Building Products Digest

Serving 13 Southern states

PUBIISHER David Cutler (dcutler@ ioc.net)

SENI0R EDITOR David Koenig (dkoenig@ ioc.nel)

ASSOCIATE EDffOR Dave DelVal (sdaly@ioc.nel)

CONTRIBUTING EDIORS Dwighl Cunan, Gage McKinney, Earl Moore

AD SALES ilANAGER Chuck Casey

ART DIRECTOR Marlha Emery

STAFF ARTIST Victoria Damrel

CIRCULATION Autumn Schwanke

How to Advertise

Contacl our advertising offices for rates:

U.S.A.: Chuck Casey, 4500 Campus Drivs, Suile 480, Newpoil Beach, Ca. 92660-1872. Phone (714) 852n990 Fax 714-852{231

SOUTH AMERICA: Charles Hallifax, Av. Americo Vespucio Norte 322, 0f. 13, Las Condes, Santiago, Chil€. Phone (011)-56-2 207 l?5l Fu 01 1-56-2 n7 1262

INTERNEI ADS: David Cutler, www.bujldingproduc{s.com. Phone (714) 852-1990 Fax 714-852.0231

How

Subscribe Callpla) 8s2-19!)0

To

or send a dreck for the following amount lo Building Producls Digest, 4500 Campus Drive, Suite 480, Newport Beach, Ca.9266&1872:

U.S.A.:One yeu (12 issues), $25

Two years, $41

Three years, $55

FOREIGN (Per year paid h advance in US tun6):

Surface-Canada or Mexico, $37 Olhor countries, $45 AL rates also available.

Single copies, $3 + shipping

Back issues (when arailable), $4.50 + shipping

CHANGE 0F ADDRESS Send address label lrom recenl issue if possible, new address and ninedigil zip code.

DAVID CUTLER publisher dcutler@im.net

You Gan Run, But You Gan't Hide

The old boxing maxim has never been more true than in today's volatile distribution marketplace. Whether retailer, wholesaler, distributor, remanufacturer, treater or those in related services. the low-competition niches and safe harbors are getting rarer than an unbruised chin in a heavyweight championship.

Expansions, downsizing, closures and consolidations are forces forever changing the face ofthis industry. In this last decade of the millennium, change has ruthlessly swept all along, pummeling the old, comfortable concepts. In their place we've seen challenging new ways of business imposed that demand different and innovative actions, thinking and reactions. However, we suspect our recent, turbulent past is but a prelude to the fast-forward world that is likely from now until 2010 and beyond. How products get from manufacturer to consumer will never be the same, nor will the brave souls who battle in this ever changing ring.

The announcements hit the face of a conservative industry like a boxer's blow glancing off his opponent's forehead. Lowe's, our second biggest retailer, has announced its intentions to expand from south to the Far West. Eagle Hardware & Garden has grown from its original base in the Pacific Northwest and is opening the first of a series of stores in California and the Intermountain West. HomeBase plans to add 22 new warehouse retail boxes to its present total of 83 and spread them across l0 western states in the next two years. Orchard Supply Hardware has revealed its cross country ambitions; no idle boast as it has the deep pockets of Sears, Roebuck & Co. behind it.

Having knocked out hundreds of independent hardware retailers, Home Depot plans to invade many of those same neighborhoods with 35,000 square foot home improvement convenience stores to complement their current total of 657 warehouse centers. Scores of additional big boxes are planned by Depot in the next three years.

Thousands of independents and small chains are running harder and working smarter. As with the heavyweights, they know no quarter will be given in this fight.