Impact on SPECKOZ and UPF&DA

Specialty chemical distributors have strengthened not only themselves, but the industries they serve, through various partnerships.

For example, in 1968 distributors formed UPF&DA (United Producers Formulators and Distributors Association), which brought together companies and individuals engaged in the formulation and distribution of pest control products and equipment. For the past 40+ years, UPF&DA has worked to establish an industry position and recommend solutions to common problems, including regulatory issues.

Another example of distributor partnership was with the formation of Speckoz, a cooperative group of leading independent distributors of pest management products. Speckoz acts as a group purchasing manager and/or contact manager for its stockholder members by negotiating contracts, licenses and marketing agreements. Important members of both of UPF&DA and Speckoz were B&G Chemicals & Equipment Co., and Southern Mill Creek Products of Ohio. There were differing opinions among those interviewed by PCT on how these associations will be impacted.

Gary Curl, president of Specialty Products Consultants, Menham, N.J., said, “There’s going to be one less member of UPF&DA, one less member of NPMA. Speckoz will have one less member. There’s going to be one less exhibitor at state and national trade shows as a result of the purchase of SMCP. All of these things will have a detrimental impact on associations.”

“There will be an impact on Speckoz,” said Pat Callahan, former Speckoz President. “Time will tell the bad and the good. Either the remaining Speckoz members have to expand their business through building existing branches or opening new branches in order to remain competitive” or “they could reach out to other independent distributors to grow the organization and replenish their ranks.”

But Lon Records, whose company has been a member of Speckoz since its inception, said there “shouldn’t be any change” in the organization as a result of the recent mergers and acquisitions. “The volume of purchasing power will remain the same, which is basically the benefit of a co-op,” allowing them to “level the playing field against national competitors. That won’t change at all.”

And Tom Wright, the vice president of UPF&DA, said each firm will continue to be members of any organization it is currently is a member. “UPF&DA will have one less (firm) but that’s not a major issue for the group. We’ll continue to support UPF&DA and any other associations that we’re involved in.”

Added Valera Jesse, UPF&DA’s longtime executive director, “The fertile environment for networking that UPF&DA provides is a perfect conduit for acquisitions. When two companies discover that they can be stronger when they work together, it is a success for our industry.  The affect on UPF&DA may temporarily reduce the number of member companies but the process validates the value and importance of belonging to a networking organization.”