SEPTEMBER 2019

On May 8, 2019, BLUE HAWK announced we had become a founding member-owner of IMARK Group along with IMARK Electrical and IMARK Plumbing. IMARK Group is a multi-vertical member-owned, member-governed and financially transparent group with volume exceeding $28 billion in support of the HVACR, plumbing and electrical supply chains.

Over the summer, the cooperatives’ management teams rolled up our sleeves and got to work. Aside from sharing best practices, we began to evaluate our back-office synergies and cost-saving efficiencies. As an example, in January 2020, BLUE HAWK will launch a new purchasing and rebate analytics dashboard, which was developed by IMARK Plumbing. This dashboard is already being used by our dual Members and Vendor Partners who participate in IMARK Plumbing as well as BLUE HAWK. It would have taken a substantial amount of time and money to develop a comparable web-based platform. Because of IMARK Group, our customized dashboard will be delivered to BLUE HAWK community within a few months.

What is more, IMARK Electrical has negotiated numerous cost-saving programs for its 850+ electrical wholesalers with over 3000+ locations. As an owner of IMARK Group, we are able to offer these great value-add service providers along with our existing Solution Partner Programs. Please take a look at our newest Solution Partners in this edition of the Aerial View.

In the face of all this great news, we recognize that many of our Members, Vendor Partners, Solution Partners and Alliance Partners are still confused about BLUE HAWK’s decision to become an owner of IMARK Group.

Here are some FAQs that hopefully will clear up some of the misconceptions.

Did IMARK Group acquire BLUE HAWK?

No, IMARK Group did not acquire BLUE HAWK. Actually, BLUE HAWK became a member-owner of IMARK Group, a co-op of co-ops, in a similar way that BLUE HAWK Members are member-owners of BLUE HAWK. BLUE HAWK is an equal owner of IMARK Group along with two other co-ops: IMARK Electrical and IMARK Plumbing.

Why did BLUE HAWK decide to become a member-owner of IMARK Group?

IMARK Group will increase our collective clout, improve our market share and put us in a position to better compete against national and global distribution companies. In today’s competitive business climate, economies of scale are paramount for survival. Every industry is faced with aggressive consolidation and new competitive threats. Member leaders of our co-ops considered it vital that we protect and grow the purchasing power of our combined membership. A fundamental purpose for both BLUE HAWK and IMARK Group is a commitment to helping independent wholesalers survive and thrive.

Will the BLUE HAWK name stay or go away?

BLUE HAWK’s brand equity is one of the strongest in the HVACR industry. The BLUE HAWK name will continue to be very prominent so we can leverage this strong brand equity to help IMARK Group attract wholesalers that operate in multiple verticals.

Are all BLUE HAWK staffers staying aboard?

BLUE HAWK is managed by a small, yet very talented team of cooperative leaders. BLUE HAWK will continue to serve its cooperative community with the same team and same level of professionalism as in the past. IMARK Electrical and IMARK Plumbing will operate their respective cooperatives in a similar manner.

How many current BLUE HAWK Members are IMARK Group Members as well?

Today, BLUE HAWK shares 31 member-owners with IMARK Plumbing and 5 member-owners with IMARK Electrical. IMARK Electrical and IMARK Plumbing share 80+ member-owners. The expectation is this number of shared member-owners will grow through a coordinated strategy to recruit other independent wholesalers who are diversified in more than one business channel.

Can a BLUE HAWK Member join IMARK Electrical or IMARK Plumbing?

BLUE HAWK Members diversified in the plumbing and/or electrical business that wish to join IMARK Plumbing and/or IMARK Electrical will need to apply and meet qualifications for acceptance set by each vertical. The same goes for an IMARK Plumbing and/or IMARK Electrical Member who wishes to join BLUE HAWK

How does this joining IMARK Group help BLUE HAWK in an era of consolidation?

The presence of IMARK Group will help attract new quality wholesalers to BLUE HAWK, IMARK Electrical and IMARK Plumbing, which will further expand our overall purchasing power. For BH Members in ‘acquisition mode’ or ‘sell mode’, the combination of BLUE HAWK Growing Forward Acquisition Program and IMARK First, now have expanded opportunities to match Members seeking to either acquire a business or sell their company. This M&A activity will strengthen all verticals in IMARK Group by retaining purchasing power and market share in a consolidating market.

Will we still have a BLUE HAWK Annual Conference?

BLUE HAWK Members and Vendor Partners are still required to attend BLUE HAWK’s Annual Conferences. IMARK Electrical and IMARK Plumbing will have separate meetings for their members and suppliers. Unless you are also a Member of IMARK Electrical or IMARK Plumbing, you are not expected to attend their meetings.

Where do I go to learn more about IMARK Group?

You can visit www.imarkgroup.com to learn more about IMARK Group. If you still have questions, contact one of your BLUE HAWK team members. We want to make sure you understand how BLUE HAWK and IMARK Group are interconnected.