• 2008 National Hardware Show Redux

The National Hardware Show returned to Las Vegas this year still suffering from the fallout of the Reed / AHMA relationship of so many years. 2004 was in essence the end of the Chicago show and the long standing relationship between these two organizations. Two following shows in Vegas and then a year in Orlando and finally back to the permanent home in Las Vegas have combined to give us a show that is better in some ways and worse in others. To be honest, part of the problem may well be the industry, part the general decline of trade shows in general and part the economy.

One person I talked to suggested that this Hardware Show reminded him of the Canadian Hardware Show. The Industry has consolidated to such a degree that the major buyers and major manufacturers can all see each other in one day and the remainder of the show is exhibitors talking to exhibitors. This show is not about writing orders but it is about keeping in-front of your business partners. How important is that when you saw them just a few weeks ago in Cologne?

One of the better sales reps I know said, “Shows are an inefficient way to sell product and one of his Co-op customers now places a disclaimer on their show form for manufacturers stating that participating in the show is no guarantee of getting orders.”

I am always amazed at the number of people who stop me at the show and say they get “Taking Aim” and how much they enjoy it. Makes my day! Thanks.

Our government in their infinite wisdom have decided that they want to outlaw $0.65 incandescent light bulbs in favor of $4.50 mercury filled, compact fluorescent bulbs. It doesn’t make much sense to me especially when I think about chandeliers and other decorative lights in our house. (Love it, especially on top of the latest gas prices.)

I am a little bit encouraged by what I see happening with LEDs. For a while, they have been incredibly popular for flashlights and trinkets, but now I am starting to see them mounted in traditional light bases. The prices currently are out of this world, but this is one of those technologies that I think has the potential to be dramatically reduced. They just might be the way for me to avoid the mercury filled, compact fluorescent bulbs.

Prices on everything are going up. No big surprise, but one manufacturer I talked to has received increases on steel in the range of 43% and fuel surcharges on everything. Resistance has been minimal to his price increase actions.

Manufacturing may be leaving China! I heard from several people that they are moving production to Mexico or back to the U.S. In part because of the price increases coming out of China. Now if only the idiots in DC would do something about our highest in the world, corporate tax rate, maybe we could really get the economy going again.

The excitement about the pick up in the Ag market has been short lived. It seems that costs for farmers have jumped on fertilizer, equipment, diesel fuel, etc and consequently they aren’t spending as previously hoped.

One knowledgeable industry leader suggested to me that U.S. Manufacturers and German Manufacturers really have strong brands and they rely on those brands to sell their products. As he looked at the presentations at the show, he came to the conclusion that most of the innovation in products however was coming from Taiwan and China. The one aspect where U.S. Manufacturers excelled beyond international competitors is in the area of marketing. We sell the sizzle better than any other country in the world. INTERESTING!

As I walked the international pavilion at the show, I couldn’t help but wonder how the exhibitors could possibly justify the expense. There was little if any activity in that particular hall. This was a sentiment I found confirmed by a number of other attendees.

In one conversation, someone suggested that what the world needs now is a green tax. I have never seen a tax I liked, but this one did make some sense to me. Rather than all of this carbon credit crap, products produced by unsafe and polluting manufacturers should have to pay a tax on their products as opposed to products produced in environmentally friendly facilities. I am a free trader, but the idea of something like this to level the playing field does have some merit.

Even with the uncertainty about the future of the hardware show and the uncertainty in the economy, it was great to see so many familiar faces.

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