2 0 1 2 A N N U A L R E P O R T

TABLE OF CONTENTS

The Painting and Decorating Contractors of America (PDCA) is the only trade association dedicated to the success of painting and decorating contractors. Nearly 2,000 contractors in America and Canada are proud members of this organization founded in 1884. PDCA is recognized and supported by many industry manufacturers and suppliers as the premier organization committed to helping painting and decorating contractors improve their business. PDCA offers contractor members many opportunities to develop and grow through participa-tion in education programs, attendance at local networking meetings, use of PDCA Industry Standards and much, much more. Explore the PDCA website at www.pdca.org to learn more about why PDCA Painters Are Better.

OUR MISS IONThe Painting and Decorating Contractors of America serves the coating and wall covering indus-trywith standards, education, training, advocacy, and best practices essential to member success.

The 2012 Annual Report is published by thePainting and Decorating Contractors of America (PDCA)

2316 Millpark Drive | Maryland Heights, MO 63043-3530

Toll Free: 800.332.7322 | 314.514.7322 | Fax: 314.890.2068www.pdca.org

Copyright 2013© Painting and Decorating Contractors of America

Chair’s Message ............................................................................ Page 3Past Presidents ...............................................................................Page 42012 PDCA Membership ............................................................... Page 52012 Year End Financial Report .................................................. Page 62012 PDCA Supporters ................................................................. Page 11

1 2012 ANNUAL REPORT

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PDCA 2012 ANNUAL REPORT

3 2012 ANNUAL REPORT

2012 OVERVIEW

MEMBERSHIP: Membership grew by 3.5% in 2012 after a slight increase of .5% in 2011. This uptick in membership comes at the end of at least 11 years of decline (2000-2010). Membership recruitment was supported by the PDCA National Champions con-tinuing to distribute Free Trial Membership applica-tions. The online application was redesigned and now includes an option to locate and join the local PDCA unit. Membership recruitment efforts in 2013 will be focused on membership engagement at the local level. A Unified Support Effort (USE) is a pilot project being tried in four Councils in the Central Region. It is designed to provide stronger recruit-ment and administrative support by PDCA National and is funded by a simplified dues structure offset-ting the cost of a Regional Coordinator.

COMMUNICATIONS: PDCA National continues to improve and streamline communications for members. In 2012, PDCA Encore was created as a black and white printed summary of important membership messages for those members without access to the internet. The weekly edition of Industry Briefs concluded a successful first year resulting in additional revenue of approximately $23,000. A membership communication module was added to the website to help local units improve their com-munication capabilities to their respective unit members. The Get Smarter, Get Better, Get Business marketing theme was adopted for the 2013/2014 fiscal years.

UNIT SUPPORT: Monthly leadership conference calls continued in 2012. Leadership tools added to the website included officer job descriptions, “how to’s” on creating successful chapter meetings, a video presentation from the South Jersey Chap-ter of PDCA profiling a successful chapter meeting along with other information designed to support

Chair’s MessagePDCA has turned the corner and is staring to grow again. Those of you who had the op-portunity to attend the 2013 Painting & Decorating Expo had a great learning experience, a good time and a chance to meet with your peers.

Last year, the PDCA Board of Directors started the process of looking into PDCA and analyzing what is working and what needs to be changed to make us better. There is a new Ad Hoc Committee of 17 PDCA members from every segment of our member-ship. They will start the process, give their findings to the Board of Directors, who will then give their input and possibly put out a survey to the members on the key points for their input. All of this informa-tion will be gathered by Richard Greene, PDCA’s CEO, to form a plan on what we can implement to make PDCA better for the members.

There is a great amount of work to be done by ev-eryone. In order to make changes to PDCA that will meet the needs of today’s member.

I hope everyone has a good new year and I will see you in Reno.

Dave Ayala, United Pro PaintingPDCA Chair

2012 ANNUAL REPORT 4

PDCA 2012 ANNUAL REPORT

successful events at the local level. In addition, a new Operation Information Update (OIU) form was submitted by a leadership task force, approved by the Board of Directors, distributed to local units for completion and returns compiled for review by the Board of Directors. The information collected allows PDCA National to submit accurate information to the IRS for maintenance of the umbrella non-for-profit tax designation and to evaluate local units that need additional attention and support. PDCA National will continue leadership training and en-gagement efforts in 2013.

PARTNERSHIPS: The three National Champions continued their support of PDCA in 2012. Also in 2012, 3M Company raised their commitment to PDCA and became a Partner level member. The number of National Associate members grew by 5%. These key relationships amount to nearly 30% of overall PDCA revenue. PDCA Members are regu-larly reminded and encouraged to use these ven-dors and suppliers as much as possible. Recruitment focused on growing National Associate members continues in 2013.

ADVOCACY: PDCA continues to join with the Real Estate Roundtable to monitor changes and additions to the EPA RRP ruling.

EDUCATION: PDCA National applied extensive manpower to the building and completion of an improved Contractor College delivery and class attendance tracking system. Included in this was a much improved accreditation processing component that allows members to complete the whole accredi-tation application online; making the accreditation application process far more simple and easy. Ad-ditionally, ClickSafety has been added to Contractor College for members to provide safety training to their employees online. PDCA continues to pro-duce the monthly webinar series that is now attract-

ing more than 100 registrants each month. 2012 Expo in Las Vegas was a very successful event; looking forward to another great event in St. Louis in 2013. The PDCA Industry Standards continue to evolve with review two Standards in 2012 and pos-sible development of two new Standards in 2013. Promotion of member engagement and participa-tion will be the education focus in 2103.

PDCA’s A. E. Robert Friedman Scholarship FundFor more than 30 years, PDCA has been able to award scholarships to deserving students because of the A. E. Robert Friedman Scholarship Fund. The Fund was formed in 1978 to honor Bob Friedman on the occasion of his 40th anniversary as legal counsel for the Painting and Decorating Contractors of America. He served in that capacity until 1981. The Scholarship Fund is open to any high school senior or college-age student seeking to further their education. Rules can be found on the PDCA website at www.pdca.org.

PDCA Education Foundation In 1984, as PDCA prepared to celebrate its first 100 years as a national association, Benjamin Moore & Company presented PDCA with a gift of $10,000. This gift was used to establish a founda-tion whose purpose would be to provide ongoing educational programs for contractors in the coating and wall covering industry. In 1986, PDCA formally established the PDCA Education Foundation as a 501(c)3 organization. The Foundation has funded the production of many PDCA programs and pub-lications, including The Hazard Communication Manual, Cost & Estimating Guide, and countless estimating seminars. All programs and publications have been produced with the Foundation’s original intent: to upgrade the industry through continuing contractor educational opportunities. The Education Foundation has played a significant role in fund-ing the PDCA Contractor College and Accreditation programs.

PDCA TRUSTS

PDCA 2012 MEMBERSHIPThe PDCA Membership Statistics Presented as of December 31, 2012

CENTRAL REGION MEMBERSIowa Council 5 Kentucky Blue Grass Council 16 Lincoln State Council 39 Wisconsin Council 26 Ohio-Indiana Council 41 Michigan Council 30 Mid-America Council 48 Rocky Mountain Council 64 Texas Council 34 Nebraska Council 14 Chicago Council 16 SUBTOTAL 330 EAST REGION Middle Atlantic Council 214 Florida Council 44 Massachusetts Council 8 New England Council 71 Garden State Council 14 New York State Council 80 SUBTOTAL 431WEST REGION Arizona Council 37 Oregon Council 40 Washington Council 75 California Council 184 Golden State Council 51 Nevada Council 11 Hawaii Council 15 SUBTOTAL 413Free Trial Members 305 Members-At-Large 493 Non-Voting Western Canada 15Members Honorary 46 International Members 59 National Affiliate 17 National Associates 65 Past Service Members 7 SUBTOTAL 209 TOTAL 2,181

MEMBERSHIP REGION

Affiliate Member 17International 59Member at Large Level 1 451Member at Large Level 2 38Member at Large Level 3 4Member Level 1 642Member Level 1 A 156Member Level 2 287Member Level 3 104National Associate 34 National Associate Level 2 10National Associate Level 3 21Past Service Member 7Honorary 46Free Trial Membership 305

TOTAL 2,181

BY REGIONBY MEMBERSHIP TYPE

Member Type NumberAffiliate Member 17International 59Member at Large Level 1 451Member at Large Level 2 38Member at Large Level 3 4Member Level 1 642Member Level 1 A 156Member Level 2 287Member Level 3 104National Associate 34National Associate Level 2 10National Associate Level 3 21Past Service Member 7Honorary 46Free Trial Membership 305

TOTAL 2181

Affiliate MemberInternationalMember at Large Level 1Member at Large Level 2Member at Large Level 3Member Level 1Member Level 1 AMember Level 2Member Level 3National AssociateNational Associate Level 2National Associate Level 3Past Service MemberHonoraryFree Trial Membership

Member Type NumberAffiliate Member 17International 59Member at Large Level 1 451Member at Large Level 2 38Member at Large Level 3 4Member Level 1 642Member Level 1 A 156Member Level 2 287Member Level 3 104National Associate 34National Associate Level 2 10National Associate Level 3 21Past Service Member 7Honorary 46Free Trial Membership 305

TOTAL 2181

Affiliate MemberInternationalMember at Large Level 1Member at Large Level 2Member at Large Level 3Member Level 1Member Level 1 AMember Level 2Member Level 3National AssociateNational Associate Level 2National Associate Level 3Past Service MemberHonoraryFree Trial Membership

West 413Central 330East 431

West

Central

East

5 2012 ANNUAL REPORT

2012 YEAR END FINANCIAL REPORT

OPERATING REVENUES

Membership $711,111 56%

Communications $28,646 2%

Unit Support $66,019 5%

Partnerships $100,000 8%

Expo $191,443 15%

Education $162,077 14%

Total Revenues $1,259,296 100%

OPERATING EXPENSES

Membership $203,229 16%

Communications $103,130 8%

Unit Support $140,783 11%

Partnerships $31,402 3%

Expo $317,304 25%

Education $270,368 22%

Governance $179,732 15%

Total Expenses $1,245,948 100%

ASSETS

Current AssetsCash and Investments $1,290,244

(restricted and unrestricted)

Accounts Receivable $5,743

Inventory $18,125

Prepaid Expenses $55,718

Total Fixed Assets $57,236

Total Assets $1,427,066

LIABILITIES & EQUITY

Current LiabilitiesAccounts Payable and Accrued Liabilities $236,782

Deferred Dues $346,256

Total Current Liabilities $583,038

Net Assets $844,028

TOTAL LIABILITIES & NET ASSETS $1,427,066

REVENUES

Membership

Communications

Unit Support

Partnerships

Expo

Education

EXPENSES Membership

Communications

Unit Support

Partnerships

Expo

Education

Governance

2012 ANNUAL REPORT 6

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PAINTING & DECORATING CONTRACTORS OF AMERICA

PAINTING & DECORATING CONTRACTORS OF AMERICAPDCAPDCA

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Past Presidents/Past ChairsDavid Ayala (2012-Present)Darylene Dennon (2010-2012)David Jones (2009-2010)Mark Casale (2008-2009)David Siegner (2007-2008)Carol W. Adkins (2006-2007)Gregory W. Schnurr (2005-2006)Robert C. Miller (2004-2005)Richard Liddeke (2003-2004)Doug Hampton (2002-2003)Ned Lyerly (2001-2002)Brandt Domas (2000-2001)Steve Murphy (1999-2000)L.E. Travis, III (1998-1999)Charles F. Mann, IV (1997-1998)Michael B. Miller (1996-1997)Robert M. Herold (1995-1996)Larry J. Fuchs (1994-1995)James R. Stelzer (1993-1994)Paul J. Corey (1992-1993)Robert L. Cusumano (1991-1992)Jon Leuteneker (1990-1991)Richard Grund (1989-1990)William F. Johnson, Sr. (1988-1989)Martin A. Berger (1987-1988)George M. Lukas (1986-1987)Lawrence E. Gove (1985-1986)

Norman Strauss (1984-1985)David G. Kuhlman (1983-1984)William L. Harrison (1982-1983)Theo Ebert (1981-1982)Clyde C. Knight (1980-1981)Carl G. Bradley (1979-1980)Tilden A. Bonin, Jr. (1977-1979)Robert W. Ireland (1976-1977)Carl Leuteneker (1975-1976)Arlo J. Fairbanks (1974-1975)Myron Heiberg (1973-1974)Martin C. DeVries (1971-1973)Joseph F. Sansone (1970-1971)Helge Haltgren (1969-1970)Gordon M. Mortensen (1968-1969)D. Avery Boyd (1967-1968)L.L. Schmidt (1966-1967)J. Famer-Heggem (1965-1966)Alfred D. Quilici (1963-1965)S.W. Kooperman (1962-1963)Leon V. Switzer (1960-1962)R.F. Brueggemann (1959-1960)R.H. Reynolds (1958-1959)Ray N. Elvart (1956-1958)William Gelfan (1954-1956)R.H. Bohl, Sr. (1953-1954)J.W. Zucker (1950-1953)

Cleo Klaas (1949-1950)J.P. Davis (1948-1949)A.F. Shepherd (1947-1948)Jess B. Worthingon (1945-1947)Michael McCarthy (1941-1945)Ben Wickberg (1939-1941)Henry Afman (1937-1939)Gordon P. Marshall (1936-1937)J.B. DeWar (1934-1936)A.S. Grant (1932-1934)C.H. Dabelstein (1931-1932)John C. Yonk (1930-1931)William Paris (1929-1930)Charles J. Fowler (1928-1929)Alfred E. Joy (1927-1928)J.P. Rising (1926-1927)F.M. Michael (1925-1926)Charles Greenhaigh (1924-1925)H.W. Rubins (1923-1924)Joel Kennedy (1922-1923)James Phinnemore (1921-1922)Fred W. Dupke (1920-1921)Neil M.Wuirhead (1919-1920)Oscar L.Wood (1918-1919)George E. Egdorf (1917-1918)William J. Albrecht (1916-1917)A.M. McKenzie (1915-1916)

William E.Wall (1914-1915)John M. Stiles (1913-1914)J.W. Worley (1912-1913)William G. Baxter (1911-1912)James Roach (1910-1911)Samuel J. Brown (1909-1910)C.E. Van Syckle (1908-1909)Stewart N. Hughes (1907-1908)Oliver S. Ross (1906-1907)R.L. Peters (1905-1906)John DeWar (1904-1905)W.J. Edwards (1902-1904)Alexander Grant (1901-1902)Francis F. Black (1900-1901)D.T. Holland (1899-1900)P.J. Brankin (1898-1899)R.H. Stewart (1897-1898)Thomas A. Brown (1896-1897)M.F. Shay (1895-1896)John Theobald (1894-1895)F.A. Ballinger (1893-1894)John Beattie (1891-1893)M.H. Godfrey (1890-1891)J.G. McCarthy (1888-1890)Titus Berger (1885-1888)

2012 ANNUAL REPORT 8

PDCA ACCreDitAtion ProgrAm

“PDCA Accreditation is a stepping stone for any company wanting to achieve a business worthy to be called a real business. I was amazed at the professional and easy layout of the courses.”

– Joel Hamberg, Joel Hamberg Painting, Inc.

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PAINTING & DECORATING CONTRACTORS OF AMERICA

PAINTING & DECORATING CONTRACTORS OF AMERICAPDCAPDCA

Professional and industry certification is a proven means to indicate that your company has gone the extra step to separate itself from the competition. The Painting and Decorating Contractors of America Accreditation Program, offered through Contractor College, is carefully crafted to encompass every facet of painting and decorating contracting.

As an accredited PDCA contractor, you have the industry approval of being a dedicated, ethical, and better business owner. Ac-creditation provides the customer with the comfort that they have chosen a certified professional.

Prove your worth to PotentiAl Customers AnD beCome A PDCA ACCreDiteD ContrACtor.

Start today! Visit www.contractorcollege.org.

9 2012 ANNUAL REPORT

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*The image to the left shows Benjamin Moore® Aura® Exterior paint tinted with Gennex colorants compared to its closest national competitor. After exposing these panels using a third-party outdoor accelerated weathering test method, Aura Exterior retains its original color and fades less. Fade resistance may vary by color and product.

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2012 COMMITTEESThank you to the 2012 Committee members listed below. Your service and dedication to PDCA and the coating and wall covering industry is greatly appreciated.

Governance CommitteesGovernance Committees shall report to the Board of Directors (BOD) and are appointed by the Chair.

GDC Governing Documents Committee

Michael Walker (Chair)Paul CoreyBruce BaggenstosMark AdamsCarl Postupak

CredentialsTony Serverino (Chair)Bill ShoningRob French

Expo 2013 Barbara ChmielewskiTony Kozak Karen McClainSteve NagelmannRodney PaglialongDarylene Dennon Terry Osburn

FinanceDarylene Dennon (Chair)Rich O’NeilKen PalazzoNiguel CostelloCarol Adkins

Officer NominatingSteve Nagelmann – ChairCarol AdkinsTony SeverinoCarl Postupak

Policy AlignmentSteve Nagelman (Chair)Dave Ryker (Vice Chair)Mike WalkerCarl Postupak

ResolutionsPete Wirtz – Chair and BOD LiaisonBill SchneebergerJoel Hamburg Bill ShoningDoug Hampton

Issue ResolutionsBill Shoning (Chair)Dave Ryder (Vice Chair)Carol AdkinsRob FrenchPaul Corey

Operational Committees StandardsBob Cusumano – ChairMichael Walker - BOD LiaisonSteve GrayDoug HamptonL.E. Travis III John Calderaio Ron Yarbrough

Membership Kenneth Palazzo, ChairBradley HortonDave ScaturroSteve BurnettKaren GrahamKaren McClainCathy BeckiusKarl Schmitt

Education CommitteeScott Lollar, (Chair) Keith CorneliusNigel CostolloeCleve DaytonDarylene DennonDon FahrbachWarren HoffmanSuzanne McGinnisTony SeverinoPete Wirtz

National Associates CommitteeBruce SchneiderMarsha BassSteve MartyrRichard AhlstromTim SternauBrenda MollerRoland KoliliasJoe RichardsonCraig BuntingMark FosterRuss NealeRaed SalahDavid ParkerBob CusumanoMike CareyRonald McKenzieAlbert WaksmanLynn FifeRichie ConfortRick BushDaniel BrownKaren DeMontignyLes LieserKevin McKayLaura ForbushDavid NewmanSherman L. WeissJeremy AndersonAbby VeshiaNancy NoskoMark ZielinskiKaty WillenbrinkBen LeonardSteve LongHarvey FerdmanGreg SargemaDenise LinnMark MadisonDebbie ZimmerKevin LaRueDan PassinaultJerry LeBeauChris RingLynnie WinterTari WarwickDave BarnesDiane WalshBill SilvermanKarl SchmittKeith CorneliusMike CollinsMark PykBrent CampbellJoe Biestek

2012 ANNUAL REPORT 10

PDCA NATIONAL CHAMPIONS

PDCA NATIONAL PARTNERS

PDCA FRIENDS

THANK YOU TO THE FOLLOWING COMPANIES FOR THEIR GENEROUS

SUPPORT IN 2012

11 2012 ANNUAL REPORT

PDCA NATIONAL ASSOCIATES

AbatronADPAdvisors on TargetArroWorthyBehr Process CorporationBind/ITW Industrial FinishingCabot/ValsparCaulk SaversCiti Cards/Shell Fleet CardClickSafety, Inc.Complementary Coatings Corp.Construction Peer Group Corp.Corona Brushes Inc.Evergreen TechnologyFaux Effects International, Inc.Franmar Chemical

Fringe Benefit GroupFront Range Coating Consultants, Inc.Gardner-GibsonGreat American MarketingIdeaPaintIPS Industries, Inc.Kelly-Moore Paint Co., Inc.KOVRD ProductsLJ&S Products Paintrifuge.comLuxi ToolsM&S ConsultingMarket Hardware, Inc.McCauley Tools, Inc.Modern Masters, Inc.Norton/Saint-Gobain AbrasivesNutech Paints LLC

Painters and Allied Trades (LMCI)Precision CoatingsPro Painting Products LLCPropellerPro-Tect Painting International, LLCSANDEXSascho SealantsSaverSystems, Inc.SmartGuard Products, Inc.Stride ToolTitan ToolTritech Industries, Inc.V Spout CorpXIM Products, Inc.X-Rite

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Contractor College, offered by the Painting and Decorating Contractors of America (PDCA), provides member contractors maximum flexibility in continuing their education, with online courses, monthly webinars, annual education expo and an accreditation program. It provides the necessary components to build a high performance business – and it’s included in PDCA membership.

2013 Monthly Webinar Schedule Subject to change.

Contractor College Webinars take place on the third Wednesday of every month.

Date Title January 16, 2013 5-Year Business Plan February 20, 2013 Closing Secrets & Tips Your Competitors Hope You Never Learn So You Can Say Yes More March 20, 2013 High Level SEO April 17, 2013 Adding Additional Sales to Your Current Client's Project May 15, 2013 Customer Relationship Management - CRM June 19, 2013 Applying For Industry Awards - How They Can Benefit Your Business July 17, 2013 Developing Your Social Media Plan August 21, 2013 Understanding Contract Clauses September 18, 2013 Estimating For Profit October 16, 2013 How to Build a Safety Plan to Protect Your Company November 20, 2013 Financial Forecasting For The Construction Industry December 18, 2013 Goal Setting For The New Year Contractor College Webinars are only available to PDCA members. Webinar registration requires member login id. For more information on how to become a PDCA member, please call 800-332-7322.

YOUR TICKET TO GET SMARTER!

Become a PDCA member today at www.contractorcollege.org.

Contractor College, off ered by the Painti ng and Decorati ng Contractors of America (PDCA), provides member contractors maximum fl exibility in conti nuing their educati on, with online courses, monthly webinars, annual educati on expo and an accreditati on program. It provides the necessary components to build a high performance business – and it’s included in PDCA membership.