Fastenerblog.net

Thanks to the records of Mike McGuire, I was able to recall the dates of the Columbus Fastener Show in 1986, my first day working in the fastener industry.  Today is my 30th anniversary.  Good ride so far.

Although, I did work a summer during college at All Pro Sales in Cleveland, Ohio before that, but then I went back to school.  I still frequently see Joe Tomoro of Hodell-Natco who shared an office with me back then… must have been about 34 years ago.  We’d go to lunch and play Galaga and Centipede and other “video games” and then rush back to the office to tell our customers that our shipments from Japan (yes, Japan) had not arrived yet and we had to backorder.  But, after the summer at All Pro I went back to school, took some other jobs before I ended up back in the fastener industry for good on May 19, 1986.  I had hair then and I weighed less.  But I did not know squat about hydrogen embrittlement.  I still don’t know a lot about it but I now have friends like Carmen Vertullo and Eric Dudas, so I’m covered.  And I still talk on a semi-weekly basis with Rick Rudolph who was was of the first sales managers I worked with 30 years ago when he was with Precision Socket.

I’ve got a table top show to go to tomorrow and calls set up with Don Shan next week so I guess I’m moving on to the next 30 years.  And, I still have Bill Robb and Jackie Ventura calling on all my customers so I’ll never be ever to let my guard down.  Hats off to those people who continue to do what they are supposed to be doing.

Right after I hit publish another funny thought came to me.  On that 1st day, 30 years ago, none other than Rich Cavoto of Metric & Multistandard was working in the booth next to me (I was in the Chicago Hardware booth).  30 years later we are working together and he just celebrated 36 years in the industry.  Funny world!

Trying to get a handle on the current state of affairs in the fastener marketplace is no easy task these days.  There are a few constants in the market that are easy to point to.  Oil & Gas, Big Truck and Agriculture are down.  Coal is way down.  Aerospace and the Auto Industry have been pretty good but then someone from the IFI told me that Aerospace has come down a bit.  An industry friend who attended a recent IFI meeting shared with me that their guest speaker, an economist, told them that the fundamentals of our economy are solid and we can expect growth later in the year (at least I think that is pretty much what he told me).  Some people are down significantly, some are just flat, others are up just a bit.  But nothing seems to be easy these days.  Unless you are winning over some new business that maybe you’ve been working on  for a while, then you might be doing pretty good.  There is some amount of that being reported.  But I do not have very many people telling me, “yeah, my customers are cranking and business is up from last year”.  Just not hearing it.

On some Fridays I like to use Twitter to send out a message to people from getting some feedback from across the country.  On Friday,  people checked in from California,Texas, Nebraska, Missouri, Illinois, Ohio, Michigan and some other areas.  It is not exactly a scientific poll but you do get some feedback.   And the word is pretty much the same across the country.  Sales are pretty flat.

The presidential elections are not worth writing about other than to say be still have, potentially, the most diverse group of candidates one could imagine all still battling to tell their versions of reality.  And, we are just a few months away from finding out who the final candidates will be.  Regardless of who wins the election, it is clear that a huge number of people will be unhappy, angry and think the world is going to hell.  The schism between the far left and the far right is just incredible and there are a bunch of people in both camps or else we would still not be looking at this group of candidates.  Cooperation and team spirit are no part of this year’s election.   There does not seem to be much of a “middle” where Americans would be able to come meet and work together.  Not sure what all this does to our economy but, eventually, we nut and bolt sales people will be affected somehow.

Acquisitions are the one thing that seems noteworthy and causes people in the fastener industry to talk.  Wurth buying House of Threads is probably the largest acquisition of note so far.  It’s interesting to note that lately I have heard the names Holokrome and Cardinal being referred to by fastener distributors.  These two companies were acquired by Fastenal and yet Fastenal seems have them running separate from the multi branch Fastenal we have thought of for years.  I guess what I am saying is that I thought fastener distributors might be more reluctant to buy from these two companies as they are owned by one of their largest competitors, but someone is doing a pretty good job of marketing them under their original names.  I hear distributors tell me they are quoting Cardinal or Holokrome and they do not seem to be bothered by the connection to the mother ship.  Please understand, this is just an observation and not a judgement.  Everyone should do whatever is best for their own company and an awful lot of product is bought and sold between competitors.  I just think Fastenal is doing a pretty good job marketing separately under these names and it makes me wonder if they would not be looking to acquire more companies from the supply side rather than the distribution side.  I wonder who had the vision to think they could pull that off.

Just started a book called “Anticipate – The Art of Leading By Looking Ahead”.Have not got too far but there are a few lines on the inside book cover that I’ll share:

“It boils down to one word – vision.  Leaders who lacked it have often guided their companies to obsolescence and failure.  The rare leaders who cultivated a strong vision have disrupted industries, created new ones, and remade the world.”

So, who’s got vision in the fastener world?

I saw that on Twitter this morning.  Those are a couple fastener industry legends.  Made me think — who would be in the fastener industry “60 over 60”?

I know out of my area, Bill Robb would be near the top of a lot of people’s lists.  Got any others?

http://fastenerblog.mayhem.cbssports.com/e?ttag=BPM16_cpy_invite_returning

Want to get into one more bracket??

Since my last post about the Fastener Hall of Fame bricks, I’ve got a lot of suggestions and comments about what to do with the bricks as well as with the HOF in general.  In no particular order, I’ll share some of the feedback.

A few people have requested the bricks either for themselves or for their relatives or friends.  One person said they’d like it as a bookend if nothing else.  The challenge with that route is that the HOF bricks would never be laid in the ground together again as they had been in Columbus.

Some have suggested that new bricks should be engraved for the the recent HOF inductees who never got bricks.  Several people have said they would like to see the bricks displayed at the entrance to the National Fastener Show in Las Vegas.  Suggestions have been made to find a new home for the bricks with a few people suggesting the IFI building as a good landing spot.  The problem is I believe this is a rented property.  The IFI home is not a permanent space.

One fastener veteran whose father was inducted to the HOF offered to put the bricks on his property which his family has owned for decades.

So, there was plenty of talk about the bricks, but a lot of people had other comments about the Hall of Fame itself, and not just about the bricks.

A few people lamented that there is no longer a “fastener museum” like the one Mel Kirsner built up before it was destroyed in a fire.  People suggested the bricks belong in a fastener museum.  Others would like to see an online fastener HOF developed where information could be displayed on each of the inductees explaining what it was that caused them to be selected for the Hall.  If this were done, then pictures of the bricks could be posted online and then perhaps the bricks returned to inductees or their families.

Several people expressed interest in a mobile HOF display that could be transported to the Vegas Show or other industry events upon request.  Maybe the display would include name plates or something to identify the inductees.

Whatever ends up happening, I would like to see some associations involved either in returning the bricks or finding a new home for them.  If the bricks get returned to individuals, I’d like to see Hall of Fame nights coast to coast where attention is given to the members who are still around.  If the bricks get placed in a new location, again, I’d like to see a celebration of sorts.

Emerald Expositions has asked the Fastener Industry Coalition to get involved with selecting this year’s Hall of Fame inductee.  I think the Fastener Industry Coalition would also be a good group to coordinate a campaign to determine what should be done next with the Hall of Fame bricks.

A few years ago I wrote a piece about the Fastener Hall of Fame. For a few years, they had not inducted anyone and I wrote a blog about that topic.   In response to that post I was notified that the HOF was alive and well and was also informed that there was a physical Fastener Hall of Fame walkway in Columbus, Ohio next to the Columbus Convention Center where the Fastener Show had been held for years.   For the record, he Hall of Fame has inducted new members in both 2014 & 2015.  So, being a student of the fastener industry, I decided to make a pilgrimage to the HOF and see what was there.  In December, 2015  I set aside some time to track down the HOF walkway and took some pictures, some of which are shown below.

While I was visiting the site a construction worker told me that they were doing a lot of work in that area and he was pretty sure they were going to be removing the Fastener Hall of Fame pavers as they expanded the Convention Center.  I called the Columbus Convention Center and, sure enough, they confirmed that the HOF walkway was going to be removed.  I left them my name and asked that they call me to let me know when this would be happening.  I never heard back so I made contact again in January, 2016 and I was told that the bricks had been removed and were sitting in a wooden box on a pallet.  The Fastener Hall of Fame had been removed and they had no idea what to do with the bricks.  I told them that if they did not have anyone to claim them that I would welcome the opportunity to retrieve them.  In mid-January, I was sent an email saying if I wanted to pick them up I could take possession of the bricks.  With the help of a few industry friends, we did just that.

The Hall of Fame pavers are in safe storage until a suitable site can be found for them.  For an audio account of the “Saving of the Hall of Fame” adventure, please visit www.fullythreaded.com and listen to the upcoming Episode #102 to be broadcast on Thursday, February 18.

Here’s a few shots from my visit to the Hall of Fame walkway December, 2015, before I was told they were being removed:

And here is what the same site looked like in January, 2016 when we went to retrieve the bricks:

So, here’s a little walk down memory lane for those of you who were never able to make it to THE Hall of Fame!

Yes, this one was put in upside down.

And, thank you to Fastener Field Trip Team who helped to retrieve the HOF brick pavers that came very close to being discarded:

Again, the Hall of Fame pavers are in safe storage until a suitable site or plan can be found for them.  For an audio account of the “Saving of the Hall of Fame” adventure, please visit www.fullythreaded.com and listen to the upcoming Episode #102 to be broadcast on Thursday, February 18.

We contacted the National Industrial Fastener & Mill Supply show operators to inform them that the Hall of Fame had been removed from its original location and received this response from Karalynn Sprouse of Emerald Expositions:

“We just learned yesterday of this news and we are thrilled he was able to ‘save the bricks’ ….we would like to ask the listeners (of Fully Threaded Radio) to suggest ideas for the bricks.  Emerald is listening and we will continue to find ways to commemorate these innovative people in our industry”

Back in a safe place, the bricks have been sorted and cleaned.

To see a complete list of who is in the fastener hall of fame, click below:

http://www.fastenershows.com/hall-of-fame-members/

I got an opportunity to hear the Young Fastener Professionals (YFP) present their case study at the North Coast Fastener Association (NCFA) meeting last evening.  The presenters included Ryan Kertis of Stelfast and Cory Facemire and Kristen Kessler of NSK Industries, a distributor in Northeast Ohio.  I spoke with numerous people after the presentation and I am happy to report that it was a great success. Attendance at the event was somewhere between 45-50 people.

The presentation lasted between 30-45 minutes and had a great deal of data to go along with the talking points.  Perhaps the most interesting part of the presentation was the question & answer session immediately after.  Millennials do not get to do presentations without getting some push back from “older” or legacy employees of our industry.  Questions came up on whether or not millennials were “job hoppers” that could not be counted on to stay committed to a company once they were trained.  The presenters did a very nice job of responding and even got some support from other millennials who were in attendance to hear the presentation.   One audience member made the point that, as an employer,  he did not really care about the needs and wants of millennials versus any other generation.  The presenters skillfully turned the table saying, “that’s fine, but what if a millennial is now your customer and not your employee.  Do you care what they think then?”  The answer was, “of course” and the point was made.  The millennial employee will also be the millennial customer so it is worth taking note of what motivates them.

At one point in the presentation, the presenters even poked fun at themselves a bit.  The results of one survey question suggested that while millennials do like to part of a team, their generation wants personal feedback and they want to be personally recognized for a job well done.  Both Kertis and Facemire concluded with smiles that the data suggested “it’s all about me, me, me”.  While that might be a turnoff to one generation, it also is good information for employers of millennials.  Make sure to provide feedback to your younger employees and do not assume that they get the big picture.  They want to know mores specifically how what they are doing fits into that “big picture”.

At one point during the presentation, Kertis held up his cell phone and said, “I do everything with this.  I text, email, shop, call, make appointments,  schedule…everything.  And I always have it with me”.  While a lot of us use cell phones for a lot of different things, his comments hit home as many of us watch our own kids tethered to the cell phone.  Their generation embraces it completely.

I know the YFP will be presenting their survey results at several other association meetings.  I would encourage anyone who can to attend.  Even if you are not a millennial.

Last week I was sent the January update on the Fastener Distributor Index (FDI):

“The Index took a hit during the month, which was widely expected by many industry operators.  The FDI dropped to 45.6 in January versus 50.8 in December, seasonally adjusted.”

Within a couple days of getting that notification I was sent this story from Industrial Distribution:

“Fastenal – No. 12 on Industrial Distribution‘s 2015 Big 50 List – posted its January 2016 sales figures on Wednesday, and its numbers may provide a glimmer of hope in an otherwise gloomy past year of earnings reporting for large industrial distributors.

The Winona, MN-based company posted January sales of $308.4 million, a 3.3 percent daily sales increase over January 2015. This marks the first month of year-over-year sales growth for Fastenal since August 2015, when it grew 1.6 percent. December 2015’s total sales were $286.6 million.

Fastenal’s previous four months posted yearly sales declines, each bigger than the last:

• December 2015   -3.8 percent
• November 2015   -1.1 percent
• October 2015   -0.8 percent
• September 2015   -0.3 percent
• August 2015   +1.6 percent”

The Fastenal data suggests they had a bump in January after some pretty slow months at the end of 2015.  Again, Fastenal is just one company but out in the fastener marketplace a lot of companies have suggested that January started off very strong, oil & gas being the possible exception.  And, even with oil & gas, there is still be some activity.  Unfortunately, many start up companies or new branches of oil & gas focused suppliers will close due to the decrease in oil prices. But, not all oil production will cease completely.  There will just be a large bubble burst.  More worrisome is the debt that will come due to all the banks that loaned large amounts to the frackers and drillers, but that is another whole topic.

Getting back to fasteners, I wonder if the FDI somehow gets respondents reacting to recent stock market plunges and business sentiments from the end of 2015.

I think the FDI is an interesting measuring tool and could serve our industry well, especially if more companies took the five minutes needed to respond to the few simple questions. Fastener associations and STAFDA pay large amounts to get reports from economic forecasters and I am told the information is  highly valued and often accurate.  It makes me think we could do a better job mining our own information and sharing it with all our industry.

At the end of my email note regarding the FDI was the following information worth passing along:

NOTE: Beginning in January, we are attempting to have all survey data in to BB&T before the first of the month.  They have asked us to do this to more closely publish FDI results with PMI results.  While this is a minor shift for survey respondents, and a small inconvenience for some, I hope everyone will recognize the importance of timing our index with the PMI and appreciate your accommodation to make this happen.

For additional information, and to register for FDI participation, see the FDI website at www.fdisurvey.com, or contact Eric Dudas at [email protected].     

Somebody sent this to me.  My wife and I took it as well as my 24 year old son.   Pretty dead on.

http://www.pewresearch.org/quiz/how-millennial-are-you/

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