06/24/2024

President's Letter

June 2024

Happy 50th Birthday, FPDA!!

That’s right! On July 26, 1974, the very first Meeting of Members was convened in Chicago, IL, and the Fluid Power Distributors Association came into existence. The initial member roster included 31 companies, several of which are members today! It’s my honor to acknowledge these founding companies: 

• Air Hydro Power, Inc. 
• Franklin Automation, Inc. 
• IBT Industrial Solutions 
• Isaacs Fluid Power Equipment Company 
• Kundinger Fluid Power, Inc. 
• Livingston & Haven, LLC 
• Mosier Fluid Power of Ohio 
• The Paquin Company 
• Pearse-Bertram, LLC 
• Progressive Hydraulics, Inc. 
• Stanley M. Proctor Company, Inc. 
• Womack Machine Supply Company 

50 Years of service is an incredible milestone for our association and testament to the staying power of hydraulics and pneumatics!  As distributors and manufacturers of fluid power components and systems, our members benefit from the stability of our mature products, markets and applications.  

On the other side of the story, however, is the inevitable conclusion of mature industries: consolidation.  There’s no sugar-coating the fact that consolidation can be an association killer.  At our meeting of members in Tucson, I illustrated the downward trend in membership that is threatening the existence of FPDA.  Our sobering reality is that consolidation will continue to erode membership and our future plans must allow FPDA to prosper and remain profitable without growing membership numbers. 

To that end, the FPDA Board of Directors recently met for a strategy session in Atlanta at the offices of Etherio, our new management company. We confronted the challenges and opportunities of our situation, brainstorming and recording literally hundreds of ideas on post-its, ultimately covering the walls of Etherio’s “war room”! Following a well-facilitated process to focus and consolidate it all into common themes, 5 strategic priorities emerged: 

Increase member engagement.  Work tirelessly to get members to utilize what’s already available to them through membership. Continue including non-members on committees.  Create new advisory councils and other new opportunities for engagement. Acknowledge and celebrate longevity in the association! 

Achieve Lasting Profitability.  We must make FPDA consolidation-proof. We will consider new dues structures that preserve revenue when two member companies merge. We’ve also aggressively controlled costs and budgeted to return $25,000 to our reserves in FY25. 

Expand the Future Leaders in Motion (FLM) program.  Growing our flagship leadership program benefits member companies and generates more engaged members. 

Add value to FPDA website and social media presence.  The website should be an active hub that is current, resource-rich and a marketplace for member services.  Developing a more permanent social network among members can sustain engagement between in-person events. 

Collaborate with NFPA on educational outreach for our industry.  We will invest in the long-term benefits of educating the next generation and raising awareness of fluid power careers. 

In addition to these efforts, we will be working with all member companies to designate a total of 3 key contacts to increase engagement and streamline FPDA member service.  Whereas in the past there has only been one key contact who received all FPDA communications including dues renewal requests, survey invitations and webinar notices, etc., member companies will now designate: 

Voting Contact – typically the owner, CEO or President, this person will vote on FPDA matters on behalf of their company 
Billing Contact – typically someone in Accounting who will be paying invoices and dues renewals 
FPDA Champion – Ideally a mid-level manager or FLM graduate in your company responsible for disseminating FPDA news, promoting events and interacting with FPDA staff 

Over the past months I have enjoyed many conversations with stakeholders at FPDA member companies and I’ve been overwhelmed by the support I’ve received. Everyone is clear-eyed about what must be done to preserve FPDA, and the answer is to increase member engagement. I have never been more confident that FPDA provides unique and sustainable value for ENGAGED member companies. Companies that have made the effort to participate in FPDA programs find FPDA to be a vital tool in their business success. It’s quite simple; you won’t find value in FPDA membership unless you become engaged. 
  
This is a call to action. FPDA is entirely what you choose to make it. Make the decision to support FPDA by: 

• Establishing the “FPDA Champion” within your company 
• Creating time and space for your employees to serve on FPDA committees and the Board of Directors. 
• Maximizing the value of Industry Summit content and networking by sending more attendees – and sending NEW attendees.  It’s not “networking” if the same people attend every year, it’s a reunion.  
• Enrolling your leaders in FLM! 
• Paying dues in a timely fashion and updating your dues level if your company makes an acquisition. 
• Sending employees to the University of Innovative Distribution.  The employee benefits from the amazing content and FPDA earns a commission. 
• Participating in annual and monthly benchmarking reports and USING the resulting data to inform your business decisions. 

50 Years after the first Meeting of Members, I’d like to think that the founders of this association would see we’re still protecting the Distributor’s role in the supply chain and making investments to sustain FPDA.  I challenge all of you to do what’s necessary to ensure FPDA celebrates many more anniversaries! 
  
Thank you, 
  
Bill Haley 
FPDA President