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Hardware Stores

STAFDA rolls up its sleeves

(Nov. 11) Shortly before accepting the traditional "Peddler Award" for dedication to the trade, Specialty Tools and Fasteners Distributors Association president Hal Look had this to say to his fellow delegates at the 2009 STAFDA Convention and Trade Show general session.

"There is no getting around how brutal the last three years have really been," said Look. "The bottom line is we are all still here, still battling. Surviving and doing whatever it takes."

Look knows of what he speaks. The past year was a whirlwind for the former Orco VP, who left after the HD Supply acquisition. He was recently tapped to lead ProBuild's launch into specialty building products distribution, and maintained his post as STAFDA president throughout.

A parade of speakers -- including Les Ireland of Black & Decker and National Association of Manufacturers president and former Michigan Governor John Engler -- sounded off on the difficult environment, but nobody in Atlanta seemed ready to give up fighting.

Others weren't so lucky. STAFDA executive director Georgia Foley said the organization saw 9% attrition in the past year, and said she felt fortunate that attrition wasn't higher. Attendance at the Atlanta event was an estimated 3,715, down about 17% from the previous year's attendance in Denver. That too, could have been worse, she said, as other shows have seen declines ranging from 25% to 45%.

In his state of the industry address, Look offered advice to attendees, including the concept that the best salesmen don't often make the best sales managers; and that the business needs of an organization must align with the talent and skills of its people.

"Those of you who that are strictly in the industrial and commercial sectors may want to consider some effort in the residential market," he said. "A balanced portfolio is the best medicine for a cyclical industry like ours."

That advice appeared particularly sound when the next speaker, Black & Decker VP Ireland showed a slide with side-by-side forecasts of residential and construction spending. Residential was forecast up 37% in 2010, while commercial was forecast down 2% -- both stats were sourced to the Dodge Report.

Public works, meanwhile, will be a strong driver of STAFDA, according to the same source, with bridges, streets, transportation and sewer/water spending projected to increase 10%, 8%, 6% and 6%, respectively.

While staying clear of the multi-billion-dollar story -- the Stanley Works acquisition of Black & Decker -- Ireland pointed to some other industry trends. Ergonomics in power tools, he said, is a concept that has transformed from a consumer buzzword to a "much bigger part of the pro's vocabulary." He described the steady flow of new products as ammunition to fight against the push toward lower and lower prices. And he suggested the need for supplier collaboration.

"The business model of stock on hand has been a critical component of the success of STAFDA houses," he said. "How can we work together to properly forecast demand?"

It was one of many questions that remained unanswered.

Engler, whose NAM is the largest trade association in the United States, pointed out that the U.S. leads the world in manufacturing. The former Republican governor of Michigan hammered away at taxes and cap-and-trade proposals (cap and tax, regulate, mandate, he said) that hinder business, which he called "the engine of economic growth."

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