaks for all size companies in Washington is priceless!
I may be the last guy left out there that thinks like this, but if I was setting up a company today of any kind, I’d make a super-human effort to budget into my cost of doing business the dues structure needed for all national associations that can have a positive affect on my business. Then, I’d get involved to be sure I get what I am paying for. You can and will get more out of them than you put into them if you get involved. It is easy to complain about cost or structure from the sideline. Getting involved and lending a helping hand is very gratifying and produces good results — no matter how many buying groups you belong to.
Plumbing, Heating, Cooling Contractors Association
The PHCC (The Plumbing, Heating, Cooling Contractors Association) — mostly non-union contractors — has been around and active since 1883! Their story is like that of the MCAA (in my honest opinion) from a “reason for being” point of view. Their membership base has strong needs for structure, education and meaningful get together meetings to learn from industry and one another. That means manufacturers and contractors as well. Their membership is some 3,600 open shop with some union contractors as well. Their goals and priorities for 2010 cover three key areas:
• They will work with state and local chapters, their education foundation, their service groups to expand and diversify education and training programs to new markets and emerging technologies.
• They will work with Washington to promote job creation, push the importance of the field impact their members can have on water and energy efficiency, and support continued licensing protection and education laws.
• Continued work in the service and repair sector to ensure quality and quantity in their membership.
I’ve keyed today on ASA, MCAA and PHCC because they relate so closely to each others’ success in the plumbing and mechanical markets, and they are the ones I have had the longest and most successful working relationship with. Sometimes I say to myself, “I get it. Why don’t they?” At any given moment, they can be a wholesale distributor that does not support ASA or just sometimes supports them, or a contractor that doesn’t support or use MCAA or PHCC like I think they should. Why is that?
Hold on, here I go again believing in my opinion as I stated earlier. Please remember that everyone is entitled to an opinion when stated honestly after a review of the available facts. So note the following:
• The member wholesalers and all associated members of ASA have many things in common, but a key “common ground issue” is that a major part of their customer base is the membership of MCAA & PHCC.
• Now, wouldn’t ya know most manufacturers (commodity producers for sure) channel to all the contractors in MCAA & PHCC through the wholesale distributor — meaning we all need each other to simply get along and keep the supply chain healthy.
• All three have very large and dynamic Education Foundations. I was personally involved in the grass roots efforts of the start up work and “sweat equity” that was put into the Karl Neupert Endowment Fund (ASA), and the Mechanical Contracting Education & Research Foundation (MCERF) — both founded with $10 million as the base fund. The Education Foundation of the PHCC is just as solid and focused on industry needs and grew to a $10-million base fund as well. The key point here is that these are funds raised at the time by industry associations with your interests in mind.
• Times have changed, but the foundations’ intent and focus have not changed over the years. They belong to us — all of us, and are to be used to advance our business culture, our people, and our market place savvy, know what I mean?
So in summary, I’d like to say that at the end of the day my friends, I can not fault anyone for business decisions that are made from the heart and for whatever you believe is the best for your companies.
In addition, I believe strongly that we all have a duty and an obligation to the folks we work for first of all to support and grow market share! I also believe strongly that being in our industry is special, and being part of our industry’s leading and legendary association groups is simply a must. Paying dues to “be a part of” is normal. Paying dues in good times and bad times is important as far as I’m concerned. Full participation and attendance to shows and conventions is a call shot from year to year depending on conditions. Even for me, there is a point where I have to pull back with my recommendations so as not to give our management reason to think that I’m totally nuts — and when I think it is a good idea to say enough is enough for now! We did not cut our booth space or our commitment to support the show, but we did cut the number of registrations, extra sponsorships, etc., and were there with three less people. Lots of work, indeed, but the key customer visits and dinners we had were worth the trip. We took the same action for this year’s MCAA convention in San Francisco. We’ve done the same at all buying group meetings, and other associations — but we have not changed our membership support.
So, if this all sounded like an open commercial for the ASA, MCAA or the PHCC, it was! If you think I was or am promoting membership in all of them, you’d be right! The market will turn, the need for up-to-date, state-of-the-art education and electronic industry efforts will once again take center stage — along with just plain good ole management practices and people management systems being needed. The national wholesale companies are no more exempt from the need for formal training/education to stay up to speed on market needs and product specifications than the independent. People really make the difference at the end of the day, don’t ya think? The people rule applies to all companies, manufacturers and associations.
Please, as I close, give some fresh thought to your current position with your important industry associations today. I’d be glad to discuss any of them with you and talk one on one with you if you’d like. I’m a phone call away.
Finally, I want to say Happy Birthday to The Wholesaler! Turning 65 is a milestone and something to be proud of for sure! Tom, to you and all the folks working at and supporting this magazine, I say great industry work. Keep it up as we all turn the corner together!
That’s it for now...see ya next time.
Born Johnney E Martin in Venus, Texas in 1944, he is one of nine children raised 100% on a cotton and grain farm that his father share-cropped. After high school, Martin went into the Army and then Reserves. From there he joined what was then Grinnell Co. in 1968 and has been with them every day of his life since then through four different owners, now Anvil International, A Unit Of Mueller Water Products. He currently serves as vice president of national account sales for the Anvil Mechanical Unit. Holding various sales and management positions for the company over the years, Martin has received numerous industry and association awards and has been involved with industry education foundation boards, and the Board of Directors of both asa and mcaa. Martin currently resides in Castle Rock, Colo., with his wife Kathy of 27 years; they have a daughter Kayla who is 25 years old. He is committed to staying involved in the plumbing and pvf industry (which he loves) for many years to come.