In a recent post, I mentioned how regional organizations are so important to networking and training in our industry. The following was submitted by the Fastener Training Institute ® explaining some of the programs they offer. I am personally pleased to post this as I had the opportunity to participate in a seminar hosted by Bengt Blendulf back in....back in...let's just say a long time ago. Bengt, on the other hand, I'm sure is as yourng and spry as ever!
Economist Adam Beaulieu posted an entry on his blog recently advising company owners to “invest in your firm now in order to maximize your growth potential over the next 18 months and to prepare yourself for 2014.
The Fastener Training Institute ® has a full menu of employee training programs to help you maximize your company’s growth potential.
Advanced technical training
The Fastener Training Institute® (FTI) offers a variety of highly acclaimed advanced technical training programs throughout the U.S.
Our Certified Fastener Specialist™ advanced technical training program is offered in two different formats. Each of the seven classes is offered individually in Southern California beginning in April of each year. Or consider the intensive version of the program offered in Southern California in the winter and again in Cleveland (taught at IFI headquarters) in the summer. This year’s Fastener Training Week-Cleveland will take place July 23-27.
FTI also offers an advanced class on Automotive Fastener Technology, taught every spring in Troy, Michigan.
Customer training
Do your customers need more information about fastener technology? FTI has a class for that too. Bengt Blendulf offers a two-day seminar, Fastening Technology and Bolted/Screwed Joint Design, specifically to give OEM engineers a better understanding of the bolted joint. This course will be taught in Rosemont, Illinois June 6-7.
Product Training
This three-course program was designed to teach employees in the fastener industry about the products they buy, sell and warehouse. While it is intended for people new to the industry, it will be beneficial for all who want to expand their knowledge.
The curriculum for each class is different, focusing on different products and fastener industry information. Classes do not need to be taken in sequence. If a class is missed, it can be made up the following year. Upon completion of the program and passing a take-home exam, students receive an engraved plaque.
We also offer one-day condensed versions of the product training program, called Fastener Basics. These are scheduled for August 21 in Southern California and November 8 in Scottsdale, Arizona.
In-House Training
If you want in-house customized training, FTI can put together a curriculum that meets your needs and bring trainers to your facility.
Certified Fastener Specialist
To receive the CFS™ designation, students must complete seven full-day training programs offered throughout the year or the week-long intensive version and pass a final exam at the end of the training. Upon completion of the program, students receive an engraved plaque designating their certification as a fastener specialist, according to the requirements established by the Fastener Training Institute™.
Individual classes in the CFS series include:
* Fastener Manufacturing Plant Tour * Fastener Secondary Processes Plant Tour * Fastener Specifications & Terminology * Understanding the Bolted Joint * Dimensional & Material Specifications * Fastener Quality Assurance * Fastener Testing
More than 800 students have participated in the program since its inception. We now have nearly 300 graduates. Classes do not need to be taken in sequence. If a class is missed, it can be made up the following year. Classes are taught by recognized industry specialists and include every-day hands-on case studies and lots of real-life information.
Our Instructors
Bengt Blendulf was on faculty at Clemson University in the College of Engineering and Science until 1996, when he formed EduPro US, Inc. to focus on education and consulting in the area of fastening technology and bolted/screwed joint design. He is a founding member and formerly served as chairman of the Bolting Technology Council (now ASTM F16.96 Bolting Technology). Educated in Sweden (mechanical engineering), Mr. Blendulf moved to the U.S. in 1974 to start a subsidiary for a leading European fastener manufacturer. He is the author of more than 100 technical papers in addition to published articles related to fasteners and international standardization.
Salim Brahimi is president of IBECA Technologies, a consulting firm that provides engineering and business process improvement services. He is a licensed member of the Quebec Order of Professional Engineers and is an active voting member of numerous ASTM, SAE, IFI, and ISO standards and technical committees. In May 2004, he was awarded the Fred F. Weingruber Award, bestowed by ASTM Committee F16 for his outstanding contributions to the development of fastener standards, especially in the field of hydrogen embrittlement. Mr. Brahimi is also currently completing a doctorate at McGill University in Montreal on the topic of fastener hydrogen embrittlement.
Joe Greenslade is Director of Engineering Technology for the Industrial Fasteners Institute (IFI). He has served in many capacities in the fastener industry since 1970 and has written more than 300 technical articles for fastener trade journals. Mr. Greenslade serves on all of the fastener standards organization committees for the American Society of Mechanical Engineers, the American Society for Materials and Testing, SAE, and ISO. He also served as the technical representative for fastener distributors on the Fastener Quality Act Task Force that worked with the federal government during the creation of the FQA.
Carmen Vertullo CFS is the founder of CarVer Consulting, a San Diego-based consulting, engineering and training company specializing in fasteners and bolted joints. He has experience in fastener quality assurance, manufacturing, sales, and inventory management programs. He has developed and teaches a series of advanced fastener training classes for the Fastener Training Institute®. Mr. Vertullo is a Certified Fastener Specialist through FTI, and he holds a BS in Manufacturing Engineering Technology from National University, San Diego, CA.
The Fastener Training Institute®’s core purpose is to enhance fastener use, safety and reliability.
For more information about the Fastener Training Institute® and its programs, visit www.fastenertraining.org
Dave Audia of Advance Components recently traveled to the Hannover Fastener Fair and, as one Traveling Salesman to another, I asked him to share with us some of his experience and observations. Dave was kind enough to be a guest blogger and submit the following:
As a pure master stocking distributor of specialty fasteners, Advance Components is always looking for new ways to grow our business. We had noticed a small yet intriguing group of customers in Europe who were buying some of our products and having us ship them across the pond. We considered going to individually visit these customers to explore what other opportunities may exist but considered that to be an inefficient option. We researched the many Fastener Fairs that exist around the globe and decided to purchase a “stand” and exhibit at the 2012 Fastener Fair Hannover in Germany.
After a refreshing combination of 2 flights from Cleveland thru Newark totaling 9hrs 47min plus a 2 hour layover, I hit the ground in Zurich Switzerland to meet my boss (who had flown in from Texas) in need of a shower and a nap – of course we got neither as it was already 8am Saturday morning and our hotel would not be ready until later that afternoon. I had never been to Europe and I must say the city of Zurich and its architecture were absolutely stunning – we spent all day Saturday and half a day Sunday exploring the area and just when we had finally figured out their bus system it was time to leave.
The more business you can fit in on a trip like this the better and we were fortunate enough to be able to set up a visit at A Raymond Tinnerman’s manufacturing facilities in southern Germany. We took a train from Basel to Lorrach on Sunday night arriving just in time to miss dinner as all restaurants in this small German city were closed – fortunately our hotel manager was able to order us a pizza which we ate at the lobby bar (which was closed by the way). So much for European cuisine!
Monday morning we had excellent visits at 2 of A Raymond Tinnerman’s plants as well as promising conversations about new products and markets that we should be able to participate in with them – then it was back to the train station for a 5+ hour train ride north to Hannover – we arrived after 8pm and had to rent a car to drive 45 minutes to our hotel. Note: if you don’t know how to drive a standard transmission specify that BEFORE you rent the car – and a GPS that speaks only German is kinda useless. We finally reached our hotel well after 10pm, ate subs purchased at the train station for dinner - again in the lobby - and hit the hay in preparation of the big show for the next 3 days.
The show itself was a tremendous learning experience for us. What I did not realize is how drastically the people and business cultures differ from country to country in Europe. We were able to meet with several of our current customers who were also attending the show, including Earnest Machine who helped us out considerably as they have both a US and European presence. We were pleasantly surprised at the interest from both the show attendees and the exhibitors in the products that we displayed, but the fact that we currently have no warehouse or sales presence currently in Europe will be a barrier to overcome. But you don’t learn and grow by sitting in your ivory towers right???
After 3 full days of the show it was back to train station for another 2+ hour train to Frankfurt on Thursday night, then back to the airport early Friday morning for the long flights home ( I won’t bore you with the details of having to be evacuated from Newark airport before finally catching the plane home). But to end on a serious note, there were over 30 countries exhibiting at the show that included several German and Italian companies, excellent representation from the US as well as China, Taiwan and India. There were also companies from Turkey, Great Britain, France and the Netherlands. We learned a lot, have several leads that we continue to follow up on, and own a much better understanding and respect for what it takes to succeed in the global market. I would also be happy to discuss further or try to answer any questions that you might have concerning this experience. My e-mail address is daudia@advancecomponents.com.
April gave out a lot of mixed signals. A lot of people I spoke with about April shared with me that April was not bad but a little bit flat. For instance, I spoke with someone from Fastenal who confided that while year-to-year growth in April was still impressively high for the company, the rate of growth over 2011 was down from the previous months. April was good, but not as good. And I have heard that from many other places I visited. Sure, there were plenty of companies that had crazy good Aprils, but from what I can see that was more an exception.
Further supporting this notion are the results from the Fastener Distributor Index (FDI) as reported by Holden Lewis of BB&T Capital Markets in his newsletter dated May 2, 2012. Specifically, the report read "April's reading suggests more tepid growth to begin Q2'12" and then later "Why april was not so robust is hard to say". To learn more about the Fastener Distributor Index go to http://www.fdisurvey.com.
So, what is in store for the immediate future of the fastener industry? Does May seem better? I think so. And I still think the rest of the year will be strong. I just think that 2011 seemed busy everywhere I went and this year is not as consistently robust. Another question asked in the FDI questionnaire was something like "What will the economy look like in six months" and 70% of respondents said it would look better than it does today.
But what about longer term? Where is the industry headed? The Holden Lewis interview on Fully Threaded Radio was very interesting, so much so that I was taking notes while I drove. No driving and texting, just some casual note taking and mostly on uncrowded highway miles. The comment that caught my attention most was the idea that distribution was a "lifestyle business". In more detail, Lewis suggested that, historically, distribution was a great cash business that could "provide a living", "send the kids to college", let one "take a few vacations" and "earn a living". And then he suggested that, increasingly, the business is moving away from that as distribution consolidates and moves more towards cost cutting and increasing of services. Lewis, made several comments about Fastenal installing over 10,000 vending machines in customer locations. This information was reported by other news sources where it was also noted that the rate of new store openings has reduced in recent years. I have had an opportunity to see the Fastenal vending machines and they come in all sizes. They have vending machines that remind one of their high school gym locker (open it up and you could fit a power tool or 1/4 keg) and others that are smaller and look like old gum dispensers which they can use to monitor the expensive cutting tool inventory at a customer. And they have every size of vending machine in between. I mentioned Holden's comments because he was responding to a recent question about how fastener companies are investing in order to grow. Many companies are adding sales people, while others, like Fastenal, are investing in new technologies. But, does that mean we are moving away from the old family run fastener distribution business?
It is an interesting question. Clearly, when I started in this business some 25+ years ago, there were a lot more small distributors popping up on a fairly regular basis. Some outside salesman would get hassled by his boss about not turning in his expenses properly and BOOM!! there would be a new fastener distributor running out of a garage with a new name and and old face. That does not happen nearly as much anymore. But, will small Mom & Pop distributors just go away in 10-15 years?
I think vending machines are going to make a huge impact on MRO accounts. No more throwing gloves away at coffee breaks and no more battery tools slipping out the back door at Christmas time. The vending machines track everything and the user I.D. lets the company know just where the stuff is going and who is taking it. But, will kegs and kegs of bolts really ever end up in vending machines? I don't know. Maybe, but I don't see that yet. Furthermore, I just do not see fastener specials falling into a category where a vending machine dispenser is the way to go. That is why I love "specials". Better margin, more value and you just cannot replace them as quickly. "Son, let me tell you...the future of fasteners is in SPECIALS!!"
While I cannot pull out my crystal ball and give you a real good idea of what the fastener future might look like, I can offer a few ideas here and there and at least start up some conversations. And for today, there is still a lot going on within the industry. Out in the midwest there is a lot of talk about two upcoming events: The North Coast Fastener Association's Distributor Social and the Mid West Fastener Association Fastener Show. Both will take place in June and are right around the corner. The regional fastener associations are so important to promoting great networking opportunities and educational programs. Also, I am proud to say I have booked my Vegas flight and made hotel reservations for the show in October. Two non-stop flights and a hotel rate that suits the budget of a thrifty Traveling Salesman. So, I'll just go about my business with both eyes wide open but feeling OK that the fastener distribution marketplace will not change SO quickly that I get caught off guard. But, it is always wise to read, listen and blog about what is happening so we move forward with as much knowledge as possible.
Congratulations to Vickie Lester, the new Executive Director of the NFDA. We also know Vickie as the Executive Director of the PacWest organization. This recent appointment is particularly interesting to me as it comes on the heels of Nancy Rich becoming the Executive Director of both the MWFA and SEFA. These women are both dedicated workers and active in every area of fastener industry promotion whether that is coordinating trade shows, promoting fastener training seminars or totally embracing social media opportunities such as Twitter and Facebook. If anyone out there thinks these social media and technology developments are not relevant to the fastener industry, go ask Amazon because they seem pretty interested. As Bob Dylan sang, "The times they are a changing" and the fastener industry organizations are gathering their resources. Should be interesting.
I still meet with people who seem surprised when I tell them that the fastener industry has a regularly broadcast radio program called Fully Threaded Radio. Not that I expect everyone will catch every episode but I'm surprised when they suggest they have never listened. They have several very reputable sponsors including Stelfast, Volt Plastics and Beacon Fasteners. Oh yeah, and some other fastener company called Fastenal. Heard of them? Those folks must figure that somebody is listening. I think they are correct...a lot of movers and shakers are listening and they hear people like Vickie Lester and Nancy Rich on the programs. And guess what? Between the two of them they are Executive Directors over four major fastener industry organizations. I think it has something to do with being aware and actively involved in the industry.
The times are changing and my plane is loading and this Traveling Salesman is heading home. Gotta run.
Just was included on a private note from Heidi Voltrauer and thought I would share it below. Looks like the All American Fastener Show is on again in 2013!
Hey guys,
I just wanted to let you know the good news! The All American Fastener Show will be held in Kansas City, MO in the Intercontinental Hotel at the Plaza and it looks amazing. I went to visit the hotel and area last week and I am very impressed. The show dates will be May 8-9, 2013 with rooms available on the 7th as well. Golf tournament will be the 8th along with set up and fastener bash that evening. The 9th will be the show with a lunch available and a presentation on social media. The website is in the process of updates and it will be up and going very soon! Take a look at kansascityic.com for more information about the venue.
If you have not heard about it yet, you will. The Tweetersphere was abuzz all day with people reporting on Amazon's new website www.amazonsupply.com. Amazon has introduced a new website that offers fasteners and over 500,000+ (I've been told) industrial distribution products. Yes, the same people that brought you an online source for purchasing literature has now invaded our industry and is competing with all the other industrial distributors that offer products online.
I have heard mixed reviews so far about the product offering, the pricing, etc. Candidly, I think all that talk might be missing the point completely. Search Engine Optimization is critical to so many industries and I just wonder how Amazon will stack up against the other online giants like Grainger and Fastenal. A couple years ago I did google searches for a lot of different fastener products and I posted which company came up for each category. I noted the top results for cap screws, rivets, socket heads, stainless, etc. A few years ago these companies did not dominate the searches like the can today. I am not AT ALL an authority on these subjects but, I wonder, if at some point when you look for a fastener item will the top name for the search continuously be a company like amazonsupply.com?
Some will smugly sit back and say "Amazon knows nothing about fasteners" and, compared to many fastener distributors that might be true. Fastener distributors that add value will always thrive. But if some random engineer or OEM buyer is looking for "some parts" and uses the internet to search for those parts, the guy that does not really know fasteners might win out anyways.
I imagine there are people out there that know a lot more about amazonsupply.com than I do. Please, join in this discussion. For one thing, where is their product coming from? Is it all drop shipped??
This could be an industry game changer. Part of me really wanted to hold off writing about this until I had more information. On the other hand, I hope this post will encourage others with more knowledge to add what they know and share with the industry.
I am reading Timothy Ferriss' book, "The 4-Hour Workweek". Possibly you've seen it on a Barnes and Noble book shelf and maybe you've read it. I'm not entirely sure why I got it (from the library, cheapskate that I am) as I am one of the people who like their job. God made me just simple enough to think that the fastener industry is a great place (hence I write fastener posts on weekends) and so when I read how to have a 4-hour workweek, I think of how I could have like three full time fastener jobs just crammed into less time. Sick, I admit it. But the title of the book was just so intriguing. The 4-hour workweek? For real?
I am sure there are some people who have read this book and figured out a way to reduce their workweek down to 4 hours. I'm not sure really but, I suspect it could be the case. More intriguing to me is the fact that Ferriss is just an outstanding source for online business solutions and opportunities and he writes about many of them in his book. There are countless sites he uses to market his products, to test his sales promotions for effectiveness, to reduce his administrative obligations, to...well, to run his company while he travels around the world. And, while I think I would personally have a bit of a hard time adopting all the ideas he presents, many of them would certainly be adaptable to my mundane fastener business.
Not only does he reference countless internet sites dealing with everything from drop shipping products to site analytics to having virtual receptionists to free sources of information to setting up domains and on and on and on... he also recommends many books. Everything from "80/20 Principle" by Richard Koch and the "Secrets of Power Negotiations" by Roger Dawson to "Six Months Off: How to plan, negotiate and take the break you need without burning bridges or going broke". Good luck with the last one.
I am not real confident that many people read the book and actually then proceed to work 4 hours a week and maintain their current (or better) standard of living, but their is a gold mine of interesting ideas on how one can better run certain parts of their business.
Recently, I was told by my brother about a company he used called oDesk. Google it and you will see that you can outsource all kinds of jobs that you might not be good at. Within days of him mentioning it, I read about the same internet based company in a Kiplinger newsletter. So, I thought I'd walk the walk and not just talk the talk and I signed up, posted a job and said that I was looking for a graphic designer to create a new logo for my company. When you post, you tell them how much you are willing to pay for that service and what you are looking for. I received 20 responses, or proposals, from people all over the world who have graphic art skills. Many of them send samples of their previous work and they tell you how much they would charge you to do the work, whether it is more, or less, than you offered. I did choose one applicant based upon his previous work. Many of the other samples I received were very artistic but this one gentleman's work had sort of an "industrial" style to it which I thought was good for the fastener industry. Not colorful and flowing but more of a nuts & bolts type of feel. Within a week I had several samples sent to me and I asked for a few small alterations and he responded. It was actually pretty awesome. My new graphic designer, Sergiu, lives in Sibiu, Romania, so I guess you could kind of say my company is now international.
This was a simple task to outsource and not one that needed to get done right away. I just wanted to try this out and it worked well. I'd really like to spend some time updating this blog site but I'm a bit afraid of screwing it up totally. So, I've dipped my foot into the water and we'll see where it goes from here. As I always encourage, you just gotta try something sometimes and see where it leads.
I just got a chance to read through the April edition of the U.S. Fastener Report. I received the inaugural editions and looked them over too. I do not think it is wise to form an opinion on something to hastily (but, somehow that still never seems to stop me) so I wanted to see a few editions. At first, I found the report to be very similar to American Fastener Journal. Since I am already a regular subscriber to AFJ I kind of concluded that maybe I had seen most of what was there already. I don't know what it is about the April edition but I think it opened my eyes a bit and I think I like the U.S. Fastener Report.
For one thing, the price is right. I don't have to pay for it. And, I looked it up on my IPad as well as my computer and was able to scroll through the report very easily. But what hooked me was page 25. The title on that page is "Wha'Cha Think'?" To tell you what the page is about I will copy here the description of the page:
"This column is about ideas and concepts in the fastener industry to start some conversations among you and your co-workers, friends in the industry, and associates at trade show and fastener association meetings. These are topics that come across my desk day-to-day from fastener distributors, fastener manufacturers, importers and master distributors."
I'll just list a couple here to give you some examples:
1. Is your freight department a profit center? 2. How should you react to a "price war"? 6. If your competitor posts negative comments on social media about your company, how should you react? 14. What are the best "advertising specialty items"u have ever given out, or received, and to they produce any results.
I have an awesome answer for #14 but I'm not sure I will share it here. Trade secret!
Anyways, this is just one page from the report. The whole report is very good and I even think I will take the fastener quiz this time.
For the record, I have nothing to do with this report. It is produced by Mike McGuire and he will read this post because he is a fastener info sponge and keeps a pulse on everything going on. Early on when I started Fastenerblog.net, I told Mike someone like him or another fastener magazine editor should have started this. Kindly, Mike has supported this site and I appreciate that. The truth be told, I would like to put this edition of "What'Cha Thnikin?" on this site and see if anyone responds to the questions. I get a lot of personal notes after I post something and I often wonder why people to not respond on the site. I wonder, but I do not lose sleep over it. The questions posed on P. 25 of U.S. Fastener Report belong on a blog page where they can be discussed and responded to. Maybe the belong on LinkedIn or Facebook or the like. But, I also think this site would serve the same purpose. That being said, I would feel a little awkward just "heisting" Mike's article as I think it is very good, it is valuable and it asks some good questions. So, feel free to subscribe to U.S. Fastener Report and then come back here and we can discuss the topics.
All that being said, I think this is a nice addition to the fastener industry publications.
Final quick note. I get asked often how I see things in the fastener marketplace. Last year, everyone was busy all year. That is how it seemed to me. This year, things are still pretty good but as I travel I do encounter distributors that say stuff like "business is pretty good. We were a little slow the end of last month but it seems to be picking up again." Lots of comments that suggest things are still good but not busy every single day. End result though, it does seems as though things are still pretty good.
It seemed like a lot of industry people were on the road last week. There were a lot of Tweets from the PacWest meeting in San Francisco and also a lot from Houston, the location of the Southwest Fastener Show. Just about a week before that I received notice the the All American Fastener Show had to be canceled for this year due to tornado damages at the hotel where the show had been hosted the last few years. While I did enjoy the Shows in Branson, I look forward to attending the one in 2013 at the new location, wherever that ends up being.
If you are a STAFDA attendee then you know that the show moves from city to city each year. NFDA also moves their meetings regularly. I think the NIFS show has pretty much nailed down the best location in the nation for its trade show although even they have moved the show up and down the trip. But, no matter what your taste is in entertainment, you can always find something to do in Vegas.
For me, I like to attend the Mid-West Fastener Show whether it is the table top show or the Fastener Tech show. Chicago is pretty much the Industrial Fastener Mecca and so many suppliers and manufacturers are located there that it seems like a natural place for a national show. Lots to do and plenty of great places to eat and eat and eat.
Because the All American Fastener Show has suggested that it was looking to hold the 2013 show somewhere other than Branson, it made me wonder - where would be another great location for a fastener show. I think Heidi is pretty committed to holding the show in the central area of the U.S., and that's a fine idea. But, if someone were trying to decide where would be a great place to attract the most fastener industry people, where would that be?
Before you answer, remember that Columbus, Ohio was that place for a couple decades.
I'm going to toss this out as a topic for #fastlink Friday for all you Tweeters. And, if you are not on Twitter, you should be.
Recently, there has been a lot of talk about "re-shoring". The idea that manufacturers are bring jobs/manufacturing back to the U.S. after they had been sent overseas to take advantage of real or perceived cost savings. It is a fairly common point of discussion. There is still a question of whether or not fastener manufacturing would be brought back to the U.S. Clearly, there are products that do not seem like they will be manufactured again in the U.S. any time soon, at least not in any large quantities. Hex nuts come to mind. I was recently having a discussion with a customer of mine about importing fasteners directly from overseas and we were talking about whether she had seen any changes in the way she was doing business. The following note was sent to me as a follow up to our discussions:
"The fastener buzz these days seems to be re-shoring. While I believe it would be fantastic for our economy and make my job a lot easier, I don’t think even small distributors like me will completely stop importing. After 20+ years of working with Asia, I know it’s not difficult to develop sources that are willing to work with smaller volumes and that allows us little guys to remain competitive. But the market has definitely changed post-HTI. Handling fees that used to be waived are now being enforced. Quote turn-around time has increased. Suppliers are not following up on quotes. There was a time when you could email a quote, have a response in 24 hours and have a follow up in 48-72 hours asking for the order. It is strangely quiet these days. " --- Janet Schiopota, Senior Manager, Procurement - Great Lakes Fasteners Inc./ CMI Industries Inc.
I found Janet's note interesting for many reasons. Sure re-shoring would be great for fastener distributors, even if the fasteners themselves are still imported. If more things other than fasteners are made here it is good for anyone supplying parts or MRO materials to the manufacturers.
More interesting to me was her comment that she has seen a change in how she is being treated by her Asian sources. As she noted, Janet has imported products from Asia for over 20 years, some of the time importing fasteners and part of the time importing other non-fastener products. She is suggesting that she has seen a change ever since Heads & Threads went out of business. It makes sense that Asian suppliers would be more careful with companies importing fasteners because if a concern as large as HTI could fail, what would keep smaller companies from failing? I suppose there could be many reasons why she is having longer turn-around time on quotes, more handling fees, etc. If business is brisk, that could be a reason.
Are other small or medium sized companies experiencing a change with their dealing with overseas suppliers?
I remember when Heads went out of business, an experienced importer friend of mine warned that the Asian suppliers were going to have to make up their losses somewhere. You don't just say "oh well" when you do not get paid for large amounts of product. Either prices go up or fees go up or credit is restricted or companies just get a lot more careful about how they do business. SOMEBODY lost money, and probably a lot of it. But this note from Janet was the first time a smaller/medium sized company directly suggested that she noticed the change post-HTI and I was curious to hear from others out there if they have noticed the same.
I've got an older brother. Coached high school sports, kind of acted line a teenager his whole life so it is no surprise he was a good coach. He could kind of relate to the mentality of the players he coached. He was not such a good husband because, frankly, he thought (and still does) like a teenager in many ways. He was 5-night-a-week-softball-guy. Those kind of guys are great buddies. Not always great husbands.
He is also the "I'm not doing THAT" kind of guy. "I don't Toot or Tweet, I don't Facebook, I don't do LinkedIn, I don't do any of that crap" he says with great Guy Pride. This is the guy that fought using e-mail and did not want someone to be able to reach him whenever they wanted...so you can imagine his reluctance to getting a cell phone, let alone texting. He has fought it all.
He now has a cell phone, he has added texting, he has a LinkedIn account and continuously is shown family related Facebook posts by his children. Believe it or not, he would really enjoy a Twitter account if he wasn't...well, if he wasn't HIM.
Why would he enjoy a Twitter account? Because every news agency in the modern world is posting the latest information on any given subject the minute it happens. If you are a sports junkie (which my brother is), there are countless local and national commentators Tweeting about sporting events the minute they happen. Or, you can follow the good columnists and they post information daily with their opinions and observations.
If you are into technology I am sure there are plenty of technology Tweeters to follow. Fill in the blank. For anything that interests you, there are numerous people flooding Twitter with interesting links to articles or quick commentaries on a subject.
That being said, I really do not care if you are on Twitter or if you like it. I do not hold stock in Twitter and I gain nothing if you are, or are not, on Twitter. It does not change my life one bit.
We have been experimenting with #fastlink Friday and I think it has gone pretty well. But, like anything new, it is kind of a mystery still how Twitter can be used by the fastener industry. I know that young people today use it A LOT to communicate with their friends and different groups. And, tomorrow those young people will be working in our industry because there's a whole bunch of old people working in it right now (except for at Fastenal who has cornered the market on young people in the fastener industry). Maybe a use for Twitter in the fastener industry will present itself, more than I have been able to observe so far. Then again, maybe not.
I just look at our industry and I see a good many people who remind me of my brother. "We don't ship after 3:00." "You didn't meet our $75 minimum and our accountant told us we lose money on every transaction under $75". ""If you don't do $2,000 with us, we cannot serve you". "We're not a plater. NO, we will not quote it complete." "We only ship in our boxes". "We cannot do EDI". "We need a hard copy of an order before we will ship it". "We have one e-mail account that all e-mails go into to. Just send it and I'll get it". If I tried, I could come up with 50 more objections I have heard. Often, new companies or competitors gain business from their competition by saying "I'll break a box and ship in a plain box with your part number and provide a packing slip with your name and it is fine that it is just a $45 order because, by the end of the year, I will have gotten in the door and might get a piece of that $200,000 spend you do in my product line".
Sometimes you have to bend a rule, or drive a part out to a customer who is two hours away. Sometimes you have to make something happen to keep a customer happy. You have to earn loyalty.
Sometimes you have to try something different. A few years ago, a distributor customer of mine brought in the son of the manager to work at the company. When he was given a standard cell phone he objected and said the phone was too basic and was not really good for conducting business. It was explained to him (by the older managers) that this was standard issue technology but he argued, "If you get me a smart phone I'll be able to answer e-mails and look at spreadsheets. Also, I will be available to you 24-7 as my generation does not turn off their cell phones even after 5:00 or on weekends". He got the smart phone and so did the rest of the managers once they saw what he was able to do with a smart phone. That was only like 3 or 4 years ago. Does anybody out there now not have an IPhone or Droid or Blackberry?
Companies used to mail out flyers and advertise their products in magazines. Still do. Eventually, companies started to fax advertisements out to customers. Eventually, the e-mail blast became the thing to do. We have an industry Podcast (Fully Threaded Radio) with fastener company commercials. I recently received a note from a rep friend who was watching business news and told me he saw a commercial from Aztech Locknut! Crazy. Grainger advertises regularly on radio stations in my home town and Fastenal (and probably others) advertise on race cars. It takes all kinds of creativity to sell a fastener.
So, why Tweet? I don't know. Why fax, why e-mail, why text? Because we can! And to the Victor go the Spoils!
Here's a quick post on our attempt to get fastener people involved in using Twitter. We posted a blog and sent out some Tweets asking Twitter users to use the hashtag #fastlink so we could try to get a feel for how many people in the fastener industry are using Twitter. We tried doing this on Friday, March 6. Here are some of the results.
Using a site called HashTracking.com, we were able to generate a report that showed there were 138 Tweets generated that included #fastlink. This report gives you data for only a 24 hour period. Specifically, the report said: "138 tweets generated 44,830 impressions, reaching an audience of 22,935 followers within the past 24 hours".
I tried counting how many different Tweeters were involved in #fastlink Friday and I think there were 45 of us.
I'm not sure what the Hashtracking.com report is referring to when it says that "44,830 impressions reached 22,935 followers". Clearly, 22,935 people were not Tweeting about fasteners. Maybe someone can provide some more insight on this data.
I did meet link up with some people through #fastlink Friday that I did not know before. Now I am following several new Tweeters. I cannot tell you that these new connections will lead to me adding new customers or new suppliers but I did link up with a few more people who are interested in the fastener industry. That is good for something, I suppose.
It is interesting to see who is on Twitter. Some of the industry magazines and online news organizations were involved in #fastlink Friday, while others were not. Honestly, I would think every industry media source would be involved on Facebook, LinkedIn and, yes, Twitter just to keep on the cutting edge. Several of the regional fastener organizations were involved as was a representative from NFDA. The WIFI group participated, the domestic fastener show groups did not but then a representative from Fastener Fairs took time to Tweet and promote the upcoming show in Hannover, Germany. Several importers checked in but not all of them. I checked and there is at least one major importer without even a Twitter account, as far as I could see.
Please feel free to comment if you were involved in #fastlink Friday. I have already had suggestions that we do this every Friday so that those who are not actively involved will at least check their accounts once a week. Again, all new and creative ideas are welcome.
If you are on Twitter, log in today and use the hashtag #fastlink. By the end of the day we will let you know how many Twitter users from the fastener industry were active in the Twitter community.
I know a lot of fastener people and companies have Twitter accounts. You sign up to follow them and then you find out they are not active on Twitter. And, that is fine. It is still hard to exactly figure out what Twitter is all about. There are some active Tweeters out there for sure and Vickie Lester is still the Queen of Twitter. As the head honcho of Pac-West, she Tweets out links to educational articles and points of interest to those interested in Social Media. She is definitely a leader in this arena.
Just for the heck of it, if you have a Twitter account, check in this Friday if you can. I just wonder how many people we can actually get Tweeting.
I can tell you this. If you are a sports fan, Twitter is the greatest medium for getting the most up to date news. I have gone to professional basketball games where a player is not warming up with the team and if I go to my Twitter account, without question, some beat reporter will have announced "Kobe will not play tonight because of a stomach flu" or something like that. It IS the most instantaneous news source out there. How that all translates into the fastener industry is still a bit of a mystery.
We should have a hashtag to go along with this so I propose we try #fastlink. Let's give it a try. Spread the word.
The post I want to write here might not be that interesting. I'm not sure it will strike a chord with readers but I'm going to delve into it anyways. But first, in an attempt to appeal to the masses, let me make a few comments about what I see in the market place. Not long ago I was speaking with a sales manager who waxed poetic regarding his sales performance from 2011. "T.S., last year was a very strong year for our company. We were fairly conservative with our forecast but we hit our numbers all year long". I did not want to burst his bubble but I had to be honest. "John, if you didn't hit your numbers last year then I don't know when you ever would." Let's be honest, last year was a very good year for many companies and many industries. If a large portion of you business is tied to one industry, like housing, then maybe you get a free pass. Otherwise, you should have had a good year. If you did not...then you better do some looking in the mirror. Which is leading me to the subject I want to talk about, but one more quick diversion before I proceed. 2012 seems pretty good so far but I will admit that I am not encountering the same high spirited attitude across the board like I did in 2011. Many companies are doing great but it seems like I am hearing just a little more frequently that companies are experiencing some down days. A few more "last week was slow" conversations. Nothing terrible, but more comments like "we did not seem very busy the last few weeks but a few big orders made our month". Again, nothing alarming, but some comments worth noting.
Now, back to that looking in the mirror concept. Do fastener companies stop and look in the mirror? Do they hire consultants to come in and analyze their operations? One of the things that got me thinking about this was Heads & Threads. A lot of people have opinions about what went wrong and caused Heads to go out of business. But, what really happened? In college, part of our business curriculum was doing case studies on companies. Our bible was a book written by Harvard professor, Michael Porter who was recognized as a guru on competitive analysis. We studied company after company analyzing their financial information, their competitors, their challenges and, as best we could with our limited business experience, we would suggest what these companies should do to survive and thrive in their respective marketplaces. One year, after we completed our final project, a group I worked with was actually flown in by a company in Florida to present our competitive analysis. Let's just say that this Traveling Salesman was very fortunate to be working in a group that had a lot of students a whole lot smarter than he was. But, I was part of the team and I still got to go on the trip!!
Do fastener companies have case studies done on them? I would really like to hear from anyone out there with information on this. I'll tell you another reason I am curious. I have seen few examples where fastener companies are purchased by companies (or investors) outside of the industry that have then had great success once in the industry. There ares some but, more often, I see the opposite. These "outsiders" see something that interests them and causes them to get into the fastener industry, but unless they first learn about the industry they find that business practices that applied to other industries don't adapt as well to the fastener industry (e-mail privately if you want a list of examples). Certainly, there have been newcomers who have learned the business, brought a new approach and have done quite well. The one academic, business strategy that I see implemented fairly often is the 80/20 rule. Several companies have decided to implement this strategic approach by limiting the distribution of their product, some with great success and others with disastrous effects. Often times, new competition has sprung up in response to a company implementing the 80/20 rule and I can give you countless examples of THAT if you want to send me a private e-mail.
What would someone doing a case study even look at? I suppose things like: competitors in the marketplace, company use of technology, new product introduction, company use of marketing tools including social media, cost analysis including freight and processing costs, inventory management, procurement costs, etc. I imagine most companies do some of this already, though perhaps not on thorough and regular basis. There are probably some companies that don't really want anyone telling them how they should be running their company. They could be tempted to shoot the messenger. But, more likely there would be some information that is found to be useful and some that is ignored.
So, what happened to Heads & Threads? Not sure, but maybe some day one of our kids will do a case study as part of their business studies.
A couple weeks ago, Eric Dudas (of Fasteners Clearing House and Fully Threaded Radio) tweeted something about the National Fastener Show "Hall of Fame". His comments ended with something like "google it". I did.
I googled it but no where could I find a listing of the Hall of Fame members. Heck, a bunch of you readers, especially younger ones, probably do not even know that there is a National Industrial Fastener Show Hall of Fame. So I wrote a quick note to Fastener Show General Manager, Susan Hurley, and she was able to quickly send me the list of all the HOF members. I will post the list below as it was sent to me by Susan. I was surprised to see that there have been no new inductees since 2008. I have another post in mind for after this one and I hope you readers will help me out with your input. I want to know who is missing from this list. I've got several names that come to mind immediately but, for now, let me just share with you the NIFS Hall of Fame inductees so it exists somewhere on the internet:
NATIONAL INDUSTRIAL FASTENER SHOW & CONFERENCE
"Hall of Fame" Inductees 1982 - Present
1982
Richard B. Belford (deceased 1994) -Industrial Fasteners Institute
Walter F. Borges (retired) -Wrought Washer Mfg., Inc.
George S. Case, Jr. (retired) -Lamson & Sessions Co.
H. Thomas Hallowell, Jr. -SPS Technologies
James G. Rayburn (deceased) -Flexalloy, Inc.
Norman R. Sackheim (deceased) -Former Partner in SL Screw Corp. Founder of Heads & Threads, Inc.
Roy P. Trowbridge (retired) -Engineering Standards Section General Motors Corp.
1983
Charles Wilson -Industrial Fasteners Institute
Abe Bellikoff (retired) -Formerly of Atlas Screw & Specialty Co.
Paul Lemke, Sr. -Thruway Fasteners, Inc.
John Maclean -Maclean Fogg Co.
Robert O. McGuire (retired) -Formerly of Capitol Sales, Inc.
Tony Van Hoozer called me recently to let me know that after 23 years as a manufacturers agent in the Indiana and Kentucky markets, he is closing his agency V H Sales Associates due to ever increasing demands as Partner/VP Sales of Cable Tie Express. He wanted to express his gratitude to those who have supported his efforts at V H Sales and looks forward to continuing those strong relationships through Cable Tie Express.
Tony has always been, and still is a class act and he has offered me advice numerous times over the years, one traveling salesman to another. Over the years we have represented similar lines and got a chance to know each other at sales meetings and shows. I'm sure Tony will still be traveling, most likely covering more territory as he concentrates his efforts on Cable Tie Express.
After my recent post regarding Fastener birthdays, I received the following note from Nancy Rich, Executive Director of the Mid West Fastener Associations:
"I read with interest all the anniversary celebrations. I always thought MWFA was old but I see there are groups, companies etc older. Kudos to them for surviving the good, the bad and the ugly times through the fastener industry to prevail. Last year the MWFA spent the whole year celebrating their 65th anniversary. I learned more about 1946 than I wanted to but found it interesting as I researched to celebrate at each meeting."
MWFA might be 65 years old but they continue to come up with some excellent events including the Fastener Tech show, their table top show, and regular fastener related meetings/programs. On February 16, they are hosting Harry Moser who will discuss the Re-Shoring Initiative. Then on March 15 they are hosting a Social Media Seminar. June 25 is the 31st Annual MWFA Fastener Show at Eaglewood Resort & Spa in Itasca, IL. I imagine there are some other events sprinkled in between those events and you can get an entire roster on their website at http://mwfa.net/.
I'm not sure how old the Pacific-West Fastener Organization is but Vickie Lester and her group are also a very active bunch. And, Vickie is an excellent communicator and keeps me posted on all of their upcoming events. I am not West Coaster but I hope to attend a Pac-West event sometime. I've got to admit, the Pac-West Spring Conference in San Francisco on March 22-24 is about as attractive an event as I can think of. There is a session called "Hiring, Building and Growing a Sales Team" that should be interesting to any Traveling Salesman or sales lady. Another session during that conference is "Fasteners and the Golden Gate Bridge". C'mon now...haven't we all been guilty of looking at some product and turning to our spouse or kid and saying, "I sold parts that are in that thing". How cool would it be to say, "Yeah, I sold some bolts that are in the Golden Gate Bridge". My personal best...I have parts on Progressive Field (formerly Jacobs Field) where the Cleveland Indians play, and if you think my kids have not heard about that a hundred times over the years, well then you are mistaken. They most certainly have. Back to Pac-West. San Francisco is one of my favorite cities and it would be awesome to write that trip off in the name of fasteners. Just can't do this one but I hope they repeat a trip to San Francisco in the future when I'm an empty nester. I should point our that on February 28, there is a meeting in La Mirada, California called "Maximize Marketing to Accelerate Profits in Mexico" which also sounds like a really great event.
I just attended a meeting of the North Coast Fastener Association this past week where a speaker from MAGNET (Manufacturing Advocacy and Growth Network) spoke about working with manufacturing companies in Northeast Ohio to increase business and manufacturing jobs. Similar in theme to a "re-shoring" meeting, I think there are a lot of groups hoping to see more domestic manufacturing which is certainly good for fastener companies. They also announced that the annual NCFA Distributor Social will take place on June 7 and the plan is to have their friends from Fully Threaded Radio come to town for some interviews, insights and cold Old Rusty Bolts.
I am always glad to share information about the regional fastener associations. I think they do a tremendous amount of good. The table tops, plant tours, guest speakers and other events are great opportunities for networking and learning. I think the regional associations contribute a great amount to the industry, and for the most part, the work is done by volunteers from the industry. If I did not mention your organization, please comment here and fill us in. Or, send me a note and I will post your info in the future. Nancy, Vickie and Lisa Graham of the NCFA are very good at keeping me posted and I am more than happy to pass along any details that help the regional fastener associations.
I noticed on several of the fastener news sites that they were reporting on upcoming fastener shows or expos. We are all aware of the Vegas Show, the All American Fastener Show (front cover of the latest LINK magazine), the MWFA show and numerous other table tops and regional shows hosted by various fastener associations. But, in particular, there was one that caught my eye. In May of 2013 there is a Fastener Fair in St. Petersburg, Russia.
I clicked over to the site to check out the show and found myself connected to a site for Fastener & Fixing Technology. I am not sure of the connection but on the Fastener & Fixing site they are promoting the following "Fastener Fairs":
Fastener Fair - Hanover, Germany - April 24-26, 2012 Fastener Fair - Bangkok, Thailand - September 6-8, 2012 Fastener Fair - Brazil - November 20-21, 2012 Fastener Fair - St. Petersburg, Russia - May 12-14, 2013 Fastener Fair - Mumbai, India - April 17-18, 2013
Global Fastener News has a tab for "Trade Shows", which lists a lot of upcoming trade shows including table tops, the STAFDA shows and other national shows mentioned above. I went to that site and found these shows:
International Hardware Fair- Cologne, Germany - March 4-7, 2012 Taiwan Fastener Show - March 13-14, 2012 10th International Trade Exhibition of Fasteners - Moscow, Russia - March 13-15, 1012
And, they mention another Fastener Fair, Eastern Europe for Autumn, 2012.
Anybody going to these?? That is a lot of shows!! And, I'm sure there are others that I did not even find in my 15 search this morning. I did go to a list of exhibitors for the Hanover Fastener Fair in April and scrolled down quickly to see if I recognized many exhibitors. Advance Components was listed near the top as it is an alphabetical listing. Other than that, there were surprisingly few U.S. based companies. Almost none. So, I'm wondering, do U.S. companies participate in these international shows? Check it out yourself. There are a lot of Chinese companies and several from other parts of the world, but few from the U.S. Do we ignore these markets? Can we not compete in these markets? Are these newer shows without track records or do we just not think they are worth the effort?
I would invite the folks from Fastener & Fixing Technology to share with us what they see at these shows. Should more U.S. companies be exhibiting? Are there business opportunities for U.S. companies at these shows? Daniel Rivalin, please feel free to check in on this subject as you offer a European (and global) perspective that we might be lacking. Fasteners Clearing House - do you have a lot of subscribers from outside of the U.S.? Any data you might share?
Everyone is looking to grow their sales. Sometimes we battle those people right in out own backyards to the detriment of gross profit. It is a big old world of fastener opportunities out there. Not sure if it is worth buying a booth for the Moscow show, but I bet I'd run in to a whole different group of competitors if I did.
Trying to finish this post early so I can kick back and enjoy the Super Bowl this evening. Just looking for a good game as my team is not (and has never been) in the Super Bowl. May the best team win. The playoffs, thus far, have been really competitive. One side note - do you realize that both AFC and NFC Championship games were affected at the end by plays made (or not made) by the Special Teams. Missed field goals, fumbled punts, etc. Sure, defense and offense were important, but in both games the the offense and defense pretty much played to a stalemate. The offenses and defenses, for all intents and purposes, were about tied. Special Teams decided the games - good or bad! Just goes to show you, you cannot ignore any part of the game. One last comment - why is there no football team that really uses the specials team personnel creatively? Why doesn't Devin Hester learn to punt so he could just as easily run with the ball as punt it. Why does no team practice the hell out of the fake field goal and use it more than once every 2 or 3 years. Sam Wyche (I believe, though I could be wrong) was the first to use the no huddle offense, other than at the end of the game as time was running out. Everyone acted like he was cheating or something. Today, it is commonly used. I say you teach a running back to kick field goals when they are within 25 years or so and it would open up the chance for fake field goals immeasurably. Let the ex-soccer player kick when they are out further. OK, OK, I'll stop now. Enjoy the game!
One last thing - Do you know where the 40 yard dash came from? It has an interesting history.
As I was listening to the last episode of Fully Threaded Radio, their guest, Greg Wiener, of Quickscrews International mentioned that he had been in business 25 years. His company was celebrating its 25th birthday. It made me think back to to an article I had just read in LINK magazine about Trainer & Associates celebrating the company's 30th birthday. Bill Trainer and his group have been out beating the bushes for 30 years now. That is the same age as the North Coast Fastener Association and the group is preparing events to celebrate their 30th year of existence.
Then, I got a Tweet from Global Fastener News that caused me to go to their site and read that Portland Bolt has been in existence for 100 years. The manufacturer of anchor bolts and nonstandard construction fasteners will be enjoying their 100th birthday this year.
The irony is that another domestic manufacturer of fasteners, Chicago Hardware & Fixture is also celebrating its 100th birthday this year. Four generations of the Herbstritt family have been leading the company that manufactures lifting hardware in the Chicago area.
Those are some impressive birthday celebrations. Someone needs to consider baking a big birthday cake for the Vegas show.
These companies (and associations) have weathered some storms over the years most recently, the 2008 & 2009 economic drop. But Portland Bolt and Chicago Hardware also lasted through the Great Depression and several bad business cycles in between. Someone might know this but I would be very curious to know which are the oldest, still running fastener companies in our industry - both manufacturers and distributors. Mike McGuire??? John Wolz??? McNulty?? You guys go me covered on this?
On a side note, Distributor's LINK has been publishing since 1976. Has anyone at LINK thought about making old copies of the magazine available online. Can you imagine all those old pictures of people from the fastener industry that exist in their archives?? I bet I even have hair is some of those issues from the mid 1980's!
Then I got curious and started to wondered how long Fastener Talk, or www.fastenerblog.net has been up and running. Before running on Go Daddy, I had started a blog on Blogspot because....well, I think because it was FREE. I searched back and as best as I could find, below is the first blog I posted. I'm not sure that this site has become what I originally envisioned, but I've had fun a long the way and still enjoy posting. And I very much enjoy having guests share their thoughts on the site. So, here is to 5+ years of fastenerblog.net.
Tuesday, October 10, 2006
Fastener Industry Future
We have all seen consolidations, companies close their doors. We've seen an influx of fasteners from China and India and many other countries. We have seen online ordering, we see high tech warehousing all across the country. But.....where do we go to discuss the evolution of our industry with other people from our industry?? Welcome to Fastenerblog!
I'm not sure what this site can accomplish. Perhaps distributors across the country can discuss sources for products both domestic and overseas. Maybe someone moving across the country can do some job searching on the site. Maybe a company can discover some marketing insights by linking up with other bloggers. All I know is I have kids under the age of 20 and they all have blogs and "My Space" pages and "Face Book" accounts and I thought....why not us? The bolts and nuts people.
So, welcome the Fastenerblog. Please leave a note and let's see where we go from here!
This week, I got a Tweet on my phone from Brighton Best. It read, "Have u been watching the price of nickel? Up $0.70 in 15 days...".
That was it. I think that is an interesting use of Twitter. What are they saying exactly? Perhaps that prices are going up for any products with nickel content. Maybe it is just a commentary on one economic factor that caught their attention. Any fluctuations in the metals market is meaningful to the fastener industry. I'm not really familiar with the price of nickel, so it does not register with me whether or not that is some kind of huge spike or just a mild trend. But, the way I read it struck me this was kind of significant or surprising.
Could be a warning or maybe just an alert to customers as to what is going on out in the metals market. It could also mean that we should watch out because prices could be going up.
I think it is good for the average fastener distributor to know what is happening in the metals market. If steel is going up or down, certainly the price of many fasteners will follow. No one responded to that particular Tweet, but I did notice it. I think more specific information like that is valuable and I would follow more Twitter accounts that offer that kind of info sent right to my smart phone.
The premier edition of the U.S. Fastener Report came out this week. I have looked it over but not really spent a lot of time reading it yet. I would be curious to hear any feedback from you out there who have spent time reading it.
Business appears to be picking up right where it left off before the holidays. That is a good sign.
I read on the Global Fastener News site that the New England Distributors Association is moving their table top show from September to April. The next one will be on April 30, 2013. The NEFDA executive director, Joe Soja was quoted as saying they change the date because the close proximity to the Vegas Show hurt the attendance. They also have invited the NFDA to hold their annual meeting in conjunction with the table top show.
Regarding another fastener show, the All American Fastener Show in Branson was advertised on the front cover of the most recent LINK magazine. That show is coming up in May of 2012.
It is only still January but I can see several national, regional and local fastener shows being promoted on line and in magazines. Fastener organizations are releasing their schedule of events, and I certainly welcome any group to submit their information to be posted on this site. Better yet, send in a guest blog and feel free to talk about your events. I like to think of this site as a place where you can discuss your events and even have people respond back with questions or comments. Can't do that to a magazine or news outlet.
A distributor customer of mine mentioned he received an e-mail from Eric Dudas of FastenersClearingHouse.com (FCH) & Fully Threaded Radio. My customer mentioned it had something to do with an upcoming Fastener Distributor's Index that the FCH Sourcing Network was working on along with Holden Lewis, a market analyst with BB&T Capital Markets. I recall that the Index was mentioned on a recent episode of Fully Threaded Radio but I was curious to learn more about it. According to a recent news release, the objective of the index is to identify demand, pricing and outlook trends within the U.S. Industrial fastener industry. According to the news release, "Over time, the new index will create a much-needed historical track record while reflecting current market expectations."
So, what will happen is that distributors across the industry will be invited, each month, to participate in a web based survey and the data will be compiled at BB&T Capital Markets group. The FDI results will then be published in Fastener Technology International Magazine and on Fully Threaded Radio.
I will be very interested to see the results of this index. Holden Lewis is a regular contributor on Fully Threaded Radio and I find his reports to be detailed and specific and not just rambling commentary on the industry. I find them pretty interesting and I am curious to see what he does with data collected through the assistance of Eric and Brian Musker and their connections from the industry. They have a good pulse on the industry and Holden seems like a very capable analyst. The combination is intriguing.
I understand that a new Fully Threaded Radio episode will be unleashed on Thursday, January 12 and the Index will be discussed in greater detail. Be sure to check out that podcast.
Part of the goal of this site is to bring news from the "fastener street" to the computer nearest you. I try to get a pulse on what I am hearing in the fastener marketplace and bring it back to you in a rambling sort of presentation I refer to as a blog. Sometimes people add comments and participate and sometimes I am a lone fastener voice in the wilderness. I hope the index brings some more of the fastener pulse to those of us in the fastener marketplace who are out there in the trenches. We all have our own feel for what is going on but it would be nice to hear a report on what is happening based on a collection of data gathered across the industry. I'll still be here offering my "gut reactions" and, as always, I invite you to post your own.
For what it is worth, 2012 seems to be starting off strong. The weather in my geographic location has been much warmer than normal and there has been little snow. For you folks located in Texas and other southern states, that can be a big deal in the snow belt. The weather has inspired me to hit the road as much as possible and I have made several road trips in the early part of the year. Everywhere I have gone so far, I am getting reports that distributors are very busy and business seems to be picking up right where we left off at the end of a very strong 2011. Let's hope it continues.
Over the past few weeks, I have read several news releases on the American Fastener Journal’s online site, FASTENER NEWS NOW ™, about a new fastener report being introduced in the next couple of weeks. Mike McGuire, Publisher/Editor invites any and all people involved in the American fastener industry to sign up for this free report. As the site said, the U.S. FastenerReport is going to include information about “fasteners, fastening applications, new products” and a section called “What’s Happening” which will highlight fastener news releases. This all sounded interesting, but I still was not quite sure what the fastener report was going to be about. Lucky, Mike left his phone number at the bottom of the article. Doesn’t he realize that the nosey Traveling Salesman may be just curious enough to call him when he left his phone number lying around like that?
Mike told me that one of the goals of his fastener report is to reach everyone, from top to bottom, in the fastener companies throughout the United States. From the executives to the inside sales force to the warehouse employees to the expeditors to the Q.C Department…everyone! Mike suggested that the fastener magazines (his included) are subscribed generally by only management in many of the fastener companies and then other employees have to rely on the copies being passed around the office for them to read. Because the U.S. Fastener Report is sent out via e-mail, all he needs to send you a free subscription is your company name, your name and your e-mail address. Still, that does not tell you what the U.S. Fastener Report is about. So, I badgered Mike some more.
According to Mike, he would like his U.S. Fastener Report to be somewhat of a fastener training tool. As he explained, this is not just a news magazine. There will be regular articles that discuss, in depth, specific product categories. There will be a Fastener Quiz in each edition. There will be a section called “THE LIST” which will highlight suppliers in the fastener industry that perhaps not everyone would be familiar with. There will be company profiles, technical articles, fastener association up-dates, fastener trade show information, and salesmanship articles which will be a key component to just name a few of the features. One of his goals is to create a new publication that brings the fastener business and fastener human interest stories to anyone interested in the American fastener industry.
Mike already has a successful fastener magazine and news release service. He said that what he is trying to do here is to reach further into fastener organizations and reach more people throughout the whole industry. I can relate to that goal and I look forward to reading the PREIMERE ISSUE of the U.S. Fastener Report when it is released.
If you want to get on the circulation list, e-mail your list of employees who desire to learn more about the American fastener industry to Mike at mmcguire@fastenerjournal.com or fax him your list to 480-488-3247.
I follow a lot of different sites. Some I follow out of personal interest, some because I know people involved in an organization or cause. Southwestern College is an all graduate student psychology program located in Santa Fe, New Mexico. I have met and know personnel on the staff and board of directors there so I follow the site. The following piece was posted by the President of Southwestern College on December 31. Hope you enjoy it. Hope you can find a way to postitively revolutionize your world this year.
New Year’s Revolutions
I am 58 years old, and with only 40-50 years left on the planet, this time around anyway, I don’t have the time to waste on namby-pamby New Year’s Resolutions.
This year I am going for New Year’s Revolutions. I like the added increment of drama and force, the sheer transformational power generated by all those who did not accept some aspect of the current world order, and so turned it on its head.
That’ll get your blood movin’.
So, what would I like to overthrow?
How about the “Tyranny of the Trance”, for starters? This would require heightened awareness as much of the time as possible, not getting caught in the same old energy arroyos just because they’re the path of least resistance, just because when you turn your mind and heart off, that is where you go automatically, by default. Living my life Awake more of the time would be worth a Revolution.
How about a Revolution of Appreciation? Can I just not take the most unbelievable good fortune I have co-created with the universe for granted? Can I stop now and again, and offer, not a glib, perfunctory nod to the universe, but a deep Buddha belly laugh of appreciation, the kind my friend Don and I stumbled upon in 1973, when we spontaneously burst into explosive gut-bustin’ laughter over the fact that we were 19 years old and eating hot dogs in Copenhagen—when we knew in that very moment that the tides of our personal histories had just shifted in the direction of “Hang on, baby, this is gonna be great” for the rest of our lives? We were right. How about more of that?
Revolutions, Revolutions….hmmm…. How about one more. How about a full-fledged and final coup that leaves Fear Based Thinking, and autocratic, totalitarian, dictatorial, tyrannical “Inner Despots” irrelevantly in the past, as lame and powerless as the Symbionese Liberation Army, or the USSR, or Joe McCarthy, or J. Edgar Hoover?
Get ‘em the hell out. How about a Revolution of confidence, commitment, joy and collaboration, of trusting, intending and vision and love?
Fear sucks, man. I know it can be argued that it brings its own value, that it is a not inappropriate response to yada yada. I get that. Then I think of Gandhi, shot a couple of times, going down, saying Rama Rama, or Rama Rahim, or something along those lines, kind of a final resolution with this life, a final nod to the universe, more or less like “This is my time and destiny, and so it is.”
That’s huge. Not sure I can get up to Rama Rama speed in 2012, but I can be aware that it is possible, and that it is an alternative to getting stuck on ideas like “What is happening ought not be happening! What is, shouldn’t is !!”
We fear and try to control when we do not trust. When we believe there is not enough, and/or that we are not enough, we tend to move toward fear, the fear that we will be annihilated, literally or metaphorically, symbolically. We all know that.
The opposite direction is trusting that there is abundance, and that I am invited to that party; it is realizing that what our current trance views as “bad things” may actually have teachings and messages to carry, that there is enough love and light to sun the world, and all its people, and all its doggies too. OK, heck, everybody and everything. Why not? There’s plenty to go around.
So there are a few Revolutions for you. I am writing on 12.31.11, from Istanbul, and I look forward to checking in on these big ideas with you as the year moves along. I hope you launch your own Revolutions this year. You probably only have 100 years left too, so quit your lollygaggin’. You say you want a Revolution, well, we’d all love to see the plan…
During some year end calls in the Cleveland, Ohio area, I stumbled upon an organization that is located in what used to be a shopping mall in the downtown area. Today, instead of clothing and gift shops, the Galleria at Erieview Tower is home to an organization called "The Manufacturing Mart". I stopped in the main office/showroom and picked up a brochure that was on a table near the store entrance. On the back cover I read "Promote your company and American Manufacturing by becoming an exhibitor at The Manufacturing Mart, a permanent industrial tradeshow serving engineering, purchasing and manufacturing professionals daily." I had to go in!
I was quickly greeted by Lindsey Frick who is a Mechanical Engineer and Industrial Designer and who works with The Manufacturing Mart. Lindsey gave me a lot of great information and showed me their web site and I, in turn, explained I was a fastener junky and had a great interest in promoting anything that could possibly lead to an increase in domestic manufacturing. Lindsey gave me a lot of promotional information and you can check out their website yourself -- www.TheManufacturingMart.com. Below is an excerpt that I copied from the site:
"The Manufacturing Mart hosts permanent exhibits for North American manufacturers making components, equipment, and consumer products. On display, you’ll find information about North American manufacturing companies along with examples of their process expertise. We feature grinding, milling, boring, waterjetting, tool and die making, injection molding, fabricating, inventing, prototyping, 3D engineering tools, sourcing, and a library of new materials. The displays are organized by Starting Materials, Inventors, and Components."
Cool stuff. A little further down, I read:
"The Manufacturing Mart is located in Downtown Cleveland, Ohio.· This location is at the center of the Capital of Know-How which spans 600 miles outside of the region.· The Capital of Know-How is populated with 60% of all U.S & Canadian manufacturing locations.· This area is branded by Know-How because within this location, one can make anything man has thought of or will think of, from space ships to automobiles to electronics and consumer products."
You've gotta love the confidence bursting out in that statement. Go get 'em.
Essentially, Lindsey's company is trying promote and introduce companies with manufacturing "know how" to those with manufacturing and engineering needs. In fact, they will be holding a Manufacturing Expo at the Galleria on February 14 & 15, 2012 where they hope to attract over 3,000 attendees and 180 exhibitors which will include tier 1 and 2 suppliers as well as job shops, inventors and new product companies, material suppliers and workforce resources. The site to check this out is www.MFGtradeshow.com.
As I mentioned at the beginning, I literally ran into this place as I was coming from a sales call and, being the curious guy that I am, I had to stop. I do not know a lot about the organization but I was reminded of Fully Threaded Radio's interview with Harry Moser and his Reshoring Initiative (see www.reshorenow.org). There are other groups around that are trying to promote domestic manufacturing. Another Ohio based organization called MAGNET also works with domestic manufacturing. The following excerpt is from their website (found at www.magnetwork.org):
"The Manufacturing Advocacy & Growth Network (MAGNET) today released the audited results of its work over the past five years aimed at strengthening the competitiveness of the manufacturing industry in Ohio. The goal of MAGNET is to help manufacturers in Ohio compete and grow.
The total documented economic impact of $993 million took place between July 2006 and June 2011. “This third-party audit shows very successful engagements by MAGNET with hundreds of manufacturers of all sizes across all industry groups during one of the most difficult economies since the Great Depression,” said MAGNET President and Chief Executive Officer Dan Berry."
Some of these organizations are government sponsored and others seem to be private enterprises. Regardless, I am very interested in any organization that tries to increase domestic manufacturing because that is what we in the fastener industry rely on........we rely on them to make a living. We need people to make stuff here and I am more that happy to promote groups that I think are working towards that goal. If anyone out there knows of other organizations like these, please feel free to share.
Again, I wanted to mention The Manufacturing Mart, partly because I actually visited there, and also because of their upcoming show. I plan to attend, or at lease walk through. And you can feel free to walk through the websites I have listed.
Happy New Year. Let's hope it is a prosperous one!
My intentions were to finish the year with a very industry oriented post about reshoring organizations that I have stumbled upon in my travels. I think these efforts are great and I hope they are successful. During the upcoming year, I think there will be plenty of talk about job creation and the fact that it is an election year only means we will hear more and more about how to do this. Everyone will try to take credit for any good news. Furthermore, I think our only way out of our current national deficit situation will be to have extraordinary economic growth as no politician (or person) seems to want to see their programs reduced. But that post will have to wait. It is December 23 and I am sitting in my office and I just cannot ignore that the Christmas Holiday is bearing down upon me like a fast moving train.
Oddly enough, I was prepared to make this a kind of vacation day. You know, come in at 10:30, move a few things around, open up my mail, move a few more things and go home by 1:00. Well, my kids are home on school break and they're sleeping. My wife has a list of stuff she is trying to get done before we start preparing for company on Christmas Eve. Honestly, I'm better off at the office at the moment. At home, I think I'd be in the way. So, here I sit.
I'm very fortunate. I have three reasonably good kids, a fine wife, several siblings (some in town, some not) and in-laws who I get along with quite well. Holiday visiting is 90% fun. Sure, there is a lot of dysfunctional behavior within both my family and that of my in-laws, but that's pretty normal, yes?? If I ever visit with a family that does not have some measure of dysfunctional behavior, I usually find the time to be very dull anyways. So, some odd behavior doesn't concern me too much.
There are things I need to do still. Gotta clean out old files and make new ones. Gotta look ahead to January and pull together a travel plan, which is always a liquid schedule, due to change on account of snow storms, etc. I guess I can think about New Year's Resolutions. Resolutions to me are kind of like Lent. Some years I give up cookies or chocolate for Lent, and I'm very good about sticking with the program. Other years, I give up nothing and I don't really feel guilty about it. Depends on the year. New Year's Resolutions are similar. Some years I make them, some times I do not. I've got the handy list I can pull out from years past if I need to. "Lose weight, exercise more, keep in touch better with friends I do not see, write a novel, etc." Yeah, I still have plans on writing a novel. I have the title and the first line of the book I plan to write. It was a gift given to me by a regional sales manager I was working with. He just blurted out something when we were sitting at lunch that I could not believe I heard...and that will be the first line of the first novel I write. I listen to a lot of radio as I put 40,000 miles per year on my Buick every year. But, I also listen to a lot of books on CD's. Just finished with "Henderson the Rain King" by Saul Bellow. Kind of runs along a similar vein as "The Fool's Progress" by Edward Abbey which was graciously suggested to me by industry peer and good guy, John Gaudette of Metric & Multistandard. If I ever do write the novel, I think it will be along the same pattern. Wandering guys dealing with life's ups and downs in an imperfect world. And here I said I was not going to talk about the fastener industry but I feel as though I am.
Please forgive me for not delving more into the fastener industry on this "Fastener Blog" (I still remember getting taken to task in the early days of this site for talking about beer and fantasy baseball instead of fasteners). But, I did join the panel discussion on Fully Threaded Radio where we did a fastener round up on the major fastener stories of the year. To come here and talk about Heads and Cardinal and Dokka and Nucor would feel somewhat redundant after that broadcast. And, one more time, Brian and Eric...you guys have added a great feature to the fastener industry that did not exist 36 episodes ago. Your creativity and vision are appreciated. The products that we sell each day may not be the most exciting to others outside out industry but the characters within this industry certainly are interesting. It is an industry full of large manufacturing companies, multinational corporations, guys running businesses out of their vans, companies with state of the art computer capabilities, companies that track their inventory on index cards, importers that bring parts to our country from some of the most sophisticated factories producing in state of the art facilities and brokers who import parts made in shacks with dirt floors. It takes all kinds to supply the manufacturing needs of our great nation.
So, for the moment, I'm going to postpone my next industry related post until I get some free time over the next week. In the meantime, I wish all of you a Merry Christmas and a Happy New Year. If Christmas is not a holiday you celebrate, I wish you happiness on whatever one you do celebrate. I think we are entitled to some good wishes regardless of how we were raised or whatever our background. For the New Year I wish you all the good things that are normally wished. Good health, good fortune and peace and harmony in your families and your community. And, one more wish I have is for creativity and enjoyment at your fastener workplace. Hope you enjoy this industry as much as I do. And I hope you are always thinking of how to do things better, more efficiently, creatively. profitably and in a way that drags along the good people you work with for the ride. For, it is better to give than to receive, and when everyone enjoys the challenge and ride together, it is all good.
I've take a fair amount of deserved grief over the fact that I talked about attending the Fastenal trade show and then never wrote about it. Sorry folks. Between work and Christmas shopping and travel I just have not found time to sit still and write. And, not that you asked, but I'll share some personal insight here. When I have time and the mood is right, writing this blog is a pleasure. There are just times when I sit down and everything just flows and it is simple. Then, when I am rushing around and feeling guilty that I have not posted in a while, nothing flows. It does not feel like work but it does not feel like what I was hoping this blog would ultimately be...which is a place for people to come chat about the industry and just share what they are thinking. So, forgive me and we'll just move on.
A quick note about the Fastenal show. Once again it was packed. The show is always busy with Fastenal employees "highly encouraged" to hit every booth. They use bingo card style pages and certain vendors have their logo on the "bingo" squares. At the booth there are colored markers used to mark vendor's space once the employee has stopped by to visit. If the employee fills the card, they get a prize like a gym bag or a jacket or something pretty decent. They also have a similar deal they do with colored plastic washers that have to be gathered and put on a plastic bolt. If they collect like 30 washers they can turn them in for a prize and the washers are found at the booths of participating vendors. So, Fastenal has some clever ways to drive traffic to the booth and then it is your job to stop the Fastenal employees and tell them about their product. If you don't do that, then your wasting a golden opportunity. Although, after a day and a half of repeating the same sales information, you feel pretty spent and you are sick of hearing yourself repeat the same thing over and over to each group of Fastenal employees that show up at the booth. But, ultimately, you realized you paid to come here so you tough it out and keep selling. Cause, that's what we do. You can probably find an industry publication or Fastenal's website if you want to learn all the statistics about their sales figures and number of branches, etc. Needless to say, I know of very few suppliers that do not count Fastenal among their largest customers,
So, like I said, I've been kind of busy. And I have a lot of holiday planning to do. On Christmas Eve, the extended "Salesman Family" all comes to our house to celebrate. Then there's the whole Santa Claus shopping thing. And I've got to find time to find all my favorite holiday shows - "Elf", "Grinch", "Christmas Story" and NBA basketball on Christmas because I'm pretty sure that is how the Good Lord wants his birthday celebrated. This year, I have another show I need to schedule - and it involves fasteners!! The Richard Manno Co., a manufacturer of screw machine and electronic hardware, is being featured on the ION channel on a piece called "The World's Greatest". The Richard Manno Co. is being featured as one of the world's greatest fastener manufacturers and the segment will be running on satellite and cable tv on December 28, 20111 and again on January 2, 2012 and January 9, 2012. I understand this is Episode 155 of the World's Greatest so look it up on your cable network and check out one our fastener manufacturing brethren on the big screen!!
And, I hope to post again in the next few days. I've been in contact with several more organizations that are involved in helping to promote re-shoring and the groups support small domestic manufacturers and that is definitely something that interests me. Hope it does you too.
It is, once again, my great pleasure to introduce to you another guest blog from Mr. Charlie Accetta:
Conflict Minerals and the Fastener Distributor
A year ago, on December 15th, the Securities and Exchange Commission “voted unanimously to propose measures, as mandated by the Dodd-Frank Act, which would require new disclosures by reporting issuers concerning conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country.” [Text clipped from SEC news release]
Many of us know about the Dodd-Frank Wall Street Reform and Consumer Protection Act – H.R. 4173. The intent of the bill, in its own words, To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘‘too big to fail’’, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes is a noble gesture from our cock-eyed Congress. But, what’s with the Congo connection, eh? As it is with any national endeavor that takes on an international scope, it’s both simple and complicated.
The Democratic Republic of the Congo is the battleground for a dozen-year armed struggle between ethnic militias, the funding for whom is based mostly on black-market activity. As in any war, the civilian toll from disease and starvation, let alone from bullets, has been massive (multimillions dead) and infinitely regrettable. In an attempt to cut off funding for the warring parties, the United Nations put out a report in 2009 calling on the Security Council to act against the Hutu militias who were using sales from gold and cassiterite deposits in northern Congo to finance the continuing slaughter. To date, the UN has not issued formal guidelines regarding their own report. So, in Section 1502 of the Dodd-Frank Act (page 838, for those of you who like to keep track of the deforestation of America by our Congress), we, the people, take it upon ourselves to try and accomplish what the Army of the DRC can’t, and the United Nations apparently won’t, do – force the Hutus and what’s left of the Tutsis to make nice by taking a bite out of their cash flow.
Still don’t understand what this has to do with you, Mister & Ms. Fastener Distributor? Let’s go back to the SEC announcement from a year ago, and then back to the text of the Act (you can get your own copy of the full legislation here). The intent of the Act was to empower the SEC to require public corporations under its authority to identify the sources of certain minerals (gold, tin [for which cassiterite is the primary ore source], columbite-tantalite [aka “coltan,” used primarily in electronic capacitors], and wolframite [the primary source for tungsten, a popular hardening element in tool steel]). As part of the due diligence requirement set forth by the SEC measures, public companies are required to survey their supply chain in a thorough manner regarding the origin of any instance where a mineral on the list (both the SEC and the State Department reserve the right to expand its contents moving forward) is used in any phase of production, including off-site production and purchased material necessary to realize a final product.
It isn’t completely clear as yet regarding the strict definition of conflict minerals utilization. Potentially, the entire supply chain could be set off on a paper chase that makes the initial implementation of RoHS look like a walk around the park. Every cold-headed, hot-headed and machined fastener in your inventory was struck by tool steel … containing tungsten … forged out of wolframite. Obviously, any gold or tin-plated fasteners or terminals may come under the microscope, but the origin for finishes is eminently easier to track down, if only through the generally shorter trail from plating to end-use. What’s that? You say you’re not under SEC jurisdiction? That your customers are all privately-held concerns? Yeah, but how about the corporate structure of their customers? It only takes one link to pull the whole chain into a compliance flow-down requirement under the Act.
Of course, much also depends on how the SEC chooses to follow up on public companies statements regarding the presence of these minerals in their products, such statements a required part of their annually-published corporate reports. The Commission is short-staffed these days and there are an awful lot of those annual reports issued, pitching in on the deforestation enterprise. That fact provides little comfort for companies such as Fastenal or MSC Industrial since, as publicly-traded entities, they’re directly in the line of fire in this matter.
The wording of the Dodd-Frank Act specifically charges the State Department with determining the effectiveness of the results of the SEC mission, presenting the possibility that the Commission, undermanned as it is, will institute an all-out blitz at some point if expected outcomes fail to be initially achieved. Who knows? Well, you don’t … because neither the NFDA nor the IFI has submitted any comment whatsoever during the periods set aside for the Act and for the SEC measures. As usual, the organizations you depend on to alert you to such matters are asleep at the wheel. As usual, it’s up to each of you to wake them up and find out just how bad (or totally meaningless) this turns out to be.
It's not really the end of the year yet, but it is the end of the Trade Show Year. At least for me it is. This coming week I will have the pleasure to once again attend the Fastenal Trade Show in Orlando. This show is amazing. It really is. Fastenal has mastered the company sponsored trade show and almost every vendor I see at the show says it is one of the best shows they attend all year.
More interesting to me will be hearing the latest and greatest news from Fastenal management as they talk about how the year has gone and what they see in 2012 and beyond. To me, Fastenal is like a huge Index Mutual Fund. They are a barometer of our industry and as their business goes, so goes the business of a lot of other fastener companies. I am not suggesting that Fastenal alone makes up the majority of every companies' business, though for some it could be the case. Rather, I think almost every fastener supplier does some business with Fastenal, whether that be corporately or at a branch level. And, Fastenal has a mix of MRO and OEM business. I am always interested in hearing how many branches they have open and other statistics. Whether you like Fastenal or not, they are a major industry player and what they say does impact the industry. I'm very much looking forward to the show.
I have written all year that this has been a good business year and I do not see that changing as the year winds down. I have heard from many distributors that they have had strong November sales. With Christmas landing on a Sunday this year (no extra days off but you only have to go to church one time) there will be even more business days in December so this month could also be stronger than some past Decembers. Heck, even this year the retail industry is not complaining and they are notorious for saying that "sales did not meet expectations". It always makes me wonder, exactly what do they expect that they are always disappointed. If you are disappointed year after year then maybe, just maybe you are bad at forecasting!
Just want encourage all the readers to listen to the next episode of Fully Threaded Radio. Well, you should listen to all the episodes, but on the next one I am part of a segment where we do a "Fastener Year in Review" along with some other industry colleagues. I cannot imagine that you are not familiar with the show by now but, just in case, you can check it out at www.fullythreaded.com. Eric Dudas assures me that, after some editing, the segment turned out good. Hope you listen and enjoy.
I've got the show next week and then a couple more trips set up before Christmas. So far, the weather has been cooperating so I just keep hitting the road and getting in as many trips as possible. At some point, the weather does become a factor in my travel plans, but for now it is full steam ahead.
I'll write some more after the Fastenal show and share anything I find particularly interesting or startling.
According to a story published on Daniel Rivalin's Bazibaza.com, China Steel will lower prices by 7.08% for January and February due to low demand. It also noted that the lowering of prices was due to "rising uncertainty in the global economy". Not all of China Steel's production is used for manufacturing fasteners, but it is, nevertheless, a factor that affects fastener prices, I would think. One other quote from the article caught my eye. China Steel Corp (CSC), based in Taiwan, was quoted is the article as saying "cheap steel imports have disrupted the order in the domestic market and damaged the interest of all Taiwanese steelmakers". CSC says it "had lodged an anti-dumping complaint against those cheap imports with the government, requesting that the government investigate unfair trade practices that have further depressed domestic steel prices." Isn't that what some refer to as "the pot calling the kettle black"?
I am not sure where these "cheap imports" are coming from but I would have to guess China. How ironic that Taiwan is having issues as Taiwan manufacturers are still part of the Nucor anti-trust litigation. That ruling should be coming up pretty soon, correct?
Also, I have not heard what is happening to import fastener prices but I would think this information will have an effect. If demand is low you would think prices might come down. Is that happening?? For the record, this article was sent to me via Daniel's Worldwide Fastener Weekly News, Nov 21-27 Bazibaza.
If you are not a current subscriber to Daniel's news service, I would recommend highly that you check it out. Each week I get an issue that is filled with fastener news from all around the world. Daniel is based in France and has business concerns in Asia and seems to be the most comprehensive news source for worldwide news. Many other sites offer terrific coverage of the North American market but Daniel seems to be tuned in to many worldwide news sources. This is definitely a news source worth checking out.
To connect to the fastener news site, click here http://fasteners-fixings.bazibaza.com/news . Better yet, I know Daniel is a regular reader. Daniel, please respond and let readers know the best way to access your site. Every news seeking person in the fastener industry should have your site bookmarked as one of the several excellent sources for fastener information.
In the past year or two there have been several interesting acquisitions. Fastenal purchased Holokrom. Fontana purchased Lake Erie. Wurth purchased Cardinal. In two of those acquisitions, distributors purchased manufacturers. And, while Fontana has always been a manufacturer in Europe, their U.S. division was more of a distribution company in the past. These are several instances of large distributors buying domestic manufacturing operations. Yes, Wurth had already invested and started the Dokka operation, but Wurth is mostly known as a distribution company. Makes me wonder if that is a trend or if these were just opportunities that could not be passed up. Certainly tells you that there are some distributors out there making money, woudn't you say?
I was recently talking with Don Shan of Solution Industries. Don is a very creative guy and definitely one of those guys who "thinks outside the box". He is also an Ohio State football fan. We were discussing the Vegas Fastener Show and he said, "You know what they need to do? They need to set up the show, not in long rows, but in a big Block "O" like they show at the Ohio State games." He noted that one thing that was missing at the show was a place for people to sit down for meetings when they wanted to have a semi-private meeting at the show. If you wanted to have a little meeting, you had to pretty much leave the show area and go sit our at a not-too-nearby restaurant. If you left a big meeting area in the center of the show and had tables where people could meet, you would also have networking area for people who just want to take a break from walking the show. Now, I KNOW that Mike McGuire is HUGE Buckeye fan, so I figured this suggestion might be particulary interesting to him. What do you say Mike?? How about your own Block "O" at the Vegas show??
Overall, I think this has been a very good year for the fastener industry. Even as we approach Thanksgiving, I think business still remains strong. I hope it continues right on through the end of the year and into 2012. I have received a couple notes from people working on budgets asking my thoughts about 2012. For all the doom and gloom in the news this year, I think most fastener companies ended up having good years. It will be an election year but, then again, so was 2008. What do you see coming in the next year?
SANKER RETURNS AS CEO TO BLUE CHIP ENGINEERED PRODUCTS
Cincinnati, Ohio – November 14, 2011 – Ken Sanker is returning as CEO to lead the company he founded in 1984.
Sanker returns with 20 plus years’ experience in the specialty fastening components and cold formed industry, along with experience in business development, strategy, sales, and marketing.
Sanker sold Blue Chip in July of 2005 to BCEP Holdings. Operations have continued at the same location for the past 6 years
“For Blue Chip customers, suppliers and employees, this is an exciting step in the company’s growth,” said Sanker. “This is a positive change that will benefit everyone associated with Blue Chip Engineered Products”
Since 1984, Blue Chip Engineered Products has provided specialty metal, plastic, assembled component parts and distribution services to the OEM industry
----------------------------------------- Note from T.S.:
Several months ago I wrote that a friend of mine was looking to return to the fastener industry after selling his company years ago. It is a privilege and honor to be able post the above announcement. For those of you who know Ken, I am certain this is a welcome development. For those of you that do not know Ken, I am happy to inform you that our industry is strengthed when a professional individual (and a true lover of the fastener industry) like Ken rejoins our ranks. Welcome back, Ken.
A lot has been written about Twitter. It has been discussed at Association meetings and it has been talked about on Fully Threaded Radio. There is a small number of active Tweeters within the fastener industry. So far, it has been interesting but not necessarily real....well.....useful. It is more of a hobby than anything. I hope to change that right here, right now with this post. No kidding. Let's jump right in.
If you find the right people or companies to follow on Twitter, you can get a steady flow of news releases and company updates sent to your computer or phone on a daily basis.
On Twitter you can find "Tweets" about subjects that interest you by searching certain words. If you search under the term "Fasteners", guess what? You should see Tweets that have to do with fasteners and, hopefully, the fastener industry. If you post a note and it is related to fasteners, you would type "#fasteners" and that would let other Tweeters know this Tweet, or post, would be of interest to them. When they search for fastener articles, this would show up because you included the hashtag, (which is just the # sign).
Ok, so one day I get a Tweet that mentions a particular fastener distributor customer of mine. This company is a member of the Marcellus Coalition, which is a group of companies seeking to network with each other to do business with regards to the large natural gas deposits in Western PA, Eastern Ohio and West Virginia referred to as the "Marcellus Shale". In the next five years, it is estimated that there will be nearly 200,000 new jobs created in those areas as energy companies come to the area and begin to drill new wells. Being the eager salesman that I am, I have spent a lot of time and effort trying to figure out how I could do more business with companies in these areas who will be drilling or supplying parts to the work sites. First, I needed to know -- Who exactly should I be calling on??
If you try to call an energy company and ask them who is in charge of specifying fasteners or lifting hardware or anything like that -- good luck! They do not give a crap about fasteners at the corporate level of Chesapeake Energy, I assure you. I did manage to get to person in charge of approving new vendors and when I called them I got the answering machine that said, "Please leave your information and be sure to indicate which of our work sites wants to use your product". Well, no one Know about my product yet so no one is asking for it. I was still trying to find someone who used the kind of stuff I sell to explain why they would want my stuff.
So, back to the Tweet that mentioned my customer. A Tweet can only be 140 characters, so what often happens is you will get Tweeted a headline and then a link that you can click on that will connect you to the article of interest. I clicked, got the article and read all about my customer. What I did next was brilliant (if I must say). I looked up the Twitter account for the journalist that wrote the article and found out it was a young woman who writes for a business journal for a Pittsburgh, PA based newspaper. Among the areas she covered was "Energy". Once I found her account I could look and see what Tweeters (people and companies) she was following. It was a gold mine of information about the Marcellus Shale and the companies that are doing business all around the Marcellus Shale. She was following a bunch of energy companies, business groups, etc. that all were focused on the energy industry and - the Marcellus Shale. All I had to do was "follow" those Tweeters and I was then getting a steady stream of articles and Tweets all related to the Marcellus Shale. More good leads.
It is worth noting that many companies have "Social Media Specialists" who release articles and data on a daily basis. These companies are trying to figure this stuff out too. One company I had been following was Chesapeake Energy because they own a lot of the sites where drilling will take place. One day, the Media Specialist sent out a Tweet that encouraged readers to "Visit our Facebook page - Ask Chesapeake". I'm on Facebook so I looked up the page and sure enough it was called "Ask Chesapeake". So, you know what I did?? I wrote the following note on "Ask Chesapeake", "I am interested in supplying a certain product to your work sites and would like to know how I can go about getting my products specified. Who would I contact?"
Within an hour I got a response. The Media Specialist asked me to send him all my information and he said he would pass it to the appropriate person. After I e-mailed this information he sent another note back offering me a phone number that I could call to follow up!! I could not believe it. I did follow up, spoke to a live person who told me the distributors he usually went to procure the product I was selling and he told me I could mention his name when I called on these companies if I wanted to try to get my product specified. He could not have been more accommodating.
I have since followed up with a few of these companies and have sent my information to them. I will continue to make more contacts over the next few weeks.
It is often difficult to get to decision makers at certain companies. I have done this for years and have tried a lot of different approaches. This is the first time I can honestly say I made my connections via Twitter and Facebook. Yes, it is fun to Tweet about what aisle of the Vegas show has a booth that is giving out free beer but I think I am on to something that could be far more valuable in the long run. Because, let's face it. A free beer at the Vegas show is nice but...it's still not an Old Rusty Bolt beer.
I have listened to Fully Threaded Radio #34 to hear the review of the Vegas Fastener Show. No, wait...I helped do the review. But Mike McNulty did a re-cap and I suspect the show will also be reviewed in several of the trade magazines. You can check all that out at www.fullythreaded.com. I do not wish to be redundant so here's a very brief review.
Show was excellent. Good attendance. Good location. The Venetian is a beautiful hotel and there are plenty of other less expensive hotels in the vicinity for those who spend less time in their room. And the Sands Convention Center is located around a lot of other stuff and does not feel as isolated as Mandalay Bay. The show layout was very good. It seemed like a really simple layout but for some reason I found it a lot easier to navigate than in past years. One thing I have not heard much about was the booths in the back that were added this year. The "mill supply" part of the show. The machinery part of the show. There was a little section at the far back of the show and I have not heard anyone comment much on whether or not they visited that section.
One other comment on the show. There are a lot of booths from Asian suppliers, which is nothing new. I think if I were an Asian supplier, I'd try to get moved away from all the other ones. You see, I walk past those rows and hardly even visit but I do not really have to worry too much that I'm missing one of the domestically based suppliers. They generally are not located there. I see the booth workers earnestly looking for me to stop and I sail on by like someone expecting to be harassed for an autograph. Not a big deal, just an observation.
But show traffic was really good. I know that Day 2 of a show is usually much slower, but I did not think it was bad. Lots of suppliers stayed in their booths right up until 1:00 p.m. Also, I think Day 2 is usually a good day for vendors to meet with other vendors. Let's face it, a lot of companies do business with other suppliers and even with the competition. Day 2 can be a very productive day.
The day before the exhibition hall opened there were a lot of seminars and a lot of industry organizations were involved. I thought the lineup was really good. I had several business meetings to attend so I missed most of the Show sponsored events. I think this might be the first time I can say that I'm really sorry that I missed the conferences. There were a lot of really interesting sounding panel discussions but, you can't be in two places at once.
People come to the show for a variety of reasons. Some to visit existing vendors, some to find new ones. Some bring in staff from all over the country/world and hold meetings before the show. Some suppliers use the time to meet with and entertain large customers. Others use it to network because you never know where your next big "connection" will come from.
I had a customer of mine tell me they attended the Vegas Show because they are looking to purchase a new software system for their company. They did search through the show and met with several potential suppliers. However, what they were not able to do was to ask other users of the system about their personal experiences with the systems. They approached me and asked me if I would help them out. They asked me it I would post the names of the software suppliers they spoke with and then ask YOU...the readers to comment on your experiences with these systems. So, below I am listing these companies. Please understand, I welcome all positive comments about your experience with these systems and even some constructive criticisms. However, if you have a really bad experience and wish to share that, please do it personally and I will forward that information to my customer. You can use this e-mail: fastenerblog@aol.com. I appreciate honesty but this is not a place to air dirty laundry. The companies my customer asked me to post are as follows:
Computer Insights Fishbowl INxSQL Software Distribution One
Your feedback is appreciated.
Good show. Busy Show. And I've been busy since I've gotten back so that is why I am posting on a Saturday Night. More to follow soon.
....it's here!! Looking forward to this show very much. New venue and a strong list of industry related activities to go with the show. I think the speakers and seminars are as plentiful as with any show in the past and I think this looks like another great one.
I have a customer who is not attending. He is a business owner who has brought 3 or 4 people to Vegas shows in the past. When I asked why he said, "I don't know. I guess I just don't know what I'd get out of it". I'm sure he is not alone when he asks what he will get out of the show. And, I must add, he is having a very, very good year. Sales are booming. I did not want to be disagreeable but I could not disagree with him more. Each year I find new companies at the show. And, each year I end up spending time with a person or group of people that I did not know very well before I hung out with them at the show. There is no better place to network than at a trade show and Vegas is the biggest one we have in the U.S. Unless you have a conflict due to some personal obligation, I just do not see how you skip this show. For me, this show pays for itself each year (other than if I lose a few bucks gambling, but that has nothing to do with the show itself). And then there is the fact that I get to hang out with industry friends and catch up on industry and personal news. I always have a good time at the show.
I will try to keep active on Twitter and hope others will too so we industry vagabonds can find a place to hang out. (On a future post, I have some great stuff to share about doing business via Twitter. I have finally found a very legitimate business value using Twitter and I will be sharing it. Ask me about it in Vegas. No kidding, it is really interesting). I imagine most people will be attending the show's Welcoming Social at Harrah's. After that, a lot of people go out to dinner but then they look to see where the crowd is gathering once they finish dinner. I may skip dinner on Wednesday and just find a place to hang out. If that is your plan, I look forward to joining up with you.
This will be my fourth visit to Vegas and the big fastener show, or as Eric & Brian of the esteemed "Fully Threaded Radio" call it, "the fastener prom."
I am so excited that we will finally be situated "mid-Strip" in the Sands Expo, with great hotels and restaurants to explore. The Mandalay Bay was OK for the first couple of years, but just the walk from the hotel to the convention floor was exhausting. A new venue is very welcome for my feet and psyche.
Another big thrill will be hearing Jennifer Friel speak at the first WIFI Speaker Series at 4 p.m. on Wednesday, Oct. 19. WIFI, which stands for Women in the Fastener Industry, and Jennifer, who heads up Mid West Fabricating, are both wonderful examples of women taking leadership roles in the fastener industry. This is a great opportunity for both women and men to hear Jennifer, the first woman chair of the Industrial Fasteners Institute, talk about her past career as a television news reporter and her current role at Mid West and IFI. The $25 ticket price goes to the Edith Cameron Scholarship Fund, making the event the perfect combination of philanthropy and shared knowledge. It should be a stimulating and informative time, so bring your questions and be prepared to be wowed. More information is available on the WIFI website www.fastenerwomen.com/#!
Following Jennifer's talk, WIFI will host an informal social networking hour that I'm sure will be loud and fun as the business cards and WIFI applications fly around the room. The NIFS welcoming cocktail reception follows immediately afterward, so l'm hoping that all WIFI attendees will join me in a conga line that will snake over to the party at Harrah's. It's a great way to kick off the evening with colleagues and get the buzz about what's up in the industry….unless you already know what's going on from reading the tweets from Fully Threaded, the Traveling Salesman, and the other great fastener tweeters and news providers out there.
I'll have my smart phone on and will be wired to follow tweets from anyone who wants to recommend a tiki bar or a dance floor to hold forth and talk about business or baseball. NIFS put out a very handy smart phone app for the show. Just download the Guidebook app on your phone and click on NIFS, and, voila, you'll have exhibit maps, exhibitors, schedules and tweets that use the #NIFSW hashtag. It's a super handy way to have it all, well, in the palm of your hand.
Looking forward to seeing some new exhibits, products and people. Vegas is exhausting, but it's worth the time and effort, as I always come home tired but happy to work in an industry that has so many great people in it.
On October 6, I received via e-mail my subscription to ThomasNet's "The Industrial Marketer". It is a pretty good newsletter but I cannot recall exactly when or how I signed up to receive it. Nonetheless, one article immediately caught my eye..."Survey: Manufacturers Anticipating Growth in Revenue, Employment and Capital Spending" by Peter Alpern. The first two paragraphs I will share here:
"The U.S. might still be limping through an anemic recovery and a lingering period of joblessness, but new data suggests that confidence is picking up within mid-sized manufacturers, who are anticipating growth in revenue, employment and capital spending through the rest of 2011.
The survey, conducted by Chicago-based Prime Advantage Corp., a buying consortium for industrial manufacturers, showed respondents have 'optimistic expectations' compared to six months ago, but retain deep concerns over the rising costs for raw materials, logistics and fears of growing inflation."
The article said that 65% of respondents indicated they planned to purchase new manufacturing equipment this year, while roughly 72% expect increases in revenue. Nearly a quarter of those polled anticipate increases of more than 10%. The survey was conducted in August among professionals representing durable goods manufacturing firms with annual revenues ranging between $10 million and $10 billion with the majority of respondents profiling within the range of $20 million to $500 million in revenues.
One last note...another significant finding was that 40% who currently source products from offshore sources said they plan to bring sourcing back to the U.S., while 60% plan to add additional offshore vendors.
Just a week earlier, I received a similar e-mail from ThomasNet and there was an article on October 10 by Bob Willis of Blooomberg - headline reading, "Orders for U.S. Capital Goods Rise by Most in Three Months". It started, "Orders for U.S. capital equipment increased in August by the most in three months, a sign business investment and exports held up in the face of mounting concern over the European debt crisis. Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 0.9 percent, the most since May, a Commerce Department report showed today in Washington. Demand for all factory goods declined 0.2."
The article did mention a few different areas that have had shrinking economic activity including reports from the New York region and also the Philadelphia area. But, somebody is making stuff somewhere.
I will be anxious to network at the Vegas Fastener Show to hear about various regions of the country. I have written numerous times that I have found fastener sales to be robust in the areas I travel and then I read reports like those above that are commenting on a more national level and I wonder what I am missing. Why do these reports sound so good yet the news coverage sound so bad?
I know we have unsustainable, mounting national debt. We have some major issues looking us square in the eye. But, it looks like we do have some positive things happening in certain sectors of the economy. Whether these amount to short term spikes or the beginnings of a moderate growth spurt, who knows? But, in the fastener industry, we need to make hay while the sun shines. So, even if you believe things are all gloom and doom in the long term, you better wake up and keep focused on those opportunities that do seem to be presenting themselves in certain markets.
I do not usually write a new post too soon after I post something else. But the Vegas Fastener Show is now just two weeks away and there are interesting news stories that just seem too good to ignore.
I read on the Global Fastener News site that a company was opening, or re-opening with the name Heads and Threads. That's pretty surprising. What's that name worth? Let's face it. No matter what you do, if you open up a fastener company and name it "Heads and Threads" it is going to catch some attention. I guess we will all find out in Vegas what exactly this new company will be selling. They sure are not selling the inventory that Porteous purchased. My understanding is that all of that was shipped to Porteous warehouses. I must admit, I am surprised that the name "Heads and Threads" was available. Some might say the name is not of value, some will say that the name makes people interested in the "new" company immediately. I guess some of the value depends upon how much you had to pay for it. Pay too much and it is a bad deal. Get it for cheap and it is a good deal.
Which brings me to Cardinal. I am not a finance guy. I do not know how to properly put a value on a company. But my gut tells me that Cardinal is worth more than the $3.9 MM offer I have read about. I had the opportunity to talk about this with a good industry friend and his reply was short and to the point. "If that is all someone will pay for it then that is what it is worth". Fair enough. And, I'm guessing it was shopped around pretty well. But, I've toured Cardinal. There are a lot of machines there. I would have thought the machinery was worth that much. For arguement's sake, let's say that Cardinal chose to produce the wrong parts...or, that they chose to produce parts for the wrong industry. Still, couldn't someone who knows that business seek out other, more profitable parts to make? $3.9 MM?? Again, I don't know how businesses are valued but that just seems low to me. Could those machines manufacture stainless parts or parts from exotic materials. Would that bring more value?
And finally, not to be picky, but normally isn't a "stalking horse" offer one where we do not know the bidder?
From Wikipedia, the free encyclopedia:
"A stalking horse is a person who tests a concept with someone or mounts a challenge against them on behalf of an anonymous third party. If the idea proves viable and/or popular, the anonymous figure can then declare their interest and advance the concept with little risk of failure. If the concept fails, the anonymous party will not be tainted by association and can either drop the idea completely or bide their time and wait until a better moment for launching an attack."
I guess the definition really does not matter. But, if I am to believe the 15 Twitter news sites I read, I am told that Wurth is the company bidding on Cardinal...assuming all these reports are legitimate and correct. So, the secret is not a secret at all. And, other bidders are free to make other offers. But, you'll be bidding against Wurth -- at least that is what the news sources are saying.
For years, I’ve read stories in the newspapers about people with portable skills, jumping from one company to the next, always seeming to land a bigger, better-paying gig. For a while, it was the IT experts and MBA-types who exhibited the greatest freedom of movement. With the national economy stuck in neutral, most of those folks are content to hover in place for the moment. Still, I think most everyone who works as an employee dreams of making a move, whether it’s for better pay, more recognition, or to get out of a situation that seems to be robbing them of their identity.
I’m a fastener guy … been one for over two decades. If you’re like me, you can’t take that experience and make much use of it selling tires or building clay ovens. For someone working in this industry and wanting to get ahead, one either looks for opportunities within their current environment or to something on the outside, but specific to the industry. I spent most of my time working for a fastener distributor, taking advantage of every new business angle they threw out there. I went from packing screws to Plating Manager to Buyer to Inventory Manager to QC Manager to Purchasing Manager to Inside Sales to Quality Assurance Director to Distributor Sales Manager to Corporate Procurement Director. From that point on, I hit a wall. With no more worlds left to conquer on the inside, I decided to make the break. I left the company I had loyally served, one that had generously rewarded me, simply because I knew it was time to go. If you feel the same way, I’d like to share my experiences and save you from some of my mistakes.
Before you consider anything else, first consider the options. Let’s say you’ve spent a number of years with a Mom & Pop distributor, learning the business, putting in the hours and working your way up the ladder. Eventually, you’re going to reach that last rung and it may amount to less than your sense of ambition will allow. Maybe they’ve run out of marriageable children (or maybe you’re just too awful to be considered a catch), or maybe, just maybe, you believe that your ability has transcended anything that your present employer can offer. Where do you go?
Well, there’s always Fastenal. Hell, they’re everywhere and, better still, if you can pass the drug test and leave a couple of moist spots on the mirror they hold under your nose, you’re hired … as a branch manager, no less. What’s the major drawback? When you inform your employer of your impending move, there’s a fifty-fifty chance that he’ll come up from behind you as you’re leaving the building, pour gasoline over your head and set you on fire. Yeah, the Moms and Pops just love Fastenal.
The reaction of your current employer regarding your move is an important element. No matter where you go, there’s bound to be some sense of betrayal. In my case, I crossed over to a company whose owner was detested by those people who had spent years (and tens of thousands of dollars) in developing me into a turbo-charged fastener superhero. I went from being the mildly annoying guy who was handy to have around in a crisis to a scourge to humanity at that moment when I revealed the name of my new employer. I was shocked at the reaction, but shouldn’t have been. You have to realize, if you haven’t already, that however much you think your employers like you as a person, you’re really just a piece of meat to them. When you go rancid, it’s the ashcan for you.
Next, consider your network. You spend years cultivating a wide swath of manufacturers and reps and contacts at non-competing (or even competing) distributors. This network is a key element in your ability to get things done. How will they react? In some cases, the long-term friendships will appear to hold steady but, in reality, everyone has to look after their own best interests. If your former employer is a key client and you’ve burned that bridge, most folks will do their best not to aggravate things on the business side of the relationship ledger. If necessary, your industry friends will not hesitate to publicly turn their backs on you, unless you can make up the loss to them from your new position. That may seem harsh. It is – but too bad. Remember, this is your fault. Don’t expect any hugs for creating a conflict for them. On the other hand, most of them will still return your phone calls.
Another, more productive use for that network is in using it for feedback prior to making any move. Test their reaction (but only if you can trust them implicitly, because this industry is full of gossipy washer-women dressed in sports coats) and weigh their opinions. I did, and didn’t listen to any of them. In one case, a friend in the Midwest who is a manufacturer’s rep, a lovely guy with the warmest of hearts, went into an absolute tirade when he found out where I was going. It seems he had been ripped off in a deal by my new employer and never got over it. Suddenly, I became the target for his anger. Whenever I’d run into him at a show, he’d refuse to even acknowledge me. Dude, I’m after-the-fact, okay? No dice. When I was finally cut loose from his nemesis, he left me a voicemail message, which started out as a sympathy call and turned into a rambling, venomous I-told-you-so declaration. I love you, Eddie, but I think you’re nuts. Call me.
The next thing on your list of considerations – what if it all goes south? What happens when the move doesn’t work? In my case, I’ll tell you what happens … one year and eight months of unemployment. I was fortunate, in a way. I was able to pay all my bills, never missed a child support payment (and never asked for a reduction), but I’ll never, ever be able to retire. It happens like that sometimes and you have to seriously consider this worst-case scenario. Are you in a position to be able to handle being without gainful employment for a long stretch? If not, then just stay put, be thankful for having a job in this wonderful industry and quit dreaming about being a fastener superhero. It’s a long drop when your cape falls off mid-flight.
I finally landed at a place, because some of my skills were portable. I work for a Boeing subcontractor, in operations, and it’s crazy and hectic and I’m almost completely out of my element. In some ways it’s brutal being a neophyte at anything; in others, it’s wonderful to face such an imposing challenge. What’s the best part? We use tons of fasteners – nut-plates, bushings, bolts and rivets – and I get to manage that inventory (among a dozen other responsibilities) because I’m a fastener guy, and always will be.
Last week I posted information from an article that I read from a news story I had received through Twitter. The ladies from Hudson Fastener are among a group of people that are working diligently to report fastener news as it happens. They Tweet under the name "FastenerNews" or "Fastener News Desk" (@FastenerNews) and I think I am correct in stating that they were the first to Tweet the story by Wiley Rein LLP regarding the Nucor anit-trust case. More on that to follow.
Other Twitter news reporters of note include Janice Ceresa's Fastener Daily (@FastenerDaily), Daniel Rivalin's Bazibaza (@bazifasteners) and John Wolz's Global Fastener News (@GlobalFastener). I follow all of these and get a continuous flow of fastener news daily sent to my IPhone. That is one of the beauties of Twitter. I don't have to go find the news, it comes to me. And, for the first time, I think I can say that this way of communicating fastener news is even quicker than the proverbial "fastener grapevine", better known as industry gossip.
I am a subscriber to Global Fastener News and did go to that site to find a more extensive article on the Nucor situation than I had found from the quick news brief that I received through my Twitter sources. Global Fastener News had a five page summary of the 31 page opinion written by Judge Evan J. Wallach, the judge involved in Nucor's appeal. I am not going to recount the facts from the Global Fastener News article but it is informative, interesting and makes me think there is more here to explore.
I will be honest - when I first read the press release from Wiley Rein LLP, I noticed that a lot of what was written included quotes from the Wiley Rein attorney. For instance, attorney Alan Price was quoted as saying "Reversals of ITC preliminary determinations are very rare and the reversal in the fasteners case demonstrates that the original determination was deeply flawed". To my knowledge, those are his words and not those of the Judge. And, he is representing Nucor. He also said that the court handed domestic fastener producers an important victory in their efforts to combat dumped imports....according to Price. So we will see.
In another fascinating publication, Fastener News Now printed a statement from "Matt". Yes, that's how it is signed..."Matt". Matt's last name is not included on this news release, though I suspect others familiar with this case or the original case do know who he is. Simply put, I do not. But "Matt" states that the claim of this being a "rare reversal" is nonsense and he sees little chance of reversal. According to this note from "Matt" that was printed on the Fastener News Now website, "The Commission published a notice inviting comment from the parties and saying they will not re-open the record. They would probably re-open the record if they had any inlination to change. If you hear otherwise out in the marketplace, tell them it's baloney. I'm sure we all wish we could win cases and sell fasteners by issuing press releases declaring that black is white and up is down" -- Matt. This was posted on 9/23/11. Again....I personally do not know who Matt is and he could be a well informed, reliable source of good information. It does seem unusual to have Matt's opinion out there as "news" without identifying him with a last name.
This Nucor situation is potentially huge. One site makes me think (as Eric Dudas and Yogi Berra put it), this is "deja vu all over again". Another site tells me it is much ado about nothing and borderline irresponsible as it could cause unfounded reactions in the fastener marketplace. According to the Wiley Rein press release, "The court remanded the case back to the ITC for a new determination. The ITC is scheduled to issue that determination by December 7, 2011". So, as best as I can determine it sounds like we will know more by that date if not sooner.
A press release from Wiley Rein LLP says that the U.S. Court of International Trade (CIT) released its public decision remanding the negative preliminary determination of the International Trade Commission (ITC) in the antidumping investigation of Certain Standard Steel Fastener from the People's Republic of China and Taiwan. I have a Bachelor's Degree and an MBA and I still did not know a couple of those words in the press release. If I can bring this down to the street level - I think the CIT has told the ITC to take another look at their decision they made in 2009 because they might have made a mistake or missed something. Or, as Mr. Alan Price of Wiley Rein LLP (counsel to Nucor Fastener Division) stated, "Reversals of ITC preliminary determinations are very rare, and the reversal in the fasteners case demonstrates that the original determination was deeply flawed."
Wow. Here we go again.
Back when this case was first in the news I was fortunate to have some informed individuals write some guest blogs try to sort through the facts. Please ladies and gentlemen with more knowledge of this subject - please feel free to contact me and add what you know. For the record, during that period I had record hits on this sites with over 1,000 people checking in on certain days. Definitely was a subject of interest.
So, now the Vegas Fastener folks have to scurry and figure out how they can address this important topic. Or, at least I would think they are thinking about it. This is huge stuff to all distributors, importers and domestic manufacturers. The original investigation was initiated with estimated dumping margins of 145 percent for Chinese imports and 74 percent for imports from Taiwan.
And correct me if I am wrong here...but isn't it the case that a lot of the rulings against Chinese imports in Europe have been reversed or did I read that incorrectly?
On a recent vacation, my Blackberry died. Screen turned psychadelic colors on me and, yes, I was sober. It kept vibrating and ringing but I could not see anything, so I had to replace my phone. My sons convinced me to get an I-Phone and I will admit I am very happy with the product. It is so cool.
My one son is App savvy. He keeps suggesting new Apps that I might like and I have downloaded a few. Pandora is pretty cool for music. Of course, everyone has some version of Angry Birds, right? Larry Kelly of Buckeye Fasteners passed on a couple others. CardStar lets you download the numbers off all those little plastic keychain things you have for when you go to the grocery store, or Staples or the library. It stores the UPC codes so you can take all those plastic things off of your key chain and ultimately, increase your gas mileage because your keychain weighs five pounds lighter. He also turned me on to SoundHound which lets you hold your I-Phone up to the radio and identify the song and provide the lyrics. Not that I need that a whole lot but it was free and is kind of cool.
So, now I have several cool Apps that are useful and fun. It is kind of like knowing curse words in a foreign language without knowing the rest of the words. I need some constructive input on which other Apps I might want to download. What ones do you fastener people out there use?? Are they any good business related Apps?? Please let me know.
I am still technologically challenged to some degree so I do not like to meddle in areas where I am a laggard. Let me give you an example. I heard a song performed live on a radio program (Howard Stern, if you must know) and I found it on YouTube later on. I asked my son, "Hey, is there a way to get that song from YouTube and put it in my ITunes account??" . Pushed aside by my son, he proceeded to type madly on my keyboard and the next thing I know, there was that song. Hmm. I said, "Son, why is it you are not studying computer science in college?" Son - "Dad, every kid my age knows how to do that stuff". See, I am a laggard.
But, when something seems fairly obvious to me, I cannot help but ask the question and contribute my two cents...so, here goes.
On Fasteners Clearing House, a lot of companies list their "slow moving items" and overstock items in hopes that they will unload some "non-producing inventory". That makes a lot of sense. But, wouldn't it make sense to list some of your good inventory too, especially items where you have a particular strength?
Who is searching on FCH??, that is the question. If FCH has more and more subscribers and shows up earlier and earlier on the industry search list (google, bing, etc.) because it has so many connections, then it would seem to me that a LOT of people find FCH when they type in to search for a specific fastener product. Sure, to a lot of industry veterans, a special could be something that is hard to find and even rare. But to a younger person in the industry, one that has not had a lot of training, a fairly common item might show up as a "hard to find" or "slow moving item". And, isn't it the younger generation that is most comfortable looking on-line for..well, everything? And what about product that you have in stock but maybe there is a shortage in the market place. A certain sized stripper bolt? Or maybe even something more common. Who is searching on FCH? Some engineer might be searching and the next thing you know you might have a part specified because he found it through you. Because I know the FCH guys read this blog I suspect they might have a response for me, and I welcome their input. It just seems to me to common sense unless I am missing something. I say, saddle up and ride that search engine that is getting the most hits. And, at this point, I would thing FCH is getting more and more and more.
And please, spare me the "T.S., everybody in the fastener industry already knows to do that". I am sharing this valuable nugget with you because you are a reader of this world leading, industry related blog!
I was out in the field again last week calling on a variety of distributors, large and small. Spoke with several suppliers. Stopped at a Wurth/Service Supply branch and was told it was the branch's best month ever and this is a branch that has been around for 30+ years according to the manager. In the same town, I called on a small distributor where they have maybe 6 or 7 people working. August?? "Best month ever. At least in a very long time!"
I spoke with the sales manager of Buckeye Fastener, a well known supplier of weld fasteners with sales from coast to coast. In other words, Buckeye is not a regional supplier. Again, "August was our best month ever".
What am I missing folks? Why are we selling so many fasteners while the media assures us we are in an economic slowdown? I know Greece is about to default (so the morning radio tells me). I know a lot of big businesses are sitting on a load of cash. And I know unemployment is still high (yet I personally know several places where I could get people jobs, RIGHT NOW, if the fit is right - and we are not talking about a "want ad" for a rocket scientist either.
I am running out the door but will post more later. Either I am missing something or somebody is playing us.
Another thought came to me as I was registering for the Fastener Show West. A lot of companies like to introduce new programs or new product lines at the Vegas show. That makes sense...a bunch of people all gathered together from all over the country. But then I thought of some of the announcements from the 2010 show. I recall that Heads and Threads was introducing a new, expanded line of socket head cap screw products. Hmmm?? That did not work out like planned.
I am sure that companies are planning their booths and promotions for the 2011 show. I am curious to see what color the Stelfast monkey will be this year. I'll be curious to see which booths have the best chocolate which usually becomes my lunch substitute. Several companies have given away beer at their booths which is a nice treat about mid-afternoon. I'm trying to figure out how to ship some Old Rusty Bolt out to the show without having the bottles explode. Anyone have any ideas for me on that, please write back and I'll bring you a bottle.
Some booths at Vegas look the same year after year. I guess that is not a totally bad thing, but I think some attendees will walk right by the booth without something interesting to draw them in. Certainly some people will stop to talk to people they work with daily but never get to see much during the year. Every year, distributors will stop at some booth and ask, "Hey, is Jimmy here?" (Jimmy being the inside sales person that takes care of them every day). "No, we left him at home to answer phones while our management team gets to meet you even thought they will probably never speak to you again". Just kidding, to some degree, but I do think it is a good idea to get inside sales people out in front of the customers they work with...even if that means paying for a plane ticket and a room. But I do realize, there are a lot of fruitful upper management meetings that take place at the show. Just looking out for the little guy a bit. Customers DO like to meet the people they talk with every day.
Over the weekend, I had a chance to read Mike McNulty's fine magazine, Fastener Technology International. Always a good read. One article that caught my attention was the "Total Cost of Ownership Calculation" by Harry Moser, President and Founder of the Reshoring Initiative. I have heard Harry interviewed on Fully Threaded Radio so I was kind of familiar with his group and their goal of bringing more manufacturing jobs back to the U.S. If you want more information on that, their website is www.reshorenow.org. Anyways, one thing I found in the article that I was not aware of is that are involved with (or at least promoting) another show on September 8 called the NTMA/PMA Contract Manufacturing Purchasing Fair. Maybe this Fair has been going on for a long time and I just missed it but in the article it says the fair is aimed at customers looking to "find competitive USA sources" for products currently being made overseas. The article states, "We anticipate improving companies' profitability while bringing 'permanent' manufacturing jobs back at a cost of US $1000 each, less than 1% of the cost of one-year Stimulus Program jobs".
Well, good luck with that. We certainly could use more jobs here.
If you read this today, enjoy the remaining hours of your Holiday Weekend. If you are reading this on Tuesday....get back to work. Or look for me on out on the raod because that is where I will be bright and early on Tuesday morning. Can't let the grass grow under my feet. Gotta keep moving.
The fastener marketplace is starting to plan for the Vegas Fastener Show. Out in the territory, I am talking with industry people who are starting to make airline reservations and hotel arrangements. People are starting to think about dinner reservations and who they want to link up with when they are out there. It is time to get planning if you have not already started. Enough said! It's the Vegas Show!!
So, I was just reading Global Fastener News from last week. There was a review of the Spring Fastener Shows, AKA Fastener Shows East. The publication talked about the Columbus Show, the All American Fastener Show in Branson, and the Fastener Tech 11 Show. We already know that there will be no Columbus show next year. But what will we have in 2012?
The Midwest Fastener Association holds Fastener Tech every other year, but they still usually have a Table Top show on a bi-annual basis. Not as big as Fastener Tech, but still pretty good sized. At Branson, they handed out registration packets for 2012 so that suggests that it is will be held again. Also, I have heard that several regional industry groups are in discussions to look into holding a trade show run by the organizations with joint "ownership" and responsibility. I have read or heard that the NFDA is holding a table top show in Atlanta in either May or June.
Sounds like a lot of shows. Sounds like, potentially, there are a lot of shows that will be in competition for distributors to attend. And folks, if the distributors do not attend, then it's not a good show. Plain and simple.
I thought there had been talk of trying to organize a show that might include several different groups all pooling together their resources and trying to include as many players as possible. The Fastener Show West is held in the fall and pretty much is an industry staple, so I thought there might have been discussions about supporting a spring show. There are some shows with some momentum like the All American Show and the Mid-West Fastener Shows. I was kind of thinking that everybody involved in these shows might want to kick around some ideas about how many and where would be best. Instead, it seems a little bit like people are heading off in their own direction without necessarily taking into consideration the other shows.
It is kind of like politics. If you get too many candidates that are each taking away votes from the same electorate base, they leave themselves open to all getting defeated. We need good fastener trade shows. We have an excellent show in the fall in Vegas. If we are going to have a spring show, the groups that are planning need to communicate and consider the other shows or I think they will all have a rough time attracting enough distributors to build a good spring show.
I know, it should say, "why can't we all just tweet?" I chose to say Twitter just to get the name out there. There is a small group of #fastener Tweeters who are trying to get the movement started. We need more of you and we have a strategy. But, allow me to digress and share a quick story before I get back to Twitter.
My family has an upcoming trip to Florida and we will spend a day or two at Disney. I was invited to register for "Disney's Mobile Program" which essentially asks that I register my cell phone number. During our stay, this program could send us a text asking us which park we are in. If we respond "Magic" then, I guess, we'll be kind of tuned in to the Magic Kingdom. From my phone I will be able to ask such things as how long of a wait there is at certain rides, whether or not "fast passes" are available for certain rides, etc. All the information is text message based. Pretty cool. No reason this cannot work in the fastener world.
So, what does that have to do with Twitter? Each day, news stories and comments are sent out to the public via Twitter. Several fastener news reports send daily updates from our industry as they are released. Additionaly, there are many companies sending out news flashes or just commentary regarding our industry.
I called on my Social Media guru, Eric Dudas (and active Tweeter) and asked him to explain a bit more to me. How to sign up, how to tweet, how to follow people or groups, etc. Eric pointed out that you do not even have to have a Twitter account to check in and see what is happening.
Try it out. Just go to Twitter (http://twitter.com) and type fasteners in the search box. You will see several posts regarding fasteners and a lot of current news. If you choose to sign up, you can then "follow" certain Tweeters, which are people who make a point of posting notes or news articles. To follow me, look for "Traveling Slsman". To follow Eric you want to find "FullyThreaded".
Why do you want to follow us? That is a fair question. You might not want to. But then again, we (or someone else) might post something very interesting regarding the fastener industry. Often, when someone tweets about a subject that they think others may want to read about, they will add a "hashtag" which is simply "#" -- the pound sign. So, near the top of the page, I did not make a typo, I added a hashtag to #fasteners. On twitter, this would tell everyone searching the word "fasteners" that this post would be of interest to them.
Eric and his colleague, Brian Musker, hear a lot of industry news through their company dealings at Fasteners Clearing House and through their fastener related show, Fully Threaded Radio. Often, Eric will tweet about what he is hearing on the streets.
Well, I'm not sure I wrote enough here to convince you check out Twitter. Honestly, if you are reading this there is probably a 50/50 chance that you checked out Twitter already because you are a curious sort of person. I have a challenge and a goal for old and new Tweeters alike. I want to see if we can really get this medium rolling in the fastener industry. Here's the idea.
A lot of us will be attending the National Industrial Fastener Show West in Las Vegas in October. I consulted with Eric and he suggested we use the hashtag, #NIFS to communicate when we are at the fastener show. So, if you do tweet something regarding the fastener show west, other people attending or following the show will be able to see your tweet. So, if company ABC is giving out free beer, someone could tweet "#NIFS - free beer at company ABC in aisle 101" and we would all get that message. Another example - I have heard Mike McGuire suggest that the new show location has a nice bar that he anticipates will be a gathering area after the show for those people hoping to network. Some one could tweet, "#NIFS Bunch of people gathering at the Round Bar over by the Venetian", and we would all get that message.
I know I have left out a lot of details on Twitter and Tweeting. Please correct any mistakes I have made and add other details that should be added. Last year at the show, I think there might have been 15 or so Tweeters (Vicki, Andy) and it was pretty cool. There is no reason we should not have 100 people checking in this year. Disney would be proud of us.
NFDA - I understand you have a big meeting out in Vegas. Get tweeting. NIFS - I see your tweets. Way to go! Pac-West Fastener's Vicki Lester is a super tweeter. J.R. at JHP Fasteners (JHPFast) is getting started and I see a lot of tweets from him. Also see a lot from GlobalFastener, bazifasteners, and the ladies from Hudson Fasteners. And, of course, Andy Pels from screwcrew.com (screwcrew). I am sure I can count on all of you to be active again this October at the fastener show. Other readers - get going. Join up. Let's get 100 Tweeters going at Vegas and let's get this new source of industry networking working in the fastener world.
I have made it a point not to discuss politics on this site. Or, at least not my politics. So, I feel a little bit safe if I discuss politics in general. I think we will mostly agree that the political climate that surrounded the whole debate on raising the debt limit was nothing less than repulsive and nauseating. No matter which side you were on.
So, I watched the news a couple days ago and I watched the Dow drop like a lead balloon. The next day it was up after job numbers were announced. It is a roller coaster and it is really hard to understand. We all watch and worry how these big swings will affect our business. And we should.
Then, this weekend, Standard & Poors drops the U.S. credit rating. I guess we'll see what that all means on Monday.
But - let me ask you this....how are things in your area? Seriously, I want to know. How are things in your area? I get very few people who respond to this blog but I wish I could get some dialogue on this issue. Because, you know what?? In my area, things are not bad. Not bad at all. Over the last several weeks I have called on a lot of people and almost all of them had said that business is pretty good. At least pretty good, if not really good. Many companies are having really great years. The first quarter was strong and then somewhere between May and June there was a little bit of a slowdown. Nothing dramatic, just a little slowdown. And then in the last few weeks I have heard much more positive news than I have heard bad reports. And it makes me kind of crazy because everything in the news is saying something different.
Historically, fastener people have seen trends earlier than other segments because (supposedly) people are ordering parts in order to use them in the future. And, we often see slowdowns before the general public because companies stop ordering or letting us ship parts. I would think the very large suppliers in our industry like Nucor, or Huck or some of the importers would see some general trends. And if any large suppliers read this I'd sure like to hear your input.
I spoke with a good friend of mine in the Georgia/Florida area and he agreed with my observations. He said he thought his fastener marketplace was doing really well too. So, are we seeing things wrong? Is the news reporting wrong? We certainly have a lot of national debt but, is Standard and Poors wrong?? Hope some of you out there will check in and share your observations. I'd like to know so I don't have to sit and listen to the prognosticators yelling, "double-dip, double-dip".
On the fasteners news site, Global Fastener News, I read today that Cardinal Fastener is operating again but, for now, with a much smaller crew. Additional funding is being sought to increase production and continue operations. To me, that is a good thing. I never like seeing a domestic fastener manufacturer cease operations, so this is a very positive development. Good luck to the folks there.
Then, while eating dinner tonight at a restaurant, the television had on the show, "Cramer's Mad Money". I might have the name wrong but I'm pretty sure you know the show. Cramer was interviewing the CEO from Chesapeake Energy and they were discussing the Utica Shale. According to Geology.com, "the Utica Shale might host the world's largest single accumulation of natural gas confined in a single rock unit".
Here is another news article on the Utica Shale from Marketwatch:
...if you are interested. If you have heard of the Marcellus Shale, the Utica Shale is some 1,000 to 7,000 feet below the Marcellus Shale depending upon the geographic location. According to the article above and the Cramer report, it seems that Ohio is blessed to have an area where the Utica Shale is fairly shallow and should be easier to access than many other areas.
Last week I listened to Fully Threaded Radio and there was a lot of discussion about Wind Energy. There was an interview with the President of Dokka Fasteners and there was a discussion with an industry analyst who follows the Wind Energy Industry. If I remember this correctly, the analyst said that without government subsidies, the Wind Energy industry would not really be a viable business enterprise. So far, Wind Energy has not produced the returns that would be able to sustain a private enterprise. These were some very interesting discussions.
We all know that Cardinal Fastener was heavily invested in the Wind Energy business. Yet, in their backyard, there is a tremendous potential for growth over the next 20 years in coal and natural gas development. I realize the same parts that they produce for wind turbines might not be ones used in gas, oil or coal exploration but I find it all kind of ironic. Maybe there are some large diameter bolts in those mines and wells. Maybe some parts made with exotic materials. I'm not sure exactly what parts are all used but I encourage everyone chasing down the Wind Energy industry to do some homework into these other energy sources. Hey, when Cramer and Fully Threaded are talking...people listen.
As I was editing some audio for the next episode of Fully Threaded Radio, I began jotting some main points for a show promo. In the process, it occurred to me, as it does from time to time when I sit back in reflection, we’ve got something really cool going on here.
Listening to Bruce Darling present his take on steel prices, or the effects of the disaster in Japan on the fastener industry is like sitting in an advanced level seminar. Hearing him describe behind the scenes goings on during the negotiations for Heads is an amazing opportunity for anyone in our industry. The man has insights. Outside of an association meeting here or there, how would the industry get access to a presentation like this one by Bruce?
Fully Threaded Radio listeners will get that opportunity when we publish the next installment of on-demand, take it wherever you go, Internet talk radio for the fastener industry.
And it’s free of charge.
We began our adventure in podcasting with the creation of FTR, a little over a year ago, in hopes of developing a new media entity for the fastener industry. We wanted it to be informative and entertaining. We hoped it would reflect well on the FCH Sourcing Network, a growing community of fastener professionals in its own right that continues to expand. And we wanted it to add an element of fun to our business and yours, all the while keeping a serious eye on the business end of fasteners.
So far, I think we’ve succeeded. We’ve had guests from across the industry and from every level. We’ve discussed some important issues and events as well as some that have been slightly off-topic, much to the consternation of some old sticks in the mud, a few of whom we’ve since converted to friends and listeners. We’ve also made a few mistakes and improved because of them.
This month we welcome Beacon Fasteners & Components, www.beaconfasteners.com to the Fully Threaded Radio family as our first title sponsor. I’ve always thought that Beacon has had the funniest and most creative print ads in the industry, and we could not be happier that they’ve joined us to drive the new media ahead. Recently, Beacon announced the expansion of their machine screw business, so we have an excellent chance to put our influence to the test.
All of these are positive developments, and I’m grateful for the support we’ve received along the way. What should we be doing going forward?
We have a few ideas, of course, and we hope you’ll tune in as we bring them to life. There will be more of what you like, fastener industry interviews, market perspectives and event coverage, along with ample discussions of fishing, fastener dogs and free beer. But we’re hoping to raise the bar a few levels as well, and your positive energy and input is very welcome.
What will you hear from FTR in coming episodes, and who else will join with us to make it happen? I hope you’ll click in to find out.
