In 2010, the American Supply Association continued to assist our members in achieving prosperity and furthering the interests of the PHCP and PVF industry by focusing efforts in four core areas. Advocacy The year 2010 saw ASA take action in advocacy and social responsibility in the following ways: • Members supported the expansion of ASA’s advocacy efforts by contributing additional dues to facilitate the hiring of a full-time Washington, D.C., staff. • Ongoing participation in 12 coalitions, working with other organizations to influence legislation and regulations that would have an impact on our industry. • Expanded our leadership in working to pass the W.A.T.E.R. Act, which will provide consumers with tax incentives to retrofit their homes with water-conserving products. • Continued our efforts in passing Copper Theft legislation, defeating the LIFO Repeal and union-backed Card Check. • ASA’s member-driven Safety Committee continues to strengthen the association’s formal alliance with OSHA through industry awareness and free training for ASA members, such as interactive safety webinars, Toolbox Talks, a monthly column in ASA News, and other resources on more than 30 safety topics. • NetworkASA 2010 featured political strategist Karl Rove as the speaker for the Future Trends Lunch, and public policy expert Joan Woodward conducted a seminar on the impact of the mid-term elections. • Upgraded ASA Insights to a weekly e-newsletter, providing timely and topical information on ASA activities and expanded industry content. Education In 2010, ASA Education Foundation staff reprioritized their time to both deliver solid training programs and build the resources to support our strategic goal in the following ways: • Focused expertise to the conversion of our current book-form content into online, interactive learning modules to significantly enhance the delivery options of the ProductPro® and Essentials brands. To date, a total of 44 courses of ASAEF-developed content are available in ASAU Online. • Debuted ASAU Online as a Learning Management System (LMS) and FREE member benefit, thanks to the generous support of the Karl E. Neupert Endowment Fund. • Conducted informational webinars to industry members and groups on the ASA Education Foundation programs and services and the benefits of using ASAU Online as a go-to spot for managing company training programs. • Sponsored several regional workshops to introduce the new Essentials of Profitable Warehouse Operations© certificate course. • Further developed the ASA University model with the creation of a core competency model and initial curricula for the College of Leadership/ Executive Management and the College of Sales/Sales Management. • Further enhanced the 3D Residential Schematic© online training tool with the addition of six training modules, providing students with an overview to help them visualize and understand what tasks these hidden systems perform, as well as basic knowledge about how each system works. – Water Supply System – DWV System – Hydronic Heating System – Cooling System – Sub-soil Drainage System – Gas Supply System • Continued development of a 3D Commercial Schematic© housed within a hospital, with the assistance of the Industrial Piping Division. • Educational program support provided for NetworkASA 2010: THRIVE, ASA’s annual convention, as well as additional support for regional and special interest group educational events. • Continued support of the Industrial Careers Pathway, an initiative that addresses the need for a skilled industrial distribution and manufacturing sales and customer service workforce. • Overall update and revision of the ProductPro® course Fixtures & Faucets© as a fully interactive course with the assistance of members from the Plumbing Division Council. • Sponsored the University of Industrial Distribution, the distribution industry’s most comprehensive and multi-disciplined institute of workshops. • ASAEF staff continues to serve as a training resource for the industry by assisting members with the creation and implementation of their training plans, sharing ideas on how to inspire employees to participate, identifying next steps to maintain progress and more! Networking In 2010, ASA expanded our capacity to serve the industry by providing many networking opportunities: • NetworkASA 2010: THRIVE showcased an updated convention program that brought manufacturers and distributors together in myriad situations to connect and do business. • The continued infl uence of the Vendor Member Division (VMD) has guided ASA on how all supply chain partners can be more effective in working together. • Expanded ASA’s Special Interest Divisions to include Plumbing, Hydronics and HVAC industry segments. • Volunteer-led committees for safety, marketing and membership provided opportunities to connect with others and guide ASA to better serve our members and industry. • Professional Peer Networking Councils for trainers, HR, warehouse and operations managers, and CFOs continued to provide growth opportunities for professionals in these job functions. • A Spring Forum presented by the Young Executives Division (YE) that brought together the future leaders of our industry from both distributors and manufacturers. • Continued working partnerships with Affiliated Distributors, Embassy Group, and WIT & Co., and established new partnerships with OMNI and Equity Plumbing Group to share our resources in order to strengthen the distributor members in all the organizations. • ASA’s Board Meeting, where volunteer leaders came together to refine and update ASA’s Strategic Plan. Benchmarking The year 2010 saw ASA provide a return on membership investment with the following resources: • The ASA Supplier Partner program successfully redefined ASA’s traditional sponsorship model and realigned supplier support with the association’s strategic values, goals and objectives. • The ASA Intelligence Reports, each addressing a specific need: – IPD Commodity Reports now produced quarterly – Updated the Employee & Executive Compensation Report – Monthly Sales Report – Monthly Materials Market Digest – Operating Performance Report – Confidential Business Valuation Appraisal • ASA’s Premier Vendor Program recognized 128 industry manufacturers, vendors, and independent manufacturer representatives for their unique contributions to the success of the association and the advancement of the PHCP industry. • The IPD Award of Excellence was presented to Dr. Donald R. McNeeley of Chicago Tube & Iron Corp. ASA Hires Director of Government Affairs In conjunction with its ongoing commitment as the united voice of the PHCP and PVF industry in advocacy efforts, the American Supply Association has hired Daniel Hilton as the association’s Director of Government Affairs. “Having Dan Hilton as ASA’s full-time staff presence in Washington, D.C., will give the association the opportunity to become more integrated in the daily activities on the Hill,” said ASA Government Affairs Committee chairman Dennis Goode (M. Cooper Supply, Mokena, Illinois). “ASA will now be consistently active in coalition meetings that take place almost on a weekly basis, and can be more proactive in our advocacy activities.” Hilton is responsible for providing strategic direction and management of all federal and state legislative, regulatory, public affairs and political activities for the association, establishing key contacts and maintaining diverse relationships with major policy makers, while simultaneously engaging the industry in the legislative and political process. “The authorization of a full-time staff position in Washington, D.C., by the ASA Executive Committee is both bold and visionary, and exhibits ASA’s commitment to the interests and success of its members,” said ASA executive vice president Michael Adelizzi. “By placing increased resources and leadership needed to become part of the solution in Washington, we are better positioned to react to legislation and regulations that may have a negative impact on our members’ businesses. Additionally, ASA is now in a better position to be proactive in promoting positive legislation that will increase business opportunities for our members and the overall visibility of the industry. Issues will escalate in the foreseeable future and will place a great burden on individual company budgets in trying to deal with them, as well as the association’s budget in trying to fight for industry interests. Having full-time staff in place to manage all of these efforts will benefit everyone.” Hilton has more than 10 years of experience working for two members of Congress and for the House Armed Services Committee. To contact Dan Hilton directly, email email@example.com or call 312.464.0090, ext. 226. Industry Monitors Economic Progress Through ASA Monthly Sales Report The year 2010 saw small improvements made in many segments served by the members of the American Supply Association.Revenues, profitability, and cash flow all improved during the year, at least in most parts of the country and in most segments of the industry, although housing starts remain more than 10% below 2008 levels. For the third consecutive quarter and eighth consecutive month, the plumbing, heating and pipe, valve and fittings distributors have reported increased and growing revenues, showing a 6.7% improvement in perworkday revenues during the month of December 2010 as compared to the same month in 2009, and - for the first time this year - up 1.9% against 2008.These distributors are now ahead of last previous year-to-date by 2.6% on a per-day basis. As there was one additional workday in November 2010 than in 2009, and the same as 2008, the raw monthly revenues for the industry members were up 11.5% for the month vs. 2009, and up 1.1% as compared to two years ago. The product segment breakout shows the industrial PVF firms entered and exited the downturn about 120 days later than the plumbing segment, but today both segments are in a 4% growth mode and poised to rebound nicely in 2012. On a regional basis, the far west remains in a downward trend, currently down 22% year-to-date since 2008. The Illinois, Indiana and Michigan markets have been the best performing markets over the last two year-to-date periods, showing a decrease of only 13.5% versus 2008 and up nearly 11% versus 2009 year-to-date. Size of the distributor does not show to be an indicator of rate of revenue growth; although the larger the distributor the more growth of profitability has been achieved. The national distributors that have reported have indicated their profitability has increased primarily driven by cost controls, similar to the large regional independent distributor. Consistent throughout the fourth quarter of 2010, almost half of all distributors this month are again reporting reduced margins in 2010 as compared to 2009, with only about one-third reporting improving margins. After 20 consecutive months of declining inventories, ASA members, for the third consecutive month, have put additional inventory on the shelves by adding 2.9% of inventory as compared to 2009, but still have reduced by 10.7% as compared to 2008. Inventory turns are also improving for the second consecutive month. In accounts receivable, days sales outstanding have made a big turn in December 2010 by switching from a large decrease in November to a small 0.1 increase in days versus 2009. The trend of reduced head count returned in December after taking two months off in October and November, after two continuous years of decline. The PHCP industry recovery is trending positive and clearly gaining some momentum as most distributors continue to report improved profitability, as compared to 2009 when exactly the opposite was true. For a full report containing statistical evaluation by regions of the country, market segments and distributor size, companies should contact Chris Murin at firstname.lastname@example.org or 312.464.0090 ext. 204. SAFETY RESOURCES in the PHCP & PVF industry Toolbox Talks Path to Safety- Step 20: Automated External Defibrillators: Essential for Workplace Safety Years ago, when fire was a common workplace hazard, employers were required to provide fire extinguishers. Today, death from a workplace fire is rare. But sudden cardiac arrest remains a major threat, killing 365,000 people in North America each year. According to Occupational Safety and Health Administration statistics, 13 percent of all workplace fatalities today are attributed to sudden cardiac arrest. The good news is that it’s often treatable, if defibrillation is provided quickly.Once sudden cardiac arrest occurs, the victim can often be revived using shock from an automated external defibrillator (AED) — but the chance of a successful AED rescue diminishes by approximately 10 percent with every minute that passes. That means that by the time an ambulance with an AED arrives, it is often too late. The American Heart Association estimates that with greater availability of AEDs in places where people work and gather, some 40,000 lives a year could be saved each year in the U. S. alone. Having an AED on hand, instead of waiting for that ambulance to arrive, can literally make the difference between life and death. Visit the Safety Resources section of www.asa.net for information on AEDs, increasing AED awareness at your business and establishing a “Chain of Survival” to address sudden cardiac arrest in the workplace. Also found there is a Toolbox Talk for use in educating your employees on this important safety topic.
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