The gavel has been officially passed from John Purswell, Sr. to myself during Powerclean 2010. What an exciting time for our industry! The Cleaning Equipment Trade Association begins the 21st year, and with this great accomplishment I would encourage each company to take advantage of the opportunities for growth with “CETA Benefits”.through being a CETA member.
v Newsletter. Knowing what is happening within the industry is made possible through the CETA newsletter.
v Tradeshow with Educational Workshops and Seminars. Mark your calendars for the CETA Powerclean 2011 tradeshow in Scottsdale, September 24 thru September 27. This is always a great four day event that brings distributors, suppliers, manufactures, and now industrial users together.
v Benchmarking. This is an opportunity CETA introduced three years ago for the distributors. Through Benchmarking (industry comparisons) distributors are able to compare their bottom line profit with the average of other distributors. Benchmarking can help your company identify problem areas, and increase your profitability. The information submitted to an independent agency is kept completely confidential.
The published net profit for companies such as Exxon Mobil is 7.14%; Rent-A-Center 6.58%; Gap Clothing 8.26%; and Coors Beer 23.08%....companies you are very familiar with and name recognition. Our industry came in at an average of 10.6% for the high profit CETA distributor in 2007. The companies that participated in the second year of benchmarking, and made a few adjustments, showed an average net profit of 14.2% in 2008. That is an increase of 3.6% or an approximate bottom line dollar increase of $136, 800.00 profit to the bottom line their second year of benchmarking, even through a soft economy. You could use your benchmarking figures to trim expense in areas where your company was above the average. With the soft economy the high profit CETA distributor still showed 12.3% profit for 2009. How does your company compare? Contact Sherry at the CETA office for more information. Benchmarking alone could recover your cost for CETA membership.
I am honored you have given me the opportunity to lead your CETA Board of Directors. The board is busy planning seminars and events to help your company. Should you have any ideas or comments please contact any CETA Board Member. www.cets.org Through CETA membership everyone wins!
Roy G. ChappellPresident 2010-2011