Report 2023 features the latest information you need to stay informed and expand your knowledge of the constantly evolving AM industry.
The 28th annual report takes a deep dive into the growth of the additive manufacturing (AM) industry, with insights from 10 industry sectors.
Wohlers Associates, powered by ASTM International, announced the release of Wohlers Report 2023. This year’s report takes a deep dive into the growth of the additive manufacturing (AM) industry, with insights from 10 industry sectors. New content includes an examination of large format AM applications, including aerospace and construction, as well as a look at the growing number of AM standards and codes.
“The AM industry is continuing to expand into end-use production applications,” said Terry Wohlers, head of advisory services and market intelligence at Wohlers Associates, powered by ASTM International. “This trend will grow as standards are further developed and adopted. AM is delivering larger and more critical parts across multiple industry sectors.”
Wohlers Report 2023 shows an overall worldwide growth in AM products and services of 18.3%, continuing a trend of double-digit AM industry revenue growth in 25 of the past 34 years.
This year’s report also features intelligence from industry experts in 35 countries, with expanded coverage of Argentina, the Czech Republic, and Greece. Research and development activities are covered in detail, and the following new topics are initially explored in this issue:
Recycling and the circular economy;
Point-of-care additive manufacturing in healthcare;
Opportunities and challenges associated with metal binder jetting;
Attracting younger workforce into additive manufacturing; and
Expanded discussion of investments and startups.
An expanded section offers insights on the future of AM, including thoughts on automated production, emerging applications, workforce development, and more. Input on the report was gathered from 119 service providers, 128 manufacturers of additive manufacturing systems, and 28 producers of third-party materials. Wohlers Report 2023 draws on the expertise of a worldwide network of experts as well as nearly three decades of data and market intelligence, creating a thorough picture of AM activity across the globe.
Wohlers Report 2023 is a tool for education and information as well as a barometer of the AM industry’s health and growth. Readers new to AM will gain a comprehensive understanding of the industry and technology, while AM veterans will benefit from the up-to-date information on growth, trends, and the latest and most important developments.
Rethink Your Employee Value Proposition: A Modern Approach to Employee Engagement in Distribution. Nearly 90% of distribution leaders believe we must reimagine our traditional employee value proposition (EVP) going forward.
Those are the results from our soon-to-be-released Future of Distribution research.
When it comes to our workforce, it’s clear we are in the midst of change – one that includes shifting demographics and evolving values. A collision of external forces brought on by the pandemic, internal forces on how we run our businesses, and people forces that compel us to take a closer look at humanity.
“The Great Redefinition” has led to EVERYTHING being redefined:
How customers buy
The needs of employees
How we market our business
How we communicate with one another
Technology adoption and integration
How, when and where we work
It’s why organizations that want to remain relevant must pay close attention to the changing needs of their people and the market.
Margie Rodino, Chief Culture Officer at Robert Weed Corp gets it.
“You have to meet the people where they are.”
I met Margie on last year’s We Supply America tour and we talked about the drastic shift in how people want to work. “There are fewer individuals in the workforce. Less people want to work the way Baby Boomers worked. Fewer people want to work in the environment of ‘my whole life is this job.’
“We’ve heard over the years so much talk about work-life balance. That is so important. But what are you doing about it? What is the actual strategy?”
It’s true. Now is the time to put ideas into action.
While many businesses consider ways to meet employees’ evolving needs, some say not much has changed. The Great Redefinition suggests we must think beyond the traditional.
Rethinking employee value in distribution couldn’t come at a better time.
But what is an employee value proposition?
It’s what an employer promises employees — it’s a total employment experience, more than a paycheck.
By reframing how we think about employee value, distributors can create the kind of culture and environment that attracts and retains top talent.
For starters, human resources must be elevated to the executive level. The C-suite must empower HR departments to become more than just administrative and compliance machines. They must become an integral part of your business, and then empowered to strategically bring the programs, systems and tools to the organization that fulfill the greater purpose of the business for:
Efficiency and Empathy
Regulations and Relationships
Process and Purpose
Metrics and Morale
We must change the terms we use when talking about the workforce. About 56% of distribution leaders agree that outdated and potentially damaging views of employees as mere assets, capital or resources must change. Using financial terms to describe people is dehumanizing and simply unappealing to the younger generation we must attract.
The truth is, the workforce has changed and will continue to change.
What do we do about it?
5 Ways to Reimagine the Distributor’s Employee Value Proposition
Amidst the Top 10 HR trends facing distributors, leadership has been asked to pivot from a purely profit-generating role to a service role — one where leaders develop their people both personally and professionally. But how?
While traditional distributors have focused on benefits packages such as pay and benefits, the most innovative distributors are taking a more strategic approach by offering better technology, remote work, flexible scheduling, personal development opportunities and other benefits that help employees thrive in their work and personal lives.
Here are five other elements to consider when reimagining your Employee Value Proposition:
No. 1: Be Open to Rethinking How Work is Designed Workplaces are evolving, and so should the way we approach work. Think about new ways to structure roles, responsibilities and schedules that can help employees thrive both professionally and personally.
For example, the 9-5 schedule may no longer work for many employees with kids. Where once employers would say, “Figure it out,” now employees are saying, “YOU figure it out.”
No. 2: Material Offerings Reconsider the monetary and material offerings presented to employees. This includes everything from competitive compensation and benefits to perks like remote work, flexible scheduling and professional development opportunities. (Robert Weed gave their employees the day off after the Super Bowl.)
No. 3: Development and Growth Employees want to feel like they are growing and advancing in their careers. Offer training and development opportunities that align with your employees’ career aspirations. But then think beyond just professional skills, and provide opportunities to grow personally. It’s about developing the human to thrive in all facets of their lives.
No. 4: Connection and Community Creating a sense of belonging and community is key to employee engagement and retention. Foster a culture of collaboration, inclusion and communication throughout the company and hierarchy.
Town halls, like those hosted regularly by ProSource Supply, are one way to ensure employees’ voices are heard.
No. 5: Meaning and Purpose Employees want to feel like they are making a difference in the world. Communicate your company’s values and mission and show how employees contribute to something bigger than themselves.
“It’s about building a culture around what it takes for every employee to feel good about the work they are doing and the contributions they are making,” Margie says.
Putting Humanity in Action — This Distributor Walks the Walk
When the leaders at plumbing distributor ProSource Supply were watching their employees suffer from burnout because of the pandemic, they realized something had to change.
What these bold risk-takers decided on was to raise wages by $300,000 and remove overtime. One driver at ProSource had been putting in an extra 25 hours per week to make ends meet. Do you know what happened when the company made this massive shift?
Preston, the distributor’s logistics manager, put it this way: “I learned a lot in that decade in the military about taking care of people. In the military, you’re responsible for those people, not only from 9 to 5 but from every hour in between. Their health and their well-being.”
The company was unaware before they made the decision, but they were on the verge of losing their longest-tenured, most valuable drivers. The increase in salary without having to undertake more and more overtime (while also raising and caring for triplets at home) made the driver break down in tears.
“We didn’t realize we were getting ready to lose this driver because he couldn’t afford to work here anymore. Now, we’ve changed his whole story,” CEO Drew Roberts told me. “When someone works with us, I want to make sure we can feed their family, and they don’t have to have another job to make ends meet.”
Putting action behind those words was not an easy decision for the leaders at ProSource.
But that bold action resulted in success — improved retention rates and overall enhancement of their workers’ lives. What could be better than that?
In the upcoming UnleashWD HR Summit, we’ll discuss the ways businesses can create a compelling employee value proposition that attracts and retains top talent.
Dirk Beveridge is the founder ofUnleashWD, Executive Producer atWe Supply America, President of the Beveridge Consulting Group and Champion for the noble calling of distribution for over 36 years. His one-of-a-kind perspective on the future of wholesale distribution has guided his mission to advance the growth, relevance and transformation of the industry, helping distributors thrive. Learn more about Dirk’s mission to help distributors excel in this demanding HR environment with the first-everUnleashWD Human Resources Summit. Or download his research-backed Top 10 Human Resources Trends in Distribution.
NetPlus Alliance Industry Outlook Report: 77% of NetPlus Distributor Members Expect to Grow in 2023
Lockport, NY – NetPlus Alliance distributor members remain optimistic about 2023 full-year revenue, despite signs the economy may be slowing, according to the NetPlus Alliance Industry Outlook, a quarterly report based on a survey of NetPlus members. More than three-quarters of NetPlus distributors in the survey think their business will grow by more than 3% this year.
The NetPlus Alliance Industry Outlook tracks business results and trends in the industrial and contractor supply markets. The survey was completed in February 2023, and the outlook was based on fourth-quarter and full-year sales results for 2022.
The report found that 64% of NetPlus Alliance distributor members saw significant growth in 2022 (+8% or more) over 2021. Another 23% reported moderate growth. Reasons for the increase included:
New customer growth
Expanded product line offerings
Improved product availability
Increased end-user confidence in project pipelines
Price increases
NetPlus Alliance is also reporting greater purchases through the group, ending the year with record numbers.
“Purchases through the group exceeded $400 million for the first time,” said Dan Judge, Founder of NetPlus Alliance. “Purchases by our members from our supplier base in 2022 were 27% higher than 2021, and purchases that year were 25% better than 2020.”
About NetPlus Alliance
NetPlus Alliance builds relationships and provides opportunities for the advancement of member companies for their long-term success in the supply chain. With more than 100 years of combined industrial distribution experience, NetPlus Alliance negotiates improved pricing, rebates, and terms with more than 200 manufacturers on behalf of 415 industrial and contractor supplies distributor members. Our members drive market growth and profitability through stronger channel partnerships, financial incentives, progressive marketing, joint sales planning, training programs, and business best practices. Learn more about NetPlus Alliance at netplusalliance.com or contact Molly Greene, Director of Marketing, (716) 438-2014.
Here’s what’s happening in fastener industry news and events the week of March 27, 2023. (9:25)
Watch now on FastenerTV at YouTube (9:28)
Shannon Precision Fastener has officially opened their brand new 170,000 square foot, state-of-the-art manufacturing facility. When at full capacity this summer, the new facility will produce 750,000,000 fasteners a year.
The distribution and manufacturing center is the newest in a series of expansions by Shannon Precision Fastener, which manufactures precision engineered fasteners primarily for automotive OEM’s that include powertrain, chassis, and safety critical applications.
Shannon Precision Fastener was recently awarded the 2022 Supplier of the Year and Overdrive Award selected by a global team of GM purchasing, engineering, quality, manufacturing, and logistics leaders.
Würth Baer Supply Company announced the strategic acquisition of the Holdahl Company, headquartered in Minneapolis, Minnesota. Holdahl has been in business since 1949 and has built a rich tradition as a reliable and innovative woodworking supplier in the Upper Midwest and several eastern Great Plains states. The addition of Holdahl will geographically expand Würth’s core woodworking and woodworking machinery business in Minnesota, North Dakota, South Dakota, Nebraska, Iowa, Wisconsin, and Northwest Illinois. All six sites will continue to be managed by current sales and operations management.
Fastener News Desk wants to hear from you for our NEWS Series: ‘FASTENATING’!
We’d love to learn about what’s driving your fastener distributorship or fastener manufacturing company forward!
Share your fastener success story with us today!” In 500-700 words tell us what’s happening at your business! Check out the details for story lines at the Fastener News Group on LinkedIn.
Your entry could be chosen for a FREE feature at Fastener News Desk which includes premium placement, link to your website, promo in the Fastener News communities, & feature in an upcoming newsletter.
Fastener Training Week in Cleveland, OH will take place April 3-7th. The Fastener Training Institute and the Industrial Fasteners Institute (IFI) continue their partnership to present Fastener Training Week — This robust program includes five days of education and plant tours as part of the acclaimed FTI Certified Fastener Specialist™ (CFS) advanced technical training program. After completing this invaluable industry training in a small group environment and passing a final exam, attendees are eligible for the CFS designation. To register and learn more about any of the fastener training events we highlighted go to FastenerTraining.org
The Southeastern Fastener Association will hold their Annual Spring Conference April 24 – 26th in Miramar Beach, FL. SEFA invites members and fastener friends to attend the event in a great location. Attendees will enjoy a welcome reception, golf outing, cocktail hour, dinner, awards, and silent auction and much more! For more information about the event and to register go to thesefa.com
North Coast Fastener Association
The North Coast Fastener Association announces the 14th Annual Distributor Social happening on Thursday, May 4th in Independence, OH from 5 – 8pm. The Distributor Social is the largest networking event for the fastener industry in Cleveland and surrounding areas. The NCFA Distributor Social brings together many of the top distributors and supplier companies in the industry to network and socialize, while enjoying a few drinks, appetizers and desserts. The event continues to draw hundreds of attendees each year because of the simplicity it offers. The NCFA Distributor Social is just that, a time to be social with current/potential customers and industry friends, in a more casual setting than a traditional fastener shows.
If you’re attending the NCFA Social you won’t want to miss the opportunity to help Kerr Lakeside celebrate their 75th anniversary at an Open House on May 4, 2023 @ 10:00 AM. Founded in 1948 by the late Charles L. Kerr, the company remains a family-run institution that is now managed by the third and fourth generations. Registration is requested to be completed by April 20th. For any additional questions, please email Charlie Kerr at CLKerr@kerrlakeside.com. Registration: Fill out form
Women in the Fastener Industry accepting applications for Margaret Davis Scholarship. Scholarship application submission will offer WIFI Members requesting financial assistance to attend Fastener Fair USA. WIFI honors the memory of Margaret Davis of ISSCO, INC/BTM Manufacturing. Member Applications are due by April 5th, 2023. Apply Now: https://www.fastenerwomen.com/scholarships
Women in the Fastener Industry honors the memory of Maryann Marzocchi, Co-Owner of Distributor’s Link Magazine with a NEW scholarship. The $1,500 scholarship will be awarded to a woman to attend college or trade school. The recipient must have a female family member who is employed by a fastener company. WIFI accepting applications now. The Application deadline is June 5, 2023. https://www.fastenerwomen.com/scholarships
Dirk Beveridge of UnleashWD has announced the first human resources event for distributors, designed to challenge traditional thinking on HR and help independent distributors win the war on talent. Registration is now open for the UnleashWD Human Resources Summit for distributors, April 27-28, 2023 in Nashville, Tenn.
Seating is limited for this event be sure to register today to reserve your seat. To Learn more or register at https://events.unleashwd.com/HRSummit
Have you tried buying fasteners online? Industrial products are comprehensive and purchasing them online can lead to poor customer experiences when utilizing filtered search, buyers are forced to use a multitude of search filters just to find a bolt. Product Genius’s grid technology organizes and displays entire product categories from a one page buying experience. Experience the future of fastener buying online at 1-800-Fasteners.com.
PGT’s services also include, data cleaning and preparation, consulting, and strategizing. Contact ProductGeniusTechnology.com or call 1-800-fasteners to find out how to get started today.
The stories featured in this week’s episode of IN THE NEWS can be found at Fastener News Desk or in our Twitter feed @FastenerNews and on LinkedIn in the Fastener News Group!
If you would like to share your company’s events, news or sponsor an upcoming episode of IN THE NEWS or would like to add to the Fastener Museum me: lisa@fastenernewsdesk.com.
Thanks for tuning in to this week’s episode of IN THE NEWS with Fastener News Desk.
Until next week, be well, be safe and Keep it Fastenating!
What is the fastener industry?
Industrial fasteners refer to high-quality fastening products used in construction, automobile, aerospace, and marine industries. The industrial fastener market size has been valued at USD 91.73 billion in 2002. Forecast to reach USD 131.28 billion by 2030. Growing machinery, motor vehicles, and other durable goods production are likely to support the overall market growth due to economic expansion and high investment expenditure. Aerospace fasteners has the highest growth rate with CAGR forecast at 6.5% through 2029.
What is a fastener distributor?
A fastener distributor is a company that specializes in the supply and distribution of fasteners, such as bolts, screws, nuts, and washers, to various markets and industries. These distributors typically carry a wide range of fasteners in various sizes, materials, and finishes to meet the diverse needs of their customers.
Fastener distributors serve a variety of markets, including construction, manufacturing, automotive, aerospace, marine, and many others. Their customers can range from small businesses and repair shops to large industrial manufacturers and government agencies. By providing access to a wide selection of fasteners and related products, fastener distributors help their customers to save time and money by reducing the need to source and stock these items themselves.
Reshoring + FDI job announcements in 2022 were at the highest rate ever recorded. 4Q announcements accelerated even more than anticipated due to the Chips and Infrastructure Acts and deglobalization trends.
Top takeaways:
364,000 reshoring + FDI jobs announced for 2022, up 53% from 2021’s record.
2022 brought the total number of job announcements since 2010 to nearly 1.6 million.
EV batteries make Electrical Equipment the top industry.
With the IRA, Chips Act, and Infrastructure Bill, the U.S. Government is finally warming up to an industrial policy, though a more comprehensive plan could be achieved at a lower cost.
Supply chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. The risks of a Taiwan-China conflict or China voluntarily decoupling are focusing those concerns. Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them. The White House responded with the Inflation Reduction Act, Chips Act and Infrastructure Bill, offering some direction and financial security to the companies and industries intent on filling the gaps. These government actions are necessary in the short run but are not sufficient since they do not improve the U.S.’ uncompetitive cost structure. A true industrial policy would level the cost playing field via comprehensive actions such as massive skilled workforce investments, a 25% lower USD and retention of immediate expensing of capital investments.
“The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40%, 5 million jobs. Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant and resilient,” said Harry Moser, Founder and President of the Reshoring Initiative.
The Reshoring Initiative’s 2022 Data Report contains data on U.S. reshoring and FDI by companies that have shifted production or sourcing from offshore to the United States.
“We publish this data quarterly to show companies that their peers are successfully reshoring and that they should reevaluate their sourcing and siting decisions,” said Harry Moser, founder and president of the Reshoring Initiative. “With 5 million manufacturing jobs still offshore, as measured by our $1.2 trillion/year goods trade deficit, there is potential for much more growth. We also call on the administration and Congress to enact policy changes to make the United States competitive again.”
About the Reshoring Initiative
A 55-year manufacturing industry veteran and retired President of GF Machining Solutions, Harry Moser founded the Reshoring Initiative to move lost jobs back to the U.S. He was named to the Industry Week and Association for Manufacturing Excellence (AME) Halls of Fame for his efforts with the Reshoring Initiative. Additional information on the Reshoring Initiative and its many sponsoring associations and companies is available at www.reshorenow.org.
The Reshoring Initiative provides the media with custom analyses of specific regions or industries. Contact Harry Moser to inquire.
MEDIA CONTACTS: Harry Moser President Reshoring Initiative 847.867.1144 Harry.Moser@reshorenow.org or DGS Marketing Engineers® Chuck Bates, Public Relations Director 317.813.2230 bates@dgsmarketing.com
Vernon Hills, IL – March 17, 2023 – Würth Baer Supply Company announces the strategic acquisition of Holdahl Company, headquartered in Minneapolis, Minnesota with additional sites in Fargo, Sioux Falls, Omaha, Des Moines and a second Minneapolis facility. The addition of Holdahl will geographically expand Würth’s core woodworking and woodworking machinery business in Minnesota, North Dakota, South Dakota, Nebraska, Iowa, Wisconsin, and Northwest Illinois. All six sites will continue to be managed by current sales and operations management.
Würth Baer Supply Company CEO John Geraghty commented: “The Würth organization is extremely pleased to add the Holdahl team to our expanding portfolio of woodworking companies. Holdahl has been in business since 1949 and has built a rich tradition as a reliable and innovative woodworking supplier in the Upper Midwest and several eastern Great Plains states. We welcome Holdahl’s committed employees to the Würth family and look forward to expanding the Würth brand with Holdahl.”
The acquisition closing was finalized in early March 2023. Holdahl Company will retain its strong brand name in the market and will become a division of Würth Baer Supply Company.
Location Designed to Better Serve Chippewa Valley Businesses
Eau Claire, Wis. – Packer Fastener, the business-to-business threaded fastener and industrial supply powerhouse, has recently relocated its Chippewa Valley branch from Menomonie to its new location at 5845 Venture Drive, Suite 1 in Eau Claire.
“The new location provides more convenient, central access for our customers throughout the region,” said Terry Albrecht, CEO. “And the increased warehouse space in our new building will help ensure that inventory is readily accessible when needed.”
The 5845 Venture Drive location is open to all customers, with Packer Fastener sales staff proactively serving original equipment manufacturers, commercial construction, fabricators, machine shops, and maintenance/repair operations. Products range from threaded fasteners, struts and abrasives; to industrial safety materials and personal protective equipment; to welders and welding supplies.
“At Packer Fastener, we pride ourselves on delivering outstanding service to our customers through speed, accuracy and the availability of inventory,” said Albrecht. “Our new location will help us overserve our customers throughout the region. Every. Single. Day.”
About Packer Fastener Founded in 1998, Packer Fastener is a business-to-business threaded fastener and industrial supply powerhouse offering a comprehensive line of products and services. Ten physical locations serve customers throughout Wisconsin, Illinois, and Minnesota, while a national sales department supports customers throughout the United States. Focusing on speed, accuracy, and availability, Packer Fastener differentiates itself through its culture and people, who outhustle the rest and outperform the best. Visit packerfastener.com or call 715-231-4005 for more information.
Wayne, Pa. – AD announced that its owner/members elected three directors to its Board of Directors.
Each year, the AD Board’s Nominating & Governance Committee holds an open nomination and voting period, during which AD members select members to its board of directors. Currently, more than 140 of AD’s 850-plus member companies provide leadership on corporate and divisional boards and committees.
Deschênes leads Deschênes Group Inc., a Quebec-based distributor-wholesaler of plumbing and heating products. He joined the family business in 2000, and has served as Vice-President, Operations for the province of Quebec, Vice-President and General Manager for Deschênes & Fils Ltée, a subsidiary of Deschênes Group Inc., Vice-President, Marketing & Business Development, as well as Vice-President, Procurement. He had also been chairman of AD Plumbing & Heating – Canada and of the buying group Canaplus Limited Partnership. He is a member of Young Presidents’ Organization (YPO), the Cercle des présidents du Québec and the Board of Directors of the Canadian Institute of Plumbing and Heating (CIPH).
“I am honored to have been elected to represent AD members as we work together to grow and succeed,” said Deschênes. “The Board of Directors contributes strategic direction and speaks for the dedicated owner/members on the future of the group, and I look forward to collaborating with the Board’s terrific leaders to guide us forward.”
Nardini leads American Metals Supply, Co. Inc., a third-generation family business headquartered in St. Louis with nine locations throughout the Midwest and Southwest. American Metals Supply is a wholesale distributor of galvanized steel and HVAC supplies. Nardini has been with the company since 1997 and has served as President since 2006. Nardini is a past President of HARDI (Heating, Air Conditioning & Refrigeration Distributors International), where she was the first female president of the group. She joined the AD LLC Board in 2019 and currently serves on the Audit Committee.
Slominski, Jr. leads McNaughton-McKay Electric Company, which operates over 40 electrical distribution locations in the U.S. and Germany. Prior to his appointment as Executive Chairman in 2023, he was CEO since 2005 and previously served as Chief Financial Officer. He began his employment with the company in 1996. Slominski served on the board of directors of EDGE Investment Partners, LLC from its formation in 2012 through 2017. EDGE was created by several electrical distribution companies to invest in distribution opportunities outside of North America, primarily in emerging markets. He joined the AD LLC Board in 2013. He currently serves as the Chairman of the Audit Committee and is a member of the Investment Committee.
After having served on the AD LLC Board of Directors since 2016, Martin Deschênes, Vice Chairman of the Board, Deschênes Group Inc., is departing his post on the Board.
AD Chairman and CEO Bill Weisberg discussed this year’s Board of Directors elections.
“Our boards and committees have incredible leaders who make the AD community stronger by setting the group’s strategies and policies and overseeing our operations,” he shared. “The annual election process ensures that each member has the opportunity to choose who serves on our corporate board and our board clearly understands its responsibility to represent the interests of all our divisions and countries. I look forward to working closely with François as he joins the Board of Directors.”
The members of the 2023 AD LLC Board of Directors are:
• John Wiborg, President & CEO, Stellar Industrial Supply, Inc.& Chair of the AD LLC Nominating & Governance and Investment Committees
ABOUT AD | Independent and Proud of It
AD is a member-owned organization, passionate about bringing growth-oriented independent distributors and best-in-class supplier partners together with the purpose to outperform the market and to stay ahead of the competition.
For over 40 years AD’s sincere customer-first approach to relationships and our continual investments in innovative support have helped AD to achieve annual sales of more than $70 billion across nine industries and three countries. With more than 5,000 branches from 850-plus independently owned members, AD is North America’s largest marketing/buying group for construction and industrial supplies.
We leverage our unique economies of scale, robust financial systems and people-first approach to help our independent distributor members outperform the competition and our supplier partners protect their brands and diversify their channel strategies.
By Chris Angevine, Ruhan Meyer, Jannick Thomsen, and Rodney Zemmel
The digital solutions common at many companies are new to most industrials. How can digitization take root in this complex industry?
Industrial companies realize that digitization is more than a buzzword and know that e-commerce, data analytics, and other solutions will transform every aspect of their businesses. Some have even set ambitious goals to reduce costs, increase revenues, or improve cash management through digital solutions, with many focusing on the digitization of sales and marketing as more end customers migrate online. This move is well considered, since research suggests that the number of B2B customers using digital self-service channels to research and evaluate products rose from 20 percent in 2016 to 30 percent in 2019 across industries. New or repeat orders made through digital B2B channels rose from 40 percent to 50 percent over the same period, representing trillions of dollars in value.
While industrials understand the importance of digitizing sales and marketing, few have embarked on extensive efforts in this area, and those that do often struggle with execution. After all, customers are accustomed to online B2C sales channels, which businesses have been perfecting for years, and expect industrials to deliver the same seamless experience across platforms. In most cases, however, they still fall short. Their deficiencies are becoming more obvious because COVID-19 has forced many companies to limit face-to-face interactions and increase online services, and that shift may become permanent. A recent McKinsey survey of B2B leaders showed that most respondents expected to be able to meet with customers in person by the start of 2022, but only 15 percent expected such meetings to be the norm going forward.
We recently analyzed more than 350 industrial companies to gauge their digital prowess—basically, the extent to which they were investing in digital tools and analytics—and determine if this had any impact on revenue growth or total returns to shareholders (TRS). The results revealed that a select group of companies stand out from the pack when it comes to driving performance improvement through digitization. The insights from this research, combined with our work with industrials, allowed us to identify some common success factors for digitization, including a clear focus on impact, employee buy-in, cross-functional collaboration, and a detailed implementation plan. This article reviews these concepts, as well as the benefits of a strong digital sales and marketing function. The next article in this series will provide more details about the framework for implementing digital initiatives at industrials.
Improving the end-to-end customer experience
In their lives as consumers, B2B buyers have become accustomed to researching products, placing orders, and tracking packages online. While industrials lag behind their B2C counterparts in digital capabilities, their customers still have the same expectations for top-notch online services.
Some companies within the industrial sector, such as the distributor Uline, are leading the charge to digital and transforming its role in the overall ecosystem; rather than a multiweek process that involves mountains of paperwork, endless touchpoints, and manual credit approvals, new customers can create accounts instantly and receive credit approval through a secure, one-click process. Additionally, companies are improving the customer experience via easily searchable online catalogues with personalized recommendations, web chats or video calls with experts, and online how-to videos.
Unlocking new sales opportunities
When cultivating new customers, digitization can make outreach both simpler and less expensive. It will be particularly helpful with small accounts that many industrials have hesitated to pursue because of the low return on investment. Further, companies can use data and analytics to identify accounts that currently generate little revenue but have the potential for strong growth. Sales and marketing efforts that target such groups may produce better results than more widespread, unfocused campaigns.
Improving efficiency
Through automation, digital tools can create efficiencies in three important areas:
Product, service, and order fulfillment. Digitization helps companies simplify their product offerings. By concentrating on the core products and solutions that matter for most of their customers, they can drive operational efficiencies. Digital tools can also help companies standardize lead times and make them more transparent; this will improve customer experience, since a lack of visibility into order tracking is a common pain point in the industrial sector.
Commercial strategy and execution.Sales teams can accelerate deals by removing manual touchpoints and minimizing the time spent on administrative tasks, such as resolving issues after the sale (for example, invoice issues). With opportunities for both in-person interaction and online self-service, customers will also have more contact options, which could increase both loyalty and satisfaction.
Customer service and transactions. Automation can streamline customer service and make it easier for people to interact with companies. For instance, chat bots, available around the clock, can answer many common questions for customers. Such features are standard at most B2C companies but have not yet gained traction within industrials.
By automating many processes and touchpoints, digitization will reduce the time that salespeople spend managing existing accounts, which now amounts to about half of their work. Automated solutions may be particularly appropriate for mundane but critical tasks, which can consume more time.
Lessons from past transformations
While the imperative to increase digitization is clear, the path forward can be complicated. Too often, industrials push for digital solutions because they see their competitors launching initiatives and fear missing out. In their haste, they may launch ambitious campaigns without appreciating the enormous resources—time, money, and staff—required. And some may incorrectly believe that a silver bullet, such as a capable implementation partner, will guarantee success when the reality is more complex.
Through our experience leading digital B2B transformations, as well as our survey of 350 industrial companies, we discovered that companies can escape common pitfalls by taking a more thoughtful approach. They can also win by forming partnerships with other businesses or vendors, such as systems integrators or website designers, to ensure that they have all the expertise required to deliver a complete solution. Here are the tactics we observed in the most successful companies.
Focusing on what matters
It sounds simple: companies should focus on the areas that will have the most impact when implementing digital solutions. But a surprising number of B2B companies launch efforts that generate little operational or financial improvement. To avoid this trap, companies should begin with the clear articulation of a problem statement, such as “above average churn for the industry” or “substandard lead generation results in low customer acquisition despite high funnel conversion rates.” When seeking solutions, they should concentrate on changes that will tangibly improve the customer experience and eliminate critical pain points, such as by providing a seamless reorder process and easy order tracking, rather than striving for perfection in all areas. Likewise, companies should prioritize efficiency initiatives that will produce the greatest time savings.
Here’s what’s happening in fastener industry news the week of March 20, 2023.
Watch now on FastenerTV at YouTube (11:17)
The St. Louis Federal Reserve Producer Price Index (known as the acronym FRED) Commodity: Bolts, Nuts, Screws, Rivets, and Washers for Feb 2023: Registered at 298.894, slightly on an upward trend vs the January reading of 296.441. Do You Know What the acronym FRED stands for? It’s short for Federal Reserve Economic Data, FRED is an online database consisting of hundreds of thousands of economic data time series from scores of national, international, public, and private sources. FRED, created and maintained by the Research Department at the Federal Reserve Bank of St. Louis. Find the monthly readings posted at Fastener News Desk.
Fully Threaded Radio Episode 186 – Like a Glove is LIVE!Lusten in with Eric Dudas and Brian Musker as they talk with: Endries International president and CEO Michael Knight. Brighton Best president Jun Xu, Mike Robinson as he leads the NCFA and drives business for Star Stainless. Thread guru Carmen Vertullo dispells a common misconception about black oxide coatings. Brian and Eric have different ideas about the future but remain unified in their quest for the perfect fit. Tune in at FullyThreaded.com (2:32:00)
Congratulations to ZAGO, the high-tech sustainable sealing fasteners and switch boots manufacturer is celebrating 30 years and being a woman-owned business. “March is Women’s History Month, and it is only fitting that we recognize the pivotal roles women play in shaping the manufacturing industry,” said Jackie Luciano, ZAGO Vice President.
Tramec Sloan announced that they have completed a $1.7 million-dollar investment project at their facility in the Galion Industrial Park. The new automation equipment replaces World War II-era machinery and allows the company to retain their current 107 employees. Tramec is a manufacturer and distributor participating in numerous markets, including commercial vehicle, automotive, industrial, HVAC, lawn and garden, recreational vehicle, marine, construction, and agriculture under the brands Tramec Sloan, Tramec Sloan Fleet Engineers Division, Hill Fastener, Tramec Esdan Plastics, Termico Technologies, Tramec Plastics and Composites, and Continental Aero.
Wurth Industry Sees Progress through digitalization – Wurth has been named as one of the “Digital Champions 2023” by Focus Money and DEUTSCHLAND TEST, the C-Parts partner emerged as a digital pioneer with the second place in the category “building materials and building accessories (wholesaler)” According to its motto “Always looking forward and one step ahead”, Würth Industry contributes to driving digital change.
Wurth Industry was also recently awarded By Capital and Statista as one of “Germany’s most innovative company in 2023”.
The Mid-West Fastener Association is once again sponsoring their popular seminar Fascination with Fasteners on March 23rd in Elk Grove Village, IL. The seminar is designed to educate fastener industry personnel. This is not a sales or manufacturing course, but a semi-technical course on many facets of the industry. Register today at MWFA.net
Fastener Fair Global 2023 is set for a strong comeback showcasing technological developments in a fast-moving market. After four years, Fastener Fair Global 2023, the 9th international event dedicated to the fastener and fixing industry, returns to Stuttgart from March 21st – March 23rd . The exhibition represents once again an unmissable opportunity to establish new contacts and build successful business relationships between suppliers, manufacturers, distributors, engineers and other industry professionals from various production and manufacturing sectors looking for fastening technologies. For more information and registration go to https://www.fastenerfairglobal.com/.
The Fastener Training Institute has a scheduled upcoming webinar. Corrosion Resistant Fasteners & Stainless Steel Fastener Specs.The webinar will take place on Thursday, March 23, 2023, 11:00 a.m. to 1:30 p.m. PT The instructor is Carmen Vertullo, Vice President of Business Development at AIM Testing Laboratory. The webinar will address FIGHTING CORROSION IN FASTENING and strategies to combat it, which cost billions of dollars every year. Industrial, transportation, construction, marine and military fastening applications all have specific solutions to the corrosion problem. This webinar will explore the various approaches to corrosion prevention in each of these areas. Brikksen is sponsoring the webinar. Register now: https://fastenertrainingevents.com/corrosion-resistant-fasteners.htm
Thursday, March 23, 2023, NEFDA will host their annual Bowling Party. The party will be held at High Rollers at Foxwood Resort & Casino. Attendees will enjoy Bowling, Dinner & Drinks, Prizes and Fun! For more information go to https://www.nefda.com/events/
Fastener Training Week in Cleveland, OH will take place April 3-7th.The Fastener Training Institute and the Industrial Fasteners Institute (IFI) continue their partnership to present Fastener Training Week — This robust program includes five days of education and plant tours as part of the acclaimed FTI Certified Fastener Specialist™ (CFS) advanced technical training program. After completing this invaluable industry training in a small group environment and passing a final exam, attendees are eligible for the CFS designation. To register and learn more about any of the fastener training events we highlighted go to FastenerTraining.org
Women in the Fastener Industry accepting applications for Margaret Davis Scholarship. Scholarship application submission will offer WIFI Members requesting financial assistance to attend Fastener Fair USA. WIFI honors the memory of Margaret Davis of ISSCO, INC/BTM Manufacturing. Member Applications are due by April 5th, 2023.
Women in the Fastener Industry honor the memory of Maryann Marzocchi, Co-Owner of Distributor’s Link Magazine with a NEW scholarship. The $1,500 scholarship will be awarded to a woman to attend college or trade school. The recipient must have a female family member who is employed by a fastener company. WIFI accepting applications now. The Application deadline is June 5, 2023
Dirk Beveridge of UnleashWD has announced the first human resources event for distributors, designed to challenge traditional thinking on HR and help independent distributors win the war on talent. Registration is now open for the UnleashWD Human Resources Summit for distributors, April 27-28, 2023 in Nashville, Tenn.
Seating is limited for this event be sure to register today to reserve your seat. To Learn more or register at https://events.unleashwd.com/HRSummit
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The stories featured in this week’s episode of IN THE NEWS can be found at Fastener News Desk or in our Twitter feed @FastenerNews and on LinkedIn in the Fastener News Group!
If you would like to share your company’s events, news or sponsor an upcoming episode of IN THE NEWS or would like to add to the Fastener Museum me: lisa@fastenernewsdesk.com.
Thanks for tuning in to this week’s episode of IN THE NEWS with Fastener News Desk.
Until next week, be well, be safe and Keep it Fastenating!
What is the fastener industry?
Industrial fasteners refer to high-quality fastening products used in construction, automobile, aerospace, and marine industries. The industrial fastener market size has been valued at USD 91.73 billion in 2002. Forecast to reach USD 131.28 billion by 2030. Growing machinery, motor vehicles, and other durable goods production are likely to support the overall market growth due to economic expansion and high investment expenditure. Aerospace fasteners has the highest growth rate with CAGR forecast at 6.5% through 2029.
What is a fastener distributor?
A fastener distributor is a company that specializes in the supply and distribution of fasteners, such as bolts, screws, nuts, and washers, to various markets and industries. These distributors typically carry a wide range of fasteners in various sizes, materials, and finishes to meet the diverse needs of their customers.
Fastener distributors serve a variety of markets, including construction, manufacturing, automotive, aerospace, marine, and many others. Their customers can range from small businesses and repair shops to large industrial manufacturers and government agencies. By providing access to a wide selection of fasteners and related products, fastener distributors help their customers to save time and money by reducing the need to source and stock these items themselves.
Report 2023 features the latest information you need to stay informed and expand your knowledge of the constantly evolving AM industry.
