In an industry where competition is fierce and margins are tight, independent wholesalers often face an uphill battle against larger, more consolidated players. However, strength doesn’t always come from size alone — it also comes from strategic alliances. One such alliance for independent plumbing, heating, cooling and piping (PHCP) distributors  that ensures a level playing field is membership in a buying group. 

By pooling resources, negotiating as a collective and sharing best practices, buying groups empower their members with advantages that go far beyond rebates. Access to exclusive vendor programs, enhanced purchasing power and a built-in network of industry peers are some of the drivers of their success. And it shows: with three healthy and growing groups — AD, IMARK and The Commonwealth Group — one can see how partnering together for success keeps the PHCP channel healthy.

Join us as we explore how these three groups support independent wholesalers, foster collaboration and help them thrive in an ever-changing landscape, and hear from their members on how their group helps them succee

www.ADHQ.com

The Wholesaler: What are your membership statics and the verticals within your group?

Jeffrey Beall, president, AD PHCP Business Unit: AD is the largest contractor and industrial products wholesale purchasing cooperative in North America. We provide independent distributors and manufacturers of construction and industrial products with support and resources that accelerate growth. Our 1,400-plus independently owned distributors span 14 divisions in the United States, Mexico and Canada, with annual sales exceeding $100 billion. 

AD’s 14 divisions cover industries such as electrical, industrial, safety, bearings and power transmission, plumbing, PVF, HVAC, decorative brands and building materials. In addition, we partner with more than 1,000 manufacturers and 38 service providers specializing in finance, operations, marketing, HR and information technology.

The Wholesaler: What are the key market trends you’ve identified in the PHCP industry, and how does AD leverage these insights to benefit its members?

Beall: The market trends we see on the horizon are a mix of old and new challenges and opportunities. Consolidation continues to be active. Management transition is a topic at the forefront of many distributors. Technology innovations provide new ways to grow and be more efficient in business operations. To this, we see e-commerce, electronic data interchange and vendor-managed inventory as key components and solutions. 

A familiar market trend continues to be attracting and retaining workforce talent as well as providing continuous training and development. Though not new, this is something critical that all associates look for. 

At AD, we are truly blessed to have the strength of our owner/member-led boards and committees to relay information to us and guide how we respond to market trends. With their feedback, we shape the direction to help manage our ever-changing industry and take advantage of being in front of these market trends. No one knows the industry better than our members; they give us the best insights to work on continuously evolving resources that benefit them. Through our divisional engagement teams, we work to answer the question, “How can we help members and suppliers continue to get the most out of AD?”

The Wholesaler: What strategic goals and new initiatives will the group focus on in 2025? 

Justin Dunscomb, president, PVF Division— US: AD is comprised of growth-oriented companies that are consistently evolving and developing new ways to take care of their customer base. 

AD started 44 years ago in the electrical industry and today is in 14 different verticals and three countries to continuously provide a way to meet the needs of our members. Our newest verticals of expansion and exploration in the PHCP arena are around groundwater, oil and gas, fire protection, waterworks, irrigation, hydronics and refrigeration. 

When our members grow, we work to grow with them so we can provide — under the AD umbrella — all the innovative programs and services to help them with the tools to perform to their greatest potential. Our strategic goal continues to be providing increased value for our owner/members and supplier partners while expanding in all the ways they do business today and into the future.

The Wholesaler: How does AD foster collaboration among members to share best practices or resources?

Dan Kelly, president, Plumbing Division — US and Decorative Brands Division: Our owner/members are great at caring for the AD community. They are always quick to offer possible solutions to help fellow members out when they are faced with a new challenge to their businesses. 

Fortunately, this is truly at the heart of our daily operations. I like to call it the “collective power” of AD. We consistently work to proactively mitigate problems and share solutions ahead of a looming crisis or threat. That’s where the AD Executive Networks continue to be a valuable place to help our members exchange information in a constantly changing and highly competitive business world.

Facilitating the flow of timely information, best practices, innovation and knowledge within our community is a core part of our strategy. We have a long history of having the best networks in the industry because they are comprised of highly successful, noncompeting owners/members. All our members have individual strengths to bring to the collective table. The idea is that by facilitating these conversations, every member shares their strengths, so together, we are more potent, making every member as great as possible.

Our networks genuinely embody our mission of “Together, we win.”

The Wholesaler: What types of training or education support do you provide for members?

Randy Lee, president, HVAC Division — US: At AD, we have many strategic resources aligned to support members’ day-to-day operations at our corporate office. From real-time reporting to e-commerce support, our owner/members bring us challenges and we work with many talented people who can offer solutions to help. 

Another area where we look to be beneficial is long-term planning as members look to the future of their companies. Our newest resource to help develop current and future leaders is The Center for Independent Distributor Leadership (CIDL). This is AD’s holistic education initiative to prepare the next generation of independent distributor leaders with the competencies and experiences to build long-term, sustainable success for their companies. By using the CIDL, our member companies gain the resources needed to develop and retain top talent through comprehensive leadership programs to fuel professional growth.

The CIDL features three certification pathways for executive, sales and operations leaders:

1.    Leadership Experience is a certification program designed for those committed to being in leadership positions within their organizations. The certification track develops leaders who will build upon the success of independent distributors and ensure the sustainability of the independent business model.

2.    The Distributor Sales Leader program provides sales professionals with a long-term development track, including courses and interactive workshops to learn sales strategies ready for immediate field application. The certification integrates with members’ internal sales training programs and elevates their sales team to better grow top-line revenue in highly competitive markets. 

3.    The Distributor Operations Leader program is designed to help operations leaders learn and implement best practices that optimize the profitability and performance of independent distributors. The certification program covers the entirety of distributor operations and provides leaders with the road map, tools and network to drive sustainability and growth among their companies.

We know how busy our members are, so we are working to help provide the most valuable associate development tools to help them compete, win and thrive — today and into the future.  

www.tcgltd.com

The Wholesaler: What are your membership statics and the verticals within your group? 

Mike Lepley, president of The Commonwealth Group (TCG): Our membership consists of the plumbing, HVAC and waterworks verticals. Our membership includes 105 members, 135 manufacturers and 23-member service providers. 

 The Wholesaler: What are the key market trends you’ve identified in the PHCP industry, and how does TCG leverage these insights to benefit its members?

 Lepley: We would say deflation, especially in plastics, and stubborn, elevated interest rates, coupled with the continued consolidation in our industry, have been the biggest trends for the last few years. 

TCG, being a selective group of quality wholesalers, not quantity, offers constant networking amongst our members, which facilitates many opportunities for members to discuss selling to members within the group. We have seen this happen on several occasions. TCG’s best-in-class cash-flow model returns monies back to members quicker, which, in turn, allows our members to make better use of their cash to manage inventory and investments. 

 The Wholesaler: What strategic goals and new initiatives will the group focus on in 2025?

Lepley: It has always been part of our culture that our vendor partners are extremely important to us. This very limited and select group of companies is a key reason TCG has been so successful. Our focus will be to drill down in all categories and find more opportunities where our vendors and TCG members can both benefit. 

We are only as good as the endorsed vendors we invite into the group; thus, we intend to continue to work closely and collaboratively to build upon the relationships we’ve fostered, being certain to understand the product categories and enhance the TCG experience for our vendors. 

The Wholesaler: How does TCG foster collaboration among members to share best practices or resources?

 Lepley: Our annual shows have really set the tone for our members. One of the most gratifying things for our members is that the group is large in volume, but small in membership. TCG is a very collegial and cohesive group, which has allowed group members to get to know each other. 

During our annual shareholders meeting, our members participate in best practice sessions (TCG-Nets) where we organize groups of like members, thus avoiding competitive situations and overlapping territories. This allows for more fruitful and open discussions. For the most part, the members remain in the same TCG-Net group for several years, allowing them to continuously reach out and rely on each other.

 The Wholesaler: What types of training or education support do you provide for members?

Lepley: TCG has added a layer of support for our membership through the American Supply Association’s ASA University, as well as product training and professional development courses through The Commonwealth Group University, powered by BlueVolt.  

www.Imarkgroup.com

Under the helm of John Aykroyd, president of IMARK Plumbing and Luxury Products Group (LPG), the organizations verticals include plumbing, decorative showrooms (LPG), irrigation, PVF and waterworks. “Our strength lies in our ability to adapt, innovate and support our members in every way possible,” he says. “Through our progressive management strategies and unwavering commitment to independent wholesalers, we are not only navigating change, we are leading it. The future is bright for IMARK, and our members are at the heart of everything we do.”

The Wholesaler: What strategic goals and new initiatives will IMARK focus on in 2025? 

Aykroyd: With ongoing mergers and acquisitions reshaping the PHCP industry, independent wholesalers must be more strategic than ever. The IMARK Growing Forward Program has been instrumental in helping our members navigate consolidation by fostering acquisition opportunities within our group. This initiative ensures that businesses remain in the hands of fellow independents, preserving purchasing power and strengthening our collective influence.

Additionally, the need for continuous learning and workforce development has never been greater. IMARK is expanding its educational initiatives, providing even more resources for leadership development, technical training and business best practices. By equipping members with the tools and knowledge necessary to excel, we ensure long-term sustainability and competitiveness.

As the industry faces challenges such as labor shortages, evolving regulations and supply chain disruptions, IMARK is committed to equipping members with the insights and resources needed to navigate these complexities. Through collaborative programs, data-driven decision-making and a strong support network, our members can adapt and thrive in an increasingly competitive landscape.

As we look ahead, IMARK remains focused on innovation, growth and enhancing member success. Our strategic goals for 2025 include:

•  Expanding the Learning & Resource Center to provide even more specialized training and best practices across all verticals. We plan to introduce new industry certification programs and hands-on learning experiences tailored to our members’ unique business needs.

• Strengthening our decorative showroom segment by expanding product categories, including hardware and lighting, and reinforcing our commitment to supporting luxury and boutique showrooms. We work closely with leading suppliers to provide showroom members with exclusive promotions, design inspiration and market insights.

• Growing our presence in irrigation, waterworks and PVF verticals. Vice President Scott Bardreau states: “We see unprecedented momentum in these markets. By focusing on data-driven strategies and deeper supplier alignment, we are positioning our members for long-term success.” IMARK is actively fostering relationships with new suppliers, recruiting new members in these sectors and investing in programs that will help members capture market share and drive profitability.

• Providing industry-leading learning opportunities to help members navigate market challenges, improve operational efficiency and drive revenue growth. Through targeted webinars, in-person training sessions and on-demand content, IMARK is committed to supporting continuous education and professional development.

• Continuing to promote a family-oriented culture that values relationships, collaboration and mutual success. IMARK’s innovative marketing programs, combined with a spirit of humble confidence and a passionately progressive approach, ensure that we remain at the forefront of industry advancements.

The Wholesaler: What types of training, educational support or value-added services does IMARK provide for its members?

Aykroyd: IMARK continues to evolve beyond the traditional buying group model by delivering significant value-added services that enhance our members’ businesses. As we enter 2025, our commitment to strengthening our community of independent wholesalers remains unwavering.

1.    IMARK Health Insurance Captive Plan. We provide an exclusive health insurance captive plan designed to help members manage rising healthcare costs while maintaining high-quality coverage for employees.

2.    IMARK Retirement Plan. Offering cost-effective 401(k) solutions, this plan helps members streamline administrative tasks and leverage the group’s scale to reduce expenses.

3.    Networking and relationship building. IMARK and LPG meetings remain a cornerstone of our group, allowing members and suppliers to forge new business opportunities and strengthen existing relationships. Peer networking within our I-Net and Best Practice Sharing Network groups has become an invaluable resource for business improvement.

4.    Supplier communication tools. IMARK offers several high-impact communication tools to help suppliers connect with members at little or no cost: 

• Digital impact banners. Captures member feedback and is a highly effective tool for new product launches.

• IMARK Today. Our award-winning quarterly print and digital publication provides general business content and articles from IMARK suppliers that explore emerging sales opportunities.

• News You Can Use. A no-cost weekly publication that enables IMARK suppliers to deliver critical information directly to more than 4,000 IMARK member employees.

One of our biggest advancements is the IMARK Learning & Resource Center, which has transformed how members access critical education and training. This platform provides comprehensive learning modules, industry insights and essential program documentation to help our members maximize their success. The Learning & Resource Center serves as a one-stop shop for growth and development, further cementing our commitment to supporting independent wholesalers.

The Learning & Resource Center is designed to adapt to the changing needs of the industry, offering dynamic training modules, product education and leadership development courses. By leveraging these resources, members can empower their teams with the knowledge necessary to drive sales, improve customer service and streamline operations. As market conditions evolve, we are committed to ensuring that our members have access to cutting-edge learning opportunities to help them remain competitive.

IMARK has also strengthened its strategic partnerships to provide members with valuable industry insights and financial intelligence. Through our collaboration with ITR Economics, members gain access to exclusive economic forecasting and data-driven analysis that help them make informed business decisions. 

ITR provides our members with key insights into economic trends, market cycles and financial planning strategies to ensure they can anticipate challenges and capitalize on growth opportunities. Through detailed reports, webinars and personalized economic outlooks, ITR equips members with the necessary tools to navigate industry shifts, optimize inventory management and strengthen financial performance.

Additionally, our partnership with ASA ensures that members receive the latest industry research, best practices and advocacy support to stay competitive in a rapidly evolving market. Through this partnership, IMARK members gain exclusive access to specialized training courses available through the Learning & Resource Center. 

These courses cover a wide range of industry-relevant topics, including business management, sales strategies and technical product knowledge, ensuring that members are equipped with the latest skills and insights needed to stay competitive. 

By integrating ASA’s robust educational offerings, IMARK continues to prioritize professional development and workforce preparedness across all verticals.

Additionally, IMARK has expanded its marketing and business intelligence tools, such as:

• GainShare joint marketing planning. A proven performance-based incentive program that generates sales growth and captures market share for IMARK members and suppliers.

• IMARK dashboards. Offering powerful data analytics, these tools provide deep insights into purchasing behaviors, rebate maximization and overall performance.

• Fill It Now marketplace. This exclusive e-commerce platform allows members to access and sell a broader range of inventory within the IMARK network, reducing excess stock and increasing customer reach.