As a marketing communications firm dedicated to the business-to-tradesmen (B2T) industry, we quickly realized the tremendous impact COVID-19 would have on all facets of our business. We set out to develop resources to help businesses during the pandemic, and also educate ourselves by hearing from all types of industry voices on the effects of the pandemic.
Through extensive research and interviews with a number of key industry stakeholders, we began creating this content at the start of the pandemic and continued throughout the ensuing months to examine the effects and compare them to effects that were initially predicted for the future of the industry.
In our “COVID-19 Tip Sheet,” you’ll discover how manufacturers, media, distributors and influencers adjusted to the challenges of this new normal. The coverage of the topic includes a five-part series with several editors, publishers and key personnel from the trade media industry, a three-part series of interviews with industry influencers, advice for COVID-19 internal and external communications and content and interviews from the distributor’s perspective.
You can sign up to download this comprehensive resource guide full of information regarding COVID-19 and its effects on the niche that Sonnhalter serves, here.
Need help with navigating your marketing strategies through this difficult time? Contact us. And check out our other Tip Sheets here.
As all aspects of the B2T (business-to-trades) industry are challenged with navigating their businesses through the realities of COVID-19, we had the opportunity to gain some insights on this “New Normal” as it relates to the distributor sector of our industry. We gained insights by speaking to a couple of industry experts and learned how they saw the distributor sector adapting to this new environment.
Open for Business
When the pandemic first occurred, several major industrial distributors outlined COVID-19 safety precautions that they soon enacted in their facilities, including closing branches to the public except for curbside pickup, temperature screenings for all employees upon entry, staggered shifts and frequent deep cleanings. Smaller, local distributors followed suit, issuing statements on their protocols and not wanting their customers to wonder if they were still open.
“The distributors that we work with were open, but the vast majority of them locked their doors,” said Beck Oberholtzer, regional and marketing manager, at CSV Marketing, Inc., a manufacturers’ representative agency offering a diverse array of high-quality, industrial products. “If the distributor had a showroom, there was no walk-in business and they were doing touchless delivery.”
“Most of the smaller distributors were not able to send their employees home,” added Oberholtzer. “They still had employees working the phones and pulling orders, which were delivered or set outside. Some of these smaller, older-style businesses’ systems just aren’t set up to operate through the cloud. They have servers onsite and need people in the building to conduct business.”
According to Natalie Forster, editor of Supply House Times, a BNP Media brand reaching wholesalers, distributors and manufacturers’ representatives of plumbing, bath and kitchen, industrial PVF, radiant and hydronics, and HVAC products, as well as the official publication of the American Supply Association, “The biggest impact I’m seeing from the pandemic is that distributors are planning on keeping the switch to digital. Suppliers are realizing that they can be even more efficient with text-in orders and people working from home. This pandemic is going to be with us for a long time and the need for cleanliness is not going to go away. Many of the distributors, suppliers and showrooms plan to keep these changes in place.”
Forster reported that the majority of distributors had not allowed contractors to come inside when the pandemic initially hit, although it varied from state to state. Customer service, accounting and HR departments have been able to work remotely in order to keep the minimal amount of people in the showrooms and warehouses, and they have opted for drive-up, contactless service. As various states began reopening phases, suppliers implemented the typical precautions that you see elsewhere–face masks, lines on the floor and increased cleanliness.
At the beginning of the pandemic, contractors in some states, knowing that they were going to be deemed essential and that construction wouldn’t stop, came into the distributorships to obtain the supplies they needed for the remainder of their projects.
Supply Chain Challenges
Some suppliers had the foresight to predict that the pandemic would impact the U.S. in the way that it did, and proactively made mass orders to have surplus of inventory at hand. Other distributors didn’t have trouble getting inventory, other than the obvious PPE equipment, which was frozen by government mandates. However, others experienced minor troubles.
“The one trend that we heard, was that suppliers that get the majority of product from overseas, ran into the most problems,” said Oberholtzer. “Manufacturers that are manufacturing overseas experienced a significant slowdown.”
In recent years, especially since the “Great Recession” of ‘08, distributors have tended to be very lean on inventory levels, for the most part stocking only what they must and keeping levels low.
“It will be interesting to see how distributors will react long term,” said Bill Via, president of CSV Marketing. “Margins have been forced down with online business. Why would a supplier want to hang onto inventory any longer than they must? We see distributors looking to suppliers that are really good at JIT (just-in-time).”
Staying in Touch … Virtually
As states are opening up, many distributors continue to be cautious.
“Some distributors are letting customers in, but they are not allowing salespeople in,” said Oberholtzer. “While others are not letting customers in but will meet with contractors on location. It varies, but salespeople ‘dropping in’ is not an option anywhere right now.”
According to recent survey stats from an HVAC buying group, when it inquired of its members whether distributor locations were seeing outside salespeople, it found that 37 percent were not allowing any in-person sales meetings, 46 percent were scheduling appointments for emergencies only, and only 16 percent were accepting in-person sales calls.
Manufacturers reps, whose entire job is interacting and building relationships with distributors and suppliers, are finding that during these unprecedented times, they must be especially creative at cultivating those relationships. The bottom line is more communication. More frequent video calls. More emails. More texts.
“Everyone is doing Zoom virtual meetings,” said Forster. “It’s so important to stay top of mind. Whereas, if you did an in-person meeting, maybe you went to a sports event and had a great time; that lingers for a while. Now, it’s important to be more proactive. And, I think the greatest challenge going forward is going to be figuring out how to maintain relationships with customers while sports events and gatherings aren’t happening.”
Due to social distancing policies, manufacturers that traditionally held distributor “Lunch & Learns,” to conduct product demos and education, are also turning to other avenues.
“We’ve also seen distributors embracing the opportunity for online training,” said Forster. “Training is more important than ever before—and it can be done virtually.”
Ramping Up E-Commerce
In response to the pandemic, many distributors are attempting to accelerate their efforts to revamp their e-commerce platforms. Smaller distributors that tend to be more “old school” generally haven’t implemented sophisticated e-commerce systems, if they have e-commerce at all.
“Larger distributors that had solid e-commerce platforms actually did very well so far during the pandemic, some even showed growth,” said Via. “Smaller, mom and pop distributors, who might not even have online purchasing capabilities, weren’t prepared to keep the business running off site. Those businesses have reported sales down anywhere from 30 to 80 percent, and I think they are realizing that they’ve got to proactively get e-commerce in place, or they may not survive the next pandemic.”
“I think some distributors are capitalizing on this time to ramp up (or launch) their e-commerce platforms to get them to where they need to be sales-wise,” agreed Forster.
New Opportunities
While some distributors are really grateful that they were located in less populated areas that were less affected by COVID shut downs, other distributors are predicting that the industry will see an increase in acquisitions, which it has already seen for years. Some of these acquisitions will be made strictly for their customer base or for their skilled employees.
“There is a real possibility that there will be some casualties because of the pandemic,” said Via. “We are also seeing distributors that have approached manufacturers for credit relief.”
“In addition, we’re seeing manufacturers that are offering extended dating and special shipping deals like prepaid freight to ease the stress for suppliers,” added Oberholtzer.
New Respect for the Trades
One interesting takeaway from the pandemic that several distributors noticed is that people seemed to have gained additional respect for essential workers and the trades, that perhaps was lacking.
“We’ve had a couple of distributors submit thank you letters acknowledging plumbers and other essential workers in the trades and requesting it to be published,” said Forster. “Now, people might be thinking, ‘It’s not a bad idea to be in an essential field.’ Maybe, if we activate this in the correct way, we can turn this into a positive and help address the skilled labor shortage.”
Made in the USA
Another silver lining in the pandemic is the move towards, “Made in the U.S.”
“We think there is going to be a real serious push towards domestically made products as we move forward,” said Via. “Imported products are going to have to be the only option, or suppliers are going to have a battle on their hands. There is a very anti-Asia sentiment in the market right now.”
“Initially, the reason why manufacturers went to China was cost,” added Oberholtzer. “When you change the equation with the risks involved with another disruption, as well as customers pushing back for domestic products, it makes sense to re-examine imported products. Over the next five to 15 years, expect to see a lot more manufacturing in America when it is possible.”
It’s great to see people coming together, not just in this industry, but across all industries,” said Forster. “We’re all going through this together. We are finding more efficient ways to do things, and everyone is trying to be as productive as possible. We are going to come out of this!”
To read more of the series or more about the effects of COVID-19 in the B2T industry:
Does your company have a presence on YouTube? If not, consider these stats:
2 billion monthly active YouTube users
30 million daily active YouTube users
5 billion videos watched each day
500 hours of new videos are uploaded every minute
500 billion videos shared to date
We’re a visual society and everyone loves to watch videos. Of B-to-B companies who are using videos, 80% of them reported positive results. From a manufacturing perspective, this should be a no-brainer. The key is to have a strategy and create compelling content. How-to videos, troubleshooting, new product launches are just a few that come to mind.
Some of the biggest challenges many B-to-B firms face are lack of manpower and budgets, followed by creating compelling content. Videos don’t have to be long or be made into a Hollywood production. There are inexpensive cameras (including a recent iPhone) and simple editing software that enable most videos to be created in-house. The key is content. You must provide the viewer something he or she can use. Keep the message clear, to the point and short.
Here’s an example of one of our Marketing Minutes:
According to a recent study by Demand Metric, the most important objectives of videos are:
Certainly, these top three objectives fit into your marketing strategy. So, what are you doing about capitalizing videos to enhance your marketing efforts?
As we are all challenged with navigating our businesses through the realities of COVID-19, we’ve noticed that a number of the trade media have been nimble in responding to the “New Normal.”
We had the opportunity to speak with several publishers in our B2T (business-to-trades) industry to learn how they were adapting to this new environment. The following is part four of our five-part series.
SGC Horizon is a leading diversified media, content, marketing, data and events company serving the residential and commercial design and construction markets. The company has a collection of leading publication brands, including ProBuilder, Pro Remodeler, Building Design+Construction, Products, ProTradeCraft and Construction Equipment.
We spoke with Jeff Elliott, SGC Horizon Regional Sales Director and Principal.
Since 2018, one of SGC Horizon’s key initiatives is ProCONNECT, a series of events that bring leading building industry professionals together with top building product manufacturers for a day-and-a-half of confidential one-on-one meetings to discuss upcoming projects and explore solutions.
ProCONNECT is not just another trade show. ProCONNECT’s unique, one-on-one format and manageable size of up to 100 attendees and sponsors creates just the right environment for truly effective problem solving, high-level networking, and efficient use of attendees’ valuable time.
“ProCONNECT is kind of like ‘speed dating’ between key target audiences of builders and building product manufacturers,” said Elliott. “Since we launched ProCONNECT, our 12 events have produced more than 5,000 one-on-one meetings.”
Connecting Pros Virtually
“When COVID-19 hit, we were in the midst of holding an in-person ProCONNECT event for the multifamily market,” said Elliott. “It was held right when the pandemic was starting, and only three people canceled. We received positive reactions with productive meetings and great leads.”
Once the country started closing down and live events became impossible, SGC Horizon quickly responded to the new normal. “We knew that allowing people to connect virtually and engage in substantive discussions was going to be a valuable service we could provide,” said Elliott.
The company immediately launched Virtual ProCONNECT. “Keeping the health and safety of our audience members and building products customers in mind, we can keep connecting builders and manufacturers in an effort to establish and grow long-lasting partnerships—all from the comfort and safety of their home offices,” said Elliott.
The virtual ProCONNECT format brings traditional event ideas right to a home office. The event opens with an opportunity for attendees to ‘e-meet’ and continues with one-on-one private Zoom breakout meetings to discuss future projects and partnerships. Manufacturers meet with at least 16 builders over what amounts to a total of eight hours over two half-days.
ProCONNECT Produces Tangible Sales Results
ProCONNECT events have proven to be highly efficient for both attendees and sponsor companies.
“At a time when people are finding it impossible to meet in person, ProCONNECT is giving them an opportunity to keep their businesses moving along, said Elliott. “It’s a really good investment, where you can actually measure the marketing ROI and tie it back to orders. The feedback we are getting has been great.”
With the stress and anxiety of the COVID-19 pandemic constantly looming, finding silver linings throughout this situation isn’t always easy. But with millions stuck at home with their phones acting as their main source of entertainment and social interaction, influencers and content creators in the trades have been able to use this time as an opportunity to expand their audiences, connect and engage with their online communities and use their platforms to spread messages of positivity and encouragement.
One of these content creators is Dustin Henson, owner of Rustic Customs Woodshop. Based out of Texas, Dustin primarily makes custom wood projects for customers, such as barn doors, dining room tables and built-in shelving units. On Instagram, Dustin is a very active voice in the woodworking and DIY communities, where he shares his projects and woodworking tips to his more than 13,000 Instagram followers.
Sonnhalter spoke with Dustin to learn more about how the pandemic has affected his personal and professional life, the nature of the content he creates and some of the positives he has experienced while staying home with his wife and kids.
Sonnhalter: What were some of the initial changes you noticed in your personal and professional life when the pandemic started?
Dustin Henson: In my personal life, I think it’s obvious. It’s been nice spending time with the family, but I think being stuck in the house has us ready to strangle each other. [laughs] Professionally, I was already booked two or three months ahead of time, so it hadn’t slowed down my business yet. I just don’t have as many new projects coming in. Probably about 90% of my stuff is barn doors or custom-built furniture for houses, where I have to go out and visit the homes to measure for those projects, so that’s been put on hold.
Did you notice any significant changes in engagement or follower growth on social media?
As we are all challenged with navigating our businesses through the realities of COVID-19, we’ve noticed that a number of the trade media have been nimble in responding to the “New Normal.”
We had the opportunity to speak with several publishers in our B2T (business-to-trades) industry to learn how they were adapting to this new environment. The following is part three of our five-part series.
Mechanical-Hub is an online industry resource for today’s plumbing, heating and mechanical contractors. Founded in 2012, its mission is to provide updated industry news and information to the trade contractor and to partner with industry leaders in media, contracting and manufacturing.
We spoke with John Mesenbrink, president of Mechanical-Hub, who oversees its one-of-a-kind website and digital ecosystem. Today’s busy contractors looking for information to help them perform their jobs more efficiently turn to the site for highlights of the latest industry news, originally written features, videos, new products and tools, weekly guest blogs and contractor resources. The “Hub” also features social media engagement on its social channels and is a cornucopia of unique and original information for contractors and a great place to connect with other professionals in the industry.
“We started almost 10 years ago as a digital-only resource,” said Mesenbrink. “In these unfortunate circumstances of the pandemic, we feel that we are in a good position to be flexible and to help our clients and their companies get their messages out. We can be the vehicle to help promote a brand.”
Online After-Hours Training
Many of Mechanical-Hub sponsors rely heavily on in-person training and trade shows to educate their customers. With these types of events canceled because of COVID-19, Mechanical-Hub felt that it had an opportunity to help companies by facilitating casual online training sessions.
A few companies expressed interest, and Mechanical-Hub has been conducting two online webinars each week, scheduled eight weeks out. Free to attendees, all of the informal educational webinars are recorded and archived on Mechanical-Hub’s YouTube channel for reference. There is a minimal fee for the brands to participate to defer the administration and promotional efforts.
With many of Mechanical-Hub’s audience considered essential workers and on the jobsite during the day, the consensus was determined that holding the sessions in the evening would be the most convenient for attendees. That timing proved successful. (more…)
