I spent some time in the Pittsburgh, PA area this week.  It is really surprising to see how upbeat people are in that area.  Just a few years ago it was almost depressing to make calls in the area.  Nothing was going on, business was slow.  On this trip I had several distributos tell me they were very busy and mentioned that there was a tremedous amount of money being spent to update steel mills throughout the state.  A lot is being spent on plants that produce specialty metals including stainless.  There are cranes working in the area.  There is supposed to be a brand new steel plant being built in southern Ohio along the Ohio river by a Russian company.  I have heard that a new $3 billion steel facilty is being built in the Mobile, Alabama area.  In Cleveland, the area known as the "Flats" now has chain link fence around certain parts where renovation will be taking place.  They are strarting to clear land to build new offices and condos.  I must tell you, these areas have been some of the most downtrodden areas in the recent past.  I sure hope this is a sign of hope for the near future.  The Detroit area is still quite beaten down but it is still good to see some activity in these other areas.

I do not travel the entire country so it would be appreciated if anyone else reading this could post any information about other parts of the country (or the world).  The stock market is tanking, housing is in the dumps, the domestic auto industry is in sad shape, the truck market is not showing any great signs of life and they are planning to pour more steel in Pittsburgh.  Go figure.  I think agriculture is booming though I do not know that firsthand.  I hear there is not enough food, there is not enough biofuel and heaven forbid there not be enough grain for beer manufacturing somewhere down the road.  People will go without food but don't touch their beer.

OK, last post I spent talking about the internet.  Today I have another thought...or maybe a question about a supplier that is land based.  All over this land.  What is going on at Brighton Best?  It seems they are expanding their warehouses and their product offerings and I have heard from a lot of distributors recently that they have been offering very aggressive pricing.  I know they were bought out last year from what I thought was a Chinese company.  It seems there is some strong financial backing in place for them to be undertaking so many projects at the same time.  It has always been a strong company and I am curious to see what they turn into over the next couple years.  Who do they plan to compete with that they are not today?  The importers?  The stainless suppliers??  Should be interesting.

This blog was created to be an online communication vehicle for the fastener industry.  It was also created this way because my total investment to create this was about $10 versus thousands and thousands for other media vehicles.  On my last post I mentioned how the Ifastgroupe has an online feature that allows customers to leave messeges for the management of the company.  I know a few companies have online ordering capabilities including Kainbridge, Porteous, Metric & Multistandard and I'm sure many others.  I'd like to ask any distributors out there that use these online ordering sites to fill us in as to which companies have the best sites out there.  I'd like to check some other ones out without stumbling through the countless industry sites.

I realize that most of those sites would require a user to have a password to actually get pricing.  With some, you can get product info without a password but nothing more.  So, which are the best ones?  I think American Fastener Journal, LINK, FIN and Fastener Technology should do some research on that subject.  But, thankfully, I am only responsible for the content of this site.  And, with my limited time and resources, I have done a little field research because..well, these things intrigue me.  What happens when you type certain industry relate words into a google search?  I have already reported that if you type "fastener blog" you end up here.  But, what about some other terms?  So, here is some of what I found.

Type in "Fastener Companies" and the first listing is Smith Fastener in Los Angeles, CA.  Accidently type in "Fasteners Company"  (which I did because I'm not such a great typist) and the first listing is Mudge Fasteners out of Corona, CA.

Type "Fastener Supplier" and you get directed to FastenerIndustry.com which is more of a link to several other fastener companies.  Type in "Bolt" and the first listing is Wholesale Fasteners which I followed along a few clicks until I ended up at Lightning Bolt out of Colorodo Springs, CO.  Type "Bolt Supplier" and your first listing is Pointe Products out of Cherterfield, MI.  If you type in "Bolts and Nuts" your first listing is "NutsandBolts.com" -- kind of like it flip flops the words.  This site seems to be sposored by Northeast Fastener out of Granby, Mass.

"Rivets" will get you to Hanson Rivet & Supply.  "Locknuts"??  First listing is Long Lok.

I do not know how much it costs these companies to be so high up when you do a google search but I give credit to these companies for getting themselves up at the top of the heap.

Just got back from the Midwest Fastener Assocation Table Top Show.  I thought it was a pretty good show.  As I understand, this is their "table top" show and next year they will hold their larger, convention style show with full booths.  The tables were pretty packed into a ballroom but there was space to move around.  One good thing was you could look across the ballroom and basically see everyone else that was attending.  So, if you wanted to track someone down there were no partitions or sight barriers.  Sure, it was not a huge show but it was good.  The Chicago folks have a unique fastener community.  They all seem to know each other.  Heck, most of them probably worked with one another at some point so it's kind of cool to see how everybody interacts.  Vegas and Columbus have a lot of interaction between suppliers and distributors but Chicago seems to have more supplier interaction.  Just kind of interesting.

I must also report that (despite what people wish or think) the Columbus Show and Midwest Show seem mutually exclusive.  I did not see a single distributor from Ohio, PA or Michigan at the Chicago Show.  I saw more Illinois and Wisconsin distributors and suspect those people might not have attended the Columbus Show.  I did not see any Indiana name tags in Chicago either though they might have attended.  So, what's a vendor to do?  Do you go to both, do you choose one and skip the other?  I did hear several suppliers discussing that issue but I did not really hear what they concluded.  Chicago puts together a few additional events around the show like a golf outing and some plant tours.  They certainly have access to more plants and factories in the surrounding area.  And I have always thought the multiple hour "Bash" was a good idea as it keeps more people around networking.  In the old days, Columbus had all the sponsored hospitality suites and those were good for continuing discussions that began at the show.  As great as Vegas is, it still needs a central, social location for people to hang out when they're not at the show and they're not out losing money.  People like to go out for dinner in Vegas but even after that they like to have a place to return where they will run into fastener people.

One thing I heard about in Chicago I thought was very progressive and worth mentioning.  I was speaking to someone from the Ifastgroupe who told me they have an online program where their customers can anonymously leave comments, positive or negative, and these are reviewed by Ifastgroupe management.   Their customers must register to use this but the comments that are left are not traceable back to the person who leaves the comment.  They call it "Voice of the Customer" and you can get to it through their web site at www.ifastgroupe.com.  If I left out any details or put inaccurate information on this site, please someone from Ifastgroupe correct me and I will correct it.  It sure seems like a lot of companies say they want to hear what the customer has to say but I credit it them with providing a vehicle for it to happen.  And, for the record, I do not represent, work for or benefit in any way by passing along that information.  Truth is, I more compete with them than anything but a good idea is still a good idea.

I am looking forward to attending the Midwest Fastener Show next week.  I have not been to this event in a few years.  I recall the last time I went that the "Fastener Bash" was pretty good and that a lot of people showed up after the show to have a drink and socialize.  Networking is always an important part of any trade show and I like the idea of having a specific place to meet for three hours after the table top part is over.

Like I said, last time I went the bash was well attended.  I hope it will be again this time.  I also look forward to seeing some of the exhibitors that did not attend the Columbus Fastener Show.  My gut feeling is that there are several people that refuse to support the Fastener Show East so that the Midwest Fastener Show becomes the spring/East Coast show by default.  Just a hunch.  It is an ongoing dilemna for some companies deciding which one to attend.  I'll let you know how I think this one goes.

This is not fastener related but I thought this was a staggering atticle.

http://www.mindfully.org/Plastic/Ocean/Ocean-Plastic-Landfill-Algalita1nov02.htm

Made it into the Link Magazine industry sites.  That site is pretty cool.   If you click on any of those busienss card sized ads you will directly link up to the company website.  In this case, you get directly connected to this blog.


http://www.linkmagazine.com/industry_sites.html

I had a distributor purchasing manager tell me recently that he had moved four screws he was buying offshore back to a domestic manufacturer.  He said once his domestic cost was within 8% of his offshore parts it just was not worth it to commit to going overseas.  He had to buy more, wait longer and he just did not feel like he had the control he had with a domestic manufacturer. 

So, what does anyone feel about this?  Any manufacturers seeing parts come back?

I will be curious to hear the comments on whether or not the Columbus Show was a success.  I have spoken to several people already.  I think if people can just get over the fact that it is NOT Las Vegas, they can certainly get their money out of the show.  Columbus is, essentially, a regional show - and it takes place in a heavily industrial region, not a tourist area.  There are a few great things about Columbus.  First, you actually have time to talk to the attendees.  In Vegas, it is so busy, that the people you want to talk to are often busy talking with other people and you miss the opportunity.  I hear suppliers say that they were talking with one customer when antother big customer walked by.  I hear distributors say they tried to stop by a booth to meet "so-and-so" but he was busy talking to someone else so they never met them.  That does not happen in Columbus.

Secondly, there is nothing to do in Columbus but hang around the show environment.  The 2nd floor of the Hyatt was not nearly as busy as it used to be but there were still a lot of people hanging around the night before the show.  I am a fan of going to Las Vegas once a year and the show out there is huge and awesome, but there really needs to be a central meeting point for people to mingle/network/drink beer when they are not in meetings or out to dinner.  If you just feel like having a drink at the end of the night it is great to have a meeting point where you know you will run into some other fastener people.  The 2nd floor of the Hyatt used to be that for Columbus.  The round bar at the Paris filled that void when the Vegas show was at the Paris.  I did not see that a "meeting place" existed last year at Mandalay Bay and that is a huge void. 

The Columbus show was heavily attended by distributors from Ohio, Western PA, Michigan, some Indiana and a cross section from other areas.  Some very, very large distributors attended the show.  I personally do not call on McMaster Carr but their people were there.  I will not list the companies here but - TRUST ME - if you do any business in Ohio, Michigan or Western PA - many of your biggest customers were there talking to the suppliers that exhibited. 

It is not necessarily about the cost of the show.  It is about how much value you can get out of the booth fee you are asked to pay.

I am looking forward to the Columbus Fastener Show.  I have heard all the negative comments about how it is not Las Vegas, and it certainly isn't.  But, as much as I like the Vegas show I simply do not get an opportunity to visit people at the booths when I am there.  It is almost too hectic.  And I want to ask you this - do you have any customers from Ohio, Michigan, Pennsylvania, Indiana or Kentucky??  Yes???  Then friends, let me tell you, several of your customers are attending the show.  Eight people from one company in Cleveland.  Four from antoher.  And folks, these are not just the owners and their families.  These are the worker bees.  The buyers, the inside sales people...the folks who call your company.  I know it will not be a huge show but it could be a very good show.  I am looking forward to it.

FYI, I got a nice little ad for fastenerblog.net site on page 222 of LINK this issue.  I hope a couple more people see it and check out the site.  If you are here because you saw the ad --- welcome!

I continue to hear that import fastener costs are continuing to go up and will continue to do so.  The earthquake in China did not help as many resources were sent to the earthquake area utilizing valuable resources that might otherwise been used for fastener production or transporation.  I am not the best person to predict things but I think that distributors will be shocked as costs keep rising much like we are all shocked to see gasoline rising to the $4.00 mark.  I have been told by one purchasing manager that he has moved several parts back to the states that he had been importing as the cost difference is now very small.

I like to check out other fastener related sites and on Mike McGuire's AFJ online site I saw where he recommended a book that he thought would be useful to fastener distributors.  Stealing his idea (the highest form of flattery), I would like to also recommend a book that I think is terrific for anyone in sales or any sales organization (which, if you do not yet realize it, is EVERY company - because without sales you got nuthin').

The book is "Customer Satisfaction is Worthless - Customer Loyalty is Priceless" by Jeffrey Gitomer.  As the title suggests, when you buy a product or service, certainly you expect to be satisfied.  You give someone some money and, in turn,  they give you a product and, provided the product works as you expect it to, you are even.  You are satisfied.  You are neither high or low on the whole experience.  You got what you expected -- you are satisified.  But, to have customers come back you need them to be more than satified.

I do not need to read the book to you here.  You should go get it and read it yourself.  I did buy a copy for the sales manager of a company I represent and, after reading it, he bought copies of it for the managers of every department in the company.  Now I see where his company has posted signs around the building based on comments from the book.

One of my favorite parts of the book is when Gitomer compares the statement "It is our policy.." to basically telling the customer "Up Yours".  "Sorry, but it is our policy...to piss off everyone."   Another favorite is when he tells you to put "Grandma" at the end of each statement you are willing to tell your customers.

"Sorry, we cannot get out that shipment today, Grandma"
"Your order is for $97 and our minimum order is $100, Grandma".
"Can I tell him what this is in reference to...Grandma".
"It is our policy, Grandma".

You get the picture.  It really is a good book and even better if you are self examining your company's customer service.  Because, just in case you didn't know.........there is an awful lot of bad customer service in our industry.

The Fastener Show East is about a month or so away.  So, I made my hotel reservations for Vegas.  Don't want to have to commute too far for that show and it gets busier each year.  But, what about Columbus?  I know, I know.  "It's not what it used to be" I hear each year.  For me, I have found Columbus to still be a very good regional show.  In Vegas, I did not even get to all the booths.  There were so many people and so many vendors.  I know I did accomplish some good things but it was overwhelming.  At the show in Columbus I feel like I actually have time to stop and visit with customers and suppliers.  I also find that I have more time to take customers over to meet or visit with vendors.  You know, the old.."Come here, I want to introduce you to the branch manager.."  kind of visit.  That is really tough to do in Vegas.  So, I am still one of the fans of the Columbus show.

I saw where Barry Porteous sent out a note to the industry explaining how import prices are going up and he provided some specific information to support his letter.  It is interesting to me how he has become an industry messenger regarding what the industry can expect in the upcoming months.  I cannot tell you how many people rely on his information to go to their customers to explain price increases.  I know other suppliers (and not just other importers) that read his letters to their staff as though he is an industry prophet.  And he is!!  Please, please understand that I write this with respect and I am glad he does send these.  I just thought it was funny to see other vendors using his letter as a justification to consider raising their own prices.  In some instances I think they should send Mr. Porteous a fee for providing the industry this information and for acting as an industry spokesperson.  It is as though if Barry Porteous says so, it must be true and that is a powerful position to be in.  But again, I think it is great that he sends those letters and I wish some other industry leaders would step up and do similarly.   Certain individuals in our industry do have unique insights and it is good when those are shared.  I saw the gentleman from Nucor recently interviewed in FIN and thought that was inciteful also.

Last, but not least, is anyone else starting to see distributor business starting to pick up?  I think I see things getting a little busier and I hope it is not just my imagination.  Sure, some folks are still down in the dumps but I have called on a lot of companies that are doing pretty well or are at least seeing increased activity.  As I wrote in a previous note, has the recession already come and gone??  We'll see.  Maybe I'll hear more rumblings about this in Columbus.

And, really last.......can't we all gather at the second floor of the Hyatt for a beer the night before the Columbus show for old times sake?  Man, that was the best place to run into people and make contacts.  I found that bar area almost as good as I found the show.  The industry really still needs a good place to gather and share a beer.

I have a friend in Chicago with some very intersting thoughts about what is happening in our economy and specifically in our industry.  We are all reading about the cost of steel and the increase in the world's consumption of steel and fasteners.   Scrap prices are also going through the roof.  My friend says that as our economy slumps he could see several cold headers/screw manufacturers go out of business.  And, if they do, there will not not likely to be a lot of companies buying up the machines that would go on sale because domestic business is slow.  He says that it is cheaper for companies overseas to buy the liquidated machines and use them for scrap than to actually go pay for other forms or sources of scrap.  So....if we lose all this cold heading machinery and down the road our economy picks back up, where will we go to get new cold heading machinery??  According to him, the screw manufacturing machinery is mostly manufactured in China now.   So, if the Chinese buy our machines, melt them down, then when we buy new we will be forced to go to them to buy the new machines.

Now let me say that I have no knowledge of this subject and I cannot begin to tell you whether I think his assessment is accurate.  I do know scrap prices are through the roof and I have heard that there are some small screw manufacturers that are hurting.  But the whole theory??  Not sure.  But it's interesting.   Have we sold ourselves out??  I'd be curious to know what you think.

Whether we like to admit it or not, all fastener companies are sales driven.  Some people want to move tons of standard fasteners, others want to tell a 10 lb. box of specialty fasteners for $5,000.  But sales drive a company's growth and feeds the families.  But, how do fastener companies really get sales?

Some companies offer outstanding customer service but have prices much higher than their competitors.  Some companies have loads of inventory but have answering machines when you call them and they take 5 - 10 minutes to get a live person on the line.  Then we all have known companies that are run by accountants who determine they are better off not dealing with companies doing less than a certain dollar volume so they cut them off or send them to a "Master Distributor".  I'm not saying all three models are effective or ineffective.  Sometimes a strategy works and sometimes it doesn't work so well.

But, ideally, what is the best formula for a sale?  I am assuming that the outstanding outside sales force has already caused a willing and able customer to call into a company inquiring about needed products.

All things considered, I would say that people like to talk to another human when they telephone into a company.  I think a lot of people appreciate being able to log on to a computer and order regularly used, repetitive items online.  Buyers like to be able to find technical information on the internet.  I think price is always am important (often the most important) factor but often not the ONLY factor.  Freight is always a factor (or, it should be).  Outstanding inside sales support goes a long way especially if a good, long standing relationship is established.  Great insiders know their customer's needs better than the customer.  I am serious.  I have worked with some oustanding insiders that have managed inventory so well they continuously keep good customers out of trouble.  I am often surprised by companies that continuously turn over their inside sales staff as though anyone can punch part numbers into a computer.  Boggles my mind.  They just don't get it.

I once represented a company where the president continuously went to seminars with the presidents of other companies (though, not fastener companies) and he would come back every six months and totally change internal processes.  One month his best inside sales people would be taking calls from only the top 100 cusotmers and then the next month they would be inaccessible to people calling in.  Instead, they would be calling out to customers all day long asking how the company could do more business with them.  Meanwhile, the people that wanted to do business with this company would get inside sales people with little or no experience and they would often get off the phones frustrated.  As an outside sales rep, I would get the calls asking "Why can't I talk to Joe anymore, the new guy is a moron".    Six months later, they would be concentrating their sales efforts totaly on "lost customers" phoning out and asking why they were no longer seeing their business.  Yo, duh! 

Finally I told the president..."look, it is very simple.  Print a catalog or tell people the items that you want to sell to them.  Tell them how much that product will cost them if they place an order.  Then, once they place an order, ship that product (hopefully from stock) immediately.  Ship it with no errors."  That's it.  You do that over and over and I am pretty sure you will grow your company.

All companies are different but what do you see as the basic things that cause a company to grow their sales?

In the last month I have made a lot of sales calls on customers that have told me they are busy.  Maybe not record setting busy, but busier than a few months ago.  The bigger problem I hear about is the price increases.  Import product is up, domestic steel is up.  But people seem a little bit busier.  Not everyone, but several people I visited seemed a little more upbeat than usual.

At a recent North Coast Fastener Association meeting, I was able to tour Charter Steel with a group of about 50 other people.  This is a state of the art operation.  Great meeting, great speaker from Charter.  It was very interesting how he acknowledged that while our domestic economy is slow, the price of steel is still increasing.  The weak dollar makes our products attractive to other countries and the demand for steel worldwide is still very strong.  He seemed to suggest that until global consumption slows down a bit the demand (and cost) of domestic steel will continue to rise.  Needless to say, if the weak dollar makes domestic steel attractive overseas, our other capital goods should be equally attractive to foreign markets.  Our farm machinery for instance.  So, if you are a fastener supplier to a company with a strong export market, it would make sense that your business could be brisk.

On the other hand, I was talking to a friend last week who manages construction sites for a regional home builder.  Last year at this time, they were building 95 homes at a time.  This year, they are building 17 homes.  He told me he cannot even get the building materials he needs because local lumber yards are not even stocking common products.  He had trouble getting 2x4 lumber!  He was complaining that day because the local yard he has used for years did not have a front door he could get from stock.  He told me several lumber yards have gone out of business in our region and he wondered if our local lumber yard would be able to weather the storm.

So, are we past the recession or has it even begun yet?  Or will it even come at all?  I think the answer is this:  if you are building homes and supplying the home builders you are clearly in a recession.  If you sell to manufacturers of products that are exported, maybe you are in boom times.  We might not be able to say that the bad economy depends on your region of the country so much as what types of business your company supports.

I am not seeing prices rise as quickly as I would suspect.  At least not to the distributor customers.  But I have domestic manufacturers telling me they have seen steel rise 35% since the beginning of the year with more increases coming.  Fuel surcharges are being discussed again.  I have heard that China Steel plans to stop production three months before the Olympics in order to clean up the air.  A couple of the national importers have told their customers that prices are going to be rising soon.  I saw a memo regarding washers that suggested scrap material is way up and prices will be rising.  Ladies and Gentlemen, I think it is time to tell your customers that price increases are on the way.

I am often baffled how the larger VMI suppliers can hold prices during times like this.  I know they travel from China to Vietnam to God knows where to find a cheaper price for a fastener.  But, let me share a couple personal stories with you...unrelated to fastneners but somewhat related.

My son bought a bowling ball recently.  He and his buddies go once a week on a school night just to hang out and forget school.  The ball he bought is only about two months old and it has about three major cracks or chips in it.  I once owned a bowling ball I used for about three years without damaging it.  His ball?  Cheap thing.

Less than six months ago, I had to replace the handle on my microwave.  Last week, I had to replace it again. The stupid think just cracked into pieces under normal wear.  Cheap Thing.

I have been waiting for two week for a part to come in to repair may two year old, very expensive surround sound television.  Paid over $1500 for the stupid thing.  Now, I have old T.V. sets that I have owned for years.  Some will be obsolete next year when the analog systems no longer work.  However, the sets have functioned for almost twenty years and would still have some value if the analog deal didn't change.  But my big, expensive T.V. is down for the count because of some crappy, cheap internal part.  Cheap Thing.

So, so many things that I used to buy and use forever don't work the same anymore.  I used to wear the knees out on my Levi's but now I wear out holes where the pockets are sewn on to the pant.  Check it out.  I see it on a lot of jeans.  You can look at someone's underwear right through the hole on their butt.  And, I am not just talking fat people. They are cheaper than Levi's used to be.

And so, I come back to fasteners.  I think a lot of them are cheaper than they used to be.  Or, at least, the quality is less consistant.  If a couple pieces per box are faulty, just toss 'em.  The box of them is so cheap you can toss a few and still feel like you got a good deal, right??  This is no knock on import product.  I see it in domestic product too.  There is pressure to cut costs everywhere and it seems that quality does get compromised...at least some of the time.

I'd like to hear what others are seeing in the marketplace regarding material and fastener costs.  It might just be a temporary wave but with energy costs staying high I suspect so will our fasteners.

A gentleman from a successful, growing business recently asked me, "I wonder which is harder... to grow a business to $1MM or to grow from $1MM to $3MM or......to go from $3mm to say $10MM?"   His company is fast growing to the $1MM mark (in sales) and there seems to be a momentum that could quickly push them to that level and beyond.

Any growth experiences anyone would like to share?

I have several friends who work for Infasco, or Distributor Sales. or IFC or the Infast Group or whatever they are calling themselves these days.  You know, the Canadians who make really good cap screws and some other stuff.  But, they keep changing their name.  It's kind of crazy.  And I'm really not sure of the purpose.  But, I guess it doesn't matter.  It's not like people who want to buy thier products can't find them.  And this isn't the first time.  This has happened numerous times.  I remember when Rawl became Powers.  But, because the owner of the company was named Powers (I'm pretty certain) it was a little more understandable.  Or if you merge with a company...that could make sense.  It's less understandable to me when you take away brand names to melt products together under one name.  Like Vertex.  To me, it's still Bell and Zelenda.  Alcoa is still Marson and Recoil and Huck.  Some name changes work and some...not so much.   I got to thinking what might be more appropriate names for some of the companies that are in our industry.  I have a few I'll pass aong and maybe you can add yours.

"We're Domestic, Well..North American" ---  who's that??

"We're like the Wal-Mart of Fasteners" --  named after a company recently showcased in a post on this site

"We Used to Be Your Metric Source"

"We Got It, And You'll Pay For It...just don't call us during lunch"

You asked for it.  You did.  You wanted a forum that allowed you to post your own subject material.  You wanted to start conversations and not just comment on the posts that I had published.  Like a good vendor that listens to his customers.....like a supplier that is willing to bend just a bit to help you make freight............like a sales manager that shares credit with one of his hard working associates so that they both make budget..................I am here to bend and sweat for you.  Unless I screwed this up, if you hit on the link below you should be connected to the newest Yahoo Group Forum -- Fastener Talk:Faster Talk.  Faster talk because you can expidite your ideas fastener rather than go through a moderator.  You can post your own thoughts and let others respond to you.

We aim to please on this site.  I will continue to post my personal nonsense regularly, mostly because I kind of have fun doing it but also because I have had a few kind comments from people who actually suggested they liked the site.  And honestly, I'm trying to work this site so Traveling Salesman will be asked to be a guest columnist in one of the legitimate industry publications one of these days.  Until then, I will create my own industry source, my own medium where I can not be edited or censored because I am the editor.  What's more, this is an international site as my friend from New Zealand posted a comment (and has probably regretted doing so ever since) and you must not limit the international juggernaut that this site has become.

Please click below to be connected to another cyber-based fastener experiment.


http://finance.groups.yahoo.com/group/fastenertalk/


And thank you for your support,

TS

This question was sent to me by Chris and I am posting it for discussion.

I have had a few people ask if the can post their own topic on this blog rather than simply commenting on subjects I have posted.  I have contacted GoDaddy.com twice and both times I have been told "no".  The only way that could happen is if I allow people to gain access to my account and give you my password.  Now, I trust about 99% of you, it's just that 1% of evildoers out there that keeps me from post all that information.

However, if you want to begin a topic, please post a "comment" in response to this subject.  I will cut and paste and mention the name (anonymous) of the author and post it as a new subject.  It appears that is all I can do to allow you to start up new topics.

Sorry folks, I'm trying.

In case you do not read the comments that are added after my posts, I want to point out that I have a new best friend in New Zealand.  My new friend Jason was kind enough to respond and thus Fastenerblog is now an international site!  Yeehaa!!

By chance is there anyone else that has logged on to this site from other countries other that the U.S.?  Let me know.

I know of at least one supplier that had product burried in snow in China when the roof of a workshop collapsed in during the recent snowstorms.  Cargo was to be loaded in the next few days and now it will not be shipped until repairs are made to the facility.  Anyone else have any stories regarding how the Chineese snowstorms are affecting our industry?  Add Chineese New Year into the equation and we could really see some slowdowns in deliveries.

I have children that are growing older every day.  Time flies unbelievably fast and I always tell myself to slow down and enjoy every moment because they come and go so quickly.  Still, I gotta be honest.  I am always happy to see January come and go.  The quicker the better.  I live in the north and the weather is usually cold and snowy.  But that is not the only reason I'm glad to be done with January.  Every year, all salespeople face the same thing in January --- adjustments.  If someone is going to change your territory or adjust your commssion structure or fire you or hit you with an enormous increase in a budget -- more than likely it is going to happen in January.  As we all know, the previous year is history and it comes down to "what are you going to do for me this year".  I just know that every single January, someone will surprise me with an unexpected change.  I guess I'm glad they do not ruin my Christmas by doing this in December.  But it might be good to start planning things in, let's just say, October.  Just once, I'd like to get a memo in October waying "Well T.S. (Traveling Salesman), we have had a good year so far.  Looks like we should finish strong.  Why don't we do some strategic planning now so we'll be ready to relax a bit around the holidays and by the new year we'll already be off and running towards our new goals."  That'd be nice.  Instead it's "We just reviewed our sales figures from last year.  Do you realize that sales in December were down for the thirteenth year in a row and people quit buying towards the end of the year.  I'm buying a bigger whip and you'd better get your ass moving because about one more of those months and the whole bunch of us are going to be looking for work or out selling pencils".  It's not really that bad but January is the month.  It's always the month.   And , YES, I did get stuck in a a hotel room for two days in an ice storm in January this year, thanks for asking (and thank you Grand Rapids).

So, that's my griping.  Sorry to burden you.  But, hello February looking forward to March and spring.  But while I've got you, can I tell you about the new fastener line I just picked up in January...???

So, a whole bunch of folks are going to get $600.  You think any of them are going to spend their $600 on fasteners? 

OK, I'm going to try and tie together a couple different ideas here.  I might be stretching things a bit but...what the heck, let's go.  I recently was reading an investment article that spoke of some of the investment "bubbles" that have been burst in the last decade or so.  Back around 2000, the "tech bubble" kind of burst.  You remember, that time when all our 401-K plans were cut in half because all the dot.com companies went away.  So, where did investor's money go after that???   Yes, a lot of it went into real estate.  Drove the prices of real estate up like crazy to the point where no one ever thought their investment into a home in Florida would ever be a bad thing.  We have all seen the real estate market kind of burst in the last year or so.  When things get over bought, prices rise, but there always comes a time where stupid money gets invested by people who don't really know the market because they want to put their money into a "sure thing".   So, we've seen money drifting out of real estate but it has to be invested somewhere.  Mutual funds and all kinds of investors want to grow their money somehow.  So, where has money been going?  Trust me.  I am no expert, in fact I'm really far from being one.  But I have observed that all the international mutual funds and the Asian market funds have grown terrifically over the last couple years.  I'm ceratin there are very sound reasons why this has happened.  Our industry in particular has seen a lot of manufacturing move to those markets.  But you have to figure that some very uneducated investors are dumping money into the international market without any real knowledge of why these funds are performing so well at this particular time.  When market segments get overbought they eventually burst....eventually.

So, isn't it interesting that two comments written on this site recently mentioned recent price increases from overseas.  And, Fastener Gal wrote, "...it is a great time for us to rethink "Made in America".   Another post read, "I see more and more domestic accounts re-thinking their use of imports and the quality and delivery assoicated with that type of business...Overseas companies are extending lead times and prices of raw materials are ever-increasing." 

If these two comments are indicators of possible sentiments within the fastener industry, then what other industries might be re-thinking their overseas investment strategies?  And, if more and more industries have these types of feelings, then you and I better take a look the international exposure in our portfolios.

Don't forget, Warren Buffet just bought into our industry through his acquisition of 60% of the Marmon Group.  But more interesting is the fact that Marmon's roster of companies include mostly companies that manufacture products in the USA.

See, we fastener people do matter and WE ARE the Window on the World!!

 

 

In case you do not read all the comments posted in response to the postings, there was one particular one I wanted to point out.  Elvis Lugnut commented that the media is full of gloom and doom predictions for the U.S. economy in 2008.  However, he pointed out that in the month of November the U.S. still created over 100,000 new jobs.  Then on January 2 the Dow drops due to manufacturing reports.  It is January 3 and the Dow seems up a bit due to some other report.   Elvis asked, "Are we moving in to a self induced recession"?

I wish this blog had more subscribers in this industry because, like Elvis, I would really like to hear what others in the fastener industry have to say.  I have often been told that the fastener industry is the first to see the economy slow down (you don't order fasteners if you are not going to be producing) and the first to see an upturn in the economy (gotta plan ahead so you buy your fasteners in anticipation of future production ---- although I suspect most distributors would argue this point as ALL their customers seem to NEED EVERYTHING YESTERDAY --- thus the question ---does anyone plan ahead?).

Still, to some degree, we do seem to be the blood and guts of production.  Or some part of the blood and guts anyways.  What we observe DOES MATTER.  And, as far as I can tell, last year was fairly flat.  This year?????

As a salesman, I still adhere to the sales approach offered to me by my father many years ago.  Unless I have 100% of the market, there is still business to go after.  Which means we will all be busy regardless of sales this year.  Buyers buy 100 or 1,000 or 1,000,000  -- but they still buy.

Again, please comment.  And pass along this blog to others if you wish as the comments of someone you contact might be most interesting.

I spoke with a lot of customers over the last few weeks of December and it was oddly busy.  From Detroit to Cincinnati to Pittsburgh to Northern Ohio, my customers were extremely busy as the year was winding down.

Hope it keeps up in the new year.

And good luck to all in 2008!!

I tried asking this question once before but never got much of a response.  I would be interested to hear who you consider to be the top 3 vendors you buy from, compete with, represent, whatever.  Please say why you rate them highly and how they distinguish themselves from other vendors. 

I'll tell you a few that I see in the marketplace that impress me.  And I will qualify that I do not compete with (directly) or sell for either of these.  I think Star Stainless has always had the best stock, excellent pricing and fairly good service consistantly for years. 

Another company that has risen up among its peers is Lindstrom.  Back when Bossard was the cadillac of metric fastener suppliers, Lindstrom fought it out in the trenches and stole a little bit of market share each year.  When they started making money they reinvested in things like Mega Metric and in a line of metric stainless.  The big boys in distribution do business with Lindstrom.  At least, that is my observation.

What's yours?

My nephew owns a flower delivery service.  Flower shops and other places with "stuff to deliver" (all legal, of course) hire him and his fleet of vans to deliver flowers to hospitals, etc.  I just saw him this evening and he said the number of fruit baskets and other "corporate gifts" is down significantly this year.  Way Down!!  He said he used to marvel at the number of fruit baskets that were sent out in recent years.  For him, this was a headache as it caused him to hire more temporary help.  He is still busy during this holiday season, he just has less seasonal workers.

So, what does that say about our economy?  Nothing good I suppose.  As I have said all year, most people seem to be having decent years with regard to sales but no one is really upbeat and excited.  An odd thing happened today though.  I was up in Detroit all day and I visited several distributors that said they have been really busy during December which is usually a slow month up there.  If you've read any newspapers this year you know that the Detroit area has really suffered the past few years.  But several different distributors gave me similar reports.  They were really busy!  Let's hope it lasts and it is a jump start for things to come in 2008.