AD buying group member sales surpass $41 billion
The Wayne, Pennsylvania-based AD buying and marketing group recently reported an 11% increase in member sales across 12 AD divisions, totaling $41.4 billion in 2018.
Purchases from AD suppliers grew by 13% in 2018.
On a same-store basis, by industry, 2018 PHCP sales were up 12%; Industrial-PT sales were up 11%; Electrical sales were up 8%; and Building materials was up 4%.
By country, same-store sales in the U.S. grew 10%; Canada was up 8% and Mexico grew 10%.
Bill Weisberg, AD’s chairman and CEO reflected on the year. “2018 was an exceptional year. We broke sales, purchases and distribution records across all AD divisions, and we added value to our members and suppliers through our innovative programs,” he said. “Our most notable strategic accomplishment in 2018 was AD’s transition to member ownership. Given that ownership was not mandatory, we are particularly gratified that more than 500 members chose to become AD owners. Collectively, these members represent 95% of AD’s business and include every member of every divisional board.
“Using our unique economies of scale, we also delivered added value on a number of strategic fronts. AD eCommerce Solutions ended the year with close to 4 million SKUs across six AD divisions and increased the number of AD members using our content on their live digital branches by 91%. AD members saved $8.3 million using AD Procurement Services, which represents more than a $3-million increase compared to 2017. AD HR Services provided our members with more than $1.5 million in value. I couldn’t be prouder of what our members, suppliers and associates accomplished.”
Member owners elects AD Board of Directors
Also, AD member owners recently elected the group’s board of directors. Following an AD member owner vote, AD named the 2018 AD LLC Board of Directors election.
Chrissy Nardini, president of American Metals Supply Co., was elected to join the board, replacing Brian Peirce, CEO of Perice-Phelps. Peirce rolled off the board after 14 years of service.
Don Slominiski, president & CEO of McNaughton McKay Electric Co., and Martin Deschenes, vice chairman of the board of Groupe Deschenes, were elected to continue on as members of the AD LLC Board of Directors.
Jeff Hockin, CEO of Crum Electric Supply Co., and chair of the AD Board of Directors Nominating and Governance Committee said: “I am grateful to the AD members who took the time to participate in the first-ever member vote on the AD Board of Directors. This is a true AD milestone, reflecting the strong member governance and transparency of the organization. All directors received more than 97% approval.”
In 2018 AD successfully completed the transition to becoming a member-owned group, a decision aimed at ensuring the continued strength of the group into the future.
“The positive energy that has come from AD members becoming our owners has been tremendous,” Weisberg said. “I was very pleased to see how seriously our members took the board nomination and the voting process. Chrissy Nardini’s background as a CPA, combined with her industry knowledge, leadership qualities and passion to support independent business, will serve her well in her new role. I personally look forward to working with and learning from her experiences.”
Serving as the current president of American Metals Supply and the third generation of her family to run the business, Ms. Nardini is a past president of HARDI, where she was the first female president of the group. She is an officer of Young Presidents Organization for both the St. Louis chapter and mid-America region.
“I am truly honored to be the first board member elected by my fellow AD member owners,” she said. “American Metals Supply has been an AD member for more than 13 years and the value that our organization has received has truly made a difference in our company. I look forward to giving back to the organization and working with my fellow AD board members to ensure AD continues to help strong independents outperform the market and to stay ahead of the competition.”
The current list of AD LLC Board of Directors are as follows:
- Tim Arenberg, president and CEO, Columbia Pipe & Supply
- Martin Deschenes, vice chairman, Group Deschenes
- Jeff Hockin, CEO, Crum Electric Supply
- Tim Horsman, president and CEO, E.B. Horsman Co.
- Lenin Juarez, managing partner, Action Gypsum Supply
- Tammy Miller, CEO, Border States
- Chrissy Nardini, American Metals Supply Co.
- Jeff Pope, president, F.W. Webb Company
- Donald Slominski Jr., president & CEO, McNaughton McKay Electric Co.
- Russ Visner, co-chair of the board, Etna Distributors and lead director, AD Board
- Bill Weisberg, Chairman & CEO, AD
- John Wiborg, President, Stellar Industrial Supply.