On November 14, 2023, IMARK announced the return of Bob Smith as President and CEO. Smith will work to further IMARK Electrical’s value proposition for members and suppliers. He agreed to answer 5 questions for tED magazine about the challenges ahead.
tED magazine: Why this challenge, and why now? You’ve had a very successful, very recognized career, and now you have moved back into a leadership position at IMARK. What brings you back for this challenge?
Smith:IMARK is a very dynamic organization and to work there is to enjoy a very interesting vantage point on our industry. I missed working with our member distributors and preferred suppliers. When I was asked to come back and serve the membership and aid in IMARK’s next chapter, I simply couldn’t say no…it’s quite an honor.
tED magazine: How are IMARK members viewing economic conditions in 2024?
Smith: Every December, we survey our members and suppliers to gather their predictions on economic conditions in the upcoming year. Preliminary results indicate that 43% of members expect 2024 to be better than 2023 and 42% of member respondents expect 2024 to be ‘about the same’ as 2023. Most respondents expect YOY sales growth to be flat or in the low single digits. Of course, all markets are different, and each member has a different customer mix. History shows that our members are very good at uncovering and exploiting growth opportunities.
tED magazine: If I were a current IMARK member, what can I expect from the association in 2024?
Smith: First off, rising interest rates drive an increase in our investment income. This allows us to cover all the costs of operating the group and return more than 100% of earned rebate income to our members.
We’ll be hosting our Spring ’24 Networking meetings for key executives in Charlotte. As we all know, there are many challenges facing the industry, whether it’s people issues, technology issues, etc. While these are daunting challenges, they are being addressed effectively by many IMARK members. Exchanging ideas and sharing best practices (and even failures) with other peers is an invaluable and efficient way to learn from others and implement programs that lead to increased sales and profits. There is no substitute to face-to-face communications. We’ll be hosting owners/presidents, sales and marketing leaders and procurement execs at this event in early April.
IMARK Electrical is committed to being the most effective and knowledgeable channel for our preferred supplier partners. During the height of the pandemic in 2021, we introduced our Product EXPO, a virtual trade show which features hundreds of brief videos from IMARK suppliers and service providers. We’ve set attendance record every year. In 2023, over 3,200 member employees attended the EXPO and shared their perspectives on the products featured by suppliers.
The pandemic has left a lasting impact on both business travel and meetings. We believe there is great value (and efficiencies) in ‘virtual’ gatherings, and we will continually seek the right balance between ‘in person’ and ‘virtual’.
tED magazine: IMARK Group includes organizations that serve the electrical, plumbing, and HVACR industries. What are some examples or initiatives that cut across organizations?
Smith: Each of our member organization has a track record of developing innovative programs. IMARK divisional managers meet frequently to share best practices and programs, wherever feasible. To give you one example, IMARK Plumbing and BlueHawk recently went live with a beta site for the ‘Marketplace / Fill it Now’ initiative that allows members to access and sell products beyond their vertical scope, thus expanding their value proposition to their customers. Through this platform we could have members from our three vertical business units collaborating and creating joint customer solutions that will result in increased sales. We are closely monitoring this pilot program to see how this can benefit our members.
tED magazine: What do you see as a major challenge facing IMARK Electrical?
Smith: IMARK Electrical has been blessed to have a very long tenured and experienced senior management team. However, like a lot of companies, we’re dealing with the fact that many of our key execs are nearing retirement age. Obviously, Jerry Knight’s recent retirement is evidence of that. One of my key objectives is to build an effective bridge leading to a new generation of leadership at IMARK. Our recent hire of Bill Ward at the IMARK Group level is a great example of the kind of experienced professional we are seeking to attract. IMARK is a great place to work and I’m very confident that we’ll build a dynamic management team that will effectively lead the group for years to come.
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