Thanks for all the support getting the 2022 Spend, Savings, and Rebates closed out this year.  Overall, USA Suppliers and members had a pretty good year in comparison to 2021.  Member spend qualified for rebate exceeded $300M.  Rebates were up 25%, First Cost Savings were up 14%, and Total Cost of Ownership (TCO) was down by 46%.  Overall Return on Investment (ROI) for the members came in at 29.70.

Even though there was a decline in TCO’s in 2022 there is some good news to report about TCO’s.  We were missing some of those big high profile reverse engineering TCO solutions, however TCO reporting increased from 177 events reported in 2021 to 201 TCO events reported in 2022.  That’s a good sign because it tells us that supplier and member engagement continues to improve as suppliers and members work together to recognize and report the value USA supplier partners are bringing to the members.  On an additional positive note, the work we completed last year showing rebate “What If” scenarios, continuous contract utilization discussions, and new agreements added to the USA portfolio all contributed to a rebate total not seen in many years.  Urenco recorded their first spend with USA and even received a small rebate.  We are very excited to see how Urenco and KHNP usage of the USA contract portfolio will evolve in 2023.

One challenge we are tackling this year is accuracy of spend submitted by suppliers in the semiannual spend and savings reports as well as member verification of the spend.  New suppliers and turnover of supplier staff requires training and coordination for those who are responsible for submitting the semiannual spend and savings reports.  We always get it right at the end of the year, but we add burden to both the supplier and member when the numbers provided in DevonWay do not match the final supplier spend and rebate calculations.

Finally, USA has all hands on deck preparing for the 2023 Executive Summit in Huntington Beach, CA.  Conference dates are from June 27 to June 30.  We have several of our supplier partners registered along with a host of utility and member staff planning to attend.  The conference and supplier showcase provide a great opportunity for suppliers and members to discuss the goods and services offered by our suppliers and how they can provide savings for our members.  It’s not too late to sign up so please consider attending this great event.