The Safety Industry, A Brief History

After being in this business for the past 17 years I am by no means a historian on the evolution of the safety industry. But one thing for sure is many of the “experts” who predicted certain trends have taken their MBAs and gone home.

I often say, "safety finds a way", a pitiful reference to Jurassic Park’s Dr. Ian Malcolm’s comment, “No, I'm simply saying that life, uh... finds a way.”

The Past

What I mean by this is? About nine years ago at a SEDA (Safety Equipment Distributors Association) meeting in San Diego, there was a speaker from the now infamous (and defunct) Arthur Anderson consulting (see Enron).

The gist of the meeting was that distribution will be completely transformed and the winners of the distribution race will be those that move boxes better and faster than anyone else. Automation, inventory and supply chain management were all that mattered. Service? Who cares? Relationships? Who cares? After all, Safety is a commodity. It will be composed entirely of those that move boxes with big box warehouses.

In this scenario the small safety distributor was doomed to less than 0.5% net profit, according to a master bean counter who flat out said, “Get out now, while you still have something. There is no logical reason to be a distributor unless you are a beer or alcohol distributor where the margins are off the charts. May as well pick up your marbles and go home.”

Those were the days when wholesalers were called "bootleggers". When Panda released the first syndicated catalog with lines in it that not all distributors were "authorized" to have. A hush fell on the industry. Scandalous. Who gave Panda permission anyway?

Fast Foward

Yes we had supply chain integration with huge industrial players getting into safety and moving lots and lots of boxes. Yes, costs are critical. But wait.... it turns out that the relationship survived and service is still essential. The consumer demands all of the above and much more, including that localized, professional safety distributor.

A recent study by Clear Research (a division of ISHN magazine) surveyed 6000 readers. The survey revealed that for safety glasses, earplugs and (inexpensive) disposable clothing the big box distributors or integrators were the suppliers of choice. When asked about respiratory, fall protection and anything that was "tricky" or required safety knowledge…well then they referred to the "specialty or local safety distributor" as the resource.

Now we have wholesalers or (more palatable) redistributors, offering the promise of never holding inventory, of one single source being the Super Warehouse to the Distribution World.... the conquering of the supply chain. Who needs the line directly? We have new generic catalogs. Now everyone in the world can be in safety.

Suppliers will save money. Who needs those distributors, those relationships? It will transform our market. Now “Mon Cheri's Bark and Clip” can become “Mon Cheri's Bark and Clip AND Safety”...

Well, that did happen and the homination (my word) of safety began. Brands were meaningless, inventory was meaningless, prices bottomed out, service was out and everyone and their "Dog" was into safety.

Clearly, life finds a way. Good thing the typical Panda distributor didn't listen to this mantra. Yes, these changes occurred. But one thing that was not considered in the strategy of change? People. Humans, relationships, entrepreneurs, perseverance, wanting to pay for your kid's college tuition.

Safety is one funky, messed up industry but anyone who is truly connected and committed to this industry knows one thing for sure... it's about bringing the worker home safe and sound. It’s about providing value to your customer and putting your kid through college, saving for that distant retirement and mostly having a great job.

Safety gets in your blood... and that’s a good thing. Life finds a way.

Panda Hall of Famers

Without these guys, there would be no Panda. They supported me from the very beginning.

Rep Groups

• Byrnes Sales - Mark Bushman, Jim Byrnes and the whole Rep Team.
• Jeff Fordham - JDH & Associates.

Suppliers at the beginning (in no particular order).

• Nancy Mitschke of North Medical. Kellie's Mentor. Without her hiring me at Lyons, there would be no Panda! Thank you Nancy!
• Fred, Mark and Bernie at Moldex Metric.
• Bill Schubach at American Allsafe.
• Ben Matranga at Allegro.
• Tracy Carpentier and the whole management team at Brady Signmark.
• Daryl Charton and Ben Belmonte of North Safety (Daryl's now the National Sales Manager at 3M).
• Roger, an outside Sales Rep. at Wilson Safety. This guy told everyone about Panda.
• Christine and the entire marketing team at Dalloz Safety. Our A2 catalog was the "Take it to the Streets" campaign by Dalloz. Panda and Dalloz teamed up to create a very popular catalog version at the time.
• Lonny Worman and Harry Neff at Uvex Safety.
• Howard Leight and Marketing Team - Howard Leight Industries.
• Ed Bickrest at Miller Safety.
• Rob Geiger at Ansel Edmont.
• Joe Eddy at Eagle Manufacturing.
• Pat Maruszak of Justrite Manufacturing.
• Bill Lanz, marketing at 3M.
• Tom Prinzing of Prinzing Enterprises.
• Keith Fouty the first protective clothing sales rep for Kimberly Clark. Panda was one of the first to put the KC line in a catalog. I actually think we were the first.
• Keith Fouty again, but this time with DuPont. Again, one of the first catalogs to showcase the SMS material competing against KC. The line didn't work out to well, so DuPont bought Kappler and the rest is history.
• Phil Welch at Valeo.
• Tom Votel, Mark Lingstrom and Howard Huber at Ergodyne.
  
• Eric Mjoen of Swift First Aid.
• Ricky Heros from Crews and River City.
• Larry Garner at Memphis Glove.
• Vicki Bunn of Best Gloves.
• John Greer of North Safety.
• Steve Grasha, Mark Dilliplaine, Dana Celich and Kathy Kowalczuk of MSA.
• Jeff Huff at OK-1 Manufacturing.
• Ken Henry, Paul Noto of Gerson Co.

Distributors at the beginning (again, in no particular order).

• Krikor and Ani - ANI Safety + Supply, Skokie, IL
• Jill Will - Cameron & Barkley (Hagemeyer), Charleston, SC
• Ken Sands - Cameron & Barkley, Charleston, SC
• Stuart Southard - Care Safety Supply, Nashville, TN
• Alex Buchness and Phil - Gann Safety, Baltimore, MD
• Mark Gottlieb - Balco Supply, New York, NY
• Bill Maki - Libra Safety, Chicago, IL
• Tom White - Clement Safety, Memphis, TN
• Tom Dool - Mid-Continent Safety, Wichita, KS
• Richard Rivkin - Saf-T-Gard International, Northbrook, IL
• Dan Brough and Joe Fritz - SafetyWear, Fort Wayne, IN
• Dave Grauer - Pendergast Safety, Philadelphia, PA

AND...The Three Guys who helped on the First Panda Catalog

• Keith Skipworth - Safety Source, Alabama
• Richard Reggiani - Colonial Safety, Florida
• Keith Vardi - Premier Safety, Pennsylvania

Other Friends of Panda at the beginning.

• Betty Quadracci - Quad Graphics. She gave me the courage to start Panda. "Gotta try it Kellie, I know you will do well.
• Renee and Gary Miller- helped paint the first Panda office.
• John and Maryann Penkal - Friends.
• Fred Loepp - Grainger.
• Mike Stamm - Conney Safety.
• Steve Spahr - Sanderson Safety.
• Tracy Hinch - My first graphic artist. ANI projects and Care Supply First Aid Catalog.
• Janet Wunrow - Lyons Safety.
• Stephanie VanderBloomen - Graphics.
• Todd Hoffmeister - Hubby. He created all the WORDS at Panda, and kept me from looking stupid. Love ya Honey. Yes, we're still married and he is still creating words, and now videos!

If I left anyone out I apologize but being 14 years older and middle aged...need I say more.

As you can see from this list, every major supplier and distributor supported Panda. Much of the landscape of Safety has changed and some names on this list have passed to the other side. All of them were mavericks and entrepreneurs building the brands we take for granted today.

None of these names or the support given to Panda would have been mattered without my experience at Lyons Safety. So the original Friend of Panda (although it took us 12 years to make-up) is Bill Thompson, president of Lyons Safety. (Now called Airgas), This man hired me and let me have a lot of rope... he called me a "loose cannon" but each time he did, he was thrilled with the results.

Everyone knew Kellie from Lyons, the catalogs, bringing virtual reality to tradeshows and building one of the best marketing programs in the industry. Bill gave me that rope. I took it, and the rest is history.

I am humbled by Panda's accomplishments. But looking toward the future, I am keenly aware that we are only as good as our last gig. It could all be gone tomorrow. We are here in this industry not because we are a sanctioned entity, supported by a trade group or company, protected like some rare wildlife animal (although the Panda is protected, that's interesting). We are here because Panda continues to have value. We built this business from nothing and we continue to offer products and services that no one else offers. I often say, "If we cease to be relevant to the industry that is the day Panda stops."

We continue to be relevant and independent with one goal in mind--to support the distributor and supplier FOPs, (Friends of Panda). To do this we all must work together, reinvent ourselves and look for new ways to reach our market.

To be profitable and sustainable as we move to the next phase of business. One must ask one's self, "Without Panda where would my business be?"

Thank you for the opportunity to serve you. I look forward to the next "gig".

Kindest Regards,

Kellie and Todd Hoffmeister
Panda Group