Interview with Global Fastener Association Presidents— Interview with NFDA President Kevin Miller

. As the most specialized fastener related association in the region, could you please talk about related events/activities NFDA has successfully given and achievements NFDA has made in 2017?

2017 has been a great year for the NFDA so far.  Our membership continues to grow, and we are really looking forward to our upcoming inaugural Leadership Academy this November.  I think our biggest achievement will be celebrated next March in Costa Rica, our 50th anniversary! 

. (Following question 1) What positive benefit and influence have these events/activities or achievements generated over your association members and other associate industries?

To be in existence for 50 years is quite an accomplishment.  Our association has seen growth and shrinkage along with the economy over the decades, and when you consider there is a good amount of businesses that struggled to survive some of these turbulent economic times, to remain a constant presence within the industry is really quite special.  In order to remain for 50 more years, we must focus on the development of our next generation of stars, which is why we created the Leadership Academy.  This year, we are starting with 36 slots and hope to grow much larger.  The development of leadership skills for the next generation is paramount to our growth and survival, and the content at this even drives towards this end.  

. According to your observation, what is the major industrial development trend in the entire US fastener market? To which industry sector are fasteners in the US mainly delivered and the approximate proportion of delivery to each of these major industry sectors? 

I think that in many ways the fastener industry in the US is very different, but also very much the same, as it is globally.  We see more and more foreign competitors in the US, investment in technology and automation processes, and a deeper focus on workplace culture.  I feel that these are all things we must pay attention to in order to remain relevant and competitive in a global marketplace.  As far as consumption goes, the fastener industry in the United States (according to some sources) is more than $13 billion annually.  The answer to this question would be far too long to name all market sectors and consumption proportions, but the biggest consumers are the obvious ones.  Automotive and related industries will always be there, but I think that there is burgeoning focus on supplying emerging industries like sustainable and solar energy. We should also see a recovery in Class 8 truck manufacturing and agricultural equipment. 

.  We observed that the distribution and logistics support systems in the global fastener industry have been focused more on the establishment of more intelligent automated warehousing and distribution systems and many US companies are taking the lead as well. What is your opinion toward such a development? Is this development trend a challenge or opportunity for fastener distributors who need to obtain fast/efficient executing capability and ensure high quality of fasteners at the same time? What is your opinion toward this? Could you please talk about the current development and dedication of US fastener companies to the establishment of intelligent warehousing and distribution systems?

Great question. This type of investment presents both a challenge and an opportunity for the companies in our industry.  To remain competitive in a mature industry, we must constantly seek innovative ways to improve our operations.  For some, this means there is no other option than investing in automated warehouse technology.  I think this logically makes sense for the much larger distribution companies in our industry, but what happens when these automated/intelligent systems malfunction?  At the end of the day, there is no substitute for a trained and skilled workforce.

The argument for automated/intelligent systems is that they increase accuracy and productivity while reducing labor costs.  I think in the long run more jobs will be created in support roles for these systems, replacing the jobs lost to automation.  This presents a challenge and an opportunity to our workforce to develop and improve upon their skills and knowledge and become more capable workers.  It also presents a challenge and opportunity to employers in the way of developing robust training programs and developing career paths for new hires at the lower levels of their companies.

. Facing competition from fastener distributors in other countries, what advantage do you think US distributors have to help themselves gain consumers’ admiration in the entire US fastener distribution market? 

I think that in order to win business, you must create a great customer experience. Local suppliers who understand their customers and their local regional markets have the best chance of doing this and in my opinion the US distributors have an advantage in this area.  Competition is competition and customers should buy from whoever presents the best option for their business.  However, if your neighbor is comparable with all other things being constant, wouldn’t you rather buy from your neighbor knowing you’ll get that extra level of customer service?  I think so.

. Many NFDA members have been collaborating with Asian suppliers for years. Do you have any new expectation toward the continuous future collaboration with theses suppliers? And, does NFDA have any plan to further reinforce and strengthen the collaboration and partnership with these suppliers from Asia? 

A very timely question!  As of the writing of this, Adam Pratt (Associate Chair NFDA) is in Korea and the NFDA is signing a memorandum of understanding with the Korea Federation of Fasteners Industry Cooperative for collaboration between the two countries and their respective fastener industries.  As always, we look forward to continuing cooperation with our counterparts in China and Taiwan. 

. What is your opinion and analysis of US fastener import/export volume and value calculated from 2016 through the most recent month of 2017? Do you think there may appear some significant improvements in the future fastener import/export volume and value of the entire US?  

Yes, I do see some improvement YoY.  The 1st half of 2017 shows slight improvement over 2016 and I would expect that trend to continue with increased production levels through 2018.  Rising material costs may also contribute to increased dollar trade levels, as well.

. What is your expectation and prospect toward the fastener distribution market of the US in 2018? Does NFDA have any plan to promote and create a better fastener distribution environment for 2018?

US industrial production is forecasted to trend upward in 2018, which will help the fastener industry as a whole.  As for the distribution market, I foresee more consolidation through M&A activity.  These aren’t extraordinary trends for a stable market, but I think with a higher confidence level in the economy we will see an increased level in these types of investments.

As for the NFDA, our core purpose is to help our members thrive in the global marketplace.  We will continue to provide a platform and forum for collaboration and communication between our distributor and associate members.  While our event schedule is set for the remainder of the year, we are always looking for new ways to drive value to our membership and promoting them as need be.  You can check out the event schedule and current member benefits at www.nfda-fastener.org !

. As the new President of NFDA, could you please talk about how you would like to do in the upcoming new year to lead your association members to maintain their competitive edge in the global fastener market and voice for your members’ interests? 

Well, as I mention above we are set to reevaluate our strategies in January.  We are going to review the directives put in place by past leadership, and try to develop new ways to invest in the association’s meeting content and member benefits and improve our value proposition.  

.  Do you have anything else that you would also like to share with our readers worldwide? 

When you think about how our industry touches so many people in ways that go unrecognized, it is really humbling to be a part of something bigger.  I hope we can attract and retain lots of new, young talents to our industry.  If you know of anyone considering a career change, I encourage you to have them explore our business!  I look forward to seeing you all at future events both in the US and abroad, and if you see me, please introduce yourself.  I love meeting new people and making new friendships!