Insight

NFDA is a non-profit trade association serving the North American fastener industry. Here Doug Ruggles (Martin Supply), who is 2019/20 NFDA president, and Adam Derry (Field), who is 2020/21 NFDA president, discuss how Covid-19 has impacted the North American fastener market.

Today, NFDA represents over 150 companies in the Americas, which includes professionals throughout the fastener industry. Both distributors and manufacturers – whose businesses range in size from small family firms to large multinational corporations – have found that NFDA’s services and benefits provide them with opportunities that are unequalled and unavailable anywhere in North America.

Since 1968, NFDA has worked to enhance, improve and solidify the profitability of its members and to help them thrive in a global marketplace. Its members regularly participate in and receive current compensation, employee benefit analysis and individualised profit planning reports, each designed so they can compare their firm with others, locally and nationally.

NFDA also provides a variety of opportunities to train and educate both the leaders of fastener companies, as well as their employees. Networking and industry discussions play a crucial role in the association and opportunities to meet with industry peers and network are routinely available.

Since the Covid-19 pandemic, NFDA has moved this training and education to online and virtual meetings to ensure its members are kept up to date with the latest details and information. This included a webinar featuring Brian Beaulieu of ITR Economics with a very low registration fee, to encourage participation. This webinar also featured virtual roundtable/small group discussions.

The NFDA has also set-up a page on its website for curated information about the virus and its effects on running a business, as well as information on government programmes to assist business. This page is updated at least daily and also includes tips, tricks and best practices.

As for the impact on the sector, most distributors are reporting to be off their Q1 and LY run rate of 12% – 18% in sales. Those connected to the automotive industry are obviously impacted to a greater extent, as well as those connected to oil and gas industries. Members are also finding it difficult to connect with new customers and obviously developing and auditing new suppliers will be difficult. Regarding existing customers, some are delaying payments and/or asking for cost reductions to help conserve cash.

Most progressive distributors have stayed in constant connection with their customers, their teams, and suppliers, via electronic means, like Zoom, FaceTime, etc.

Long-term, sales people inside and outside will incorporate the use of video conferencing for some of their meetings instead of travelling for in-person meetings. This means that whilst face-to-face will not be replaced, it will be altered.

Another change has been working from home, which has proven a successful option for some jobs. More of this will shift completely, but most likely it will be a hybrid model of working from home and working in the office. Covid-19 is forcing us all to get creative and find ways to get the job done. It will be interesting to see the long-term implications in terms of how people view travel, commuting, and working remotely.

Going forward, NFDA will need to fine-tune its membership benefits, especially the tangible benefits that can improve profitability, to ensure it is providing what members need to thrive in the global marketplace. The association will also need to regularly adapt its services, especially in-person virtual/online learning, to maximise value for members. It is about identifying what members value most from the association and making sure it is maintained and improved.

www.nfda-fastener.org