New Roles for NFDA: Coaching on Exports & Industry Alliances
FEATURE
NFDA President Jim Derry
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“There is so much going on that is not in the U.S.,” the new president of the National Fastener Distributors Association said in explaining a new “strategic direction” for the organization founded in 1968.
Jim Derry isn’t just referring to importing of fasteners produced in Asia. U.S. distributors can sell around the world as well as import.
Derry’s Field Fastener began supplying fasteners internationally after an Illinois customer asked for its VMI service to a plant in Malaysia. Now the distributor is moving product to China.
Many domestic distributors don’t know where to start when a customer asks them to supply the same products in other countries. Derry cited issues of logistics, inspection and contracts.
The new NFDA mission will be to “help its members optimize the supply chain” from mining and oil production to OEMs and the end consumers.
Manufacturers Question NFDA
Derry acknowledged complaints from domestic associate members about any encouragement of importing. “We are talking about buying and selling product,” Derry said in an interview with GlobalFastenerNews.com. He emphasized the “and selling.”
Though as part of the “pushback” Derry said a few U.S. manufacturers have dropped their memberships, but he predicted “overall membership levels will increase in the NFDA when our associate members see a stronger distributors’ association.
Many domestic manufacturers also source in Asia,” he pointed out. “Today you have to understand the global market. To say the fastener industry isn’t a global industry isn’t realistic.”
Representatives of the European Fastener Distributors Association and Taiwan Fastener Trading Association participated in the NFDA’s annual spring conference in San Antonio. NFDA has sent representatives to their meetings.
NFDA leaders see the changes as key to the association’s future. The association held a key role in the U.S. Fastener Quality Act legislative process of the 1990s, but they acknowledge the NFDA has not had that prominence or industry role since.
Derry emphasized that the NFDA must provide value for members. Today there needs to be more than “networking” at conferences. Members need programs at conferences that can yield ideas to save companies money and increase profits.
Derry described the NFDA reorganization as “like any company in tough times.”
Outgoing NFDA president Wendy Rose was candid with members during the annual business meeting. Revenue for 2009 dropped about $200,000 to $540,702, yet the organization was profitable in 2009 due to very diligent cost control measures implemented by the board and staff.
Membership traditionally is over 200 companies and now stands at 74 distributors and 53 associates for a total of 127.
Rose termed it “an unacceptable decrease in membership.”
Included are three new members – Taiwan-based manufacturers.
In additional to membership continuing to slide, the NFDA board acknowledged that the NFDA “has not significantly changed and the association has no non-dues revenues. “Revenue sources must be more diverse to be a healthy organization.”
Frequently mentioned was the Specialty Tools & Fasteners Distributors Association, which has trade show revenue to support member benefits.
NFDA executive vice president John Hausoul told FIN that the board has chosen to “evolve from an entrepreneurial role that was appropriated 25 years ago to a corporate model.”
NFDA in 2010, 2011 & 2012
The board is looking to the new direction to “increase focus on areas where NFDA can provide greatest value to members,” Derry said.
He emphasized that the NFDA will seek to cooperate with regional associations and not duplicate services. He cited Pacific-West Fastener Association’s Fastener Training Institute and said the NFDA will not compete with similar training programs.
This year NFDA will seek to increase “member ROI by reducing members’ costs and increasing revenues.” That includes expanding its financial benchmarking program, creating tools to measure members’ cost cutting and adding affinity programs such as freight consolidation.
In 2010 NFDA also will provide education on international trade and communicate to the industry on global events and “create the leadership/advocacy competency that will allow NFDA to become a leader in the industry.”
In 2011 NFDA also will identify ideas to increase member efficiency and profitability, additional affinity programs and develop a relationship/alliance with an international broker/logistics to provide training, legal expertise about global trade, develop relationships with “entities in select countries to help distribution sell in that country,” and develop a vendor database.
In 2012 the goal is to “develop a clearinghouse for company capabilities”; develop or coordinate with existing international certification/inspection program; and “coordinate discussions with all fastener associations about forming a new ‘umbrella’ organization.
“We are going to make this happen,” Derry told members at the meeting. “Hold me and the board accountable to this strategic plan.” ©2010 GlobalFastenerNews.com
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