National Association of Wholesaler

National Association of Wholesaler-Distributors | ANNUAL REPORT 2015
OUR MISSION
STATEMENTS
National Association of
Wholesaler-Distributors
To advocate its members’ interests on national public policy
issues that affect the entire wholesale distribution industry.
NAW assists merchant wholesaler-distributors to be the
most efficient channel for bringing goods to market
through benchmarking, strategic management information,
networking, and high-level conferences. NAW serves as a
mechanism, through its Association Executives Council, for
the sharing of ideas, programs, and skills among the
organization’s member national associations.
NAW
Political Action Committee
To advance the election of pro-business candidates to federal
office. The NAW Political Action Committee seeks to mobilize
the involvement of wholesaler-distributors in the federal
electoral process through financial contributions and political
education activities, including candidate endorsements and
get-out-the-vote programs.
NAW Institute for
Distribution Excellence
To sponsor and disseminate research into strategic
management issues affecting the wholesale distribution
industry. The NAW Institute for Distribution Excellence aims
to help merchant wholesaler-distributors remain the most
effective and efficient channel in distribution.
To sponsor industry-wide service and product offerings that
benefit wholesaler-distributors.
•
fax: 202-785-0586
1
Leadership Message
2
State of the Wholesale
Distribution Industry
4
NAW Networks You
with Best-in-Class Peers
7
NAW Networks You
with Government and
the Electoral Process
10
NAW Networks You
with Industry Intelligence and
Educational Opportunities
12
NAW Networks You
with Business Services
14
Highlights from the
NAW 2016 Executive Summit
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NAW Member National
Associations
NAW
Service Corporation
tel: 202-872-0885
Contents
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16
NAW Member Associate
Associations
16
Treasurer’s Report
17
NAW Leadership
18
NAW Staff
e-mail: naw@naw.org
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web: www.naw.org
LEADERSHIP
MESSAGE
A
As this year’s Annual Report cover portrays,
NAW connects you with other leading wholesalerdistributors across the industry and across the country
so you can grow your business. If your company is an
NAW Direct Member, you can be assured that NAW will
remain your advocate so that wholesale distribution
can continue to be the most efficient and effective
channel in the supply chain.
Direct Membership in NAW provides real value to
your business in so many ways every day. To serve
your business and other NAW Direct Member
Companies, NAW
• advocates your interests before the government
• convenes high-level roundtables and conferences
where you and your peers across the industry
can roll up your sleeves and candidly discuss the
business challenges that keep you up at night
• delivers groundbreaking, distribution-specific
research studies and strategic management best
practices that can’t be replicated across multiple
lines of trade
• provides you access to leading-edge products and
services highly valued by your industry peers.
This Annual Report is in part a recap of the 12 months
past. But more important, it is full of ideas and promise
for the remainder of 2016.
On the following pages, we expand upon areas of
opportunity and engagement available to NAW
Direct Members, including:
• Best-of-the-Best Peer Networking
• Government Relations and Political Action
• Cutting-edge Industry Intelligence and Educational
Opportunities
• Cost-saving Business Services.
Manuel Perez de la Mesa
NAW 2015
Chairman of the Board
Manuel Perez de la Mesa, President and CEO of Pool Corporation,
(standing left) served as NAW 2015 Chairman of the Board;
Richard W. Schwartz, Chairman of the Board of Winsupply Inc.,
(seated) serves as NAW 2016 Chairman of the Board; and
Dirk Van Dongen is NAW President.
Within these covers, you’ll find many ways in which
NAW can assist your company so that you and your
team can reap the full benefits of NAW Direct
Membership. We’re adding and updating programs
frequently during the year, so we urge you to visit the
NAW website often at http://www.naw.org.
Please stay connected with NAW. We look forward to
working with you this year and beyond.
Richard W. Schwartz
NAW 2016
Chairman of the Board
Dirk Van Dongen
NAW President
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NAW 2015 Annual Report
1
State of the
WHOLESALE
DISTRIBUTION
INDUSTRY
T
Total Wholesale Trade for 2015 totaled
$5.35 trillion, a decline of 3.6% from 2014. Many
wholesaler-distributors saw the nominal dollar
value of their sales fall as lower commodity prices
for oil, metals, minerals, and food lead to lower
sale prices. Additionally, Wholesale Trade of
Machinery, Equipment, and Supplies turned negative
as raw material producers cut back on their capital
expenditures this past year. Despite these headwinds,
wholesaler-distributors added 61,000 new jobs in
2015. Average Wholesale Trade Employment was
5.9 million in 2015, up 1.1% from 2014.
The bad news was not universal across the wholesale
trade industry. Construction-facing segments, such
as Wholesale Trade of Construction Materials and
Wholesale Trade of Hardware, Plumbing, and Heating
Equipment, saw growth. Additionally, consumer-facing
segments, such as Wholesale Trade of Motor Vehicles,
Parts, and Supplies; Wholesale Trade of Furniture and
Home Furnishings; and Wholesale Trade of Apparel
all expanded over the past 12 months. The dichotomy
within Wholesale Trade is representative of the trends
we are seeing in the overall economy.
Figure 1: Key U.S. Industries Share of GDP
Finance20.0%
Manufacturing 12.1%
Health Care 7.1%
Wholesale Trade 6.0%
Retail Trade 5.8%
Construction 3.8%
Mining 2.6%
Wholesale Trade’s influence on the overall economy
is shown in Figure 1. The Wholesale Trade Industry
itself accounts for about 6.0% of the overall economy
(source: BEA). Additionally, wholesaler-distributors
are an integral part of the supply chain in other larger
sectors of the economy such as manufacturing, retail
trade, and health care.
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The U.S. Economy in 2016
The U.S. economy is growing, although the gains are
not coming from the industrial economy (Mining and
Utilities), but from the broader GDP measure as
demonstrated in Figure 2. That growth is thanks to
U.S. consumers; consumers are why more businesses
will be feeling the benefits of a stronger economy
the deeper we go into 2016. Please note from the
chart that it is normal for Total Industrial Production to
overswing the GDP data through business cycle highs
and lows. We will see Industrial Production overswing
on the upside during the apex of the positive phases of
the business cycle in 2017 as long as consumers stay
on track and keep on buying as they have been.
Housing Starts data are a positive sign of things to
come for GDP and Industrial Production. Starts in
the 12-month period ending in March are up 13.0%
from the same period last year. Consumers are in
good shape and that should keep Housing Starts on
the ascent. Wages are rising, as is employment, and
consumers should feel confident to make long-term
purchases like homes over the next two years.
The good health of U.S. consumers is evidenced
by the rising trend in Disposable Personal Income
(after-tax income). Data for the three months ending
in February is up 2.7% year-over-year. The average
Disposable Personal Income comparable growth rate
in the post Great Recession period is 1.8% (2010 to
date). As mentioned, employment is on the rise, as are
wages. Average Hourly Earnings for Wholesale Trade
Employees stood at $29.03/hour in February. This is
a record high and 2.2% ahead of the year-ago level.
Higher wages are great news when it comes to
consumer spending, which is the workhorse of the
U.S. economy. More people working, and more of
them with higher incomes, portend a stronger
economy later this year.
Figure 2: QUARTLERLY GROWTH RATES FOR
U.S. INDUSTRIAL PRODUCTION AND GDP
However, a stronger labor environment also comes
with potential threats. It will become increasingly
difficult to hire and retain the talent you need. HR
departments will become increasingly important in
efforts to grow profits. Higher wages will put pressures
on profit margins. Inflationary pressures are building,
which will likely presage price increases later this year
or in 2017.
In addition, the rate of rise in the Federal Reserve’s
money supply measurement, commonly referred
to as M2, suggests an even stronger rising trend
for Retail Sales in 2016. This is good news for
wholesaler-distributors selling to retail. The yearover-year growth rate is 5.4%. This is above the 4.9%
average the Fed has been running to bolster the
economy from 2009 to date. The M2 money supply
is the total supply of checking account balances,
cash, coins, savings account balances, traveler’s
checks, certificates of deposit, money market account
balances in the United States, and U.S. dollars on
deposit in foreign banks, deflated by the CPI. An
increase in the money supply means more money
typically finds its way into the hands of consumers and
that leads to faster growth in retail sales.
The industrial economy is facing
headwinds through the first half of
2016. While we do not expect a
substantial recovery in commodity
prices this year, we are projecting
some rise, particularly in the latter
half of the year. The strength of
U.S. consumers, coupled with an
accelerating manufacturing sector
will help lift prices in the second half
of this year.
The relative fortunes of wholesalerdistributors in 2016 will depend
greatly on what industries they
serve. Distributors more closely tied
to consumer and construction activity
should look to build inventory and
increase labor force to handle
increasing activity throughout the
year and into 2017. Wholesalerdistributors more closely tied to commodities
and mining will need to remain lean and efficient
to prevent prices from squeezing margins.
Consider investing in labor-saving technology
to keep labor costs in check as we anticipate
rising wages this year.
This article was written by Alan Beaulieu, NAW Senior
Economic Advisor, and President of ITR Economics;
and Jon Murphy, an economist at ITR Economics. For
additional information, please call 603-796-2500 or visit
http://www.itreconomics.com.
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NAW 2015 Annual Report
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NAW Networks You With
BEST-IN-CLASS
PEERS
A
AS A FEDERATION of associations representing
all lines of trade in the wholesale distribution industry,
NAW is uniquely positioned to be your gateway to
a wide and cooperative exchange of valuable
information and services among noncompeting
peers within the NAW membership. What makes
NAW so different from other associations are the
dynamic programs that are individually designed
to promote networking and benchmarking for you
and your peers across the entire industry.
Understanding wholesaler-distributors’ focus on
growth, profitability, and operational excellence,
NAW provides “best-in-class peer networks,”
which are designed to find innovative solutions
to today’s business problems. It is through these
NAW networking opportunities that wholesale
distribution executives can meet with and learn
from noncompeting peers. To learn more, visit
http://www.naw.org/memberbenefits/mindex.php.
Billion Dollar Company executives talk about the challenges and
opportunities they tackle every day in their business. Pictured are
Michael Flink, President–ADI Global Distribution, ADI (left); and
Chip Hornsby, CEO, Morrison Supply Co.
“
The NAW Billion Dollar CEO Roundtable delivers a
tremendous return on investing time and money!
This event provides great content and networking
opportunities within a very schedule-friendly
24-hour time period.
”
RICHARD W. SCHWARTZ
Chairman of the Board, Winsupply Inc.
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“
I have been attending the NAW Billion
Dollar Company CEO Roundtable for many years.
What makes these meetings unique is the chance to
learn how other companies are dealing with similar
strategy, policy, and operating issues. The agendas
are filled with current topics important to all
distribution executives, and the outside experts
who speak are very insightful.
”
JAMES T. RYAN
Chairman, President, and CEO, W.W. Grainger, Inc.
TArgeted Roundtables Promote
Networking and Benchmarking
NAW Members consistently rate “networking” and
“information sharing” with the best minds in the
industry as two of the most valuable benefits of
NAW Membership. To address the needs of the senior
executive leadership in specific sized companies is
why we created the Billion Dollar Company and Large
Company (companies with sales of $100 million to
$999 million) Roundtables. NAW Members consider
benchmarking and networking with noncompetitors
from other lines of trade as strategic tools to improve
efficiency and effectiveness while driving innovation
for their distribution enterprises. This is why you and
your peers rely on NAW events for practical, industrywide knowledge and information from experts in the
distribution industry.
Making the Most of Your
Valuable and Limited Time
Something wholesale distribution executives tell us they
have the least of is “time.” That’s why NAW events are
short and information packed so that a time commitment is minimal. There is enough time built in at NAW
events for both learning and networking in a friendly
setting that welcomes information exchange. Our Billion
Dollar Company and Large Company Roundtables are
held at the Hilton O’Hare in Chicago, which allows for
quick in-and-out access for roundtable participants.
The NAW Executive Summit, which is open to all NAW
wholesaler-distributors and other interested parties, is
held annually at the end of January in Washington, DC.
NAW Billion Dollar Company
Executive Roundtables
In 2015, NAW held 16 daylong events for the
most-senior executives from our Billion Dollar
Company Members. The programming in each
of NAW’s Networking Roundtables allows
industry executives to overcome today’s
business obstacles and tackle tomorrow’s
challenges. Our Members tell us they find our
unique and exclusive Roundtables invaluable
because they gain business intelligence and true
networking with peers who are not competitors.
In fact, many top executives from our Member
Companies tell us that NAW events are “burned
into their calendars” because of the ROI they
Pictured are Bill Mansfield, Senior Vice President of Sales and Marketing
receive from being an active participant. The
at Graybar Electric Co. Inc. (left); and Mark Kramer, President and CEO of
many opportunities and challenges within the
Laird Plastics.
distribution industry make NAW Roundtables a
desired destination among best-in-class Billion
Dollar Company executives. There are five semiannual Billion Dollar Company Roundtables and one
The Large Company CEO Roundtable is invaluable.
annual Billion Dollar Company CEO Roundtable:
It’s a great forum to share challenges, successes, and
• Billion Dollar Company CEO Roundtable
• Billion Dollar Company CIO Roundtable
• Billion Dollar Company CFO Roundtable
• Billion Dollar Company Chief Legal Officer
Roundtable
• Billion Dollar Company Operations Roundtable
• Billion Dollar Company HR Roundtable
To learn more about the Billion Dollar Executive
Roundtables, visit http://solutions.naw.org/events.
“
Any CEO will find great value in the NAW Large
Company CEO Roundtable because it gets you
away from your day-to-day work and gives you
the time to think. Learning from experts on topics
important to distribution CEOs as well as learning
from and networking with fellow distribution CEOs
from noncompeting companies who share the same
problems and have great ideas is invaluable. We
have a distribution community that can help each
other and add value for our companies. And, NAW
makes it all happen efficiently and at a high level,
both professionally and personally.
”
Bruce Zwicker
President and CEO, J.J. Haines & Co. Inc.
“
”
ideas with other leaders who face similar situations.
Aviva Leebow Wolmer
CEO, Pacesetter
NAW Large Company
Executive Roundtables
NAW Large Company Executive Roundtables (for
NAW Member Companies with sales of $100 million to
$999 million) attract wholesale distribution executives
looking to augment networking opportunities beyond
their traditional industry segment.
The NAW Large Company CEO Roundtable is the
leading event, and this Roundtable had record
attendance in 2015. The Large Company Community
has a vested interest in the Roundtable’s content, since
meeting topics are based on survey responses from
Large Company CEOs. This investment in content
selection ensures that Roundtable Members are fully
engaged in this Roundtable.
NAW also holds the Large Company CFO Roundtable,
which focuses on specific needs of CFOs and the
most-senior financial executives, and the Large
Company Operations Roundtable, which tackles
the pressing issues of improving warehouse and
logistics operations.
To learn more about the Large Company Executive
Roundtables, visit http://solutions.naw.org/events.
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NAW 2015 Annual Report
5
BEST-IN-CLASS
PEERS (continued)
“AskNAW”®: Bring the Value of Peer
Networking to Your Desktop
NAW Members can get answers to their unique
questions and glean feedback about issues affecting
their mission-critical projects by using “AskNAW”®,
a robust desktop resource. You may direct your
questions to specific-size firms and particular functional
area executives within a company. NAW keeps all user
information strictly confidential. AskNAW can provide
peer networking value to your corporate suite and
anyone on your executive team can use it.
“
I enjoy the opportunity to share perspectives
on common challenges and opportunities with a
talented peer group at the NAW Billion Dollar
CEO Roundtable.
”
RICK HAMADA
CEO, Avnet Inc.
NAW Direct Members who use AskNAW tell us it is one
of their most valuable “need-to-know” tools for getting
comparison data and real-time information beyond
their traditional lines of trade. To learn more, visit
http://www.naw.org/asknaw/ask_help.php.
Here are typical questions posed by distribution
executives using AskNAW:
•Please provide feedback on what you typically
experience in the amount of slow-moving inventory
(inventory in good condition that has not sold in the
last 12 months) expressed as a percent of total
inventory.
•Have you outsourced all or most of your IT
Infrastructure and Operations group? If so, did
you see service up and cost down? How much
cost down (0-10%, 10-20%, 20-30%)? Any regrets
or lessons learned?
•We intend to implement a distribution center
strategy for major markets and need a top-notch
industrial engineer/supply chain guru to help us
plan and successfully roll out our first DC. Any
recommendations for someone who “gets” the
challenge and details of a high-efficiency
distribution center?
•As a percent of sales, what is your firm’s marketing
department spend? This would include personnel,
website, branding, tradeshow, and other direct
marketing costs.
Discussion Roundtables for wholesaler-distributors are
considered by many attendees to be a favorite part of the
NAW Executive Summit program every year. Pictured far left
and going clockwise around the table are John Tracy, CEO,
Dot Foods Inc.; Marc Fern, Vice President of Sales and
Marketing, M Holland Co.; Jim McCool, Executive Vice President
and CFO, Bunzl Distribution USA Inc.; DeWight Wallace, CEO,
Johnstone Supply; Manny Perez de la Mesa, President and CEO,
Pool Corporation; Larry Stoddard, President and CEO, RelaDyne
LLC; and Bob Roberts, President, CEO, and Chairman, Roberts
Oxygen Co. Inc.
“
Dot Foods and our key management staff have
found great value from our NAW membership.
We find the many tools and reports to be very helpful
in running of our business. Hearing about NAW
representation on key issues in Washington has been
effective in our industry, and we’ve found the
Networking Roundtable topics relevant and a
great source of valuable information.
”
JOHN TRACY
CEO, Dot Foods Inc.
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NAW Networks You With
GOVERNMENT
AND THE
ELECTORAL
PROCESS
Your Voice in Our Nation’s Capital
A principal benefit of your NAW Direct Membership is the networking
NAW conducts on your behalf with the federal government. NAW engages the
legislative, regulatory, and judicial processes through direct and grassroots
advocacy, coalition leadership and participation, and participation in legal
actions in the federal courts. All of these efforts connect the wholesale
distribution industry with federal policy makers whose decisions impact the
everyday operations of wholesale distribution companies. To learn more, visit
http://www.naw.org/govrelations/gindex.php.
“
NAW’s rack of advocacy
positions makes the group a
lobbying clearinghouse for
Washington industry groups and
a key member of any pro-business
coalition inside the Beltway...
In recent years, the group has
become a behind-the-scenes
force in business policy debates
and major legislation...
DIRECT ADVOCACY
The mission of the NAW government relations team is to convey the wholesale
distribution industry’s views to the legislative and executive branches of the
federal government, and to identify opportunities for the advancement of
NAW’s federal public policy agenda. Despite a strengthened Republican majority
in the House and a functioning Republican-controlled Senate, opportunities to
advance NAW’s pro-business agenda during the First Session of the 114th
Congress were limited by two realities:
• a 54–46 Republican majority in the Senate that falls six votes short of the
60 votes needed to limit debate and complete action on legislation
• majorities in both houses that fall far short of the supermajorities
necessary (67 votes in the Senate and 290 votes in the House) to
override presidential vetoes.
Despite the continuing challenges presented by a politically divided government,
some legislative progress was made in 2015. Nonetheless, these hurdles—along
with an administration intent on “pushing the envelope” in exerting the
President’s executive authority—combined to require NAW to primarily focus
on restraining executive branch over-reach—that is, the Administration’s
regulatory activism and liberal use of executive orders to pursue its policy
agenda. The 114th Congress’ Second Session will present challenges similar
to those faced in 2015, further complicated by the dynamics of a Presidential
and Congressional Election year and a shortened legislative calendar.
”
CEO UPDATE
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NAW 2015 Annual Report
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(continued)
COALITIONS: USING THE STRENGTH
OF OUR INDUSTRY
NAW is a leader in organizing and managing
coalitions to address the wholesale distribution
industry’s national public policy priorities. Wholesale
distribution’s economic and political “footprint” is
national in scope: NAW-affiliated companies and
their employees are present in all 50 states and
435 congressional districts, a uniquely formidable
constituency when fully and effectively engaged.
When allied through NAW with other like-minded
organizations and their networks, the potential for
success multiplies several fold.
GRASSROOTS ADVOCACY:
CONSTITUENTS BACK HOME
SPEAK TO CONGRESS
Timely involvement in the legislative process from
wholesaler-distributors “back home” in the states
and districts of Senators and Representatives is
indispensable to the achievement of favorable
legislative results under the Capitol dome. NAW’s
principal grassroots advocacy tool is the Internetbased E-Alert Program through which NAW
communicates with senior management of both
NAW Direct Member companies and member
companies of cosponsoring NAW-affiliated Member
Associations. They, in turn, communicate with their
federal legislators on important issues moving through
the legislative process. Distributors can easily identify
appropriate federal legislators, conveniently craft a
written advocacy message to them, and deliver
it quickly when it is needed the most.
The Washington Action Network (WAN)
catalogs the personal relationships that
exist between individual wholesalerdistributors and Members of both houses
of Congress. WAN enables the NAW
government relations team to tap the
distribution industry’s top-level “grass
tops” contacts with Representatives and
Senators at the most critical points in
legislative initiatives. Participation in
WAN is also open to NAW Member
Associations that opt to cosponsor the
WAN program.
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“
”
NAW has exceeded my expectations and
is probably one of the best values for the money
that we’ve invested in a long time.
GOVERNMENT
W. GRADY ROSIER
President and CEO, McLane Company Inc.
POLITICAL ACTION: BECAUSE ELECTIONS
HAVE CONSEQUENCES
Pro-business legislative victories depend first and
foremost on having women and men in Congress
who will cast pro-business votes and lead on business
issues. The NAW Political Action Committee (NAW–
PAC) exists to make the presence of the wholesale
distribution industry distinctly felt in the political
process by providing distribution executives with
an important avenue for political action on behalf
of business-friendly candidates for the Senate and
House of Representatives.
NAW–PAC maintains both a Political Action Fund
(PAF) and a Corporate Political Education Fund (PEF).
The corporate contributions that PEF receives funds
wholesaler-distributor voter registration and get-outthe vote (“GOTV”) initiatives, enabling NAW–PAC to
contribute to federal candidates every cent of every
“hard dollar” that PAF raises.
PAF, which given its purpose, may accept only
personal money voluntarily contributed (individuals
may contribute up to $5,000 per year to a trade
association’s political action committee), will contribute
to as many pro-business candidates for federal office
as the provided resources will allow. NAW–PAC is
committed as always to the election of pro-growth,
pro-free enterprise candidates in the 2016 national
election cycle with the goal of strengthening the
pro-business majorities in both houses of Congress.
During a recent NAW Political Action Committee (NAW–PAC) dinner, U.S.
Senator Cory Gardner of Colorado greeted attendees. He is shown here
on the right chatting with Joseph Nettemeyer, President and CEO of Valin
Corporation (left). Also pictured is Rick McClure, Area Vice President of
Arthur J. Gallagher & Co.
POLICY AGENDA: SERVING
OUR MEMBERS’ INTERESTS
With Republicans controlling both houses
of Congress in 2015, the year started with
promises and hope that Congress would
no longer be mired in endless partisan
squabbles and gridlock and, that finally,
Washington was going to get back to work.
Unfortunately, the hope that the new
majority would immediately produce a
functioning government did not last long
and gridlock’s hold on Washington seemed
secure. Nevertheless, as 2015 came to a
close, the 114th Congress could chalk up
some major accomplishments, including
significant wins on issues important to
distributors and employers in general.
U.S. Senator Richard Burr of North Carolina (center) attended a recent
NAW–PAC dinner where he chatted with Andre Lacy, Chairman of LDI, Ltd.
(left); and Mike Medart, President and CEO of Medart Marine/Medart Engine.
While Congress again wrapped the entirety of Fiscal
Year 2016 spending into a single huge “Omnibus”
appropriations bill and passed a “Tax Extenders”
bill, enacting many already-expired tax provisions
retroactively to January 1, 2015, even these two
typically eleventh-hour bills contained some very
important provisions.
For a summary of the significant policy achievements
in 2015 that were important to the wholesale
distribution industry, review the year-end summary
here: http://www.naw.org/files/GR-Report.pdf.
RULEMAKING AND THE
REGULATORY AGENDA
Despite the Republicans’ success in the 2014 mid-term
elections, the Obama Administration continued in 2015
to pursue a regulatory agenda that adversely impacted
the ability of wholesaler-distributors to manage their
businesses as they see fit. Hundreds of new and
costly regulations were promulgated, with the most
aggressive assault launched again by the Department
of Labor and the National Labor Relations Board.
“
”
NAW’s political operation is vast and powerful,
tackling issues from health care reform to taxes.
THE HILL NEWSPAPER
In response to the regulatory threat in the labor area,
the Coalition for a Democratic Workplace, the business
coalition organized to oppose card check legislation
that NAW helps manage, committed extensive time
and resources to fighting the regulations and case
decisions that threaten employers’ ability to manage
their own places of business.
Closing out the NAW 2016 Executive Summit was
best-selling author, widely syndicated columnist, and
prominent political commentator, Jonah Goldberg,
who provided “An Insider’s Look at Washington and
the Presidential Landscape.”
NAW and many of our Member Associations have
lent their names to amicus briefs, court challenges,
and comments on rulemakings. NAW has also worked
with Congress on legislation and hearings responding
to the labor regulatory agenda.
While the complete list of regulations is too long to
cover in this Annual Report, you can find a detailed
report on the labor regulations and the NAW/Business
Community response here: http://www.naw.org/files/
WorkplaceRegs.pdf.
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NAW 2015 Annual Report
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NAW Networks You With
INDUSTRY INTELLIGENCE AND
EDUCATIONAL OPPORTUNITIES
N
NAW regularly connects you with the finest
industry intelligence about strategic business
management issues that all wholesaler-distributors
are challenged with every day. NAW offers a variety
of educational opportunities, including research and
trends studies, webinars, a weeklong leadership
program, an online leadership and training program,
ongoing educational consortia, a top news and trends
e-newsletter, and the NAW Career Center to reach the
best distribution talent.
NAW INSTITUTE FOR
DISTRIBUTION
EXCELLENCE
The NAW Institute for
Distribution Excellence
is a leading publisher of
research exclusively for
and about the wholesale
distribution industry. The NAW Institute conducts
research into strategic management issues with best
practice distributors, and we publish leading-edge
studies with practical application for wholesale
distribution firms of all sizes and across all lines of
trade. No other organization can replicate across
all lines of trade what the NAW Institute publishes.
To learn more, visit http://solutions.naw.org/
publications/.
2016 PUBLICATIONS
• NAW 2016 Employee Compensation Report
• Facing the Forces of Change®: Navigating the
Seas of Disruption
• Getting Results From Your Digital Investments
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COUNCIL FOR RESEARCH ON
DISTRIBUTOR BEST PRACTICES
The NAW Institute for Distribution Excellence and
Texas A&M University are engaged in an alliance
dedicated to further the understanding and application
of best practices in wholesale distribution. This alliance
created the Council for Research on Distributor Best
Practices (CRDBP). Its mission is to create strategies for
competitive advantage
for distributors through
development of research,
tools, and education.
The CRDBP organizes and
operates educational consortia on important business
topics for interested wholesale distribution companies
of all sizes and lines of trade. To learn more, visit
http://www.naw.org/crdbp/about.php.
The 2016 consortium is titled, “Optimizing Business
Analytics: Leveraging Data Analysis for Profitable
Decision-making.” To learn more, visit http://www.naw.
org/crdbp/analytics.php.
APOLLO/WESTERN INTERNATIONAL
UNIVERSITY NEW GENERATIONAL
LEADERSHIP
NAW—in partnership with Apollo Education Group and
Western International University—presents the Next
Generation Leadership Program—an online leadership
development program expressly designed to present
distribution leaders with very real opportunities for
growth and development. It is structured so that
current and aspiring leaders build important on-the-job
skills such as critical thinking, relationship building,
conflict resolution, and others. This program blends
independent, online learning with 1-on-1 coaching
and mentoring. What’s more, distribution leaders
enrolled in this program will use their companies as
the subject for their assignments and in doing so,
they’ll simultaneously apply their learning to the
growth and success of their business. To learn more,
visit http://info.naw.org/apollo-educationgroup-and-western-international-university.
NAW INSTITUTE WEBINARS
NAW CAREER CENTER
NAW Institute Webinars are a short-form method for
the association to share valuable industry information
with wholesaler-distributors of all sizes and lines of trade
on important topics of the day. Distributors tell us they
appreciate that NAW Institute Webinars feature industry
subject matter experts and are free, interactive, and
available for viewing live or via archived versions posted
on http://www.naw.org/institute/webinars.php.
Through the enhanced NAW Career Center, wholesalerdistributors can reach the best distribution talent. You
may post your jobs online quickly and easily, search the
resume database or set up alerts to be e-mailed to you,
and manage your applications and receive valuable
reporting information. To learn about the advanced
features and job-posting packages—including featuring
your jobs in NAW SmartBrief—visit the NAW Career
Center at http://careers.naw.org.
Recent webinars have covered these topics:
• “Reaping the Benefits of Invoice Excellence”
• “Realizing Revenue Growth and Profitability for
Wholesaler-Distributors”
• “Getting Results from Your Digital Investments”
• “Growth Strategy: Six New Pathways to Create
Shareholder Value”
Toward the end of 2016, in connection with release
of the NAW Institute for Distribution Excellence’s latest
Facing the Forces of Change wholesale distribution
industry trends research study, NAW will invite you
and other industry executives to participate in a series
of webinars covering the major topics featured in
the study.
You are also invited to advise NAW of topics you would
like to see become the subjects of future NAW Institute
Webinars.
NAW
SMARTBRIEF
NAW SmartBrief is a
smart way to stay on top
of wholesale distribution
news and trends. This
is a free e-newsletter that
nearly 27,000 distribution
executives depend on
for the latest industry
information and receive
four times per week.
Each issue contains
links to full-length
business strategic
management and trends articles that are geared to
wholesale distribution leaders. Sections cover Top
Industry Story, Operations and Technology, Sales and
Marketing, Hot Topics, The Business Leader, Policy
Watch, NAW Insider, and the NAW Career Center.
To sign up, visit http://www.smartbrief.com/naw.
NAW’S 2016 DISTRIBUTION PROGRAM
FOR RISING STARS
NAW’s Distribution Program for Rising Stars is an
exciting educational experience for anyone who
wants to contribute to the success of his or her
distribution company at an even higher level. NAW’s
2016 Program will be held June 13–17 at The Ohio
State University in Columbus. To learn more, visit
http://www.naw.org/risingstars16.
Distribution leaders get away from the office and
spend a five career-changing days reaching their
business potential while learning specific ways to
improve their companies’ profitability. In addition
to the valuable classroom teaching and exercises,
these high-potential leaders network with peers
from other lines of trade within wholesale distribution
and learn how their peers are tackling the same
business challenges that they face. Equipped with
new knowledge and the latest skills specific to the
wholesale distribution industry, these leaders return
to their companies ready to impact their business
now and for years to come.
During NAW’s Distribution Program for Rising Stars every
June, dozens of high-potential leaders come together for
one week of comprehensive study on the business of
wholesale distribution.
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NAW 2015 Annual Report
11
NAW NETWORKS YOU WITH
N
BUSINESS SERVICES
NAW networking also means connecting wholesaler-distributors with
business services that reduce their operating costs.
The NAW Service Corporation leverages the collective purchasing power of firms
across the wholesale distribution industry to find and offer high-quality business
services designed to meet the specific needs of wholesaler-distributors at very
favorable prices. To learn more, visit http://www.naw.org/busservices/bindex.php.
Health care Benefits and Business Insurance
NAW offers a program that brings innovative employee benefit, and property
and casualty insurance solutions to firms in the wholesale distribution industry
through its partnership with Arthur J. Gallagher & Co.
In 2014, NAW began a multi-phase pilot of the insurance program ahead of a
national rollout in 2016. Developed over an 18-month period, the program offers
your firm benefit solutions—including a private health care exchange option—that
incorporates unique products designed exclusively for wholesaler-distributors.
Participating companies will be able to provide their employees benefit options
that best suit their individual needs, while better managing the associated costs.
The NAW/Gallagher Program also provides you with property and casualty
insurance options typically available only to large companies. By leveraging
the power of Gallagher’s marketplace relationships, NAW offers custom
solutions to mid-market firms, which describes the vast majority of the nation’s
wholesaler-distributors.
Voluntary Workplace Benefits
The NAW/AFLAC (American Family Life Assurance Company) Program makes
products and services available to help you if your firm is struggling to control
health benefit costs while continuing to offer your employees benefits, so you can
continue to compete for and retain top talent.
By leveraging our Large Company base, NAW has secured a special benefits
program through Aflac that offers many employer services at no direct cost to the
employer and includes the following voluntary products:
• Life Insurance—Term, Universal (UL), and Whole Life
• Individual Short-Term Disability Insurance
• Group Critical Illness Insurance
• Accident Insurance.
The voluntary products are presented by a hand-picked benefits counselor and
come with Special Underwriting Features that normally are reserved for larger
companies such as competitive premium rates and more relaxed guarantee issue
guidelines and participation requirements.
The NAW/AFLAC Program products can also be found on the NAW/Gallagher
Private Health Care Exchange Marketplace.
12
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|
Financial Intelligence
Through the NAW/Cortera Program, you have access to the most accurate
information about customers and business partners. Cortera provides the
insights you need into your riskiest and most collectible accounts and lets
you pinpoint areas of growth. Cortera PULSE, the flagship product, lets you
see your entire customer portfolio through daily e-mail alerts.
It also shows you where there is growth within your existing customer base.
Cortera PULSE provides a powerful intelligence solution for wholesalerdistributors of all sizes.
Cash Management
Through the NAW/TransFirst Payment Solutions Program, you can gain access
to a much-improved payment processing system called TransFirst SmartPay.
SmartPay is a web-based solution that helps your firm process all your
ecommerce and on-line payments, to include credit cards, ACH and debit,
on the web, and over the phone. In addition, TransFirst provides you with
easy ways to begin taking eChecks; and to set up recurring payments, e-mail
invoicing, and potentially reducing the fees you pay by implementing Level 3
Security, which was mandated to begin in 2015.
Car Rental
Under the NAW/Hertz Business Account Program, enrolled firms receive special,
low NAW-negotiated rates. In addition, your company’s rental activity is tracked,
and your company will earn one Free Rental Day Certificate for every 15 days of
qualifying rentals—in effect, earning an additional discount. And, Hertz is offering
a one-year complimentary Hertz #1 Club Gold® membership for all employees
who travel using your company’s premier car rental service, a $50 annual value
per membership. Periodic mailings from Hertz will provide you with special
added benefits, such as one-car class upgrades.
Freight and Air Shipping
NAW understands the importance of keeping operating costs down, which is
why we are pleased to extend the NAW/UPS Savings Program to you. This
program is designed specifically to meet your shipping needs and offer a
savings solution that helps increase your bottom line.
This program offers more service options, superior ground delivery coverage,
more than 60,000 drop-off points, and overnight delivery by 10:30 a.m. to more
zip codes than any other carrier. You will enjoy the convenience of the same
drop-off location and the same driver for your air and ground packages, so
there is no need to separate your packages.
You will receive some of the most competitive rates available on shipping
services: up to 36% off UPS Air letters*, up to 24% off UPS ground shipments,
and 70%–84% off Freight LTL shipments over 150 lbs. Enrollment is easy and
there are no fees or minimum shipping requirements. Plus, you can receive
these discounts even if you have an existing UPS account.
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NAW 2015 Annual Report
13
Highlights from the
NAW2016
EXECUTIVE
SUMMIT
A
A strong showing of leaders from diverse wholesale distribution
lines of trade came together to Washington, DC, in late January for the
NAW Executive Summit. Many distribution executives attend every year to
discuss industry issues with each other and with other leaders in business,
government, and wholesale distribution.
The NAW 2017 Executive Summit will be held January 31–February 2, 2017,
in Washington, DC. For a detailed agenda when it becomes available, visit
http://www.naw.org/es17.
Here are highlights from the NAW 2016 Executive Summit. To see more photos
and view the speakers’ presentations, visit http://www.naw.org/es16.
A large audience was in attendance at the NAW 2016 Executive Summit.
Alan Beaulieu, President of ITR Economics,
delivered the NAW Economic Forecast for
2016–17, providing both a macro forecast for
the U.S. economy and a more focused forecast
for various parts of the wholesale distribution
industry. View Alan’s slides.
Meeting and developing business relationships with peers in wholesale
distribution is a key benefit of attending the NAW Executive Summit.
The NAW Political Action Committee (NAW–PAC)
dinner was well attended. Here guest speaker
Ed Gillespie, Former Chairman of the Republican
National Committee, (left) chats with George
Pattee, Chairman of the Board, Parksite Inc.
14
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|
Discussion Roundtables
were held on both days
of the NAW Executive
Summit, giving participants
ample time to share ideas
with noncompetitors on
key business issues facing
wholesaler-distributors.
Shown here are Nathan
Potter, CEO of DW
Distribution (left); and
Bill Christopher, Director
of Research and IT at Uline.
NAW MEMBER NATIONAL AND
INTERNATIONAL ASSOCIATIONS
American Supply Association.................................................. ASA
American Veterinary Distributors Association.................... AVDA
Associated Equipment Distributors........................................AED
Association for Hose & Accessories
Distribution (The)...............................................................NAHAD
Association for Manufacturing Technology (The).................AMT
Association of Pool & Spa Professionals (The)..................... APSP
Auto Care Association..............................................................ACA
Bearing Specialists Association................................................BSA
Business Solutions Association.............................................. BSOL
Ceramic Tile Distributors Association.................................. CTDA
Commercial Vehicle Solutions Network.............................. CVSN
Convenience Distribution Association...................................CDA
Copper & Brass Servicenter Association..............................CBSA
Door & Hardware Institute........................................................ DHI
Education Market Association................................................ EMA
Energy Equipment & Infrastructure Alliance.........................EEIA
Equipment Marketing & Distribution Association.............EMDA
Fertilizer Institute (The)................................................................ TFI
Food Industry Suppliers Association......................................FISA
Food Marketing Institute........................................................... FMI
Foodservice Equipment Distributors Association...............FEDA
FPDA Motion & Control Network (The)................................FPDA
Gases and Welding Distributors Association.................GAWDA
Global Market Development Center..................................GMDC
Health Industry Distributors Association...............................HIDA
Healthcare Distribution Management Association........... HDMA
Heating, Airconditioning & Refrigeration Distributors
International......................................................................... HARDI
Industrial Supply Association..................................................... ISA
International Association of Plastics Distribution................. IAPD
International Foodservice Distributors Association............. IFDA
International Sanitary Supply Association..............................ISSA
Irrigation Association.................................................................... IA
Material Handling Equipment Distributors
Association.........................................................................MHEDA
Metals Service Center Institute.............................................. MSCI
Motorcycle Industry Council.....................................................MIC
National Association of Chemical Distributors...................NACD
National Association of Container Distributors..................NACD
National Association of Electrical Distributors...................NAED
National Association of Flour Distributors, Inc................... NAFD
National Association of Sign Supply Distributors............NASSD
National Association of Sporting Goods
Wholesalers....................................................................... NASGW
National Beer Wholesalers Association............................. NBWA
National Fastener Distributors Association......................... NFDA
“
”
This NAW AEC meeting had real-world takeaways that
I can implement immediately. This was a first-class event!
Michelle McNamara
National Association of Electrical Distributors (NAED)
National Grocers Association................................................. NGA
National Insulation Association................................................ NIA
National Marine Distributors Association..........................NMDA
NIBA-The Belting Association.................................................NIBA
North American Association of Floor Covering
Distributors......................................................................... NAFCD
North American Association of Utility Distributors.........NAAUD
North American Building Material Distribution
Association........................................................................ NBMDA
North American Wholesale Lumber
Association, Inc..................................................................NAWLA
NPES The Association for Suppliers of Printing,
Publishing & Converting Technologies.............................. NPES
NPTA Alliance........................................................................... NPTA
Outdoor Power Equipment & Engine Service
Association Inc..................................................................OPEESA
Pet Industry Distributors Association..................................... PIDA
Petroleum Equipment Institute.................................................. PEI
Power Transmission Distributors Association......................PTDA
Professional Beauty Association...............................................PBA
Secondary Materials and Recycled Textiles
Association.......................................................................... SMART
Security Hardware Distributors Association....................... SHDA
Textile Care Allied Trades Association................................TCATA
Water and Sewer Distributors of America.......................WASDA
Wholesale Florist & Florist Supplier Association........... WF&FSA
Wine & Spirits Wholesalers of America, Inc.......................WSWA
Woodworking Machinery Industry Association................. WMIA
World Millwork Alliance.......................................................... WMA
“
As a first-time attendee, I felt the program was dollar
for dollar, one of the best values I’ve ever gained at a
conference. And that’s saying something since I’ve been
to a lot of conferences in my career across industries.
”
Kenyon Gleason
National Association of Sporting Goods Wholesalers (NASGW)
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NAW 2015 Annual Report
15
NAW MEMBER
ASSOCIATE ASSOCIATIONS
Associated Beer Distributors of Illinois................................ ABDI
Association of Ingersoll-Rand Distributors.......................... AIRD
AscdiNatd................................................................... ASCDINATD
Canadian Association for Pharmacy Distribution
Management.................................................................... CAPDM
Canadian Institute of Plumbing & Heating.......................... CIPH
Electro-Federation Canada, Inc............................................... EFC
Heating, Refrigeration and Air Conditioning Institute
of Canada............................................................................... HRAI
Maryland Association of Wholesaler-Distributors, Inc....... MAW
Midwest Distributors Association......................................... MDA
Mississippi Malt Beverage Association............................. MMBA
New York State Beer Wholesalers Association................NYSBW
North Central Wholesalers Association............................ NCWA
Ohio Association of Wholesaler-Distributors...................OAWD
Pacific Southwest Distributors Association......................... PSDA
Pacific-West Fastener Association .......................................PWFA
Southern Wholesalers Association........................................SWA
Western Suppliers Association..............................................WSA
Wholesale Beer Distributors of Texas................................ WBDT
Wholesale Beer & Wine Association of Ohio............... WBWAO
Wholesalers Association of the Northeast.........................WANE
Sharing discussions and gaining insights from other association executives are key reasons NAW Association Executives
Council (AEC) leaders come together for the AEC Winter and Summer Meetings each year. In the left photo are (left to right)
Lucinda Schofer of the National Association of Chemical Distributors (NACD), Ken Hutton of the Industrial Supply Association
(ISA), and Matt Rowan of the Health Industry Distributors Association (HIDA).
In the right photo are (left to right) Tim Shinbara of The Association for Manufacturing Technology, Deborah Hamlin of the
Irrigation Association, and Marti DeGraaf of the Energy Equipment & Infrastructure Alliance.
TREASURER’S REPORT: DECEMBER 1, 2014 – NOVEMBER 30, 2015
Revenue Total:
$7,380,000
NAW:
$6,224,000
Includes dues, publications, seminars, annual meeting, coalitions
NAW/SC:
$701,000
Includes health and business insurance, car rental, freight and air
shipping, cash management, other programs
NAW-PAC:
$325,000
Includes Political Action Fund, Corporate Political Education Fund
NAW Institute for Distribution Excellence:
$130,000
Includes contributions, publications royalties
Expenses Total:
$7,380,000
NAW:
$5,812,000
Includes publications, seminars, annual meeting, operations, provision
for reserves and government relations
NAW/SC:
$1,172,000
Includes health and business insurance, car rental, freight and air
shipping, cash management, other programs
NAW-PAC:
$251,000
Includes candidate contributions, operations
NAW Institute for Distribution Excellence:
$145,000
Includes project grants, operations
Patrick L. Larmon, NAW 2015 Treasurer
16
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|
NAW LEADERSHIP
NAW 2016
BOARD OF DIRECTORS
Chairman of the Board
Richard W. Schwartz
Winsupply Inc.
Chairman-Elect
John Tracy
Dot Foods Inc.
First Vice Chairman
Joseph C. Nettemeyer
Valin Corporation
Second Vice Chairman
George Pattee
Parksite Inc.
Immediate Past Chairman
of the Board
Manuel Perez de la Mesa
Pool Corporation
Secretary
Douglas W. York
Ewing Irrigation Products
Chairman, Subcommittee
on Budget and Finance,
and Treasurer
Dan M. Blaylock
Adams-Burch, Inc.
Chairman of the AEC
Matthew J. Rowan
Health Industry Distributors
Association
Chairman-Elect of the AEC
Talbot H. Gee
Heating, Airconditiong &
Refrigeration Distributors
International
Past Chair of the AEC
Nancy Cueroni
National Marine Distributors
Association
Outdoor Power Equipment &
Engine Service Association
NAW 2016
POLITICAL ACTION COMMITTEE
BOARD OF DIRECTORS AND OFFICERS
Chairman
James K. Risk III
Kirby Risk Corporation
Andre B. Lacy
LDI, Ltd.
William A. Parsley
Carswell Distributing Company
William P. “Bob” Roberts III
Roberts Oxygen Co. Inc.
Robert Taylor
Do it Best Corp.
Raymon A. York
Ewing Irrigation Products
Secretary and Executive Director
Jade West
National Association of
Wholesaler-Distributors
Treasurer
Dirk Van Dongen
National Association of
Wholesaler-Distributors
•••
NAW–PAC General Counsel
George W. Keeley
NAW 2016
INSTITUTE FOR DISTRIBUTION EXCELLENCE
BOARD OF DIRECTORS AND OFFICERS
Chairman of the Board
Ron Calhoun
The Palmer-Donavin Mfg. Co.
Vice Chairman
Patricia A. Lilly
Security Hardware Distributors Association
The FPDA Motion & Control Network
Wholesale Florist & Florist Supplier
Association
Tim Buche
Motorcycle Industry Council
Talbot H. Gee
Heating, Airconditioning & Refrigeration
Distributors International
Victor R. Jury, Jr.
Summit Electric Supply Co. Inc.
Kevin Kampe
Womack Machine Supply Co.
Jeff McLendon
U.S. Lumber Group
Michael Medart
Medart Marine/Medart Engine
Thomas Naber
National Association of Electrical Distributors
George Pattee
Parksite Inc.
Joseph S. Poehling
First Supply LLC
Larry J. Stoddard
RelaDyne
Ralph Suppa
Canadian Institute of Plumbing & Heating
Joseph M. Thompson, Jr.
The Association for Hose & Accessories
Distribution
Douglas W. York
Ewing Irrigation Products
Bruce Zwicker
JJ Haines & Co. Inc.
•••
Executive Director
Ron Schreibman
National Association of
Wholesaler-Distributors
President and Treasurer
Dirk Van Dongen
National Association of
Wholesaler-Distributors
Secretary
George W. Keeley
Keeley, Kuenn & Reid
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NAW 2015 Annual Report
17
About
NAW
The National Association of Wholesaler-Distributors is composed of direct
member companies and a federation of international, national, regional, state, and local
associations and their member companies, which collectively total more than 30,000 companies.
NAW
Staff
Jim Anderson
Vice President–Government Relations, NAW
Political Director, NAW–PAC
janderson@naw.org
John Peter
Senior Vice President–Corporate
Relations, NAW
jpeter@naw.org
Tamela Blalock
Senior Director–Members Services, NAW
tblalock@naw.org
Ron Schreibman
Senior Vice President–Strategic
Direction, NAW
Executive Director, NAW Institute
for Distribution Excellence
rschreibman@naw.org
In addition to its government relations program, NAW’s scope encompasses the activities
of the NAW Political Action Committee, the NAW Institute for Distribution Excellence, and
the NAW Service Corporation.
Shawntay Charles
Administrative Assistant–
Membership Administration, NAW
scharles@naw.org
Anthony Simone
Vice President/General Manager,
NAWSC
asimone@naw.org
Tara Clark
Receptionist, NAW
tclark@naw.org
Denise Smith
Computer Operations Assistant, NAW
dsmith@naw.org
Beth Rivera Cruz
Vice President/Controller, NAW
bcruz@naw.org
Joy Goldman
Vice President–Administrative Services, NAW
Manager–Government Relations, NAW
Manager–Internal Operations, NAW–PAC
jgoldman@naw.org
Susan Hodge
Manager–Computer Operations, NAWSC
shodge@naw.org
Mary Ann Thompson
Senior Accountant, NAW
mthompson@naw.org
Dirk Van Dongen
President, NAW
President/Treasurer, NAW Institute
for Distribution Excellence
President, NAWSC
Treasurer, NAW–PAC
dvandongen@naw.org
David Mikulka
Manager–Mailroom Operations/
Printing Services, NAW
dmikulka@naw.org
Tara Mostatab
Communications Manager, NAW
tmostatab@naw.org
Jade West
Senior Vice President–Government
Relations, NAW
Executive Director, NAW–PAC
jwest@naw.org
Thuy Nguyen
Senior Accountant, NAW
tnguyen@naw.org
Wendy Pasley
Office Assistant, NAW
wpasley@naw.org
Ruth Stadius
Senior Director–Communications, NAW
rstadius@naw.org
1325 G Street NW, Suite 1000
Washington, DC 20005-3134
Tel: Fax: E-mail: Web: 202-872-0885
202-785-0586
naw@naw.org
www.naw.org