'Building' a Bigger and Better NBMDA
By Jon Minnaert
As President of NBMDA, my vision for 2025 is to enhance the association's influence and relevance by driving growth in distribution membership and delivering greater value to our supplier partners. A primary goal is to expand our membership base through a targeted recruitment initiative. By leveraging member-sourced leads, we have asked for three high-potential prospects per member, and the association is diligently scrubbing these leads to ensure an effective recruitment drive. Additionally, improving the value proposition for our suppliers remains a cornerstone of our strategy, fostering stronger partnerships and mutual growth.
Key Challenges: Membership Consolidation
Membership consolidation poses a significant challenge. As distribution companies are acquired, we lose memberships and the valuable contributions of their representatives. This consolidation reduces attendance at critical networking and educational events. To address this, we aim to deepen engagement with existing members while actively pursuing new ones. By emphasizing the tangible benefits of participation and fostering loyalty, we can counteract the effects of consolidation.
Industry Challenges and Solutions
Membership, Retention, and Involvement
The most pressing challenges for the distribution industry include maintaining and growing membership, enhancing member retention, and encouraging active involvement. We’re tackling these by focusing on relationship-building and demonstrating the ROI of membership. Programs like the recruitment drive and enhanced member engagement initiatives are central to these efforts.
Technology and Automation
Technology and automation are reshaping the distribution sector at an unprecedented pace. Artificial intelligence (AI), in particular, is transforming operational efficiency and decision-making. It is nearly impossible to discuss technology today without including AI. Members must be proactive, embracing AI-driven tools for inventory management, predictive analytics, and customer engagement. NBMDA will support this evolution by hosting educational sessions and providing resources that help members stay ahead of the curve.
Supply Chain Trends
Supply chain disruptions have been a constant in my 39 years of industry experience. Factors such as supply and demand imbalances, seasonal fluctuations, tariffs, geopolitical tensions, production delays, strikes, and freight challenges require constant vigilance. Over the next five years, we anticipate continued volatility. NBMDA will focus on equipping members with the insights and tools they need to anticipate and adapt to these disruptions. Sharing best practices, scenario planning, and fostering collaboration within the industry will be pivotal.
Labor Shortages
Addressing labor shortages begins with fostering strong company cultures. NBMDA has provided numerous presentations emphasizing the importance of culture in attracting and retaining talent. By creating workplaces where employees feel valued and supported, members can better navigate these challenges.
Collaboration Among Members
Collaboration is key to overcoming shared challenges. Members should leverage the collective wisdom and experience within NBMDA. Networking — whether through informal check-ins with fellow distributors or regular group video meetings — is invaluable. No member should feel isolated in addressing industry challenges.
Programs and Initiatives for 2025
The above issues are significant, but none are insurmountable. Below are the tools NBMDA will use this year to help make progress in these areas:
- Membership Recruitment Drive: Leveraging member-sourced leads to expand our distribution network.
- Emerging Leaders Program Expansion: Building on the success of our existing program by exploring the development of an “Emerging Leaders 2.0” initiative to foster the next generation of industry leaders.
- Membership Voice Surveys: Incorporating feedback from our members to refine our offerings and ensure the association meets their evolving needs.
- Financial Strength and Strategic Partnerships: Leveraging our solid financial position and the expertise of Smithbucklin management to implement these initiatives effectively.
The NBMDA at Its Best
At its best, NBMDA serves as a hub for knowledge, networking, collaboration, and innovation. Financially robust and resource-rich, the association empowers members to overcome challenges and seize opportunities. By fostering connections, providing cutting-edge insights, and championing the distribution industry, NBMDA will continue to be an indispensable resource for its members.
In 2025, my aim is to ensure that NBMDA not only navigates the complexities of our industry but thrives amidst them, setting a strong foundation for the years ahead.
Jon Minnaert is President and CEO of Aetna Building Solutions, to which he has dedicated 39 of his 42 years in the distribution channel.