Michael Adelizzi 2015-11-09 00:56:19
Turbulent Times Ahead for Industry Labor Stats ASA’s STATE OF LABOR Reports THE KARL NEUPERT, Education Foundation Trustees recently commissioned a national labor study to determine both the short-term and long-term state of labor in the PHCP & PVF industry. The purpose of the study is to determine how many people are currently employed in the three segments of our industry: distribution, manufacturing and manufacturers representatives. More importantly, the study seeks to identify how many people will leave our industry over the next 10 years through retirement or other outside opportunities. The ASA Education Foundation commissioned GMP Research to conduct the survey during the summer and interviewed 1,850 distributor, manufacturer and rep rms, and also used other industry data from sources such as the U.S. Department of Labor. The fndings show the industry still is relatively robust with more than 205,000 people currently employed and building their careers. Out of this 205,000, 3/4 are male and only 1/4 female. Many firms already have absorbed employee losses due to the economic downturn during the 2009-2011 timeframe, and while they have operated with lean staf?ng, many are slowly beginning to ramp up their labor force, but still not to pre-2009 levels. Demand is beginning to heat up for good labor as distributors and manufacturers look to expand. But demand for good people is not just coming from within our industry. Other similar distribution industries are beginning to compete for our employees with many of these other industries offering higher wages to attract good talent. The study shows less than 4% of the labor force is between 22-24 years of age, a number that is of concern to ASA leadership. Anyone attending industry meetings could predict our industry would begin to experience increased labor losses just from witnessing the age of attendees participating in meetings. However, the study has opened many eyes in leadership positions. Within the industry, as the study reports, an astounding 25% of our labor force is leaving in the next 10 years. This is a number that is higher than anticipated. All three channel segments are not immune to the future trend. Of most concern is the heavy loss of intellectual knowledge and relationship currency that will leave the industry in rapid numbers. We can expect to lose roughly 50,000 employees in the next decade. WHAT ASA IS DOING ASA and its leadership team are investing resources to protect our members as this labor trend escalates. Conducting a labor study to benchmark where the industry is with respect to labor is the ?rst step. Focusing greater resources toward reaching students, transitioning military and women is well underway with more than $50,000 already allocated in 2015 to create the materials that members need to attend career days in high schools, colleges and even military bases. ASA’s website now has vital information about career opportunities that exist in our industry and is becoming a portal that takes job seekers to ASA-member websites. A major effort is beginning as we engage the thousands of schools and students across America to give our industry serious consideration for career opportunities. We anticipate the traf?c through our portal will rapidly expand as students and transitioning military personnel hear about the great careers our members have to offer. In addition to reaching out to our nation’s schools and creating demand for careerday opportunities, we also are asking our members not to wait for us. We are asking our members to contact the schools in their local markets and set up their own career days. Armed with the materials ASA has developed, our members look forward to talking to thousands of potential new employees for our industry. COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM Chairman Chaffetz has been working on his version that the coalition has supported for a variety of reasons. To begin, it alleviates small businesses with the worry that they’d be liable for sales tax audits from the 50 states. They would not. The software providers (certi?ed under this legislation) would be responsible for getting it right. With the presidential elections gearing up, we expect minimal legislative accomplishments coming out much later than this fall. It is imperative that Congress pass this bill this summer, or at the end of the ?scal year, coincidentally when the moratorium on Internet use taxation expires as well. This is the perfect vehicle for sales tax fairness legislation to ride along on. WOMEN IN INDUSTRY A critical component will be to close that wide gap between men and women employed in our industry. The rapidly expanding ASA Women in Industry Division will be increasingly important in attracting female students to our industry as they will relate to the women actively pursuing careers in the PHCP and PVF industry. ASA UNIVERSITY ASA University is another great tool that not only trains industry employees but is playing a key role in showing young people the career paths available at PHCP and PVF member companies. ASAU clearly spells out the training path a young person can take from an entry level job in warehouse operations to one day becoming branch manager, as well as the education our members use to help advance their employees’ careers. Millennials won’t be content with taking an entry level job and waiting for their boss to advance their careers to the next level. They’ll need to see the career path cleary defined for them to pursue and ASA University is that career map that appeals to young people. Members utilizing ASA University as a core part of their employee development will have an advantage recruiting young millennials. CRAft TRAINING ASA is not just sensitive to the labor shortages we expect in the next 10 years, but is equally concerned about the significant shortages our contractor customers are facing and will continue to face in the future. This year, ASA is allocating resources to support the PHCC Plumbing & HVAC Apprentice National Contests, where winners of state plumbing apprentice competitions compete at Skills USA for the national title. These contests are important at the local level in highlighting careers in crafttraining — something extremely important to everyone in our supply channel. MORE INFORMATION To learn more, including information about obtaining industry career-related materials, visit www.asa.net/careers or contact Bill Erfort, member services manager, at email@example.com or 630/467-0000, x 212. Growth Expanding Value THE AMERICAN SUPPLY ASSOCIATION has achieved a fourth record year of net membership growth, expanding its reach into every corner of the industry with dominant shares of both the plumbing and industrial markets. Why is this significant? It gets to the heart of the leadership role of associations, especially ASA. According to a 2015 marketing benchmarking report conducted by Marketing General Incorporated surveying nearly 900 associations, 49% reported membership growth over a five years period.However, looking more closely at short-term numbers, in 2013 63% reported growth, 2014 slowed to 58% and in 2015 44% reported membership increases, Increased growth is extremely important in key areas such as advocacy where elected leaders are sensitive to ASA members in their districts or states. More member representation means a greater impact on future policy.Doubt this? Then how do you explain how LIFO hasn’t been repealed yet? Bench marking is yet another key value proposition where larger participation in members reporting data means the greater ability to predict future trends and future economic troubles. Another critical service provided by associations is the delivery of training. In the report “Education to Employment – Creating a System that Works,” McKinsey & Co. States 72% of college professors believe they are adequately preparing students for the workforce, yet only half of students and employers agree. This has become a large void for th ASA Education Fountation to fill the gap between formal university training and training that directly applies to today’s job needs. Manufacturers and Master Distributors: Key in 4 Consecutive Years of Net Membership Growth THE PRIMARY REASON manufacturers and master distributors join ASA is to support the one national association that advances the PHCP-PVF supply chain and connects them directly with the industry’s leading wholesaler-distributors. A large part of four consecutive years of net membership growth for ASA can be attributed to the strong support of its manufacturer and master distributor members. ASA would like to thank the following companies for their continued support and valued membership: LEGISLATIVE UPDATE Pair of ASA Legislative Priorities Advance WITHIN the controversial Affordable Care Act(ACA) is a provision tucked away that would have promised more rate hikes for small businesses. Traditionally, the decision to expand the ACA,the small group market has been leftto the states. Until passage of the ACA, the small group market has been defined as 50 or fewer employees ,but that changed to include business with up to 99 employees. The 99-employee threshold is scheduled to begin this January. Expanding the small group market to include up to 99 employees would reduce choice for employers in this segment. While national insurers are in virtually every state’s large group market, they are only in a portion of the small group markets — which have numerous entry administrative requirements. As a result,many firms with 51.99 employees will find they cannot even keep the insurer they currently have once they are required to buy coverage in the small group market. Providing health insurance is an expensive and difficult endeavor for any employer,But 90% of groups with between 50-99 individuals currently do so. ASA and others in the 50-100 coalition had been urging the Department of Health and Human Services to delay by two years this provision and to not place the coverage of this segment at risk by reducing choice, imposing changes to benifit design,and subjecting premiums to potentially significant increases. Since HHS obviously chose not to act, as they have in many other instances, Congress acted on our behalf. Thanks to members of ASA and members of WIT and their efforts on Capitol Hill this fall, Congress heard us and acted. The president signed to repeal into law in October, returning the authority back to the states. IS THE U.S. BACK IN THE OIL EXPORT BUSINESS? Not since 1975 has America been an exporter of oil. Fast forward 40 years and the House has passed legislation repealing this out-of-date ban. Studies have shown that the additional production of crude oil for export will create more than 400,000 new supplychain jobs throughout the U.S. by 2018. Many of these jobs will be in the skilled trades, such as factory workers, equipment operators, distributors and construction workers. IHS Economics reports that for every one job created by crude oil production there are three more created in supply-chain companies. ASA, along with the Energy Equipment and Infrastructure Alliance, were instrumental in getting the House to act. The time has come for the Senate to do the same. HVACR Product Spotlight ASA UNIVERSITY is building to become the one-stop shop for training and education for the industry, and ensuring the library of product training is comprehensive and current is a priority of the plan. In 2014, the ProductPro brand consisting of industry product knowledge courses was expanded to include Introduction to HVACR. ProductPro courses will make your employees smarter about the products they sell. ProductPro-trained employees will make fewer errors, reducing your operating expenses and shrinkage, and increasing customer satisfaction. These highly effective courses also will help you get your new employees up to speed faster and build their confidence. Introduction to HVACR provides basic information about heating, ventilating, air-conditioning and refrigeration systems. The courses focus on how these systems handle air quality, temperature control, humidity regulation, heating, refrigeration and other aspects of climate control within buildings in a repetitive cycle. This course also includes deifinitions of common industry terms and descriptions of the major types of residential and light commercial HVACR systems and provides information that will help employees to better assist their customers. 3D Schematic Solutions, a sub-brand of ProductPro courses available in residential, commercial and industrial applications, are interactive programs that illustrate pipe,values and fittings In various systems. The lessons allow learners to visualize and understand what tasks these systems perform, and provide a basic knowledge about how each systems works. The 3D Residential Schematic - Cooling System focuses on air circulation,air filtration,air cooling, cooling components and the refrigeration cycle. ASA University offers these courses online in engaging and trackable formats. Find out more at www.asa.net/store or contact ASA-U staffat firstname.lastname@example.org. Here’s What ASA’s Manufacturer Members Have to Say “As a veteran of our industry for many decades, I am proud of our performance,ethics and success. I want to ensure future generations can share in our productivity and leadership. I feel that by participating in ASA I am helping to steward our industry into the future.” – John Welles, Apollo Valves “ASA is how I connect with the best wholesalers and vendors in the industry. Their commitment to education and advocacy is essential to the health of our industry and is best in class.” – Jim Lewis, Kohler Co. “Being a PVF manufacturer, it only makes good business sense to be a member of an association that represents all wholesalers and manufacturers in the industry. The valve we obtain from networking at ASA’s conferences, committee involvement and the educational materials including PVF Outlook, and the Washington News updates are of extreme value to our company.” - Larry Dildine, The Phoenix Forge Group “ASA allows us to connect with industry decision-makers, gain insights, trends, attend valuable IPD events and gain access to educational materials/industry best practices.” - Rob Raban, Industrial Valco
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