Q&A with Bill Sandler...
Valve Manufacturers Association reaches new heights

BY MORRIS R. BESCHLOSS
PVF and economic analyst

With many trade associations in decline, the Valve Manufacturers Association has been able to reverse the tide, reaching a previously unattained results pinnacle. This is due to relevant programming and an organizational ability to meet its current membership’s needs in marketing, statistics, and other informational needs required by its adherents.

This is a particular source of pride to me since my involvement with VMA goes back more than 45 years. The many decades of my involvement with our great industry pretty well parallels my VMA experience.

In the early days the VMA provided a limited membership and was more of a social club comprised primarily by the industry’s leading valve giants. Small manufacturers like Hammond Valve, Ohio Brass and Detroit Controls were given the status of associate members. Annual conventions were more an amalgam of the large pipe fitting and valve makers. Leading companies like Crane and Walworth actually excelled in both.

The forerunner of the modern VMA, which dates back to 1938, was the Pipe, Valve and Fittings Institute, which flourished during the 1920s but ran afoul of the Depression, which caused its demise in 1931.

When reconstituted in the 1938, the former institute split into the VMA, the American Pipe Fitting Association, and the Manufacturers Standardization Society (mss).

I remember attending the 20th anniversary of the new VMA in 1958, having previously stood in awe of Colonel Rockwell, Rockwell Manufacturing Co.; Jim Dwyer, Crane; Paul Arnall, oic; Dave Forker, Powell Valve; Bill Crawford, Edwards Valve; and other valve industry legends.

Only five years later I was asked to join this August group as a director, became vice chairman in 1968, and president/chairman in 1970.

My three-year span as chairman fortunately stemmed the tide of membership hemorrhaging, which had dwindled the membership to 23. Almost from the outset of my term at the helm, I visualized a much broader spectrum of future valve membership. Having previously concentrated on bronze and iron steel, gate, globe and check valves, we opened the door to ball and butterfly valve manufacturers, actuator and operators, and specialty flow control makers which had begun to flourish.

In retrospect it seems almost unthinkable that there was resistance to these “new-fangled” valve types. But it needed a break-away from the relationship with fitting manufacturers to give the valve group an expansionist mindset.

A constitution written during my three-year stewardship made sure that the professional executive would be president and the industry leader would be chairman. The maximum chairman’s term was limited to two years, which has since evolved into one year rotations.

I want to take this opportunity to thank the professional executives I worked with -- George Cooper, Bob Sullivan, Jerry Hendrickson, Malcolm O’Hagan and Steve Larkin -- all outstanding in their own right.

But special commendation goes to the current president, Bill Sandler, who has occupied the president’s office since 1998. In many ways, Bill has faced some of the toughest challenges and has come through with flying colors.

Bill has been active as a VMA professional since 1977. It is my privilege to pose the following 12 questions to Bill to further elaborate on the VMA’s ability to survive and expand during the turbulence of the past 30 years.

Beschloss: Bill, you’ve been professionally involved with the VMA since coming aboard as a statistician in 1977. During that time the valve industry has faced roaring inflation, deep recession, and accelerated mergers and liquidations. How has the VMA overcome such adversity?

Sandler: The adversity you refer to has been overcome by an industry that is 100% behind its association. When mergers and liquidations were prevalent a few years back the Board proposed a 14% dues increase which was overwhelmingly approved by the full membership and resulted in a 95% retention level the following year. Additionally, to keep costs down we have outsourced our accounting and communications efforts without the industry losing any benefits attributable to membership in the VMA.

Beschloss: Tell us the main reason why the VMA represents a greater percentage of domestic valve revenues then ever before. What are the prime benefits that today’s members receive from VMA?

Sandler: All surveys show that the prime benefit is “networking.” Add to that excellent statistical, programming, and communications efforts. One member a number of years ago told me that during a coffee break he discussed a problem he was having at the plant level with another member. This second member made a suggestion to him that resulted in a million-dollar savings to his company. That covers the cost of dues for many years to come.

Beschloss: I have admired your integration of the Canadian Valve Manufacturers, the Valve Repair Council and the growing number of industry supplier associates that have come aboard. Have you considered an associate distributors’ group?

Sandler: This has been discussed and has been tabled as the Board feels that our efforts should be directed to prospects in the manufacturing arena. However, we do allow distributor advertising in Valve Magazine and this past year we had a panel discussion at our Annual Meeting on manufacturer/distributor relations. We will once again be addressing this issue at future Board meetings.

Beschloss: I’m aware that the proliferation of foreign valve manufacturers doing business in the U.S. is a matter of controversy among the Association’s board members. Has there been any discussion of giving such companies a VMA presence of late?

Sandler: Again, this issue has been tabled by the Board. We do continue to have excellent relationships with other valve trade associations around the world, as well as meetings with my counterparts at these associations .

Beschloss: Valve Magazine, which was originally started during my terms as P.R. committee chairman, has reached new levels of industry interest and sophistication. In addition to its wider circulation and information generation, has it been a money maker?

Sandler: Advertising revenues now account for over 25% of VMA total revenues. Received by over 22,000 subscribers, the most recent issues for spring and summer 2006 each reached record advertising levels of over $100,000.

Beschloss: I’ve been very impressed that VMA has kept up the interest of valve company-owning conglomerates as well as independent manufacturers. To what do you attribute this continued participation by both of these elements?

Sandler: At VMA we listen to our members and develop programs that are important to both categories you mention in this question. We have programs for the smaller independent companies as well as the large conglomerates. Many of our surveys separate information by sales volume so that you are comparing like companies.

Beschloss: One of the main factors bedeviling trade associations is the need to satisfy members’ informational needs, and still maintain fiscal responsibility. How have you been able to maintain this balance, especially of late?

Sandler: Yes, we maintain the balance by offering excellent programs at favorable costs. We have added new seminars based on members’ needs. An example is our new Chief Financial Officers’ Seminar, which meets the needs of a new sector of our industry which was held locally.

Beschloss: By all accounts this has been a terrific year for the valve industry. Do you see this momentum continuing into the foreseeable future?

Sandler: 2005 was an outstanding year for the industry and we have reaped the benefits by increased dues, exceptional meeting attendance and as mentioned above record advertising revenues. Most indications are that this momentum will continue through most of 2006. Next year is still questionable and we hope to get a better insight after our Market Outlook Workshop.

Beschloss: I have been aware of the variety of special events that VMA sponsors, such as the marketing forecast and the Chief Executive Forum. Have these continued to generate strong interest by the membership?

Sandler: Yes, as mentioned in the previous question, attendance is up at all of our meetings. One of our current goals is to bring into the fold the next generation of valve and actuator professionals. We realize that the core of our membership is aging and there is a definite need to bring the next group on.

Beschloss: Certain organizations, totally unrelated to the valve industry, have published statistics out of sync with reality. Have you been able to refute this disinformation effectively since they play havoc with market planning -- especially valve companies that are divisions or subsidiaries of conglomerates?

Sandler: Yes, VMA stays on top of this issue by writing letters to these organization, questioning their data and their data sources. Our industry is well aware of the discrepancies and work with the association to better present correct statistics on the industry.

Beschloss: Bill, how have you kept up the high attendance at the annual meeting as well as the various special seminars throughout the years?

Sandler: Programming, programming, programming! We have excellent volunteer committees who review evaluations from previous meetings to determine what the industry wants to hear. Then they work with the staff in procuring speakers on these topics from high level companies, both end-users and members.

Beschloss: You have been more active than any of your predecessors in attending the European Valve Manufacturers, Valve World, etc. How has this interaction abetted the dynamics of the VMA?

Sandler: As mentioned at the onset of this article, networking is a major reason for being part of an association. This carries through to my attending meetings and trade shows overseas. You both learn and share. When I became president in 1998 I was invited to attend the Board meeting of the European valve association (CEIR) to share with them our statistical programs at the VMA. I was pleased to see a lot of note taking as well as follow-up calls. Through these groups I have developed lasting friendships with my counterparts around the world and we continually share information which benefits our members as well as their membership

 

Morris R. Beschloss, a 50-year veteran of the pipe, valve and fitting industry, is pvf and economic analyst for The Wholesaler.