MARCH 2024
IN THIS ISSUE
CEO’S MESSAGE
Dear BLUE HAWK Community,
We hope you’re doing well and staying healthy in the new year. As we navigate the currents of change and progress, it’s always important to pause and reflect on our roots, the milestones that have shaped us, and the individuals who paved the way for our collective success.
Recently, I had the privilege of delving into the archives passed on to me by Colleen Leppert upon her retirement last year. In this treasure trove of our history, I discovered a true gem: the ‘BLUE HAWK Scrapbook.’
I am thrilled to share a map (at left, yellow) found within this collection with you. Seeing this next to our map of today (blue) really encapsulates the essence of our humble beginnings and our remarkable journey since then.
We owe a debt of gratitude to our visionaries and trailblazers, such as our founding Members. Equally, we must recognize the pioneering role of the Independent Wholesale Alliance (IWA), whose merger with BLUE HAWK in January 2006 was a pivotal moment in our history. BLUE HAWK’s early adopters’ determination, foresight, and unwavering dedication laid the very foundation upon which our cooperative stands today.
Our journey, marked by challenges and triumphs, has woven a tapestry of shared experiences, binding us together as a resilient and unified community. Through these collective endeavors, we have forged ahead, overcoming obstacles and celebrating victories.
At this juncture, let us draw inspiration from our shared history and recommit ourselves to the principles of cooperation, unity, and mutual support that have guided us thus far.
Support our Vendor Partners
Amidst our reflections, let us remember the crucial role played by our valued Vendor Partners. They have been instrumental in our growth and success, providing us with quality products and unwavering support.
Now, more than ever, it’s imperative that we extend our support to them. Let’s prioritize sourcing from our Vendor Partners, fostering stronger relationships, and championing their businesses.
Together, we can continue to thrive and build a brighter future for our cooperative community.
GROW WITH BLUE!
DON’T WORRY —
USE THE DASHBOARD!
The Dashboard is an innovative tool that helps you manage your rebate targets and rebate dividend potentials throughout the year. This platform gives you ownership over your company’s earnings and makes sure that you leave nothing on the table in 2024. The Members that actively utilize the site praise the insights it provides – so what is holding you back from uploading your data and gaining all you can?
Worried your ERP is too complicated to create the right report?
You’re in good hands with Tredence – who has worked sucessfully with more than 25 different ERPs and with top companies such as Home Depot and Berkshire Hathaway.
Worried your information won’t be secure?
Tredence regularly completes a third party audit to ensure their system is impenetrable.
Worried your data is being used for other analysis?
BLUE HAWK and Tredence do not use your data outside of The Dashboard and no pricing is given to Vendor Partners.
Worried you just don’t have the time?
Your data can be submitted weekly, bi-weekly, or monthly and an sFTP is available for automation.
Worried you have too many SKUs?
Tredence utilizes AI to ‘read’ and put your SKUs into the appropriate product category for you.
Don’t let your worries and doubts keep you from the invaluable insights found within The Dashboard. Support BLUE HAWK and your company by a uploading your purchase data to the site before you get bogged down this summer. Reach out to Jessica Jones today to receive a demo and learn how to onboard your company.
Fill It Now is ready to fill your customers’ unique needs – now!
The Fill It Now inventory sharing platform has been up and running for six months now! In that time, the site has gained thousands of SKU’s for sale from dozens of Members across the nation. This innovative platform allows you to sell and buy plumbing and HVACR products from your fellow Members in BLUE HAWK and IMARK Plumbing to help fill in the gaps at your company. Whether you are looking for a hard to find component or to test out a new product line, Fill It Now is stocked!
Find products your customers need such as apparel, refrigeration parts and equipment, hydrants and parts, appliances and accessories, construction materials, safety equipment and personal safety products, press fittings, water heater parts, and so much more!
Are your customers looking for a product you don’t normally carry?
Are you looking to test the waters with a new Vendor Partner or product category?
Did your company get slammed with orders and need a quick restock?
The heat of summer is right around the corner so ensure that your counter and sales team know how to access Fill It Now today. Reach out to Jessica Jones to learn how to best use the site and set up all of your users. Support your fellow Members and BUY BLUE!
STUBBORNLY HIGH INVENTORY LEVELS
The dust has settled on 2023 as Benchmark BLUE participants tie a bow on a solid year. Despite sales slowdowns and some margin compression, EBITDA margins remain higher than historical averages. However, after two quarters of declines (Q2 and Q3 of 2023), inventory levels jumped back up at the end of 2024.
- The median EBITDA Margin landed at 5.7% in 2023. Not as high as 8.0% and 8.5%, which were realized in 2021 and 2022, but a step above historical EBITDA Margins in the three to five percent range.
- Sales Growth slowed to a median of 1.1%, with many BLUE HAWK members realizing sales declines in 2023 as compared to 2022.
- And Gross Margin returned to pre-pandemic levels.
- Despite Days Inventory on Hand declines in the middle of 2023 (Q2 and Q3), Benchmark BLUE participants hit a new annual record of 128 Days Inventory on Hand at year-end.
- With slower sales growth and high inventory values, Inventory Turnover also hit a new record low: a median of 2.9 in 2023.
2024 WINTER SUMMIT
The 2024 BLUE HAWK Winter Summit in Telluride, Colorado, saw an impressive turnout with 122 BLUE HAWK Members and Partners in attendance, setting a new event record.
Over the course of three days, participants engaged in productive business meetings, beneficial in-person networking sessions, and also had the opportunity to partake in various outdoor activities such as skiing, snowboarding, snowmobiling, and fly fishing amidst the stunning Colorado scenery.
BLUE HAWK CEO Lance Rantala describes the Winter Summit as a unique occasion for both Members and Partners, highlighting its relaxed atmosphere and the opportunity it provides for fostering significant connections to be made.
Make plans to join us for next year’s Winter Summit, January 14-16, 2025. Where? Details will be announced later this summer. Stay tuned!
Photo Gallery
SAVE THE DATES!
Don’t miss these key annual events.
Annual Conference
April 29 – May 1, 2024
Denver, Colorado
Fall Advisory Forum
October 28-30, 2024, Location TBD
Winter Summit
January 14-16, 2025, Location TBD
Thank you – Overall Event Sponsors
Thank you – Food Function & Item sponsors
WHAT IS THE 4% RULE?
Hear from Andrew Thompson, MBA,
Lincoln Financial Advisors Corp., in this short video.
THE 2024 ANNUAL CONFERENCE IS ALMOST HERE
It’s time to paint Denver BLUE!!
IT’S TIME TO GET YOUR BLUE ON for this epic party celebrating the co-op and everyone who makes it great. So start putting together your BLUE Out-fit to show your support of the best co-op in the industry!
All Members, Vendor Partners, Alliance Partners, Solution Partners, and Guests are invited.
The BLUE OUT BASH is sponsored by:
2024 BLUE HAWK GIVES BACK
This year, Annual Conference attendees who signed up for the Gives Back event will give their time and energy to the efforts of local Denver non-profit, Brothers Redevelopment, Inc., and their Paint-A-Thon program.
Painting a home’s exterior can cost upward of $5,000 — a huge expense for any homeowner. The Paint-A-Thon program offers income-eligible homeowners the chance to save big and devote their savings to other important costs, such as medication, groceries and bills, while still maintaining their most important investment — their home. Through this program, volunteers like us have painted the exterior of more than 7,500 local homes.
Registration is full but if you’re still interested, please contact Teri Ditsch to be placed on the wait list.
The 2024 BLUE HAWK Gives Back Sponsored by:
BLUE HAWK Gives Back has logged more than 4,050 volunteer hours since May 2012, to deserving organizations and projects including Lifeworks – Austin, MERISTEM, Father Joe’s Village, Durso Park Playground Project, Joshua Station, Christopher Reeve Foundation, The Ulman Cancer Fund, Surf Rider Foundation Beach Clean-up, Habitat for Humanity, The Leukemia and Lymphoma Society, The National Parkinson’s Foundation, Boys and Girls Clubs, Girls on the Run, Arizona Basset Hound Rescue, The Tiffany Foundation, The Cystic Fibrosis Foundation, The Kori May Memorial Endowment Fund, Mountain Girl Rescue, Fund Food Bank of Eastern Michigan, United Way of Genesse County, and American Red Cross Midwest Division.
Welcome to BLUE HAWK!
new MEMBER-owners
BASE Solutions, LLC
779 N. Church Ave.
Elmhurst, IL 60126
P: 630-758-1580
www.BASEsolutions.com
Crescent Supply Company, Inc.
2124 Anderson Rd.
Greenville, SC 29611
P: 864-269-9577
www.crescentsupplycompany.com
Cooling and Refrigeration Distributors
7000 NW 46th St.
Miami, FL 33166
P: 305-501-2871
www.coolingdistributors.com
Westwater Supply Corp.
2945 Silver Drive
Columbus, OH 43224
P: 614-261-6014
www.westwatersupply.com
NEW VENDOR PARTNERS
Airex Manufacturing
Effective February 2024
Primary Contact: Howard Ahern
P: 760-343-2277
E: howard.ahern@airexmfg.com
Airex Pro-System Kit, Titan Outlet, and E-Flex Guard
Fujitsu Westinghouse
Effective February 2024
Primary Contact: Dennis Stinson
P: 717-719-0010
E: dstinson@fujitsugeneral.com
Mini-Split Systems
Camden Yards Steel
Effective January 2024
Primary Contact: Eric Engels
P: 856-342-7100
E: eengels@camdenyardssteel.com
Steel (Sheets, Coils, and Slit Coils)
Pro Line Products, Inc.
Effective February 2024
Primary Contact: Kristen Smith
P: 972-488-4200
E: kristen.smith@prolineproductsinc.com
Hydration Products & Sundries
NEW SOLUTION PARTNERS
Continuum
Effective February 2024
Primary Contact: Alex Witcpalek
P: 630-251-7480
E: alex@gocontinuum.ai
Returns, Warranties and Repairs Network
Dill Technologies, Inc.
Effective March 2024
Primary Contact: Catherine Jiang
P: 972-339-0799
E: catherine@usedill.com
Automation of accounts receivable, preliminary notices, and lien releases
Coupons, Discounts, and Savings, Oh My!
Savings4Members is thrilled to announce the launch of the latest addition to the website: the Savings Square!
Members can now enjoy access to a catalog of self-service savings, meaning you can access these exclusive deals quickly and easily whenever you need them. This is the place where you can get immediate access to coupons, discounts, and more from the brands you know and love all organized in one central hub.
Discover amazing deals from brands such as ODP Business Solutions, Constant Contact, ACE Hardware, T-Mobile, and UPS. Stay informed about the latest promotions, seasonal sales, and limited-time offers with regular updates. Find member-exclusive discounts on a wide array of items, from office supplies to shipping, ensuring you’ll find everything your business needs.
Ready to start saving?
Visit the S4M Savings Square today!
For more information on your member benefits contact a Savings Consultant today at 844-287-2837 or info@savings4members.com.
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.
“The only thing worse than training your employees and having them leave is not training them and having them stay.”
8,169 University Student Enrollments
December 16, 2023 – March 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
- Steven Baldwin, Temperature Systems Inc, WI
- Drake Adams, Sanders Supply, AR
- Jayson Stickney, Sid Harvey Industries, NY
- Justin Goebel, Koch Air, IN
- Jacob Hanzel, Refrigeration Sales Corp., OH
- Bobby Howell, A/C Supply Inc, LA
- Dan Schoolcraft, Refrigeration Sales Corp., OH
- Jarrod Theiss, Refrigeration Sales Corp., OH
- Cole Madison-Gaskill, AMSCO Supply, OK
- Garett Randell, Benoist Bros. Supply Co, IL
- David Carneal, Century HVAC Distributing, TX
- Zachary Gibson, Century A/C Supply, TX
- Ryan Durham, Benoist Bros. Supply Co, IL
- Tristan North, Century A/C Supply, TX
- Shabrena Kelleybrew, Manufactured Duct & Supply (MDS), GA
- Eric Abramson, Insco Distributing, TX
- Brennen Barkley, Victor Distributing Co., FL
- Garrett Wallace, Distributor Corp of New England (DCNE), MA
- Jacob Roach, HVAC Distributors, PA
- Anthony Ray, Riley Sales, PA
New BHU Courses
Arkema: A2Ls Training
Fieldpiece: Valve Core Removal Tools VC2G / VC1G / VC1 sales training
Intermatic Inc.:
• Ascend Connect Google Home
• PanelGuard 7 and 10 Mode Surge Product Intro
Mueller Streamline: Streamline® Carbon Steel Press Fittings for your Gas Line Installations
Panasonic:
• WhisperAir Repair
• WhisperAir Repair Animation
RectorSeal Corp:
• Falcon Stainless Water & Gas Connectors
• Guardian Drain Lock® Overview
• Heating Service Products
Thermo Manufacturing:
• Flex Duct Saddles
• HVAC Accessories
White-Rodgers:
• 50E47U-843, Universal Non-Integrated Hot Surface Ignition Module
• The New Universal White-Rodgers Hot Surface Ignition Module: 50E47U-843 – Webinar
REBATE STATEMENTS & DIVIDEND PAYMENTS
The December 2023 Member Rebate Statements have been posted to the Online Community. The December (M12) Member Statement includes Guaranteed Rebates, Prior Year (PY) Adjustments, YE Rebate Incentives and PrimeTime Promotion rebates reported in December.
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 December (M12) Member Statement was deposited into your bank account.
To support our Members’ cash flow, we have requested our Vendor Partners pay rebates monthly instead of quarterly. We are pleased to report that in 2024, 65 Vendor Partners (50%) have committed to monthly reporting and payments, up from 32 Vendor Partners (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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