What’s keeping you up at night?
Edward P. Salek, CAE, Executive Director | TLT Headquarters Report February 2016
A survey of 500 STLE members reveals the market forces that will impact the lubricants business during the next three years.
Almost half of the respondents say that STLE membership is of high value to their organization.
GLOBAL ECONOMIC UNCERTAINTY AND PRESSURE ON PROFIT MARGINS continue to be the factors having the most impact on STLE members and their organizations between now and 2018.
That’s according to research conducted in December 2015 for STLE by Association Laboratory, Inc., (ALI) a research and consulting firm with offices in Chicago and Washington, D.C. The response rate for the survey was high at nearly 18% (509 completed questionnaires received out of 2,853 survey invitations distributed).
STLE has been working with ALI on this investigative process since 2013 to assist in setting strategic directions for the organization. In general the most recent results confirm that many issues identified at the start of the research linger as challenges today. There are, however, a number of new concerns and areas attracting greater interest than in prior surveys.
Here’s a snapshot look at some of the findings:
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Global economic uncertainty and environmental regulation and scrutiny continue to top the list of market force trends expected to have the most impact in the next three years. These also were the primary external concerns in the 2013 and 2014 research. Not surprisingly, change in crude oil prices is a new factor that appears at the top of the list for 2015.
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Reduction in research funding from both commercial and government sources is an emerging concern. For example, in 2014 10% of respondents cited lack of commercial research funding as an issue. That number jumped to 15% in the current survey. For government research funding, the comparable numbers are 9% in 2014 and 12% in 2015.
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Pressure on profit margins remains the internal issue affecting the most organizations (about 60% of respondents). Profit pressure may be driving organizations to employ fewer staff or less experienced staff to accomplish the same amount of work. These three issues, all related to productivity and efficiency, were cited by about 40% of respondents.
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Workforce transition, especially the need to replace senior technical staff, is viewed as an issue by about 40% of respondents. That contrasts with the fact that concern for reduced company investment in training and development jumped from 16% in 2014 to 22% in the current survey.
The ALI research also provides STLE leadership with valuable trends information on members’ views on environmental factors affecting their organizations and personal professional development, reasons for STLE membership, satisfaction with benefits and informational needs.
One key finding to note is that almost half of the respondents say that STLE membership is of high value to their organization. That’s an increase from 2014 when 38% of the respondents rated STLE membership to be of high value. This movement toward a greater perceived value might reflect the impact of programs initiated through the STLE strategic plan, which began in 2013 and emphasizes the Connect, Learn, Achieve value proposition.
Satisfaction with individual benefits is also high, especially for those considered most important. Topping the list once again is TLT magazine, which gets a 92% satisfaction rating. Other benefits in the top tier (80% or greater) are the STLE Annual Meeting and information on
www.stle.org.
The ALI study is part of STLE’s ongoing efforts to understand the key concerns and issues facing the organization and its members. Detailed results from the latest research will be used by the STLE board of directors to refresh the strategic plan by mid-2016. Watch for more details on how the new plan will maintain and grow membership satisfaction and value in the coming months.
You can reach Certified Association Executive Ed Salek at esalek@stle.org.