HBSD-0123

JANUARY 2023 Volume 49 No. 1

kodiak

MOMENTS Steve Swinney leads a fast-growing consolidator one acquisition at a time

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01.23 TECHNOLOGY

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14 How Lowe’s plans to thwart retail crime at the point of purchase.

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PRODUCTS

COVER STORY

16 Kodiak Building Partners Roars into 2023 Moments of growth and a decade of experience. Steve Swinney leads a fast-growing consolidator.

FROM THE EDITOR

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Insights from the top stories of the year.

NEWS & ANALYSIS

10 Remembering 84 Lumber’s Joe Hardy; a design project for Tractor Supply.

INDEPENDENT PROFILE

12 Woodstock Hardware: Two sons grow up in the family hardware business.

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22 The Golden Hammer Awards strike again, celebrating innovation, value and shelf appeal.

28 Paint is primed to grow in 2023.

REGULATORY NEWS

30 Muddy Waters: Clean Water Act ruling gives NAHB the blues.

TOP WOMEN

32 Marianne Thompson, chief commercial officer at Home Hardware, celebrates and promotes authenticity.

PLUS

33 People News 34 Quikrete Industry Dashboard

Hardware + Building Supply Dealer (ISSN 2376-5852) is published monthly, except for July/August and November/December, which are double issues, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631. Subscription rate in the United States: $110 one year; $200 two year; $14 single issue copy; Canada and Mexico: $130 one year; $235 two year; $16 single issue copy; Foreign: $150 one year; $285 two year; $16 single issue copy; in all other countries (air mail only). Digital Subscription: $75 one year; $140 two year. Periodical postage paid at Chicago, IL., and additional mailing offices. POSTMASTER: Please send address changes to HBSD, Circulation Fulfillment Director, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631. Copyright © 2023 by EnsembleIQ. All rights reserved.

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The Highlight Reel Every week at HBSDealer.com, watch the Top Three Story Rundown, a highlight reel of the biggest headlines from the digital pages of HBSDealer. And see our video library on Youtube @HBSDealer.

Read the latest E-Book The latest HBSDealer E-Book anticipates the products, the events and the excitement at the upcoming NHS, IBS and KBIS in Las Vegas. Visit HBSDealer.com/report.

Now Available!

Forecasting the future Poll questions and poll results are regular features of HBSDealer’s daily e-newsletter. Among the recent hot topics: residential construction.

Q

What’s your 2023 total-housing-starts forecast?

1% Up high single 1% digits Up 10% or 7% Up low single digits

more

34%

16%

Down 10% or more

Flat

20%

Down low single digits

22%

Connect with us @HBSDealer

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Down high single digits Source: HBSDealer poll (n=175)

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Scan to learn more. leviton.com/usb

From the Editor 550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631 (773) 992-4450 Fax (773) 992-4455 www.HBSDealer.com BRAND MANAGEMENT

This was the year that was

SENIOR VICE PRESIDENT John Kenlon (516) 650-2064 jkenlon@ensembleiq.com EDITORIAL

Ken Clark Editor in Chief

T

he stories kept coming in 2022.

Through 401(k)-shrinking Wall Street charts; through distressing geopolitical events around the globe; through a never-ending barrage of mean-spirited tweets and counter tweets, and, conversely, through wildly cheerful and optimistic Linkedin posts, HBSDealer’s daily news machine kept its nose to the grindstone.

It’s a good time to look back.

Here are the top pageview-generating stories from each quarter of the year that was.

Q1: “Woodgrain acquiring Huttig.”

The $350 million all cash deal, reported on March 21, not only took the St. Louis-based building product distributor private, it opened a lot of eyes to the size, scope and ambitions of family-owned Woodgrain of Fruitland, Idaho (six divisions, 30-plus manufacturing and warehouse facilities).

HBSDealer keeps careful track of acquisitions. In 2022, we counted 74 that made the headlines. That’s up from 70 in the prior year. We expect even more in 2023.

Q2: “Five keys from Lowe’s fireside chat.”

This June 23 article is B2B at its best—sharing ideas with the potential to help make hardware stores, lumberyards, home centers and all those in the home improvement channel better at business.

When we capture comments from the braintrust of industry leaders, the door to business improvement opens a little wider. We’re not saying, “imitate.” But we are saying, “ob-

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serve.” That concept is hard at work in this month’s cover story on Kodiak Building Partners. See page. 16.

Q3: “Meet the Top Women of 2022.”

The popularity of this July 31 article suggests that the lightning we caught in a bottle with our first live top women event in 2021 continues to flash in powerful bursts.

Amy Grant, associate publisher of HBSDealer commented on the record number of entries for our Top Women program. “We are thrilled that so many people participated in the process. The end result is a special group of high-performing leaders and rising stars who will shape this industry for years to come.”

And you can expect a better-than-ever Top Women event in Chicago Nov. 15-16, 2023.

EDITOR-IN-CHIEF Ken Clark kclark@ensembleiq.com LBM EDITOR Andy Carlo acarlo@ensembleiq.com Hardware Editor Tim Burke tburke@ensembleiq.com ADVERTISING SALES & BUSINESS ASSOCIATE PUBLISHER Amy Platter Grant MIDWEST & SOUTHERN STATES (773) 294-8598 agrant@ensembleiq.com REGIONAL MANAGER Greg Cole NORTHEAST & GREAT LAKES STATES (317) 775-2206 gcole@ensembleiq.com DESIGN/PRODUCTION/MARKETING SENIOR CREATIVE DIRECTOR Colette Magliaro cmagliaro@ensembleiq.com ART DIRECTOR Bill Antkowiak bantkowiak@ensembleiq.com PRODUCTION MANAGER Patricia Wisser pwisser@ensembleiq.com MARKETING MANAGER Kathryn Abrahamsen kabrahamsen@ensembleiq.com SUBSCRIPTION SERVICES LIST RENTAL mbriganti@anteriad.com SUBSCRIPTION QUESTIONS contact@HBSDealer.com

CORPORATE OFFICERS

And finally, Q4: “U.S. veterans to get housing payment assistance; The Home Depot Foundation will provide 1,000 military veterans with rent relief.”

Sometimes, a digital article will find its way into an express lane on the information superhighway that multiplies readership exponentially.

This turbo-boost was at play here, along with the universal interest in veteran causes and the world’s largest home improvement retailer.

Regardless, we are proud that this worthy cause caught so many eyeballs.

Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF PEOPLE OFFICER Ann Jadown EXECUTIVE VICE PRESIDENT, CONTENT & COMMUNICATIONS Joe Territo EXECUTIVE VICE PRESIDENT, OPERATIONS Derek Estey EDITORIAL ADVISORY BOARD

Levi Smith, CEO, Franklin Building Supply Cally Fromme, VP of communication and culture, Kodiak Building Partners Steve Sallah, CEO, LBM Advantage Wendy Whiteash, EVP of culture, US LBM Holdings Tom Cost, owner, Killingworth True Value Brad McDaniel, owner, McDaniel’s Do it Center Joe Kallen, CEO, Busy Beaver Building Centers Permissions: No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher.

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OCTOBER 4-6, 2023 KANSAS CITY MARRIOTT DOWNTOWN The 2023 ProDealer Industry Summit is a partnership between HBSDealer and the National Lumber and Building Material Dealer Association. This Premier Event is for LBM Dealers, Distributors and Suppliers built on networking and education. Industry Professionals share business solutions and strategy for today's challenges while looking toward the future.

For Sponsorship Opportunities, please reach out to: Amy Grant, Associate Publisher agrant@ensembleiq.com | 773-294-8598

News + Analysis

Joe Hardy, 84 Lumber founder, dies at 100 Among Joe Hardy’s many titles were husband, father, great-grandfather, founder, businessman, entrepreneur, philanthropist, art collector, lumber lord, and former lord of the manor of Henley-in-Arden.

Joseph A. Hardy III, the founder of 84 Lumber and a largerthan-life figure to many, died on his 100th birthday on Jan. 7.

A statement from the company reads: “Even with his vast success, Joe always remembered what matters most: people. He helped make the American dream real for so many, and he will be greatly missed.

“Joe proved that nothing is impossible by willing himself to his 100 th birthday.

His family is beyond proud of him for making this final accomplishment.”

Born in 1923, in Upper St. Clair town-

ship, outside of Pittsburgh, Pennsylvania, Hardy graduated from high school in 1941, and enlisted in the U.S. Army Air Forces serving as a lieutenant and Air Forces radioman during World War II. After the war, Hardy opened Green Hills Lumber in Bridgeville, Pa. A few years later, he pooled resources with his two brothers and two of his friends to pay for land and buildings for a new venture — 84 Lumber.

Before his death, Hardy shared the secret to his longevity: “Stay contemporary and stay with the times as they continue to evolve.

The basic principles don’t change too much whenever you are dealing with human nature.”

Joe’s daughter Maggie Hardy offered the following remembrance: “My father was always asking, ‘What’s next?’ He wanted to conquer the next challenge or make something even better. He taught us never to be satisfied and push to be better today than we were yesterday. He had an infectious outlook and personality that inspired people. He never missed an opportunity to teach a lesson in business or in life. And he valued his people more than anything.”

Milestone for Project Fusion A Thompson’s Station, Tenn., store marks the 500th remodel under Tractor Supply’s Project Fusion initiative, which looks to pump new life into older Tractor Supply locations.

Tractor Supply Chief Marketing Officer Kimberley Gardiner, Chief Stores Officer John Ordus, and Store Manager Naomi Imgrund in Thompson’s Station.

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The Thompson’s Station location includes a new Carhartt store-within-astore area, which is one of the largest throughout the Tractor Supply fleet.

The Nashville-based farm-and-ranch giant operates about 2,030 stores in 49 states along with 180 PetSense

by Tractor Supply stores. The latter received a new banner earlier this year and has been undergoing its own overhaul program.

Project Fusion outfits new stores and retrofits existing Tractor Supply stores with an improved layout for convenient and accessible shopping, including a Customer Service Hub with upgraded digital tools

Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

The Project Fusion remodel includes self-service kiosks.

and an expanded assortment of apparel, tools, hardware, pet food, animal feed, and more, the retailer said.

As part of the initiative, some stores have added a new Garden Center with an expansive assortment of lawn and garden products, while others now offer a self-serve pet wash station or an on-site veterinary clinic.

The Thompson’s Station store has been part of the Tennessee community for 17 years.

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Independent Profile

The Christofora family laughing together at the front counter of their Woodstock Hardware business.

It’s fun. It’s family.

It’s work.

AND T WO SONS ARE GROWING UP IN THE FAMILY HARDWARE BUSINESS. By Tim Burke

V

ince Christofora owns Woodstock Hardware, a Do it Best dealer in Woodstock, N.Y. He and his wife Diane have operated the hardware store for 30 years. Now, their sons work the business with them.

“I think a big part of why the boys have had success in the store, is that regardless of their age we have trained and treated them as if they were regular help. Indifferent of their age,” said the owner.

Anthony, age 13, and Vincent, age 15, stay busy with schoolwork, clubs, and sports. Mainly they work Sundays. During the summer they work more.

“Thirteen and fifteen may seem young but they have been working here since they were four years old,” said Christofora.

They started dusting and fronting shelves. Then they progressed, “and learned about zero on hand and how to check quantities on hand in our Eagle point of sale system,” he said. They mastered the inventory side of things.

When they were strong enough, said the owner, they learned how to sweep, and fill and empty the mop bucket so they could mop the floor.

“At age 10, our younger son Anthony was assigned to the front of the store and assumed the traditional check out rolls and the older helped manage the inventory and learned how to help customers out on the floor,” said Christofora.

When the family computerized the paint department, the older son Vincent learned how to operate and maintain the computerized tint system and – with a bit of help on selecting the right product line – now mixes paint.

Meanwhile, Diane works behind the scenes and does whatever it takes for the family to be successful. “She is the glue that holds it all together,” said Christofora. “Plus, our gourmet kitchen shop is named after her – Diane’s Kitchen.”

When Covid hit and staffing became an issue, said the owner, he turned to his boys. “The only way we were going to be able to stay open seven days a week, on Sunday, was for them to work the day with me. And they sure stepped up.”

Anthony mastered running two point of sale stations, while his older brother Vincent exceled at running the floor and making paint. And they have been doing that every Sunday for the past two years.

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When asked if there has there been any push back from customers when it comes to being helped by such a young staff, the father answered that there was a bit. But not for long.

“After a customer is taken right to what they need, or their change is counted back to them ‘old school,’ they warm up to the boys quickly,” said Christofora.

So much so that if they happen to need time off on Sunday, said the owner, the customers are asking: Where are the boys?

“I do jump in to help the ‘non-believers’ but politely offer that if it were not for the boys we would not be open today and we would not be having this conversation,” said Christofora.

The owner said his sons have sat through and participated in Do it Best’s plumbing and electrical courses and have successfully completed building projects.

“One unexpected advantage of having the boys in the business is that we have a pipeline for finding those few and far between eager teenagers that want a job. So, I guess the boys also serve as staff recruiters,” he said.

The owner provided advice on how to survive in a family hardware business.

“Our challenge is how to keep the work fun and interesting, and not have the work become punishment, so that our sons do not develop a sour taste for our family business,” said Christofora.

They focus on two facets, he said, “first, make sure the boys are compensated equally to the hired help. Second, make sure we are not asking them to shoulder the failure of others just because they are family.”

Things change quickly, he said.

“Ideas and technologies that have yet to be thought of could be a large part of our business in two, three, or five years,” he said. “But who better to have around but young, confident minds.”

The boys, Anthony on left, and older brother Vincent, have grown up in the hardware business; and show the poise and confidence to be future leaders.

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WATCH AND LEARN

Technology

Lowe’s plans to thwart retail crime PROJECT UNLOCK USES INVISIBLE TECHNOLOGIES TO ACTIVATE PRODUCTS AT POS. By HBSDealer Staff

Retail tech trends for 2023 Techies more approachable— Silicon Valley layoffs and tougher work policies provide a window for traditionally less sexy retail tech teams to attract strong talent on the rebound.

Revenge of the CFO— Unlimited free returns? 15-minute delivery? Metaverse? Expect intense scrutiny from finance on the ROI of such investments, with a tougher hurdle due to rising interest rates.

Expect “sure” cost reduction proposals to win over “wishful” growth projects as investors crave cashflow and profitability.

QR beyond James Bond— QR-codes make a giant leap forward in retail. These square codes will unlock huge amounts of data for consumers to engage with and fuel new innovation in supply chain analytics.

— From Dave Spear and David King, senior industry consultants for the retail, CPG and hospitality industries at Teradata.

Seemantini Godbole, executive VP, chief digital and information officer at Lowe’s.

L

owe’s is applying cutting-edge technologies, including a first-for-home-improvement use of blockchain and low-cost RFID — a solution named Project Unlock — to help solve an age-old yet ever-growing problem: Organized retail crime.

“We are inventing the technology that makes at-purchase activation and transparent purchase records possible so we can tackle theft in a way that is virtually invisible to our customers,” said Seemantini Godbole, executive VP, chief digital and information officer at Lowe’s.

Organized retail crime has been on the rise, and a statistic Lowe’s provided from the National Retail Federation shows that, as of 2020, organized retail crime has cost retailers an average of about $700,000 for every $1 billion in sales.

While others are working to tackle this problem, said Lowe’s, the retailer believes there are better ways to curb theft than locking products down.

“Project Unlock combines low-cost RFID chips and IoT sensors to activate power tools at the point of purchase, while also creating a secure, publicly accessible, and anonymized

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record of legitimate purchases, powered by blockchain,” said the company.

Lowe’s has built a blockchain record that verifies and tracks all legitimate purchases, making it easy for buyers to see if they are buying stolen goods, and for law enforcement to crack down on crime rings, said the firm.

To make this work, a unique tag is created for each physical product by the manufacturer. The tag is preloaded with the item’s serial number.

A customer takes the product to checkout, has it barcode-scanned and pays, and a POS RFID scanner reads the tag and unlocks.

“Only products that are legitimately purchased are activated,” said the company.

The proof of concept starts with power tools, said Lowe’s, but the retailer sees potential to use this invisible blockchain and RFID system for other items in its stores – and across the entire retail ecosystem.

“We see a future in which solutions like Project Unlock can help the entire retail ecosystem create a great environment for our customers,” said Godbole.

At checkout a POS scanner unlocks the item.

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COVER F E ATURE

KODIAK BUILDING PARTNERS

ROARS INTO 2023 Decentralized and diversified with a special brand of due diligence.

By Ken Clark

The Barnsco team helps round out the diversified Kodiak portfolio with concrete supplies and rebar in Texas and Michigan (shown here.)

I

t’s not entirely accurate to say that in a little more than 10 years, Kodiak Building Partners came out of nowhere to become a coast-to-coast collection of LBM and construction-related brands — about 40 in all, from American Builders Supply to Zarsky Lumber.

It came out of several places.

In one sense, it launched from CEO Steve Swinney’s Denver basement, where the first actual meeting took place for what would eventually become Kodiak Building Partners.

Or, there was the coffee shop in Denver, where an exploratory meeting with well-connected LBM industry executive and current Kodiak Chairman Paul Hylbert not only gave Swinney the confidence to move ahead with the concept, but — to Swinney’s happy surprise — led to Hylbert’s buy-in as an investor right there at the Starbucks table.

And then there’s the earliest point of origin: Kodiak

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emerged from the imagination of a handful of entrepreneurial ProBuild Holdings executives who saw an opportunity back in the dark days of the residential and commercial construction downturn. The idea was simple: roll up a collection of businesses in LBM and distribution, and maintain a fiercely local approach that honors the proud, family-business legacies associated with these industries.

Swinney says the commitment to the original concept hasn’t wavered.

“As we’ve grown, people used to say things to us like: ‘You can be really decentralized and all this locally driven stuff, as long as you have two companies or four or five or even six. But you can’t go on like that.’ Well, we have 35 companies HBSDealer.com

now, and we’re still doing that. Being true to the core of our strategy and our culture of what we want to be — that means a lot to us.”

And the growth continues. Since HBSDealer’s interview with Swinney in late fall, Kodiak has rolled off a string of acquisitions: Sunrise Builders Supply of Mississippi and Tennessee; Albeni Falls Building Supply of Idaho; Goodrich Lumber of Massachusetts; and Diamond Home Improvement of Oregon.

Just as there is no single birthplace, there’s no single key to Kodiak’s success and growth. Three stand out: call them the ‘Three Ds’—Decentralization, Diversification and Due Diligence.

Decentralization

As an illustration of the extent to which Kodiak Building Partners embraces decentralization as a bedrock principal, Swinney recalled a conversation with investor partners (from Court Square Capital Partners) in 2017. The investors wanted to talk about the popular topic of synergies.

They wanted to know how Kodiak promoted the idea that a company newly acquired by Kodiak will benefit by being part of the larger group.

Swinney’s response surprised them.

“We said, ‘You know, we don’t really get too many synergies when we close the deal,’” Swinney recalls. “And they were like, ‘What?’”

The logic is simple, Swinney explained. If something works, don’t change it. After an acquisition, the decision-making remains in the hands of the local operators who know their markets better than anyone.

“We partner with great companies,” Swinney said.

“Yes, of course, we do work on how to get better. (See ‘Kodiak strives for continuous improvement.’) But we’re not going in trying to change things right away.”

Hylbert sums up Kodiak’s model this way: “The whole thesis that we had was that we wanted to go out and buy good companies and provide a platform

Christensen Lumber of Nebraska gets the job done.

HBSDealer.com

Direct Lumber and Door of Colorado adopted a one team “one team, one goal” mindset.

Big ideas at Direct Lumber and Door Direct Lumber and Door, with 5 locations in metro Denver and Fort Collins, joined Kodiak Building Partners in September of 2018. Since then, the story has been one of steady improvement under DLD’s new ‘One Team, One Goal’ mindset.

According to VP of Operations Clint Carter, an important early decision was to abandon the general-manager model in favor of branch managers. “That was kind of the first step to really getting everything moving with one team, one goal,” Carter said. “Now we have branch managers sitting close to their operations every day. They’re getting the feedback, they’re understanding what’s right and what’s wrong, and they’re in a position to drive change.”

After several rounds of promoting from within (last year alone saw 30 such promotions at DLD), the company created another big idea: “Breakfast Club.” It’s a monthly meeting that featured speakers from inside and outside the company‚ networking and the exchange of ideas. “It’s really just an effort to try to introduce some concepts and help bring along this young management team. That’s the future of this company. So we want them to be vested, we want them to learn.”

Coming next is an Innovation Club. An idea that grew out of Carter’s participation in a Northwestern University’s Kellogg School of Management leadership program organized by LMC. “What really drove home to me was that innovation is essentially solving the problem for your customer,” Carter said.

“So what you have to do is understand the issues facing customers, and then find out how to solve those problems.

That’s innovation. And that’s what we’re going to talk about.”

HARDWARE + BUILDING SUPPLY DEALER Januar y 2023

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COVER F E ATURE

An early photo (2014) of the Kodiak team at Barton’s Supply, with the train that helped seal the deal.

Kodiak moments

Phillip Steffy and Steve Weaver of Zarsky Lumber Co. earned the Chairman’s Award at the recent Kodiak Leadership Summit.

where the people in the company could concentrate on running and growing the business,” Hylbert said. “We provide the financing and the insurance and the benefits and all that stuff. And we’d operate on a very decentralized basis from a customer and supplier standpoint. And that’s exactly what was done.”

Diversification

Kodiak Building Partners, like the rest of the LBM industry, is bracing for a residential construction slowdown in 2023.

But there’s no panic. Just the opposite.

With a diversified portfolio that runs across lumber and building materials, construction supply, gypsum, doors/millwork and interiors, Kodiak believes it is built to withstand temporary declines in any one area. And being so built, it

Emphasis on “Partners” The Kodiak bear on the company logo is an impressive image, symbolizing strength. But the most important word in the company name is the word “Partners,” said CEO Steve Swinney. And Kodiak has picked its partners carefully. Among them: Plante Moran and KPMG in accounting; Davis, Graham & Stubbs on the legal side; Aon and PLM for insurance, and —of particular note in the distribution industry—LMC for its LBM supply chain.

Kodiak’s COO Mark Garboski, who helped build the supply chain team during his tenure at ProBuild, realizes the value of LMC as a partner, recognizing the partnership as a better option than trying to build a logistics network from scratch.

The CEO says the closer Kodiak looked at LMC and the more it relied on its service, the more it liked what it saw.

“We were not able to do it better at ProBuild with the scale we had at ProBuild ($5 billion in revenues),” Swinney said.

“It’s one of those things where we can say: We have a great partner. We can trust them.

“It doesn’t matter that they’re not employees at Kodiak, they’re incredibly good partners.”

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Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

In 2011, Kodiak Building Partners entered the acquisition game by acquiring Barton Supply, a steel fabricator in Denver.

“We actually moved into the Barton offices four or five months before we closed the deal,” said Paul Hylbert, Kodiak chairman, emphasizing the trust between the buyers and sellers.

The Barton facility looked like a dystopian landscape, a former Ingersoll Rand manufacturing plant that included a train engine on premises to push heavy loads of rebar. The train played a memorable role in the deal “After a long process, one investor finally said, ‘Well, if it comes with a train, I’m investing,’” Hylbert recalls. “There’s a photo somewhere of the investor partners on the back of the train. One of the first photos of the team.”

That special Kodiak moment (above) is one of many over the 11 years of deal making.

An incomplete list of game-changing moments would include the American Builder Supply deal, which brought Mark Garboski onto the team, He’s now COO. Jeff Smith, a former ProBuild executive, came on as CFO. And brothers Mike and Pat Flood have made big impacts at Kodiak after first making big impacts at New England Building Supply.

“Every key moment that I can think of either has to do with shaping our culture, or it has to do with our people,” said Steve Swinney, CEO. Another key Kodiak moment came early in the company’s history, when it was working on an early deal with investors who were putting up 75 percent of the funding.

But during the due diligence process, Kodiak felt those outside investors seemed to push beyond what was considered good faith negotiating.

Kodiak cut ties with the investors, and their money —even though they could really use it.

“We felt at the time that we were developing a reputation for how we deal with companies and with people,” Swinney said. “Culturally that was a big thing. We realized, OK, this is who we want to be, this is the way we want to do things, and we’re not going to lose that. We’re going to stick to that no matter what.”

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COVER F E ATURE

believes it can take a long-term view, mitigating risks and maximizing growth across the company.

Each operation has a plan for what they expect to achieve in 2023, and how they intend to boost performance. Some companies could be down as much as 25 percent, during what is anticipated to be the first year of housing-starts declines since the formation of Kodiak 11 years ago. But others expect to continue growing.

“We’re still in a cyclical space, no matter what,” said Swinney. “But our diversification allows us to be less cyclical and to continue to make investments in the business.”

Aurora, Colo.-based Barton Supply is Kodiak’s case study in the value of its diverse-portfolio. (See Kodiak Moments.)

The steel fabricator suffered through a difficult spell in 2018, “gutted” by a combination of trade-dispute steel tariffs and a sudden spike in steel prices.

“If steel were our only business, we would have had to lay off a lot of people,” Swinney said. “But we actually invested more in that business because the rest of the Kodiak world was doing really well. And we could lean into that space at a time when it was down.”

Today, Barton’s EBITDA is five times its 2018 level.

Due Diligence

The year 2022 was Kodiak’s busiest year of acquisitions (eight). But at Kodiak, the question is not ‘how many?’ It’s ‘how?‘ More to the point: ‘How good is the deal? and how do we create value?’

“I’m a finance guy,” said Swinney. “But diligence to me is much more about the operations and the culture than it is about the numbers.”

Mike Flood, executive VP of operations at Kodiak, will often break down field trips or meetings with potential sellers into a simple message. “He’ll either say, ‘no;’ or he’ll say, ‘they’re one of us.’ Which means, yeah, our cultures are going to click.

“Our process makes sure we align together and work well together.” Swinney continued. “To me, those are the two things that are really important and critical about the diligence process, not the numbers stuff.”

Kodiak strives for continuous improvement VP SCOT T MORRISON BRE AKS DOWN ME THODS FOR IMPROVING THE BUSINESS PROCESS AT THE PRODE ALER. By Andy Carlo Last November, Kodiak Building Partners brought Scott Morrison on board for the newly created role of vice president of continuous improvement (CI).

Morrison will help develop Kodiak’s nationwide initiatives for eliminating waste and streamlining operations processes.

Into his new role, Morrison brings decades of experience working as a Scott Morrison consultant with some three dozen LBM dealers; and prior to that, some 15 years as an operations manager in the automotive supply industry.

He told HBSDealer that regardless of whether it’s known as total quality control, the LEAN management system, or Six Sigma, his mission has been to focus on continuously improving process performance.

Here are three different types of project work that Morrison says can be developed for a culture of improvement within Kodiak in 2023 and beyond.

Business Process Improvement – create a process map to identify the current state of any business procedure, such as the sales/design process, production scheduling, or delivery operations. After the map is built, the team brainstorms where/how the process is not performing as well as it should, then the team works on several small experiments (pilot studies) to test changes. Finally, lessons learned from the pilot studies inform the team how to make changes to the business process, resulting in a better-performing “future state.”

Layout Optimization – draw a physical layout (lumber yard, warehouse, workshop/mill/plant) at scale in a CAD program and analyze historical sales data to identify which high-volume raw materials and/or products should move within the layout’s study area to a location that results in higher product/operator flow and efficiency.

Value-Stream Mapping – similar to layout optimization, but this time instead of looking at the locations of products and operator flow, look at how to minimize the travel/inventory time, also known as non-value-added time, that a manufactured item spends within a production facility. The thought here is that the faster an item is produced (throughput time), the facility becomes more efficient (profitable).

“My most important role, in all projects I will do with Kodiak’s operating companies, will be to help senior management identify people within their organizations who want to learn more about CI,” Morrison told HBSDealer. “As these people are identified, I will take on a teaching/mentoring role to show each of them how to use the full set of CI tools. The goal over time will be to establish a full set of talented individuals who will drive the CI culture within Kodiak.”

Premier Building Supply of Kansas City.

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Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

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SPECIAL FEATURE

A LEGENDARY HAMMER STRIKES AGAIN Our Golden Hammer Award honorees stand up for innovation and value

By HBSDealer Staff

P

roducts are the lifeblood of the home-improvement retailing industry.

Check that. Innovative, eye-catching, problem-solving new products are the lifeblood of home improvement retailing.

That’s why HBSDealer’s editorial team takes very seriously its role as guardian of the Golden Hammer Awards, a program that recognizes the best new products of the year.

HBSDealer’s editorial staff solicited nominations from across the industry for potential honorees and products that have been launched after May 31, 2021.

The following criteria were used to judge each entry: Innovation — features, technology, differentiation and benefits; Value — Including relative price, consumer relevance, and functional practicality; Shelf appeal — clarity of message, and overall desirability of the product within its category.

The Golden program has evolved over the years — in the early 1980s, it even recognized the best of home center television commercials. Earlier in this century, giants of the industry were recognized with Golden Hammers in the “Retailer of the Year” category. In 2019, the Golden Hammers roared back to life, establishing a system and criteria to identify products deserving of the title, thus reviving the best-of-thebest tradition.

Editors sifted through a record number of entries in this year’s program. We don’t claim to have extraordinary powers of product perception, but we do believe we know a Golden-Hammer-worthy product when we see one.

Check them out yourselves on the following pages as we congratulate our “golden” product award winners.

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January 2023 HARDWARE + BUILDING SUPPLY DEAL

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Masonite M-Pwr Smart Doors

Key features: The first residential exterior door to integrate power, lights, a video doorbell, and a smart lock into the door system. Patentpending, UL certified technology connects residential exterior doors to a home’s electrical system and wireless internet network. This is “always on” smart technology and lighting.

In an outage, a fully charged backup battery can sustain system power up to 24 hours.

MSRP: $8,000.00 Judge’s comment: With a smartphone app, homeowners can remote-control this “always-on” technology.

Masonite.com

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4 1 ToughBuilt Industries QuickSet Work Bench Key features: This mobile work bench features a SmartSurface weatherproof work surface made for pros.

Steel legs open and lock into place for a stable, jobready table. With a robust, comfortable carry handle, this hearty worksite table folds flat for storage, and has 1,000-pound weight capacity.

MSRP: $99.00 Judge’s comment: Built-in cutouts assure compatibility for clamping — or to make cutting simpler.

Toughbuilt.com

HBSDealer.com

2 H2 Brands Shur-Line Between the Boards Painter Key features: The painter pad is an easy and fast way for painting or staining between deck and fence boards.

Features a tear-resistant, sixinch wide flocked pad design to provide coverage and leave a smooth finish. A threaded handle fits most extension poles and is designed for use with all paints and stains.

MSRP: $9.99 Judge’s comment: They introduced their first blade edger in the 1950s and have more than 130 patents.

Shurline.com

PPG Homax Tex Pro Texture Sprayer

Key features: Proprietary texture sprayer and cartridge system make the professional builder and remodeler job of spraying texture on interior walls and ceilings faster, lighter and more costeffective. Sprayer weighs less than 10 pounds. Lighter design replaces the top-heavy hopper funnel, with a fully enclosed cartridge system balanced over a comfortable two-hand grip.

MSRP: $299.97 Judge’s comment: Texturing work can now be a one-person job; that’s key in a tight labor market.

Homaxproducts.com

Olfa SK-16 QuickChange Concealed Blade Safety Knife 5

Key features: Touch-safe blade requires no activation — simply pull through materials to start cutting. The exposed blade is safely concealed within an open cutting channel. Winged blade tips guide the cut. Curved ergonomic handle reduces wrist fatigue when cutting cardboard, rubber sheeting, carpet.

MSRP: $15.99 Judge’s comment: Company founder Yoshio Okado got the idea for the world’s first snapoff blade cutter from breaking off segments of chocolate bars and analyzing their edges.

Olfa.com

Azek Captivate Prefinished Siding and Trim 6

Key features: Prefinished siding and trim from Azek exterior was developed in collaboration with Russin, a pre-finisher of building material. Range of siding and trim profiles complements a variety of architectural styles, including shingle siding that duplicates the look of natural cedar shingles, with dozens of trim profiles, for a finished look.

MSRP: $900 per square for Captivate shingle siding.

Judge’s comment: Inspired by the sea, and nature, their shingles come in 11 regionally popular colors.

Azekexteriors.com

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HARDWARE + BUILDING SUPPLY DEALER Januar y 2023

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SPECIAL FEATURE

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Crescent Tool Shockforce G2 Tape Measure 7

Key features: Built to withstand a 120-foot drop with a bolstered case and nested diamondcoated end hook, this tape measure has a wider, thicker blade and a full 17 feet of reach.

Mylar blade coating located on the first six inches is built tough to last the harsh job site.

MSRP: $27.99 Judge’s comment: Beefier blade has green markings on a matte black finish — you’ll look cool measuring stuff.

Crescenttool.com

Rinnai America RE Series Tankless Water Heater 8

Key features: Non-condensing tankless water heater features Smart-Circ Intelligent Recirculation technology, which schedules the pump to recirculate at times of past significant water usage, providing customers with immediate hot water when they need it. Manufactured at the company’s new U.S. plant located in Griffin, Georgia.

MSRP: $1,150.00 Judge’s comment: Water heater “learns” the user’s hot water pattern over a 7-day period.

That’s hot.

Rinnai.us

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Trex Seal Ledger Tape

Key features: This 11-inchwide aluminum-lined butyl tape is engineered for use on the ledger board of decks.

Performance features of metal and tape flashing are combined in one product that is wide enough to create a seamless seal over the entire ledger board and any gaps between the ledger and the deck substructure for optimal protection against moisture and water penetration.

MSRP: $236.00 Judge’s comment: Such wide tape can replace multiple strips of tape, saving valuable time on the job site.

Trexseal.com

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Evolve Stone Decorative Stone

Key features: Stone veneer is installed with a finish nailer.

Formulated from patented Evolve Material, it is the first stone cladding that’s facenailed in the same fashion as traditional siding. Uses cutting tools already in the installers bag to lessen install time. Holds color like natural stone, moisture impermeable and durable — reducing product breakage.

MSRP: $9.00-15.00 per square foot Judge’s comment: This stone reduces the “on the wall cost.”

The company says: “Nailed it.”

Evolvestone.com

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metal blade. The pack has been designed with these titaniumenhanced coated blades for 30% more blade life.

MSRP: $32.95 Judge’s comment: Universal fit means these blades work with all tools, such as: DeWalt, Dremel, Milwaukee and more.

Arrowfastener.com

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Leviton USB In-Wall Chargers

Key features: Chargers deliver fast charging to phones, tablets, laptops and more: From kitchens, bedrooms and home offices to bathrooms, “our in-wall chargers can be conveniently used in any room of the home.” Type-C USB port accepts the newest Type-C reversible connector; Type A USB port accepts the standard Type A rectangular connector. Chargers have overcurrent protection.

MSRP: $21.99-31.99 Judge’s comment: Safety comes first with this tamper-resistant charger, compatible with most of today’s devices.

Leviton.com

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Arrow Fastener Tool Blades

Key features: In 2022, company debuted line of oscillating tool blades for pros, including the new Arrow OSC201VP titanium metal/wood variety pack, which features a ¼-inch titanium coated bi-metal blade; 1¼-inch titanium coated bi-metal blade; and 1¾-inch titanium coated bi-

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Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

STRENGTH IN NUMBERS Code-crushing Structural screws hold STRONGER, drive FASTER, last LONGER, perform BETTER. Count on CAMO® for a complete offering of high-performing, codecompliant structural screws that efficiently covers all popular interior and exterior structural applications. So you can consolidate your SKUs - saving you inventory space and money.

Stop by booth #C6942 at IBS to check out the new line.

TRUSS • FRAMING • LEDGER • MULTI-PLY • MULTI-PURPOSE

CAMOFASTENERS.COM

SPECIAL FEATURE

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FastenMaster TrussBrace Roof Truss 13

Key features: Steel roof truss supports provide both lateral and diagonal restraint in one brace.

Diagonal restraint from truss to truss not only adds additional stiffness to the structure for optimal support, but spaces each truss properly, and reduces installation time. Increases jobsite safety since it is installed from the bottom chord.

MSRP: $6.15 each (sold in boxes of 30) Judge’s comment: The product was engineered by Steve Szymanski, a former truss plant owner with 30 years’ experience.

Fastenmaster.com

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20 18 Tropical Forest Products Black Label Sustainable Lumber

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Klein Tools 7-in-1 Impact Flip Socket

Key features: Pros don’t have time to constantly switch between tools. This flip socket switches between a screwdriver handle and an impact driver and features three interchangeable sockets stored right on the driver shaft to avoid any loose pieces that can get lost. Impact rated for use with any impact driver.

MSRP: $29.97 Judge’s comment: A magnet allows the sockets to hold onto any fasteners; its color coded for easy identification.

Kleintools.com

Paslode HT-550 Hammer Tacker Stapler 15

Key features: With an innovative trip lever design, the HT-550 tool’s smooth, rolled edges reduce the risk of tearing paper, insulation, and house wrap. The tool-free jam release is part of Paslode’s goal to maximize the pro’s productivity.

Judge’s comments: A tool (formerly known as Duo-Fast) has been earning a reputation for its reliability since 1943.

MSRP: $49.99 Itwbrands.com

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Metabo 18V Cordless 5-Inch Random Orbital Sander 16

Key features: This powerful new 18V 5-Inch Random Orbital Sander (model SV1813DAQ4) boasts, “the best dust collection rate and sanding performance in its class.” Six speed settings match the sanding action to the material at hand — whether metal or wood.

Judge’s comments: Light weight (only 2.6 lbs.) brings ergonomic relief to the user. Or the user can double up on the battery (18V/36V MultiVolt) for a longer run.

MSRP: $119, for 18V bare tool.

Metabo-hpt.com

Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

UFP Retail Solutions ProWood Fire Retardant Wall Assembly 17

Key features: The ProWood FR UL V343 2-Hour Wall Assembly provides builders with highquality fire-retardant treated wood (tested at Underwriters Laboratories) receiving flamespread and smoke development ratings of less than 25 when subjected to ASTM E84 surfaceburning characteristics in 30-minute tests.

Judge’s comments: In other words, builders and architects have peace of mind. Plus, easy for building inspectors to approve.

MSRP: Varies UFPI.com

Key features: For decking, cladding and more, Black Label is a collection of curated, certified sustainable tropical hardwoods. Handpicked and carefully sourced, lineup includes the finest Ipe, Cumaru, Pedra and Tigerwood (to name a few) from South America.

Judge’s comments: Black Label creates some of the best ‘beauty shots’ in all of home improvement marketing.

MSRP: $4.50 - $7.50 linear ft. for 1X 6 deck board (depends on species) Blacklabelwood.com

CAMO ClipDRIVE stand up fastening tool for clips 19

Key features: Designed for fastening any type of grooved deck boards with CAMO Universal Deck Clips. The ergonomic, lightweight tool attaches to any drill and allows the user to stand comfortably while fastening. A height-adjustable handle and weighted nose make it easy to swing from joist to joist.

Judge’s comments: One look at the picture, and you appreciate the concept.

MSRP: $119.95 camofasteners.com

HBSDealer.com

22 23 Unique Solutions Siligun Compact 4” Caulk Gun

Hillman Solutions Borefast Anchor & Screw in One

Key features: At four inches, it’s described as the smallest and lightest, non-drip caulk gun on the market. The Siligun can reach spots where normal caulk guns simply don’t fit.

Offers a 12:1 thrust ratio when squeezed, and an anti-drip mechanism when released.

Judge’s comments: Caulk guns haven’t changed much in the last 127 years, and here’s a totally tubular and new idea.

MSRP: $29.95 Siliguns.com

Key features: Fastener drills through drywall and easily penetrates wood as well as metal studs. Bore-Fast also fastens into concrete, brick, block, and plaster when a 3/16” hole is pre-drilled.

Pan, cabinet wafer, and electrical hex washer heads are available in 3 colors: Black, white and zinc.

Judge’s comments: It’s a screw.

It’s an anchor. It’s simple.

MSRP: $3.19 to $22.99 (kit) Hillmangroup.com

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Outdoor Edge RazorWork utility knife 26

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Key features: The cutting edge of this tool is three-times the length of a standard utility knife. Complete with two interchangeable 3.0” utility blades plus a 3.0” drop-point blade to go from “attention” to “at ease” with the push of a button.

Judge’s comments: Be careful.

It’s very sharp. And extremely versatile.

MSRP: $19.95 Outdooredge.com

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The Nite Ize G-Series Slidelock Dual Chamber Carabiner 21

Key features: Not one, but two distinct chambers make up the key design element of the G-Series. The stainless steel carabiner allows users to clip items into the first chamber, then slide them through the inner gate to the second chamber for safekeeping. Comes in two sizes with a weight rating of 25 lbs. to 35 lbs.

Judge’s comments: Proves innovation can come in small packages.

MSRP: $5.49 to $5.99 Niteize.com

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PROFLO Kaden Touchless Toilet

Key features: A sensor puck with intuitive touchless flushing technology reduces bathroom touchpoints and germ transfer. Activated by the wave of a hand instead of a flush lever, the Sensor puck can be placed up to 15’ from the toilet. Delivers top flushing performance with 1,000 grams of waste moved with every 1.28-gallon flush.

Judge’s comments: An idea fit for the times. Plus, it’s sold in a contractor friendly kit.

MSRP: About $395 Ferguson.com

HBSDealer.com

Daich Coatings LuxROCK Solid Surface Granite Countertop Kit 27

Fiskars Pro Power Tooth Compact Utility Saw 24

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Montezuma Fold Down Workstation

Key features: Convenient, space-saving station is comfortable in the garage, laundry room or kid’s room. It could even serve as a bar. Two mechanical arms support up to 200 lbs. The all-steel fold-down station mounts on a wall using the built-in hanging slots.

Judge’s comments: Folds up and out of the way. High marks for organization and versatility.

MSRP: $199.99 Montezumastorage.com

Key features: Ideal for reaching into tight spaces and for quick cuts. A one-handed flick of the wrist opens and closes the saw blade, and fast, easy and secure front-loading blade changes without loose parts means more time working and less time fidgeting.

Judge’s comments: Ergonomics is an emphasis for this company, which has roots back to 1649.

MSRP: $34.99 Fiskars.com

Key features: A DIY-friendly fourstep process brings a smooth, authentic granite surface to countertops (or other surfaces) at a fraction of the price of a granite slab. Any flat surface can be transformed in just a weekend. LuxROCK stone surfaces resist stains, heat and impact in five granite colors.

Judge’s comments: The message is rock solid. Avoid the hassle and the high cost and still get a stone surface.

MSRP: $179 (20 sq. ft. kit) or $299 (40 sq. ft. kit).

DaVinci Rooofscapes Province Slate 28

Key features: A single-width composite slate roofing tile evokes a historical nature and natural slate appeal. Class A fire-rated and Class 4 impact-rated tile (can also be used on commercial projects) resists sever weather, high winds, insects, algae and fungus.

Judge’s comments: A lifetime of low maintenance. Plus, it’s made in Kansas.

MSRP: Varies Davinciroofscapes.com

HARDWARE + BUILDING SUPPLY DEALER Januar y 2023

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Products

Paint primed to grow in 2023 AN IMPROVING SUPPLY CHAIN BRIGHTENS PROSPECTS FOR A MAJOR CATEGORY. By Tim Burke

D

arrell Campbell, general manager of nine Pleasants Hardware stores in and around Richmond, Virginia, part of Taylors Do it Center, has seen continued growth in the DIY paint market in the last several years and expects that to continue in 2023.

“The supply chain issues that we saw in 2021 and 2022 have eased in recent months and product has been filling in well. Our inventory position with paint in 2023 is expected to be strong,” said Campbell, who this February celebrates

20 years with the hardware chain.

Pleasants puts paint front and center.

“Paint has a prominent position within our stores right off the power aisle. This location becomes a central hub for, not just paint, but many activities throughout the store.”

The general manager said that in the last several years, they have remodeled their stores with the help of Do it Best and Benjamin Moore to put an added focus on the paint department. And they are opening a new store in Powhatan, Virginia, he said.

The paint market for 2023 looks

brighter than 2022, said Steve McMillen, paint department buyer for Hartville Hardware in Hartville, Ohio.

“I am expecting more DIY sales as opposed to pro purchases through 2023,” he said. “The supply chain for paint is still broken, however it is better now than it has been.”

Several suppliers have become vertically integrated which has helped.

“There are other raw materials that are in short supply, and I don’t see any relief on the horizon,” said McMillan.

Many suppliers are concentrating on their “A” items, said the paint buyer, and not producing their slower moving items and in some cases sizes that are not as popular. For example, producing gallons only and no quarts.

As far as merchandising, paint is in the center of the Hartville store. “We have a good mix of full-time associates some with professional painter experience and several part-time associates,” he said.

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“I am expecting more DIY sales as opposed to pro purchases through 2023.

The supply chain for paint is still broken, however it is better now than it has been.”

—Darrell Campbell, general manager, Pleasants Hardware.

Geoff McCaslin, senior category manager for paint and sundries at Orgill adds some color to the paint picture in 2023. “As always, the paint market will be impacted by housing starts. Current research companies expect these numbers to be down.”

Paint projects limited by product availability could rebound as supply becomes more available, said McCaslin.

“Our vendor partners anticipate strong and steady pro and DIFM business, at least through the first half of 2023.”

McCaslin said Orgilll has some big paint projects planned for 2023. “We will Darrell Campbell is the general manager of nine Pleasants Hardware stores.

HBSDealer.com

be working alongside Sherwin-Williams to launch their new Valspar Complete program,” he said.

Alan Shore, director of seasonal merchandise for Orgill offers advice for dealers when they ask: What’s the best way to sell paint?

“We recommend that dealers make paint a focal point. Independent hardware store data shows a paint department drives more traffic, improves margin, and protects from growing e-commerce pressure with DIY customers,” said Shore.

Additionally, widening the scope to include pros helps capture the DIFM demographic, he said. “Margin improves with a pro focus, too, as pro customers purchase a higher mix.”

HARDWARE + BUILDING SUPPLY DEALER Januar y 2023

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Regulatory News

Muddy Waters WOTUS RULING GIVES NAHB THE BLUES

By Andy Carlo

A

s 2022 came to a close, the Biden administration established regulations that expand the definition of “waters of the United States” (WOTUS) under the Clean Water Act (CWA).

But the National Association of Home Builders claims the move is a “blow to housing affordability” while providing more regulatory uncertainty to home builders.

“Rather than providing clarity and certainty for home builders and other affected stakeholders, this definition of WOTUS adds uncertainty and confusion to the regulatory process, raises housing costs and drastically increases federal overreach in the process,” NAHB Chairman Jerry Konter said in a prepared statement.

According to the NAHB, the final rule relies on a confusing and legally flawed theory of CWA federal jurisdiction known as the “significant nexus test” to potentially assert federal control over isolated wetlands, features that

ENGINEERED COMPOSITE FOOTINGS

BY

contain water only in response to rainfall events, and ephemeral streams impacting numerous activities, including home building.

The WOTUS decision was issued by the U.S. Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps) on Dec. 30.

“The rule makes it unclear whether the federal government will regulate certain roadside ditches, isolated ponds and channels while continuing its reliance on the significant nexus test,” Konter said. “A major flaw of this final rule is its heavy reliance upon the significant nexus test to capture potentially all isolated and ephemeral features that were clearly excluded under the prior Navigable Waters Protection Rule.”

The Supreme Court’s upcoming ruling under Sackett v. EPA is focused on the legality of the significant nexus test, which is a critical part of the final rule.

The new rule will go into effect in late February or early March, and the Sackett verdict could be issued before the rule is even implemented or a few short weeks thereafter, the NAHB said. A victory for Sackett would force the EPA and Corps to go back to the drawing board on WOTUS. New, expanded regulations are being described

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The building industry seeks clarity on how new rules will apply to things like roadside ditches, isolated ponds and channels.

as “counterproductive and shortsighted” by the NAHB given the Supreme Court’s upcoming timeline.

Regarding affordability and creating a new barrier for residential construction, the regulations extend the areas in which home builders are required to get federal permits compared to the prior rule finalized during the Trump administration. The move could result in continued regulatory

HBSDealer.com

barriers to affordable housing as single-family and multifamily developers struggle to find the developable land necessary to produce the new affordable housing units.

The test’s results are determined by a federal regulator who decides whether a specific feature, along with similarly situated features located across an entire watershed, significantly affects the chemical, physical, or biological integrity of traditional navigable water.

But the NAHB says the nexus test has proven extremely difficult to apply consistently in the field, leaving developers and builders unable to discern for themselves which isolated wetlands, ephemeral streams, or even human-made drainage features, like roadside ditches, are federally jurisdictional under the CWA. “The Biden administration has declared a housing affordability crisis, but if the administration is truly interested in knocking down barriers to affordable housing, it will direct the EPA and Corps to keep from implementing this rule until the Supreme Court issues its ruling in the Sackett case,” Konter said.

HARDWARE + BUILDING SUPPLY DEALER Januar y 2023

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Home Hardware’s Marianne Thompson ONTARIO-BASED LE ADER SPE AKS TO THE VALUE OF AUTHENTICIT Y. By Tim Burke

M

arianne Thompson, chief commercial officer at Home Hardware Stores Limited, headquartered in St. Jacobs, Ontario, Canada, recently joined HBSDealer for a Q&A to discuss her career, the hardware industry, and the growth of executive opportunities for women.

HBSDealer: Who has influenced your career the most? And how?

Thompson: “It is incredibly important to look back and thank the people who have helped you throughout your career. No one does it alone. There are countless managers, colleagues, peers, suppliers, customers, mentors, family members and friends who have given you opportunities to move your career forward.

“It’s the customer who gives you a unique opportunity that expanded your skill set. It’s the manager who believed in you when you didn’t believe in yourself. It’s the friend or family member who gave you the confidence when you needed it most. It’s the co-worker who helped you learn a new software program.

“Regardless of who or when it was, it’s the collective impact of all these people who make a difference in my career every single day.

“My career has also been influenced by many female colleagues and mentors in the field who have paved the way for women in the industry.

Along with these incredible women, Michelle Obama, Kamala Harris, Annette Ver“As women, it is schuren, and Sarah Jordan are all strong, important that we passionate trailblazers that I look up to.” create spaces to

uplift each other,

HBSDealer: What are the ways you, discuss business and others, have found support at strategy, mentorship Home Hardware? programs and Thompson: “Home Hardware has an execute professional extremely supportive workplace culture development. that is committed to promoting inclusivity and encourages everyone to bring their —Marianne Thompson, Chief Commercial Officer, authentic selves to the table.

Hardware Stores Limited “Creating an environment where everyone feels comfortable to contribute safely has always been one of my top priorities as a leader, and Home Hardware supports those efforts, leading by example. Home’s D&I efforts have been a key component to fostering an environment that makes everyone feel like they have opportunity, regardless of gender or background.

“I am also currently mentoring five women within my organization and strive to support, empower, and encourage them to aspire to be the best they can be. It is my hope that they pay it forward and continue to mentor the female leaders of tomorrow.”

HBSDealer: Are you seeing more women in executive roles in Canada in general? What about specifically in the hardware business?

Thompson: “The hardware business in Canada is expand-

32

Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

ing, and it is exciting to see more and more women step into the leadership space.

“As a woman who has spent their entire career in what has traditionally been a male-dominated industry, it’s incredibly empowering to see more women enter the ring at all levels of the hardware business.

“At Home Hardware, we have seen progress in narrowing the gender gap at all levels of leadership. Over the past five years, we increased the number of female vice president and director roles by 22% and have also increased the number of female managers by more than 10%.”

HBSDealer: The Women in Retail Leadership Circle (WIRLC) is an exclusive community of women executives at leading retailers and brands. What do you like about the WIRLC in Canada?

Thompson: “In Canada, the Women in Retail Leadership Circle provides women across the country a platform to celebrate their successes and foster leadership development, which aligns with my core values.

“As women, it is important that we create spaces to uplift each other, discuss business strategy, mentorship programs and execute professional development.

“As a 2022 Top Women in Retail honoree, I have been fortunate enough to connect with many strong, like-minded women in the industry to share methods of leadership and development.”

HBSDealer: Any advice to women and men entering this field of hardware and building supply?

Thompson: “My advice to anyone entering the hardware and building supply field is: Don’t second guess it. You will have an incredibly rewarding and fun career in our industry. Be your authentic self.

“Do not be afraid to bring your ideas forward and remember that you have a seat at the table for a reason. If you can take risks and surround yourself with forward thinking people and leadership, you will find your way in the industry.

“You also can give back in meaningful ways.

“Your future in this field is limitless.”

HBSDealer.com

People In The News

Freeman

Collliersville, Tenn.-based Orgill hired Laura Freeman to fill the newly created position of Executive Vice President of Human Resources and Chief Human Resources Officer.

Freeman has spent the last several years in a similar executive position with Schnucks, a $3.2 billion St. Louis-based grocery chain operating 120 stores in multiple states.

American Builders Supply, the lumber and building materials distribution business based in Sanford, Fla., and a Kodiak Building Partners company, announced the promotion of George Wilkins to Senior Vice President of Operations. Wilkins served as Vice President of Strategic Planning & People Wilkins Development at ABS. He previously served as Vice President of Operations at ABS for three years.

Higgins

Zach Higgins has been promoted to CFO of Fort Wayne, Ind.-based Ambassador Supply. A 15-year industry veteran, Higgins has been with Ambassador Supply for one year, starting as a senior controller. Prior to that, he was treasurer at Do it Best Corp. for six years.

William (Bill) Christensen was appointed CEO of Jeld-Wen Holding, the window and door manufacturer. Christensen joined the company in April 2022 as executive vice president and president of Jeld-Wen Europe. Kevin Christensen Lilly, who served as interim CEO, will assume the role of executive vice president, global transformation. Lilly was appointed interim CEO in August following the resignation of former CEO Gary Michel.

Christensen Lumber’s Vice President of Sales & Marketing Tim Ferguson has been promoted to President of Christensen Lumber following Tom Christensen’s transition to chairman. Ferguson started Ferguson his career at Christensen in 1994 after graduating from Morningside College in Iowa. Kodiak Building Partners acquired Christensen Lumber in 2019.

Caterpillar announced that Dr. Lou Balmer -Millar will assume responsibility for the chief sustainability officer role in addition to her current responsibility as senior vice president of the Large Power Systems Division within the Energy and Transportation segment. She will report directly to Jim Umpleby, chairBalmer-Miller man and CEO. Balmer-Millar succeeds Julie Lagacy, who was Caterpillar’s first chief sustainability and strategy officer and is retiring February 1.

Donald

David Donald has been appointed vice president of operations for Saddle Brook, N.J.-based Arrow Fastener. Donald has worked in the industry for over 35 years. In his previous position at Stanley Black & Decker, he was responsible for the development and execution of the industrial business footprint strategy of its 65 global manufacturing sites.

Toni Arnold-McFarland has been tapped to lead John Deere’s efforts to advance diversity in the fields of science, technology, engineering and math. Since joining John Deere in 1998, the North Carolina State University mechanical engineering graduate has assumed numerous roles of Arnoldincreasing scope and responsibility, from Mcfarland product support specialist to manufacturing engineer to senior quality engineer.

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER Januar y 2023

33

Residential Construction/Sales

Monthly Retail Sales, not adjusted

13 months of housing starts and existing-home sales

home centers and pro dealers (NAICS 444) and hardware stores (NAICS 44413)

Total starts

NAICS 444

(in thousands, SAAR) Nov.: 1,427,000

NAICS 44413

(sales in $ billions)

50

1800

4

1700

40

1600

42.6

38.9

1500

(sales in $ billions)

3.54

43.2 39.4

40.9

39.5

3

3.15

3.48

3.37 3.08

3.13

30

1400

2

1300

20

1200 1100

1

10

1000

0

900

N

D

J

F

M

A

M

J

J

A

S

O

N

SOURCE: COMMERCE DEPARTMENT

SEPTEMBER 2021

Single-family starts

OCTOBER

0

NOVEMBER

AUGUST 2021

2022

SEPTEMBER

OCTOBER

2022

SOURCE: MONTHLY RETAIL TRADE REPORT FROM THE U.S. CENSUS BUREAU

(in thousands, SAAR) Nov.: 828,000 1400

HBSDealer Stock Roundup

1300

the percent-change performance of stocks based on Jan. 5 prices

1200 1100

20

1000 900

DE

10

800

0

600

N

D

J

F

M

A

M

J

J

A

S

O

ANNUAL CHANGE

700

N

SOURCE: COMMERCE DEPARTMENT

Existing-home sales (in millions, SAAR) Nov.: 4,090,000 7

TSCO BECN

-10 -20

WY

6

BLDR

LOW HD

-30 SHW

-40

6.5

DJI

-50

5.5

-60 -12

5

SWK -10

-8

-6

-4

-2

0

2

4

6

8

10

4.5

MONTHLY CHANGE

4 3.5

BECN (BEACON); BLDR (BUILDERS FIRSTSOURCE); BMCH (BMC STOCK HOLDINGS); DE (DEERE & CO.);

N

D

J

F

M

A

M

J

J

A

S

O

N

HD (HOME DEPOT); LOW (LOWE’S); SHW (SHERWIN-WILLIAMS); SWK (STANLEY); TSCO (TRACTOR SUPPLY);

SOURCE: NATIONAL ASSOCIATION OF REALTORS

WY (WEYERHAEUSER); DJIA (DOW JONES INDUSTRIAL AVERAGE)

Consumer Watch Unemployment rate

Consumer confidence

Gas prices

for the entire United States

indexed to a value of 100 in 1985

average price per gallon (regular)

8.0

10.0

12.0

4.0

80

34

Current Prior month

120

Prior year

16.0

3.5%

18.0

December 0.0

$4.00 $3.00

14.0

6.0

2.0

100

20.0

60

108.3

$3.29

December

Jan. 5

Januar y 2023 HARDWARE + BUILDING SUPPLY DEALER

140

$2.00

$5.00

SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA

HBSDealer.com

2023 Predictions & Trends WHAT RETAIL CAN EXPECT TO SEE IN THE YEAR AHEAD...

With all of the noise surrounding the industry and consumer in 2022, where do we go from here? There have been bright spots of growth within the industry and not all categories have been similarly impacted by inflationary pressures. In 2023, my assumption is that we are in for more of the same in terms of consumer behavior and its impact on the general retail industry.

KEY TAKEAWAYS & 2023 PREDICTIONS: The U.S. retail consumer’s wallet will continue to tighten in 2023, as student loan repayments, credit card debt and investment portfolios pull their share of attention and money away from retail.

Retailers and brands need to watch movements and behavior of high-income shoppers closely, as they may soon begin to feel the same effects that lower-income consumers felt this year.

New store concepts from retailers — both large and small — will focus on efforts to curate assortments for consumers and also provide better efficiency and in-store solutions.

2023 is certainly going to bring headwinds to the retail industry, and we will likely see new waves of consolidations, operational challenges and store closures.

2023 will prove to be the real test for both the consumer and the retail industry, which may be our indication of the shifting of the tides away from the consumerism of the pandemic into a more long-term pattern.

Elizabeth Lafontaine Chief Retail Analyst Retail Leader Pro

Visit RetailLeader.com/pro to start your 14-day, risk-free trial today and read the full report