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.

The Hybrid Golfer

Have you tried the new hybrid golf clubs? I guess they're not so new anymore. Stand tall you noble swingers of clubs and losers of balls.....

A recent study found the average golfer walks about 900 miles a year.

Another study found golfers drink, on average, 22 gallons of alcohol a year.

That means, on average, golfers get about 41 miles to the gallon. Kind of makes you proud. Almost feel like a hybrid golf machine...

(special thanks to Mark for his insight into the golfer's world.)

TEDA's Vendor Advisory Meeting - Baltimore, MD

TEDA (Tools and Equipment Distributor's Association) is holding it's annual Vendor Advisory Meeting next week in Baltimore. It's a unique blend of trade show, old AWDA-type vendor/WD meetings, golf and business review. This year TEDA President, Glen Pratt, expects about 72 golfers for their 13th annual Golf Scramble at the Turf Valley Resort on Tuesday. He generally gets about 100 manufacturers to exhibit on Wednesday, from 9 a.m to 5 p.m.

All events will be held at the Turf Valley Resort, beginning with golf and an evening cocktail reception. Ending with the business review, trade show, and one-on-one conferences over the following two days.

I expect there will be plenty of new products at the show. One thing that makes the TEDA Meeting unique from other traditional trade shows is the very small number of people that actually interact. This meeting is strictly for the 12 TEDA WD members and their best suppliers.

After the Baltimore meeting, I'll be heading up to Washington D.C. for a family wedding. I'm also going to work on my "Scooter Shots™".... trying to match (or at least get close to) a blogger friend's quality photography of scooters around his current home town.

I'll be sure to post photos when I'm back in town in early June. (photos of the tools and scooters, not the wedding.)

TEDA Vendor Advisory Meeting

Last month TEDA held their 22nd annual Vendor Advisory Meeting. This year it was held in Annapolis, MD. All nine TEDA members were in attendance, as were approximately 80-100 supplier teams.

I'm not going to review all their sales numbers, you can read some of that in the August issue of TechShop magazine. Instead, I want to share with you some of the comments that Rob Halbritter, Chairman of TEDA made to the assembly. He's an easy guy to listen to. He gets his point across easily. I think it's due to his many years as a teacher, in his LBMS (life before Mid-States). He talked about the changing dynamics of our industry, from the distributor's viewpoint, and focused on the manufacturer and the benefits of working together as a team to reach the aftermarket.

I'm going to paraphrase here, because I couldn't write fast enough to keep up with his talking. I also tend to interject my own comments, so don't take this as complete gospel from the TEDA meeting, it's more of a mix of Rob's speech, some of his comments, and my thinking about it:

The cost of windshield time and air travel is changing the way we do business, once again. E-mail is becoming a more frequent way of meeting with our customers. As a distributor of your tools and equipment, I want you to know that I feel we're all in this together. If we think that what we do today or did yesterday is ging to be sufficient fo rthe future, I think we're blindsiding ourselves. There are a lot of followers out ther in our market. We need to do some things differently - some people have some good ideas about how to change their future. But we have to get off our backsides and do something. Too many people in our industry still think they can continue doing business like we did 5, 10 or even 20 years ago. This is just not the case.

Our business is like a sharp knife - catch the knife by the handle and you can use it as a tool. But, you catch it by the blade and it can cut you to pieces.

We all have dreams - both personal and professional. The true business winner is a doer, not a dreamer. I would say the true business leader is one who can dream, and then make that dream a reality. I think you need a vision of what your business can be, or what you want it to be, before you can make it happen. Isn't there a phrase like, "I don't know where I'm going, but I'll know when I get there."? Well, that is no way to run a business in this tough economy, and during these tough market conditions. As a business leader, you have to have a dream, a plan, and develop the ways and means to achieve your dream.

The mom & pop business, that which was once our bread and butter, is going away very quickly. In some parts of the country, it is already gone, gone, gone. Our business used to be split pretty evenly between storefront and mobile jobbers. Now we need to add the internet into the mix. if we are to continue to grow, we need to develop new products, new markets, new customers. The members of TEDA are committed to 3-step distribution. If it runs on wheels, if it floats or flies - all these markets use your tools and equipment. We need to work together to capture the attention of the people who buy your products.

News from the AAPEX Show: Auto-Wares, Prime Automotive & Snap-on Tools

Last Week at AAPEX, held in Las Vegas: Fred Bunting Receives Art Fisher Award

AWDA presented the 2007 Art Fisher Memorial Scholarship Award to Fred A. Bunting in recognition of his passion for training and education. Bunting received this honor during AWDA’s general session, held last Sunday night in Las Vegas.

The Art Fisher Memorial Scholarship Award is presented annually to an aftermarket company or individual that demonstrates outstanding commitment to education and training, either within their own companies or throughout the industry. Given in memory of former AWDA chairman Art Fisher, the award grants substantial scholarships in the name of the award winner to two students enrolled in the automotive aftermarket management program at Northwood University.

Bunting is the founder and chairman of Auto-Wares Inc. Group of Companies headquartered in Grand Rapids, MI. Auto-Wares is a full-line, full-service, full-program distributor servicing more than 600 jobbers. The company employs more than 1,500 people who together operate 336 Auto Value/Bumper to Bumper stores and 630 Auto Value/Bumper to Bumper Certified Service Centers.

For many service professionals in the Michigan region, a high point of the year is the Auto-Wares Tech Expo. Auto-Wares holds two of these events annually in Milwaukee, WI, and Grand Rapids MI. The 10-year-old event is tailored exclusively to professional technicians in automotive, heavy duty and PBE specialties. Last year, more than 3,000 techs visited Tech Expo and attended more than 4,800 training classes.

The success of Tech Expo has garnered the attention of many others in the aftermarket industry. Bunting believes that the more training our industry provides to technicians, the better it is for everyone. He has freely offered the secrets of his success and, in 2006, even granted AAIA permission to duplicate, brand and distribute instructional DVDs that provide other aftermarket companies with the how-to’s for hosting their own training events.

“Without a doubt, this program goes above and beyond in the pursuit of excellence in training and education in the automotive aftermarket,” said Larry Pavey of Federated Auto Parts in presenting the award. “It is a great pleasure to honor Fred Bunting, the driving force behind this outstanding effort.”

On a separate note, Prime Automotive, based in Olive Branch, MS has been purchased by Marubeni, a Japanese company. Prime Automotive is a member of the Tools and Equipment Distributors Association (TEDA), and has been in business supplying parts stores and distributors since 1982.

Here is information from Marubeni's corporate website: Marubeni America Corporation, along with Marubeni Corporation and Marubeni Automotive (collectively "Marubeni"), have acquired the Olive Branch, Mississippi based Prime Automotive Warehouse (“Prime”) for an undisclosed amount. Prime, established in 1982, is an industry leader in the distribution of aftermarket auto parts, chemicals, and tools to its large reseller customer base. Prime mainly markets its products through a monthly catalog.

Marubeni recognized several growing trends in the US aftermarket, including the steady demand for parts and chemicals that keep older vehicles running. According to the Automotive Aftermarket Industry Association (AAIA), the automotive aftermarket market has grown from $138 billion in 1997 to over $204 billion in 2006.

The market for automotive aftermarket parts is competitive and highly fragmented. The transaction will allow Prime to combine its sourcing and mail order expertise with Marubeni’s domestic and international networks. As part of its growth strategy, Prime will consider acquisitions in its current industry as well as new markets that will allow it to further expand its product line.

Steve Friedman will continue as President of Prime and there will be no changes to operating management. Prime will be managed within Marubeni America Corporation's Transportation. Industrial Machinery, and IT business unit. This unit also manages Marubeni’s auto leasing operation, Advantage Funding, and dealership network, Drivepoint.


And how about this from Snap-on? They reported a higher net sales and income in 3rd quarter than expected. With an increase in net sales of 14.5% and an increase in net income of 31.4%! These figures bring their net sales to $680.7 million and net income $41.4 million. I'd say they're having a great year so far!

Sales from the company’s tools group increased $18.1 million,or 7.4 percent, to $262 million. This was primarily because of a 5.4-percent increase in North American franchise sales and strong sales from some of Snap-on’s international franchise operations, primarily the United Kingdom and Australia. Meanwhile, diagnostic and information group sales increased $25.1 million, or 19.8 percent, to $152 million due, in part, to the 2006 acquisition of Snap-on Business Solutions.

Check here later for more news on what's happening with the big tool guys!