TEDA Meeting, June, 2009

The TEDA meeting got off to a great start with the annual Golf Outing. Returning to Turf Valley Resort this year, we were off to a 9 a.m. shotgun start with approximately 74 golfers. TechShop provided the golf towels and tees again this year. One of the golfers, sporting a snappy swing and a beautiful TechShop golf towel.

Here's one of the foursomes. Is Steve trying to improve his lie?

After a long morning/afternoon of golf in the warm, 80+ degree weather, TEDA held a cocktail reception in the evening. It was a nice way to end the day, very relaxed, and lots of good conversation.

Wednesday morning, Glen Pratt kicked off the business meeting by introducing Rob Halbritter (Mid-States Tool). Rob addressed the group on overall business conditions and challenges we are all facing. He commented on the life cycle of the small business, ending with, "we need to beat the 40-year death rate of small business. We need to continue to be successful distributors and weather this economic storm and dance in this economic rain."

Glen returned to the podium for his annual State of TEDA address. TEDA is a group of 9 shareholder warehouse distributor members, with 12 locations.

This year was the 15th annual vendor's meeting, the 9th annual trade show. Even though we've all faced tough sales conditions this year and late last year, Glen announced that they had nearly the same number of attendees as last year. There were 138 registrations, and 73 exhibits. He was also pleased to announce they added 6 new vendors this year. He commented on TEDA's commitment to creative marketing through the use of their website and the TEDA Toolbox.

On to the sales story..... Glen reported that though driving mileage is down, he felt it was offset by the age of vehicles. He commented on the slowdown in consumer spending and the crazy fear-mongering as reported by mainstream media as contributing factors in the sales decrease they saw last year. (He specifically excluded the trade press from these comments. Thanks Glen!) In 2007, the TEDA members had a 9% increase overall. They suffered minor sales decreases through the third quarter of 2008, but 4th quarter really hit hard, with a 20% decline in sales. And historically the 4th quarter has been their best sales period. Overall, they ended 2008 down 8%. Not bad compared to what I've heard from others.

Good news, through the end of May, the TEDA group is flat v. same period last year. (However, last year was a down year through May, 2008)

Miscellaneous Numbers:

Specialty Tools and Hand Tools make up 38.8% of the members' total volume.

Shop lights was a bright spot in 2008 (get it, bright spot..). Their sales were up 14%. Unfortunately, it's a small category for the group and didn't carry much weight. Their next best performing category was Electric/pneumatic tools which were flat. All other categories were down.

Shop Equipment (3.5%)

Specialty Tools (5%)

Electrical Test Equipment (5%)

All other categories had sales decreases in the double-digits.

90% of all new products sales were generated by promotion in the TEDA Toolbox.

By report's end, Glen expressed an optimistic outlook for the remainder of the year. He is seeing more supplier's look to "green" initiatives and Hybrid tools for new products.

Glen then took a few moments to recognize the 2008 President's Award winners. This award is made based on a supplier's volume, growth and member participation. 2008 Award winners are: Ajax Tool Works, Bayco Products, Cal-Van, John Dow Industries, Legacy Manufacturing, Lisle Corp., Mayhew Tools, Midtronics, Schumacher Electric, and Sunex Tools.

Then the Golf Awards were announced. I'm happy to report that for the first time in 7 years, I actually was on a team that played well (not much thanks to me though. We were carried by our scratch golfer and a woman who had only excelled at putt putt before now.)

Trade Show Stuff

Craig Rae, President of SMC had some new products on display.

Cliff Resnak from SK Tools was happpy to report that SK is alive and well. They're focusing on their core lines. (I apologize for the glare on the photos)

Shop-Vac is beginning to take a hard look at the automotive aftermarket. Ron Geczi, VP of National Accounts brought a stainless steel version of the Shop-Vac. It was designed specifically for the automotive aftermarket, and can't be found at Home Depot, Lowe's or any other big-box retailer. (Unfortunately this photo does not do justice to the product.)

Paul Neu, Neu Tool Supply, talks with Sandy Allen and Rachel Purcell of Porta-Sol.

These guys don't need no stinkin badges! But it's Bob McInturff of Neu Tool Supply and Scot Holloway of Bartec.

Bob Hendry, of John Dow Industries, shows off his recently awarded President's Award.

Michael Gering, M. Eagles Tools Warehouse, chats with the Irwin people.

GearWrench featured some new tools and new sets. This is a 17 pc. metric combo set.

Clore/Solar had a full table.

Sunex featured new sets as well.

Spent some time talking with Scott Ironside, as is evidenced by the abundance of photos of SUNEX new products.

It was good to see these companies are investing in new products, new sets, new packaging. They're not afraid to invest in their future in times like these. Once the economy picks up, these are the companies that will be successful and able to pick up market share quickly.