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OCTOBER 2024

IN THIS ISSUE

CEO’S MESSAGE

Dear BLUE HAWK Community,

I am writing to express our enthusiasm for the continued progress of BLUE HAWK’s strategic initiatives. We are pleased to highlight some crucial developments and offerings to our member-owned cooperative community. This Aerial View e-Newsletter edition spotlights the various tools and platforms designed to empower our Members and streamline their business operations.

The Monthly Rebate Frequency from Vendor Partners demonstrates their commitment to enhancing the value for our Members. This dedication directly and significantly impacts our Members’ cash flow, with most Vendor Partners transitioning from quarterly to monthly reporting and payments. The introduction of monthly rebates has enhanced the Members’ profitability and fostered stronger partnerships with our approved Vendor Partners, a win-win situation for all.

Furthermore, the launch of the updated Dashboard 2.0 rebate analytics tool, growing participation in the Fill It Now inventory-sharing website, and steady engagement in our BenchMark BLUE financial benchmarking platform reaffirm our dedication to providing comprehensive and cutting-edge solutions to our Members. These tools offer valuable insights and data-driven decision-making capabilities and pave the way for enhanced operational efficiency and profitability.

Our turnkey e-commerce solution with BLUE data and BLUeCommerce is a game-changer for our Members. It provides a seamless and integrated approach to e-commerce, allowing the Members to capitalize on the power of data and technology to drive sales and customer engagement. This approach significantly enhances the cost-effectiveness and productivity of their operations, making it a crucial tool for their success.

Furthermore, our commitment to knowledge sharing and skill development is exemplified through our Hands-On Training Workshops, designed to equip our Members’ employees with the necessary expertise to leverage our Vendor Partners’ product knowledge. Members, please register your inside and outside salespeople to attend the upcoming workshops in November at Coastal HVAC Supply (Houston, TX) and The Star Supply Company (New Haven, CT). The Vendor Partner training sessions will be phenomenal.

Lastly, IMARK Electrical officially merged with Affiliated Distributors’ Electrical Division on September 24, 2024. We are pleased to inform you that this merger has no impact on our operations, programs, and services. Embracing our cooperative structure, BLUE HAWK ensured complete independence from IMARK Electrical, maintaining full financial transparency and autonomy. Consequently, BLUE HAWK and our federation of cooperatives are no longer associated with IMARK Electrical.

Our commitment to the success of independent HVACR distributors and our member-owned governance model has not and will not change. Our member-owners and partners are integral to the success of our cooperative community. We will continue issuing monthly rebate payments and returning 100% of net income to Members. Unlike other buying groups, our audited annual financial statements, which disclose all revenue and operational expenses, will remain available to our democratically controlled co-op, where every Member has voting rights.

We look forward to seeing many of you at the upcoming events.

    • 2024 Fall Advisory Forum (Key Largo, FL) – October 28 – 30, 2024
    • 2025 Winter Summit (Banff, Alberta, Canada) – January 14 – 16, 2025
    • 2025 Annual Conference (New York Marriott Marquis) – April 30, 2025

We appreciate your ongoing loyalty and support of BLUE HAWK. Because of you, BLUE HAWK is the most admired co-op and buying group in the HVACR supply chain.

GROW WITH BLUE!

On behalf of the entire BLUE HAWK team, I want to express our deepest concern and care for all who have been and may be directly affected by Hurricanes Helene and Milton. We understand that this is an incredibly challenging and uncertain time for all.

Please know that our thoughts are with you, your operations, your family and employees, and your community during this challenging time.

If there’s anything we can do to support you, please don’t hesitate to reach out. We believe in the resilience of our cooperative and are here to help as you navigate the recovery process.

Stay safe, stay strong.

New & improved!

The Dashboard 2.0 offers powerful insights & analytics

Over the past year, weve been collaborating closely with the Tredence development team to create a new and enhanced version of The Dashboard.

We are excited to introduce The Dashboard 2.0! This update goes beyond a simple visual refresh, offering powerful new insights and analytics to help you make informed decisions with ease. And, as always, The Dashboard remains accessible to all Vendor Partners, depending on your marketing fees.

Ready to delve into the site and gain valuable knowledge? 

About Fill It Now

Fill It Now is BLUE HAWK and IMARK Plumbing’s exclusive, closed inventory-sharing platform built to help leverage our massive purchasing power and support independent wholesalers in our federation of cooperatives.

By utilizing the site, your company can increase your customers’ spending in your branches by sourcing their needs in hundreds of product categories with hard-to-find parts and products with high entry costs.

What’s holding you back?

The Fill It Now platform is an opportunity for your company to increase sales and strengthen customer loyalty while supporting your fellow independent wholesalers. The site is easy to navigate and available 24/7 so your team can always be on top of customer needs.

While the initiative of maximizing the combined purchasing power of BLUE HAWK and IMARK Plumbing, and supporting the independent wholesalers within our cooperative has been well-received, we recognize some Members remain hesitant to participate.

What’s holding YOU back from becoming a Seller and/or Buyer?

Do you think onboarding will take too long?
     •  We can onboard your SKUs in a day!

Concerned about your product descriptions?
     •  We have PIM data for over 500,000 HVAC and plumbing SKUs.

Worried you have no products to offer?     
• 
Anything you can sell in your store, you can sell to fellow Members.

Are you worried the process is cumbersome?
     •  We’ve developed a helpful step-by-step onboarding document and there’s always a member of our staff ready to walk through it all with you.

Not really interested in selling – only buying?
     •  No problem! We need lots of buyers, too.

Get started today — Fill It Now is FREE to BLUE HAWK Members!  Reach out to Jessica Jones to gain access, watch a site demo, and start buying and/or selling today!

REGISTRATION NOW OPEN
f
or workshops hosted by:

Coastal HVAC Supply
Houston, TX
November 11-12

— — —

The Star Supply Co.
New Haven, CT
November 14-15

5 stars. highly recommend.

Another successful Hands-On Training Workshop was held this September at Victor Distributing in Clearwater, Florida, where employees from 12 member companies gathered for a two-day, immersive experience. The workshop featured practical product training sessions led by 10 BLUE HAWK Vendor Partners.

“Working directly with the products really made everything click,” said Nelson Telleria from A&A Supply Co. “For me, this is far more impactful than just reading a manual.”

Plans for future two-day workshops are already underway. Don’t miss the chance to participate or send your employees to enhance their product knowledge and drive your organization’s success.

———

BLUE HAWK remains committed to its mission of providing exceptional, tailored educational opportunities. By promoting a culture of continuous learning and professional development, the cooperative ensures that its members’ employees are well-prepared to meet the industry’s evolving demands and exceed customer expectations.

If you would like to host a Hands-On Training Workshop at your location, please contact a member of the BLUE HAWK Staff.

Optimize Your Employee

Benefits Strategy

Dear BLUE HAWK Members,

If you haven’t heard yet, as a BLUE HAWK member you get free access to online tools and resources designed to help make managing employee benefits easier.

Risk Strategies, the preferred insurance broker for BLUE HAWK, brings the following tools and resources to you at no cost when they help you find an employee benefits plan that works best for your needs. Whether that plan is a fully insured or self-insured arrangement, or a captive insurance arrangement that’s exclusively tailored for BLUE HAWK members – Risk Strategies is here to guide you in the right direction.

Brainshark – A presentation tool that combines PowerPoint slides with voice-over audio content. Ideal for virtual open enrollment presentations, new hire presentations, and training sessions for clients or employees.

Brite – An open enrollment tool designed to create sharable digital benefit guides and improve employee engagement by providing embedded decision support.

Mineral – An HR and compliance management tool to train employees, create an employee handbook, get expert advice on HR and legal issues, and more.

Employee Navigator – An all-in-one tool to assist with managing benefits, onboarding, ACA reporting, and employee enrollment.

I would welcome the opportunity to meet with you and review your current employee benefits strategy. Contact me for a free consultation.

Reach out today, take advantage of these benefits, and ensure your company’s future healthcare costs are managed effectively.

Email:
tking@risk-strategies.com

Phone:
214-675-0010
Travis King

Managing Director, Risk Strategies Company

BLUE HAWK for the win!

BLUE HAWK members continue to outpace Ferguson, growing 3.8% in the second quarter (median). Top Performers (top 25% of BLUE HAWK members) grew by 10.2%. Compared to Ferguson’s “organic” revenue declines of -0.2%. However, Watsco edged out most BLUE HAWK members, growing 4% (same-store).

Are you investing margin in growth? Gross margin dropped significantly in the second quarter from 26.6% in Q1 to 22.9% in Q2. The decrease in margin is likely to point to increased competitiveness and a willingness of members to discount to encourage growth.

Finally, inventory levels have come down as the median days inventory on hand went from 163 days at the end of the first quarter to 106 days as of June.

Feel free to contact me for more information on Benchmark BLUE.

Paul Giudice
Chief Executive Officer, Cometrics

Email: paul@cometrics.com
Mobile: 857-472-4711
Schedule a Zoom meeting

HOW PRE-TAX CONTRIBUTIONS AFFECT YOUR PAYCHECK

Contact Andrew Thompson, MBA,
Lincoln Financial Advisors Corp., to learn more.

2025 WINTER SUMMIT REGISTRATION OPEN

We are delighted to invite you to the 2025 Winter Summit, set against the breathtaking backdrop of Banff, Alberta, Canada.

This exclusive event promises an unparalleled opportunity to connect with peers and industry leaders while immersed in the enchanting splendor of the Canadian Rockies.

Embrace the thrill of a winter wonderland with activities ranging from exhilarating skiing and snowmobiling to exciting dog sledding and serene ice walks. With limited spots available, this is a unique chance to experience a magical mountain setting while forging meaningful connections.

CELEBRATING
20 YEARS!

Save The Dates

Registration for the 2025 Annual Conference will open in January.

Stay tuned for more information, and mark your calendars for April 30 – May 2 for a celebration worthy of 20 years of co-op greatness in New York City.

Please note the 2025 Annual Conference dates are Wednesday through Friday. 

VENDOR PARTNER SPOTLIGHT

 

Introducing the

First Alert App

 

The Ultimate Tool for

Smart Home Control

A brand homeowners recognize and trust for safety and reliability, the First Alert app combines thermostats, water leak detection/protection and video solutions. The app provides a seamless experience and easier installation from Pro to homeowner–simplifying management of the connected home.

October is National Co-op Month!

National Co-op Month is an annual opportunity to raise awareness of a trusted, proven way to do business and build resilient, inclusive communities.

Under the theme “The Future is Cooperative,” this year’s Co-op Month is also a chance to envision a cooperative future. With the 2025 International Year of Cooperatives on the horizon, now is the time to lift up the people-centered businesses at the heart of our communities and economies.

DID YOU KNOW?

  • Benjamin Franklin helped create the first formal cooperative – a mutual fire insurance company – in the U.S. in 1752.
  • One in three Americans are members of a cooperative.
  • There are roughly 29,000 cooperatives in the U.S. that operate in every sector of the economy.
  • Cooperatives create about two million jobs each year.
  • Cooperatives benefit their member-owners by providing goods and services, and by sharing earnings.
  • Cooperatives are democratically controlled by their member-owners, who have a voice in how the business is run.

The Seven Co-op Principles

In 1995, the International Co-operative Alliance (ICA) established seven standard principles for all cooperatives to follow. They help organizations flourish and operate successfully while encouraging all members to participate equally. 

1: Voluntary & Open Membership

 

The members are the most important part of a cooperative. Without dedicated and participating members, no co-op can succeed. To gain such a group of individuals, all co-ops need to remain voluntary organizations with membership opportunities for all. They should be open to any persons who are able and willing to join, accept responsibility as a part of the organization and can use the organization’s services.

2: Democratic Member Control

 

Cooperatives are founded on the ideals of democracy. Every member plays an integral role in making decisions that affect the organization as a whole. The cooperative makes crucial choices, adds or reforms policies and elects new representatives as a group. All of the members have equal voting rights, with one ballot per individual, and elected officials hear every person’s voice.

3: Members’ Economic Participation

 

To maintain fairness in all areas of the cooperative, members need to contribute equitably to its economy. They should also maintain democratic control over the collected capital. A portion of the capital is considered the property of the group. Should there be any surplus capital, the members decide where to distribute the money. Surpluses typically go towards:

    • Developing the cooperative or creating reserves
    • Benefitting members equitably based on their transactions
    • Supporting membership-approved activities

4: Autonomy and Independence

 

While each member has their own freedoms within the cooperative, the organization itself is also an autonomous and independent entity. The members of the co-op determine everything it does, which allows the co-op to function independently. The organization needs to be self-sustaining for each member to be able to exercise their freedoms within the structure.

The autonomy of the cooperative is also essential to outside collaboration, even extending to arrangements between other co-ops and external governments.

5: Education, Training & Information

 

To run a co-op successfully, promoting and spreading education is a necessity. Every individual involved with a cooperative needs to be well informed about the way they operate, their purposes and the responsibilities of each person. Members, employees, managers and elected officials all need continual training as the cooperative evolves and changes over time. If they are well versed in the co-op’s policies, regulations, values and principles, they’ll all be able to contribute more effectively to its development.

6: Cooperation Among Cooperatives

 

While co-ops are independent of one another and run by autonomous individuals, they also need to work together harmoniously.

Creating a larger network of cooperatives — locally, regionally, nationally or even internationally — allows independent organizations to better serve their members. Each co-op brings its unique abilities and contributions to the table, and they function with more strength as a unit.

7: Concern for Community

 

All cooperatives focus on their internal communities, but they are also concerned with their local communities outside of the organization. Co-ops source materials from and invest in local suppliers to contribute to the community’s sustainability. While the group works as a unit, each member should also take it upon themselves to contribute to the community in some way. The cooperative and surrounding network should encourage them to serve with pride.

Welcome to BLUE HAWK:

new vendor partners

Edge Eyewear

Joined August 2024

Primary Contact: Amy Halvorsen, Sales Operations Manager
P: 801-660-6662

E: amy.halvorsen@edgeeyewear.com

Safety eye protection


Great Lakes Copper Ltd.

Joined September 2024

Primary Contact: John Dermody, VP Sales
P: 815-441-3849

E: john.dermody@glcopper.com

Copper tubing


Kessler Sales & Distribution

Joined August 2024

Primary Contact: Tim Hagan, President
P: 800-526-5104, x 3001

E: thagan@ksdusa.com

Pipe & tubing products

Welcome to BLUE HAWK:

NEW SOLUTION PARTNER

Blue Business Solutions

Joined August 2024

Primary Contact: Dave Rieth, Managing Director
P: 216-410-3984

E: daver@bluebusinesssolutions.com

Employee recruitment for the wholesale industry.

2024 VENDOR PARTNER SCORECARD RESULTS

The 2024 Vendor Partner Scorecard rankings have been finalized and the results are in. Below are the Top 10 Vendor Partners in Overall Satisfaction as well as Sales, Product Quality, Service, Delivery and Pricing.

Our Members rank participating Vendor Partners on a scale of 1 – 10 for various metrics. These rankings are aggregated and individual ranking data remains anonymous, ensuring that Members are free to provide honest feedback.

Seventy-four Vendor Partners chose to participate in the 2024 VP Scorecard and our Members provided feedback on 4,210 relationships with those Vendor Partners.

One survey question asks each Member to rate their Vendor Partner relationship relative to other suppliers in that product category. We’re happy to report that 76% of the Vendor Partner relationships were rated as Above Average or Superior – which is up from 72% in 2023.

Overall Satisfaction
  1. Gray Flex Systems
  2. Southwark Metal Mfg.
  3. Nu-Calgon
  4. Legend Valve & Fitting
  5. Shurtape Technologies
  6. Caleffi North America
  7. Lucas-Milhaupt
  8. Aeroflex
  9. UEi Test Instruments
        Dynatemp (tie)
Sales Rep. Performance
  1. Southwark Metal Mfg.
  2. Nu-Calgon
  3. Gray Flex Systems
  4. MA-Line Specialty Products
  5. Dynatemp
  6. Southwire Company
  7. CertainTeed
  8. Cambridge-Lee Industries
  9. Johns Manville
  10. JB Industries
Product Quality, Mfg. Capabilities
  1. Gray Flex Systems
  2. Milwaukee Tool
  3. Panasonic Eco Systems
  4. Aeroflex
  5. TracPipe by OmegaFlex
  6. Nu-Calgon
  7. Southwark Metal Mfg.
  8. Gray Metal Products
  9. Caleffi North America
  10. Lucas-Milhaupt
Service, Communication & Product Training
  1. Nu-Calgon
  2. Gray Flex Systems
  3. Southwark Metal Mfg.
  4. Shurtape Technologies
  5. Gray Metal South
  6. Caleffi North America
  7. UEi Test Instruments
  8. Panasonic Eco Systems
        MA-Line Specialty Products (tie)
  9. Arkema
Deliveries, Lead Times, Fill Rates & Errors
  1. Legend Valve & Fitting
  2. Neuco
  3. Aeroflex
  4. Gray Flex Systems
  5. Southwark Metal Mfg.
  6. Caleffi North America
  7. Nu-Calgon
  8. Shurtape Technologies
  9. Lucas-Milhaupt
  10. C&S Mfg./Basset Products
Pricing, Terms & Conditions, Profitability
  1. Gray Flex Systems
  2. Southwark Metal Mfg.
  3. Legend Valve & Fitting
  4. Shurtape Technologies
  5. UEi Test Instruments
  6. Lucas-Milhaupt
  7. Z-Flex US
  8. Nu-Calgon
  9. TracPipe by OmegaFlex
  10. iO HVAC Controls

Many businesses in the trades industries – distributors, manufacturers, retailers, and contractors – struggle to provide robust employee training programs. They don’t see an immediate pay-off. Training is a tempting area to make cuts, especially in choppy economic waters. Besides, after the Great Resignation and Quiet Quitting, why invest more than is absolutely required?

But who has the time and resources to develop quality training – especially if it must be delivered repeatedly, for each new group of hires?

By utilizing BLUE HAWK University (BHU), a free benefit with membership, you can easily provide snack-size, gamified courses on product training. You can also combine courses into training tracks — delivering courses your way, at the right time, for new and experienced team members.

Member-Owners:
If you haven’t yet and would like to get started with BHU Vendor Partner Product Training, email Michelle Phillips at bhu@bluehawkcooperative.com.

Vendor Partners:
Get started or add additional content by contacting our Partner Success Team at BlueVolt at Partnersuccess@bluevolt.com.

BHU is hosted by BlueVolt, the 20-year leader in eLearning for pros in the trades and the resellers who supply them.

8,169 University Student Enrollments
March 16, 2024 – June 15, 2024

BHU Member Recognition is based upon the total number of Vendor Partner product training modules completed during the previous three months. 

Top BHU Participants
  1. Scott Seis, Sid Harvey Industries, NY
  2. Sara Rummel, Sid Harvey Industries, NY
  3. Preston Patterson, Trible’s, Inc., MD
  4. Andrew Vanvlerah, R.A. Townsend Co., MI
  5. Mario Morales, Insco Distributing, TX
  6. Jason McCormick, Cate and Company, Inc., TX
  7. Holbert Biles, Cate and Company, Inc., TX
  8. Daniel DeBias, HVAC Distributors, PA
  9. Ryan Feyerabend, Jackson Systems LLC, IN
  10. William Smith, Century HVAC Distributing, TX
  11. Joshua Ramos, Century A/C Supply, TX
  12. Greg Peters, Dunphey-Smith, NJ
  13. Nate Malinowski, Badger Metals, WI
  14. Alex Mesalam, Best Choice Supply, KY
  15. Evan Hosler, HVAC Distributors, PA
  16. Pedro Fuentes, Cleveland Hermetic & Supply, OH
  17. Nicholas Kiprof, Sid Harvey Industries, NY
  18. Michael Parks, HVAC Distributors, PA
  19. Tashemia Rodriguez, Insco Distributing, TX
  20. Kimberly Riley, Trible’s, Inc., MD
New BHU Courses

Armacell, LLC

  • HVAC Equipment-Air Conditioning Systems

NSI HVAC – Duro Dyne

  • Duro Dyne Screws
  • Dyna-Tite Strut Kit Installation
  • Dyna-Tite Suspension System
  • Fabricating & Installing Dyn-O-Mate J Flange
  • HDJD Dampers & Standoff Regulators

RectorSeal

  • AC GUARD
  • Duckt-Strip
  • Ductless Mini-Split Accessories
  • HAP – Pipe Support System
  • Metacaulk Overview
  • pH-Pro Condensate Neutralizers
  • PRO-Fit Precision Flaring and Swaging Kits
  • Solvent Cements
  • SureGrade
  • TRUaire Overview

UEi:

  • CO/Combustion Analysis

REBATE STATEMENTS & DIVIDEND PAYMENTS

The August 2024 Member Rebate Statements have been posted to the Online Community. The August (M08) Member Statement includes Guaranteed Rebates, Prior Year (PY) Adjustments, and PrimeTime Promotion rebates reported in June.

Only Members set up for Automated Clearing House (ACH) will receive monthly patronage dividends. If your company is set up for ACH payments, a payment corresponding to the M08 Member Statement will be deposited into your bank account.

To support our Members’ cash flow, we continue to request that our Vendor Partners pay rebates monthly instead of quarterly. We are pleased to report that roughly 50% of our Vendor Partners have committed to monthly reporting and payments, up from 24% last year.

To receive patronage dividends monthly, members must sign up for Automated Clearing House (ACH) payments. If you’d like to make the transition, contact Laura Spielman and she will assist with the sign-up process.

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