STAFDA State of Industry Address: Economic Uncertainty is the Problem in 2010
FEATURE
STAFDA State of Industry Address: Economic Uncertainty is the
Problem in 2010
Robert Devers
Editor’s Note: The following are excerpts from STAFDA president Robert Devers’ State of the Industry address at the 34th annual convention. More of the speech will be in the next issue of FIN.
Uncertainty about the economic recovery and the U.S. housing industry leads the concerns of Specialty Tools & Fasteners Distributors Association members, Robert Devers said in the annual president’s State of the Industry address.
The “Great Recession” which started in 2007, officially ended in June 2009 based on a slight improvement in gross domestic product rising slightly for the second quarter in a row ended the 18-month recession.
But Devers, executive vice president of Jacksonville, FL-based A-Jax Company said “continued economic weakness has raised questions about the recovery’s sustainability.”
“The recovery is not being pulled along by housing, and other components of growth are still stagnant as consumers worry about credit and jobs,” Devers observed.
The gulf oil spill, Europe pulling back from expansionary efforts and the drop in the Credit Managers Index, has left management uncertain.
“In the past, housing has helped the economy rebound from recessions, but with limited demand in the current housing market, another industry needs to emerge as the savior and right now, it doesn’t seem like any are able to step up,” he observed.
Corporations are reportedly holding $1.8 trillion in cash “because they are not comfortable hiring freely and making major investments,” Devers said.
States have been slower than expected in distributing $787 billion in stimulus money.
All this leads to uncertainty for STAFDA distributors.
“Most STAFDA distributors would agree that business can show signs of improvement one month and turn stone cold the next,” Devers finds.
“During this slow recovery period, it’s easy to feel like there isn’t much you can do to improve your business,” Devers said.
“But there are things we can do,” he said in encouraging STAFDA members to promote health programs and community activities.
Devers advocates wellness programs such as smart vending machines, weight loss challenge and gym membership discounts.
Devers began a healthier lifestyle starting with a gym membership leading to 5K runs and advancing to full marathons and triathlons.
“Having a can-do attitude from taking on an athletic challenge can carry over to how they perform their jobs.”
Devers also advocated working on personal and business relationships. “There are a lot of people who have been displaced, laid off or downsized by the economy. They are hurting but so are the remaining employees.”
Due to “layoff stress” productivity for remaining employees can actually decrease.
Devers urged increased commitment for training, communication and personal development. “Just think how far ahead of the curve your company will be when things do turn around based on the investment you’re making in relationships right now.”
family: verdana, geneva;”>Finally, Devers encouraged employee volunteerism in their community. “In today’s trying times, don’t pull inward – stretch outward.”
A-Jax, founded 37 years ago by David Baker and Mary Anne Baker as a nut and bolt distributorship, has evolved to a stocking distributor of many STAFDA lines for MRO, OEM, commercial, construction, military, utility, power generation and transportation markets.
“For years, the owners of A-Jax have tirelessly dedicated their personal and professional lives to serving others in need,” Devers said. “It’s become a company culture at A-Jax.” ©2010 GlobalFastenerNews.com
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• STAFDA
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