The Alliance for Chemical Distribution (ACD) - formerly the National Association for Chemical Distributors (NACD) - partners with more than 400 chemical distribution industry members to provide education, connection, standards, and advocacy.
The ACD partners with over 400 industry players. Is there a typical membership profile, and how does the alliance support its members?
Our average member has about 25 employees and generates around $25 million in sales annually. These are often quintessential small, family-run businesses, although we also represent larger players like Brenntag and Univar, which are publicly traded with thousands of employees. However, the majority core of our membership consists of small, multi-generational businesses, some of which have been operating for over 120 years. They represent the backbone of the American small business landscape, typically tight-knit operations characterized by their ability to adapt and thrive over generations, maintaining strong traditions and creating economic value within their communities.
We operate on three main pillars: advocacy, education, and networking. Networking allows our members to connect at events, share insights on operations, finance, or insurance, and discuss industry challenges with peers. Education has grown significantly over the past decade, especially with the addition of online resources like ACDU, our training platform. Members can access courses on various topics, from regulatory issues to environmental practices. We also run an essential Responsible Distribution program, which requires members to complete an audit every three years to maintain their membership. Advocacy, our bread and butter, involves championing regulatory and tax reforms to protect our members from burdensome policies that stifle growth and job creation.
The chemical industry is increasingly dominated by giants. As a representative of smaller companies, is there a fear of being pushed out by the competition?
Yes, consolidation is a notable trend. It’s a double-edged sword; on one hand, smaller companies, some over 100 years old, are acquired because regulatory burdens or succession challenges deter younger generations from continuing the business. On the other hand, consolidation provides opportunities for growth and diversification. Many smaller distributors are pivoting, incorporating manufacturing into their operations, and expanding their service offerings. These companies often fill specialized niches, providing products or expertise that even larger corporations find indispensable. For instance, a member might supply unique pigments to Sherwin-Williams for their paints, illustrating the nuanced roles smaller companies play in this ecosystem.
Our members are resilient and embrace competition. However, mergers and acquisitions often lead to the loss of legacy businesses, some of which have been around for over a century. It’s disheartening to see these companies disappear, as they’re integral to American history and economic diversity. That said, smaller companies excel at finding niches and adapting to market demands, ensuring their continued relevance and value, even in a competitive landscape.
You’ve worked as a lobbyist in government affairs on behalf of a variety of different industries in the past, including healthcare and trade. How does the chemical industry compare?
The challenges are quite similar. Healthcare, transportation, and chemicals are among the most heavily regulated industries in the U.S., and all face significant compliance burdens. Whether it’s over-regulation, administrative penalties, or enforcement activities, the hurdles are comparable across these sectors. For me, transitioning into chemicals wasn’t a significant adjustment. While the technical details differ, the overarching themes—like balancing safety, regulation, and economic viability—are consistent. These industries all share the spotlight, often making headline news when issues arise.
Over-regulation occurs when enforcement shifts from targeting bad actors to penalizing companies with good safety and compliance records over minor paperwork infractions. Instead of focusing resources on preventing future issues or addressing genuine risks, regulators often nickel-and-dime well-functioning businesses with administrative fines. This misallocation of resources creates unnecessary financial and operational burdens. We need a balanced approach that ensures safety and environmental integrity without stifling economic growth or innovation.
2025 is set to be one of global uncertainty and geopolitical changes. As you prepare for collaboration with a second Trump administration, what priorities will ACD be advocating for in 2025?
We’re focusing on regulatory and tax reforms to ease unnecessary burdens on our members. For example, we’ve urged the extension of Trump-era tax cuts and are advocating for the removal of tariffs that impact companies importing products from places like China. These tariffs disrupt business models and increase costs. Another area of focus is infrastructure. Improved roadways and rail systems could greatly benefit our members. However, tariff policies and continued regulatory challenges remain hurdles we’ll actively work to address.
The Chemical Facility Anti-Terrorism Standards (CFATS) program, established in 2007, provided a robust framework for chemical facility security in the U.S. It included measures like a terrorist screening database and tiered risk assessments for facilities. Unfortunately, the program lapsed in 2023 due to political opposition. We’ve been working tirelessly to get it reauthorized. While funding for the program still exists, the Department of Homeland Security can’t operate it without authorization, leaving critical security gaps. It remains a top priority for us to see CFATS reinstated.
In a recent letter to the Federal Maritime Commission, you voiced concerns about the impact of strike action from East Coast dock workers. Do you expect workforce challenges to persist as a significant concern for members going forward?
Absolutely. Strikes at ports, on railroads, and across border regions like Canada have created major logistical challenges. Members are forced to stockpile inventory to ensure customer needs are met during disruptions. The ongoing East Coast port strike is just the latest example of how labor disputes disrupt supply chains.
Balancing union demands with technological advancements is key. We support a hybrid approach where workers’ rights are upheld while embracing automation to improve efficiency.
This year, ACD launched a new company called ASK Distribution Consulting. What motivated this decision, and what services does it hope to provide?
With ASK Distribution Consulting, LLC, ACD is better positioned to support the broader chemical distribution industry, its workers, and the communities they serve. ASK offers a comprehensive range of services that prioritize safety, compliance, sustainability, and commercial success.
By combining EHS&S expertise, management systems training, and auditing capabilities, ASK is equipped to enhance business operations and drive improvements across all facets of the distribution supply chain. These services aim to strengthen the industry’s resilience while promoting long-term growth.”
