Service Centers
ASD’s Rebounding with Support of FMA
Written by Tim Triplett
April 17, 2018
The Association of Steel Distributors appears to be positioned for a turnaround that will give new life to the 75-year-old service center organization. ASD has found renewed purpose and direction under the auspices of the Fabricators and Manufacturers Association, International, Elgin, Ill.
ASD’s steel distributor members—mostly small to midsized family firms—have been gathering to swap war stories, and inventory, since 1943. Like many trade groups, ASD’s membership has suffered from industry consolidation, demographic changes and Internet-age communications that place a higher value on electronic relationships than personal ones. With its ranks dwindling to around 32 companies, ASD’s future was uncertain until its board decided last year to become part of FMA, a much larger organization whose members range from small fabricating job shops to major manufacturers. ASD’s current membership is in the mid-50s and rising.
“Remaining relevant is the key,” said Ed Youdell, FMA president and CEO. “Every trade association is dealing with disintermediation due to the Internet, the changing age of people coming into the industry, how people communicate. We can now share what we’ve learned with ASD to help them keep relevant. And their new relationship with us brings them a connection to the end customer that they have not had in the past.”
Throughout it’s history, ASD has been largely a peer-to-peer group, with regional meetings that provide a forum for members to share best practices, as well as secondary and excess inventory. As an affiliate within FMA, there is a new business reason for ASD. “We have the connection to the fabricator, the job shop and the OEM. It helps them get closer to customers,” Youdell said.
Andy Gross, president of Alliance Steel, Bedford Park, Ill., and current ASD president, said “hitching our wagon to FMA gives us strength in numbers.” Its large diverse membership opens new opportunities. “The synergies between ASD members who sell steel and FMA members who use steel are great,” he said. “Our value proposition as ASD is much improved from what it was. It has completely rejuvenated the members.”
FMA membership offers other benefits to ASD members, such as valuable research and timely publications, educational and training programs, and help with workforce development, among other perks. And at a lower cost.
As new members come into FMA, they can select the groups they want to affiliate with, and some are picking ASD. In turn, interest in ASD is helping FMA to grow. The benefits run both ways, Youdell noted. “They are a good group of people, and we are really happy to have them with us. They make us a better organization, having that additional supply chain perspective.”
ASD’s June regional meeting is set for 5 to 9 p.m. June 7 at the Union League Club in Chicago.
Tim Triplett
Read more from Tim TriplettLatest in Service Centers
Galvanized steel prices slip while demand remains flat: HARDI
Galvanized steel prices dipped to ~$48/hundredweight in August from the $50-59/hundredweight range during the month of July.
Mill Steel relocating Texas facility to Port of Houston
Mill Steel Co. announced it is relocating its Houston operations to a bigger facility at the Port of Houston.
Olympic taps Anza for GM role at Connecticut location
Olympic Steel Inc. has promoted Vincent Anza to the role of general manager for its Milford, Conn., facility.
Friedman Industries’ profits jump in its fiscal Q1
Friedman Industries’ fiscal first-quarter earnings nearly doubled from a year ago.
Russel Metals hits recent revenue high as Q2 shipments surge
Russel Metals posted its strongest quarterly revenue in three years, fueled by higher steel prices, steady demand, and near-record shipments across its service center network.