Leading Through Coalitions By Michael Adelizzi, Executive Vice President AS THE INDUSTRY'S only national association, the American Supply Association is in a unique position to drive change that will benefit the entire industry. And while many in our industry continue to “go-it-alone” and not rally alongside the leadership of ASA, many leading organizations and groups have started to close ran k s and support ASA’s strategic vision of where we w ant to go. Our hundreds of members, representing thousands of points on the map, provide a strong base from which to lead and create influence. Recognizing that few organizations are big enough to create change on their own, building w inning coalitions allows for the most change and accomplishments. A winning coalition is best exemplified in the strong relationships ASA has forged with all the industry’s buying groups. Ten years ago, ASA isolated itself from the buying groups, but today we have formed an unshakeable bond and together we’re looking to the future, to partner on things from advocacy to creating stronger business intelligence. Coalitions are most important when seeking to influence forces outside the PHCP and PVF industry. From federal and state regulatory agencies, and codes and standards writing bodies, to how customer groups make their purchasing decisions, ASA has expanded our focus to provide an impact in each of these areas. After opening a full-time operation in Washington, D.C., we have been building relationships that help leverage our ability to succeed in critical areas such as marketplace fairness, promoting America’s energy independence and protecting our industry’s small businesses through issues such as comprehensive tax reform. Again recognizing that few organizations are large enough to “go it alone,” ASA has become engaged in several coalitions focused around topics such as protecting LIFO, protecting brick and mortar distributors from internet sales, and many more issues. ASA has quietly been working with allied groups that impact our members and industry. While our industry faces unprecedented labor shortages over the next decade or two, our customers are facing even greater shortages which could have a profound impact on our ability to sell products they produced. Through partnerships with groups such as the associations representing contractors, builders and designers, ASA has worked to create focus on apprenticeship at the local levels. Most recently, ASA played a small role in the Trump administration’s focus on Apprenticeship Week w here the administration placed a greater focus on recruiting the next generation of plumbers and crafts workers. ASA has also looked at how the numerous organizations that impact our industry work together to protect our interests. Many organizations meet annually under the umbrella of the Plumbing Industry Leadership Council, to share issues each group is facing. With ASA’s leadership, PILC is looking at ways that collectively, we can become more effective ...working together as a more impactful voice. ASA continues to remain focused on forging stronger ties between all industry com panies and interests. For further information on how you can join ASA, visit our website at www.asa.net or call us at 630-467-0000.S Latest Industry Report Confirms Profitability & Sales Growth is Mixed THE AMERICAN SUPPLY ASSOCIATION'S Operating Performance Report (OPR) is the most comprehensive compilation of financial data for the PHCP and industrial PVF wholesale-distribution industry. For 35 years, it has served as the basis for com paring one’s own company’s performance with industry comparatives across product emphasis, sales volume size, geography and high-profit firms. ASA’s newly-released report reflects 2016 data as reported by 182 different firms representing nearly 2,500 locations across the U.S. Plumbing Supply firms reported a 5.7% sales increase in 2016 compared to a 6.5% gain in 2015 and a 5.7% advance in 2014. PVF firms showed a 0.3% sales decline in 2016 following a 1.2% decline in 2015 and a 6.4% sales increase in 2014. Plumbing Supply & PVF firms experienced a 5.9% sales gain in 2016 following a 4.4% increase in 2015 and an 8.1% gain in 2014. Among all survey participants overall, after tax return on net worth was 11.7% in 2016 having been 10.3% in 2007, 7.8% in 2008, 2.3% in 2009, 6.1% in 2010, 8.0% in 2011, 9.5% in 2012, 11.4% in 2013, 13.1% in 2014 and 10.4% in 2015. Visit BUSINESS INTELLIGENCE at www.asa.net to learn more and view sample pages from the report as well as replay the presentation and download the slides from the August 2 webinar. Tom Noon , principal at Industry Insights, reviewed the highlights, answered questions and offered suggestions on how to get the most from the results of this year’s study. Manufacturers Show Commitment to Employee Development ASA UNIVERSITY would like to thank the following ASA member manufacturers for offering their train in g content in A SA -U Online. With more than 110 courses now offered on manufacturer-specific products, ASA-U has expanded the training available for employees in the PHCP and industrial PVF field beyond general product knowledge, distribution business essentials and technical/interpersonal skills. Continued partnerships with these companies allow ASA-U to be the one-stop-shop train in g resource to develop the best-trained, most professional industry employees. Grow skill sets necessary for a profitable future by visiting asauniversity.net today. ASA is Active in the Following Coalitions • Affordable Health care Coalition • Americans for Affordable Products Coalition • Americas High Performance Buildings Coalition • Coalition Agains Copper Theft • Coalition for Democratic Workplace • Coalition for Fair Effective Tax Rates • Energy Equipment and Infrastructure Alliance • Get the Lead Out of Plumbing Coalition • Government With holding Relief Coalition • LIFO Coalition • Marketplace Fairness Coalition • The National Coalition to Protect Family Leave • The OSHA Alliance • Partnership to Protect Workplace Opportunity • Plumbing Industry Leadership Council • S Corp Association • Small Business Coalition for Affordable Health care • STOP the HIT Coalition • Sustainable Water Infrastructure Coalition • The Water Coalition History Really Does Repeat Itself LEADERS OF ASA traveled to their nation’s capital in June to learn, network and advocate for issues important to their businesses and their industry. As Congress and the Trump administration slog ahead with promises made on the campaign trail, with limited effect, a repeal of the Affordable Care Act has passed the House, but appears stalled in the Senate. Senators, as well as the president have openly questioned the House-passed version and vowed to remain at arm’s length from it. ASA’s task was to keep the fire lit in the Senate and not avoid the tough decisions of taking up health-care reform because nobody believes the status quo is working for anyone. As part of ASA’s efforts in Washington, building support for key legislation was at the top of our list. Members such as Glenn Fuller (Texas Plumbing Supply) went above and beyond, reaching out and touching base with every elected official that may represent his company. It was a strategy that paid off when we learned that Houston-area Representative Ted Poe (R-TX) agreed to co-sponsor the Remote Transactions Parity Act after committing to Fuller that he’d support the bill. “This is our responsibility to come to Washington and educate our elected officials on what matters to us,” Fuller said. ASA was not the only organization in the homebuilding, repair and maintenance realm that called on their legislators that day. Also in town were members of the Plumbing-Heating-Cooling-Contracting Association (PHCC), as well as members of the National Association of Home Builders (NAHB). While each of the groups had their own issues that impact their membership specifically, we all fought for the advancement of skilled craft education and opportunities. The Strengthening Career and Technical Education for the 21st Century Act (H.R. 2353), which reauthorizes the Carl D. Perkins Career and Technical Education Act, was a priority for each of the groups. If signed into law, it would improve alignment with indemand jobs by supporting innovative learning opportunities, building better community partnerships and encouraging stronger engagement with employers. In addition, it would enhance career and technical education through increased focus on employability skills, work-based learning opportunities and meaningful credentialing so students are prepared to enter the workforce poised for success. The House passed H.R. 2353 overwhelmingly June 26. Whether it’s in Washington or at home, all stakeholders have a voice that needs hearing. Sitting on the sidelines is no longer an option. Speak up and speak out! INNOVATION CORNER AUG, 2017 Do You Have An Innovative Mindset? Dirk Beveridge, UnleashWD LONG-TERM SUCCESS is not reserved for the large companies of our industry. The opportunity in “small” has never been stronger, but those companies and individuals focused on charting a course for growth over the next few years must tap into creativity and innovation to make the most of this opportunity. I can’t say it strongly enough: This opportunity must be seized; it will not be handed to any individual organization. It is my firm belief that only the distributors with The Innovative Distributor™ Mindset will be in a position to seize the tremendous opportunities the changing marketplace will present. Through our research I have identified the eight core mindsets of innovators throughout distribution - Energized and Optimistic, Intellectual, Think Big, Challenger, Experimenter, Doer, Value Creator and they Own The Future. Our new Innovative Mindset assessment is a free framework and tool that you can use individually, with your leadership team and even across your company to define your propensity for leading the needed change, transformation and innovation within your company. You can access this free tool at www.myinnovativemindset.com.
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