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Vol. 46 No. 3

MARCH 2020


Greg Goodale Riverhead Building Supply New York, Connecticut, Rhode Island

“Changing distributors was not a decision we took lightly, but we are so glad we made the switch to Orgill. Working with them has been the best decision for our business.�


A Seamless Transition Switching to Orgill was quick, easy and effective!

Why We Like Working With Orgill: • A smooth and efficient conversion process

• Programs to improve our customers’ in-store experiences

• Products and pricing that help us be successful

• Opportunities for growth in our business

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com/about-us


HBSDEALER HARDWARE + BUILDING SUPPLY

National Hardware 20 The Show: 75 years, One Big Show, Ten things to know.

26 Independent Profile: Growth oriented Costello’s Ace Hardware desires to be “famous for more.”

PRODUCTS COVER STORY Carter Lumber sticks with the plan

14 With a forward-thinking approach to manufacturing facilities, Carter Lumber sets a lofty goal for industry leadership.

MARKET INSIGHTS 31 A big move for American

FROM THE EDITOR 8 Let’s get political.

Construction Souce

32 Top Women in Hardware &

A lot of people talk about politics. Then there are others.

Building Supply: The Home Depot’s Stacey Tank enjoys steamrolling over stereotypes.

NEWS & ANALYSIS

IN EVERY ISSUE

10 Nation’s Best blooms in Texas 10 The latest tale of the tape from HD and LOW

12 The EPA says glyphosate is safe 13 Orgill executives lean into retail

28 Fasteners 29 Insulation/Housewrap 30 Smart home

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12 News Map 13 Product Knowledge 33 People in the 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: $119 per year in the United States; $139 in Canada and Mexico; $279 in all other countries (air mail only). Periodical postage paid at Chicago, IL., and additional mailing offices. POSTMASTER: Please send address changes to HBSD, Circulation Fulfillment Director, P.O. Box 3200, Northbrook, IL 60065-3200. Subscription changes also may be emailed to hbsdealer@omeda.com, or call 847-564-1468. For change of address, six weeks notice to Hardware+Building Supply Dealer, P.O. Box 3200, Northbrook, IL 60065-3200 is requested. Give old and new address and zip code. If possible, enclose address portion from cover on previous issue. Vol. 45, No. 3, March 2019. Copyright © 2020 by EnsembleIQ. All rights reserved.

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MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

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HERE’S WHAT’S ONLINE

@HBSDealer

Tweet Central

The year of the Hardware Superstar Now in its 10th year, the HBSDealer Hardware All Star program — once again sponsored by STIHL — is looking for a few Superstars. The All-Star ballot, available at HBSDealer.com, reveals past winners from all 50 states since the beginning of the contest. Share your feedback at news@hbsdealer.com.

SUPERSTAR

HBSDealer Daily Newsletter: Features Every Day The HBSDealer Daily Newsletter, the industry’s leading news source, features news, analysis, videos and commentary — plus these regular, weekly features. Sign up to receive your daily news at hbsdealer.com. Monday

Tuesday

Wednesday

Thursday

Friday

Quikrete Industry Dashboard

HBSDealer Poll Question

Principia Stat of the Week

Throwback Thursday

Eye on Retail

The polls are open. Your voice is wanted. HBSDealer.com publishes weekly poll questions on pressing industry matters, and other topics. For instance:

Q

Where did you get your newest employee?:

Follow us @HBSDealer

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Poll questions and results appear every week at HBSDealer.com.

MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

3%

10%

An industry partner

11%

Fresh out of school/ college

An intern program

44%

A completely different industry

31%

An industry competitor Source: HBSDealer Survey

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FROM THE EDITOR

HBSDEALER HARDWARE + BUILDING SUPPLY

Hardware + Building Supply Dealer An EnsembleIQ Publication 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631 hbsdealer.com HBSDealer On The Web • HBSDealer Info Services

Let’s get political! A recent Throwback Thursday feature printed in the digital pages of HBSDealer.com contained the following radical political idea: If you run for office, you might win. Mark Wyland was the hero of our 2000 article in National Home Center News, the forerunner of HBSDealer. “We need more businesspeople in [political] office,” said Wyland, the coowner of Pine Tree Lumber in Escondido, Calif., throwing his hat in the ring for a state legislative seat. “We complain about what the government does to us, but we don’t do anything about it.”

For more about the NLBMDA’s event, visit dealer.org.

The lumber dealer and businessman ran for the state legislature. And he won, and kept on winning in the state senate from 2006 to 2014. Victory in these races is never guaranteed. But it’s attainable. Alan Clark of Clark Building and Decorating Center in Hot Springs, Ark., has served the Arkansas state senate since 2012. He credits the quality staff back in Hot Springs for allowing him to take part in state government. “It’s a part-time job, but it’s really a full-time, part-time job,” Clark told HBSDealer.

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SENIOR VICE PRESIDENT (HBSDealer, Drug Store News, Chain Store Age) John Kenlon, jkenlon@ensembleiq.com, 212-756-5238 EDITOR IN CHIEF Ken Clark kclark@ensembleiq.com, 212-756-5139

Ken Clark Editor in Chief

LBM EDITOR Andy Carlo acarlo@ensembleiq.com, 845-891-5108 CONTRIBUTING EDITOR Ken Ryan ryankgr@aol.com, 516-567-3034

Maybe Dan Larson, the manager of Eastside Ace Hardware in Stevensville, Mont., has been inspired by HBSDealer’s political reporting over the years. Larson is aiming for the big time: a Republican Party nomination for a seat in the U.S. Senate. From the Editor officially endorses Larson, who advocates limited government and responsible spending. But more importantly, From the Editor endorses active involvement in the political process — all the way to Washington, D.C. And here’s what’s great about the process. You don’t have to run for office to make a difference. Case in point: the National Lumber and Building Material Dealers Association’s WS: 2020 Spring & NEMeeting EAKING BRLegislative Meetingwill push g n Conference ri p S DA LBMlumber Nthe lled. agenda in dealers’ en cance e b s a halls hthe of power. Here’s how NLBMDA Chair Bob Sanford of Connecticut-based Sanford & Hawley sets the stage for the March 23-25 event. “Early 2020 will have the potential for action on policies such as affordable housing, energy, trade, and other important areas,” he said. “This conference is your opportunity to hear from the lawmakers directly.” He adds: “Add your voice on issues affecting your business and be a part of the change you want to see in Washington, D.C.” You might even make a difference. HBSD

MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

Editorial Inquiries: Direct questions to Editor in Chief Ken Clark. ADVERTISING SALES

Midwest & Southeastern States SENIOR REGIONAL MANAGER Amy Platter Grant agrant@ensembleiq.com, 773-294-8598 Northeast and Great Lakes States REGIONAL MANAGER Greg Cole gcole@ensembleiq.com, 317-775-2206 PRODUCTION/ART

VICE PRESIDENT, PRODUCTION Derek Estey destey@ensembleiq.com, 877-687-7321 DIRECTOR OF PRODUCTION Michael Kimpton mkimpton@ensembleiq.com, 647-557-5075 CREATIVE DIRECTOR Colette Magliaro cmagliaro@ensembleiq.com ART DIRECTOR Bill Antkowiak bantkowiak@ensembleiq.com PRODEALER INDUSTRY SUMMIT OCT. 7TH TO 9TH, SAN ANTONIO, TX WWW.PRODEALER.COM IN PARTNERSHIP WITH THE NLBMDA, WWW.DEALER.ORG CONTACT: AMY PLATTER GRANT agrant@ensembleiq.com, PDIS DIRECTOR OF SPONSORSHIPS 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. FOR REPRINTS, PERMISSIONS AND LICENSING, PLEASE CONTACT WRIGHT’S MEDIA AT ENSEMBLEIQ@WRIGHTSMEDIA.COM OR (877) 652-5295.

Corporate Officers CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF INNOVATION OFFICER Tanner Van Dusen CHIEF HUMAN RESOURCES OFFICER Ann Jadown EXECUTIVE VICE PRESIDENT, EVENTS & CONFERENCES Ed Several SENIOR VICE PRESIDENT, CONTENT Joe Territo

connect with us

HBSDealer.com


NEWS + ANALYSIS

Nation’s Best blooms in Texas The list of acquisition-oriented holding companies in hardware and building supply includes US LBM, CNRG, Kodiak Building Partners, and American Construction Source (see page 31). In Texas, there’s a new player that wants a seat at the table. Nation’s Best, a collection of hardware stores and home centers founded last year by former Parker’s Building Supply President Chris Miller, now has four locations and big plans. The company acquired Groom & Sons’, a threelocation hardware and Chris Miller building supply dealer with locations in East Dallas, Mabank and Athens, Texas. Nation’s Best also owns Lambert Lumber and Home Center, based in Broken Bow, Oklahoma. “With an exceptional history of serving the North Texas and Southeast Oklahoma markets, we are pleased to welcome Groom & Sons’ and Lambert

Lumber into our family of companies,” said Miller. “Their loyal customer base, customer service focus and sophisticated leadership teams make these companies attractive additions to our portfolio and a perfect fit with our overall business model and vision.” Supported by over 130 associates serving these four combined locations, Groom & Sons’ and Lambert Lumber offer a variety of hardlines and building materials to an established and diverse customer base of homebuilders, contractors, and do-ityourselfers. According to the announcement, Groom & Sons’ and Lambert Lumber will continue to operate under their existing brands with their current leadership teams. They will benefit from Nation’s Best through strategic and financial resources necessary to support their continued profitable growth, the company said.

Nation’s Best says it is committed to identifying and acquiring best-in-class independent home improvement stores across the United States to ensure their continued relevance as vibrant community resources. That sentiment is echoed by Lambert Lumber’s Mike Lambert. “We look forward to leveraging the best-in-class business practices and economies of scale provided by Nation’s Best to build on our success in the coming years,” he said. Nation’s Best is a member-owner of Do it Best Corp. Anchor Peabody Advisory Services, LLC served as a financial advisor to Nation’s Best, providing due diligence and transaction execution support.

STAT WATCH

Big numbers from the latest tale of the tape In the closely watched metric of U.S. comp-store sales, The Home Depot increased its lead over Lowe’s in the fourth quarter — 5.3% to 2.6%. In other tales of the tape from the quarterly head-to-head of the two biggest rivals in home improvement, Home Depot’s $25.8 billion in sales declined from the prior year’s fourth quarter, which benefitted from an extra week. Lowe’s $16.0 billion in fourth quarter sales marked a 2.4% increase. The bottom line comparison shows a big advantage for the orange vests. The $2.48 billion in net income for Home Depot outdistanced Lowe’s, with $509 million. Still, Lowe’s said its profitability exceeded expectations, and the fourth quarter showed a massive swing from the prior year’s fourth quarter net loss of $824 million.

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Looking ahead to 2020, Home Depot’s forecast for comp-store sales of 3.5% to 4.0% is slightly above the range forecast by Lowe’s, 3.0% to 3.5%. Forecasts for total sales growth are higher for Home Depot, 3.5% to 4.0%, compared to Lowe’s, 2.5% to 3.0%. Home Depot finished the fourth quarter with 2,291 stores, Lowe’s had 1,977. Both companies share an optimism for the health of the consumer. Lowe’s CEO Marvin Ellison said the company is “well positioned to capitalize on solid demand in a healthy home improvement market.” At Home Depot, CEO Craig Menear pointed to “a strong finish to the year as our fourth quarter results reflect strength in our core business, solid execution around our holiday events and the overall health of the consumer.”

MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

Lowe’s vs. Home Depot

Home Depot breaks away in U.S. comps comparison 10% Lowe’s Home Depot

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6

4

2

0 16Q1 16Q3 17Q1 17Q3 18Q1 18Q3 19Q1 19Q3

Source: Company reports

HBSDealer.com


NEWS + ANALYSIS

The EPA says glyphosate is safe The U.S. Environmental Protection Agency in an Interim Registration Review Decision, concluded that glyphosate is safe and not a cancercausing chemical. Glyphosate is the active ingredient in Roundup, the popular weed killer owned by Bayer AG, which acquired Monsanto in 2018 for $63 billion. The EPA’s conclusion reaffirms its previous stance. “EPA has concluded that there are no risks of concern to human health when glyphosate is used according to the label and that it is not a carcinogen,” the EPA said. The EPA announcement is an important endorsement for Roundup, but it will not end the debate on the safety of the product. Lawsuits continue to hound Roundup in the U.S. In 2015, the World Health Organization described glyphosate as “probably carcinogenic to humans.”

Bayer AG was pleased with the latest pronouncement from the EPA. “EPA’s latest decision on glyphosatebased herbicides adds to the longterm evaluation of leading international health authorities that these products can be used safely, and that glyphosate is not carcinogenic,” said Liam Condon, member of the Board of Management of Bayer AG and President Crop Science Division.

The non-profit Environmental Working Group was a harsh critic of the EPA’s announcement. “[The] announcement underscores that the Trump administration’s willful ignorance of science and abject fealty toward the chemical pesticide industry knows no bounds,” said EWG President Ken Cook. The Center for Food Safety piled on with a statement: “EPA’s announcement that it has concluded its regulatory review of glyphosate is false,” said Ryan Talbott, staff attorney CFS. “The truth is that after a decade of review, the EPA still has not conducted the necessary research on glyphosate’s impacts on human health and threatened and endangered species.” Some Roundup packaging includes the description “Glyphosate targets an enzyme found in plants but not in people or pets.”

News Map: Openings, Closings & Acquisitions Illustration of retailers and dealers in various stages of coming and going. For more retail news, visit HBSDealer.com california

OPENING

CLOSING

Berkeley

The Outdoor Supply Hardware Central Network Retail Group, a division of Orgill, opened The Outdoor Supply Hardware store here. The store is one of eight former Orchard Supply Hardware stores in California that CNRG intends to operate as Outdoor Supply Hardware.

ACQUISITION

indiana

Fort Wayne

Umber’s Do it Best Umber’s Do it Best closed Feb. 15. The store had served the Waynedale section of Fort Wayne for nearly eight decades. Many store employees are expected to land jobs at Fort Wayne’s Connolly’s Do it Best. kentucky

oklahoma

Enid

Tractor Supply Tractor Supply opened a store here complete with a Chamber of Commerce ribbon-cutting ceremony in February. The store measures 22,000 sq. ft., larger than the average 19,000 sq. ft. Tractor Supply store.

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MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

Elizabethtown

Menards Menards plans to be ready to open here in north central Kentucky sometime in early fall 2020. The local planning commission first approved of the store back in February 2016. After two extensions, a revised plan was approved for the just-under 250,000 square foot building.

HBSDealer.com


Product Knowledge

Orgill execs lean into retail With some changes to its executive lineup, Orgill says it’s in better position than ever to provide broader retail insights and support for all of Orgill nation. In addition to the previously announced promotion of Boyden Moore to the role of CEO, the Memphis, Tenn.-based distributor says new changes will enhance collaboration at Orgill, Tyndale Advisors and the Central Network Retail Group (CNRG). Tyndale Advisors is a wholly owned subsidiary of Orgill and is charged with developing best practices for Orgill and delivering customized services to Orgill dealers. As part of that mission, Tyndale also operates 109-store CNRG. “We started Tyndale Advisors in 2010 as we began planning for CNRG, which we launched in 2011,” says Moore. “From the beginning, our plan was to build the management and technical infrastructure that we would need to manage CNRG inside of Tyndale Advisors so that we could share that infrastructure, insight, and tools with all Orgill dealers.” Under the new leadership structure for these companies, John Sieggreen was named Orgill’s executive vice president of retail and will continue to

From left: John Sieggreen, Chris Freader, and Phillip Walker.

serve as president of CNRG, a role he has held since August of 2017. Phillip Walker, who had previously served as Orgill’s senior vice president of merchandising services has assumed the role of president of Tyndale Advisors. Chris Freader has been promoted to vice president of merchandising services for Orgill and will lead its conversion, store design and retail services teams. “These recent promotions and new responsibilities further integrate the Orgill, Tyndale and CNRG teams and strengthen our efforts to provide services that help our customers be more successful,” Moore said.

Genova Products goes dark Genova Products, the Davison, Mich.based maker of vinyl plumbing products, has closed its facilities and failed to show at recent trade shows. Layoffs began Jan. 28 in Fort Wayne, Ind. A former Fort Wayne employee shared a termination letter with a local television station: “Over the past several months, Genova has faced various economic challenges. These challenges resulted in the issuance of a letter by Genova’s secured lender advising Genova that it was in default of

HBSDealer.com

its loan covenants and confirming that no additional funding would be provided to Genova for its operations. Over the past several months, Genova has been working tirelessly to try to locate a strategic partner to either purchase Genova’s assets and continue operations or infuse necessary capital into Genova’s operations. It continued: “We expect the closing to be permanent in nature. This closing will involve cessation of all operations and termination of all employees at the site.”

Product: Particulate Respirator 8210, N95 Manufacturer: Minneapolis, Minn.-based 3M. Knowledge: More protective than a lighter weight surgical mask, an N95 respirator has the advantage of 95% filtration efficiency against certain non-oil based particles. 3M’s product has a two-strap design, cushioning nose foam and a dual point attachment that helps provide a secure seal around the nose. Because of the coronavirus outbreak, the product faces significant scarcity on retail shelves. The company’s outbreak alert on its web site explains: “3M expects demand for respirators to outpace supply for the foreseeable future.” Health fact I: A mask reduces the risk of large particles expelled by the wearer. It fits loosely. A respirator, like this one, helps reduce the wearer’s exposure to inhaling airborne particles. It fits tightly. Health fact II: Even though these respirators are sold out in many places, for most people masks or respirators aren’t mentioned as basic protective measures by the World Health Organization. The top defense recommendation is frequent hand washing with soap and water or cleaning hands with alcohol-based hand rub.

HARDWARE + BUILDING SUPPLY DEALER MARCH 2020

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The dealer eyes additional expansion in 2020 while growing its manufacturing presence. By Andy Carlo ou won’t find a master plan hidden away at Carter Lumber with designs at becoming the biggest pro dealer in the nation. That’s not on the agenda. But the Kent, Ohio-based company has every intention of being the best dealer in the industry through the addition of forward-thinking facilities and upgrades to existing locations. Recent additions to their footprint have included large, profocused facilities in two of the nation’s fastest growing housing markets: Nashville, Tenn., and Raleigh, N.C. The scale of the facilities, their product and service offerings, as well the addition of employees with local market experience, have made Carter Lumber a viable option for builders in these areas. “We haven’t changed our philosophy. Instead, we’ve stuck to our plan — which is to be the employer of choice and the supplier of choice in every market we service. Our focus is on being great at everything we do because we know that benefits our customer,” says Jeff Donley, Carter Lumber president. Despite sagging lumber prices in 2019, sales at Carter Lumber increased 1.5% last year to a company record of $1.504 billion. compared to 2018 sales of $1.482 billion.

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MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

In 2019, the dealer also made a big expansion move in the Northeast – acquiring six former DuBell Lumber locations in New Jersey. Carter Lumber had the New Jersey locations up and running again within weeks of the acquisition. “We had an opportunity to intelligently expand our footprint and we jumped on it. Once we acquired those six locations, it was all hands on deck to get them up and running as fast as we possibly could, and we did just that,” said Neil Sackett, chairman and CEO of Carter Lumber. “Everyone who needed to play a part, dropped what they were doing and helped. That made a huge impact on the people who had worked for the previous company at those locations and in some ways, it made an even bigger impact on all of the people who went there to help. You can talk about how important teamwork is, over and over, but for so many employees to see it in action firsthand was very special.” Carter Lumber currently maintains 163 locations, including 13 component manufacturing facilities

HBSDealer.com


Through its network of operations, Carter Lumber increased sales to a company record $1.504 billion in 2019.

covering 95% of its locations. The company also has 10 door and millwork shops where it hangs interior doors and distributes millwork. (See page 18.) “Both the component plants and the door shops are vital to the growth of our pro business in major metropolitan markets,” says Donely. Plans for 2020 include the opening of a new millwork hub and door shop in Hanover, Pa. The location will service the densely populated markets of Baltimore/Washington, D.C., New Jersey, eastern Pennsylvania, and Winchester, Va. A new design center in Louisville is also planned, with a focus on Carter Lumber’s kitchen, bath and millwork products. The design center will be Carter Lumber’s first location in the market. Carter Lumber’s expansion and execution in 2019 played out against a backdrop of challenges that struck much of the lumber distribution industry: counter-productive weather, commodity prices, and labor scarcity. “We knew going into 2019 there was going to be lots of uncertainty,” said Donley. “But our game plan was to focus

HBSDealer.com

on what you can control. That’s it.” A thorn that much of the industry felt last year was commodity prices, which were off substantially in 2019, with the exception of the last few months of the year. Carter Lumber sold 13% more commodities on a per-piece-basis in 2019 than it did in 2018. But revenue decreased by more than 14% on those sales. The company estimates that last year could have been even bigger, but commodity price reduction had a negative $103 million-dollar effect on its top line. State-of-the-art The opening of Carter Lumber’s Bowling Green, Ky., location in 2019 is an example of the dealer’s plan to stay ahead of the competition. This location features both a component manufacturing plant as well as a millwork hub and door

shop, run under the company’s Kight brand name. (Carter also operates locations under the Carter Custom Millwork, Carter Components, Carter-Jones Timber, Holmes Lumber, and Kempsville Building Materials banners.) “We believe this to be the most state-of-the-art truss manufacturing facility in the industry,” Donely says of Bowling Green. In addition to being fully paperless, taking advantage of laser alignment, and automatic puck systems, this facility also has a one-of-a-kind MiTek Ranger retrieval system feeding the operation’s saws. Custom made and the largest currently in service, the Ranger system automatically feeds saws the lumber needed for each truss. Once cut, each piece of the truss travels down a conveyor belt where it is fed

HARDWARE + BUILDING SUPPLY DEALER MARCH 2020

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onto a hopper that queues pieces until the truss builders are ready to arrange them into shape. The lumber is not touched by a human until the truss builder puts it on the table. “It’s an incredible system with amazing capabilities that we’re excited to see the full potential of over the course of this year,” says Donley.

Building a labor solution With a focus on professional builders and expanding manufacturing capabilities, Carter Lumber continues to grow its installed sales services program. Installed services from Carter allow builders to combine materials and labor in one purchase. Along with installed and material services estimates, Carter provides delivery scheduling, organizing install teams and accurate billing. Every install job is managed on-site by one of the company’s installed sales representatives, who makes sure that the job is done smoothly and correctly. Specific services offered by Carter vary by market. But virtually all of the pro dealer’s major metropolitan markets offer installed services to builder customers. “We’ve been building these programs for almost a decade now and across our footprint, and we have a loyal legion of install crews to help our builders,” says Jeff Donley, Carter Lumber president. “We’re a one-stop-shop for both materials and installation services,” Chairman and CEO Neil Sackett explains. “With our installed sales, customers can combine their materials and labor into one purchase. We have a wide network of vetted subcontractors who make sure quality and safety standards are being met on the jobsite.” Guaranteed pricing, credit options, and flexible billing schedules are part of Carter’s installed sales program offerings as well.  

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Component plants and door and millwork shops are vital to the growth of Carter Lumber’s pro business, particularly in metro markets.

On top of roof truss manufacturing, the Bowling Green facility can produce floor trusses and wall panels. The other side of the property offers a fully stocked millwork hub with hundreds of profiles geared toward the Nashville, Tenn., western Kentucky, and southern Indiana markets. Not to mention that the door shop at the facility can produce 500 doors each day. Carter Lumber has been expanding its manufacturing network for the past five years and can provide manufactured products in all of the markets it serves. Plants have been added and upgrades have been made to equipment at existing facilities, which has translated into a faster turnaround time and higher quality products for Carter’s customers. A network of millwork facilities allow even more product offerings for customers. At their Carter Custom Millwork location in Millersburg, Ohio, by combining the latest technology with old-fashioned craftsmanship, Carter Lumber can construct stairs, pre-hung doors, cabinetry, mantels, and custom millwork. Several other millwork facilities are in markets such as Atlanta, Cincinnati, and Charlotte, providing customers with a full selection of millwork and prehung interior doors. Recently, significant investments have been made into Carter Lumber’s

MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

kitchen and bath program as well. Many existing design centers have been updated with new products and trends. Several new standalone design centers are now open in key markets, such as Charlotte, N.C.; Nashville, Tenn.; Pittsburgh, Pa.; and Louisville. Over the past few years, the dealer has focused on growing its team of expert kitchen designers, who help both builders and non-professional customers with designing spaces that are both functional and attractive. Modern technology excellence In today’s world, you can’t make improvements to a business without keeping an eye on technology upgrades. Carter has completed the integration of a dispatch and delivery management software system in most of their markets. Having this visibility allows the dealer to make significant improvements to every aspect of its dispatch and delivery process, as well as providing customers with more timely and accurate information about the delivery.

HBSDealer.com


YellaWood® brand pressure treated pine is sought after by all the best builders, especially those with leather tails, buck teeth and nature’s highest building standards. Our proven reputation for having high quality products drives demand for the Yella Tag. The five-star service and unrivaled support of the YellaWood® brand puts dealers in position to meet their customer’s specific needs. See how the YellaWood® brand delivers at YellaWood.com.

IF IT DOESN’T HAVE THIS YELLA TAG, YOU DON’T WANT IT.

YellaWood® brand pressure treated products are treated with preservatives (the “Preservatives”) and preservative methods, and technologies of unrelated third parties. For details regarding the Preservatives, methods, and technologies used by Great Southern Wood Preserving, Incorporated, see www.yellawood.com/preservative or write us at P.O. Box 610, Abbeville, AL 36310. Ask dealer for warranty details. For warranty or for important handling and other information concerning our products including the appropriate Safety Data Sheet (SDS), please visit us at www.yellawood.com/warranties or write us at P.O. Box 610, Abbeville, AL 36310. YellaWood® and the yellow tag are federally registered trademarks of Great Southern Wood Preserving, Incorporated. All other marks are trademarks of their respective owners and are used with their permission.


Carter Lumber also partnered with DadeSystems to use their DadePay service, which allows all locations to deposit check payments in-store via a mobile app. The payments are immediately and automatically applied to a customers’ account and relevant invoices. The move eliminated a considerable amount of man hours that had been previously used processing the payments. It reduces DSO (days sales outstanding) and improves cash flow. Several internal-only smartphone applications have also been

developed that allow employees, based on role, to access data and information they need for their jobs. Carter currently has apps for company announcements, its Yard Rewards program, store contact information, housing data, store parcel imagery and data, among other functions. “We’ve found that we can quickly build these apps with little investment to give our decision makers the data they need in their pockets,” said Jeff Seder, SVP at Carter Lumber.

In the first quarter of 2020, Carter is launching a service that will allow its customers to pay their Carter Lumber invoices online. The company had already been providing online invoices and statement access. “We’ve said for a long time that we want to be the best, not the biggest. That mentality guides us every day,” says Sackett, whose grandfather, W. E. Carter, co-founded the Carter Jones Lumber Co. in 1932. “It’s part of the core of who we are as a company. We don’t just use it as a catchphrase at dinner parties.”

Carter Lumber locations Carter Lumber’s 163 locations are supported by 13 component manufacturing plants and 10 door shop locations. These facilities are considered “vital,” to the growth of the company’s pro business.

Component manufacturing plants:

Macomb Lansing Newton Falls Millbury Sunbury

Hanover Millersburg

Hagerstown

Millville

Cincinnati Franklin

Chesapeake Bowling Green Raleigh Charlotte

Atlanta

Lansing, Mich. Franklin, Ind. Bowling Green, Ky. Atlanta, Ga. Charlotte, N.C. Raleigh, N.C. Chesapeake, Va. Millville, N.J. Hagerstown, Md. Millbury, Ohio Sunbury, Ohio Cincinnati Newton Falls, Ohio

Door shops locations Lansing, Mich. Macomb, Mich. Franklin, Ind. Bowling Green, Ky. Atlanta, Ga. Charlotte, N.C. Chesapeake Hanover, Pa. Millersburg, Ohio Cincinnati

Carter’s family of brands Carter Lumber’s branding has evolved from the original Carter-Jones Lumber Company founded in 1932. The company today flies seven distinct banners.

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MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

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FIFTY YEARS OF

FIVE-STAR BACKYARDS. CELEBRATING OUR FIFTIETH ANNIVERSARY. As we celebrate our milestone anniversary year, we’re grateful to all our dealers and express our most sincere thanks.

IF IT DOESN’T HAVE THIS YELLA TAG, YOU DON’T WANT IT.

YellaWood® brand pressure treated products are treated with preservatives (the “Preservatives”) and preservative methods, and technologies of unrelated third parties. For details regarding the Preservatives, methods, and technologies used by Great Southern Wood Preserving, Incorporated, see www.yellawood.com/preservative or write us at P.O. Box 610, Abbeville, AL 36310. Ask dealer for warranty details. For warranty or for important handling and other information concerning our products including the appropriate Safety Data Sheet (SDS), please visit us at www.yellawood.com/warranties or write us at P.O. Box 610, Abbeville, AL 36310. YellaWood® and the yellow tag are federally registered trademarks of Great Southern Wood Preserving, Incorporated. All other marks are trademarks of their respective owners and are used with their permission.


BREAKING NEWS!

NEW DATES FOR THE NATIONAL HARDWARE SHOW: SEPT. 1-3, 2020.

75 years, One big industry event, Ten things to know A National Hardware Show preview

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he future of home improvement will be on display at the 2020 National Hardware Show in Las Vegas Sept 1-3. And at the same time, 75 years of hardware show history will influence, merchandise ideas, networking opportunities and money-saving deals.

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It’s never been more important to understand and predict the direction of retail, and attendees of the 2020 National Hardware Show will have a front-row seat on the trends and products pushing the industry into a profitable future. “We couldn’t be prouder or more excited to celebrate our 75th annual

MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

National Hardware Show,” said Rich Russo, industry vice president for NHS. “This milestone gives us an opportunity to not only celebrate the evolution of the Show, but also to thank our incredible industry partners, and the individuals and companies who have supported us over the years. The 2020 Show will

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nationalhardwareshow.com certainly be like no other, and will provide attendees and exhibitors alike with an experience they will be talking about for years to come.” So what’s new this year? Here are ten things to know about this 2020 National Hardware Show.

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The Big Show gets SMART For the first time, a quickand-easy tap of a badge at an exhibitor’s booth or featured product display will capture everything an attendee wants to know. The Show has a brand new relationship with Konduko, a provider of digitalinformation exchange through the latest in proximity technologies. Every attendee’s badge is equipped for a quick “digital handshake,” and badge readers will be located in every booth as well as featured product displays. It’s a simple, fast and powerful way to gather meaningful information and exchange virtual business cards. “At the end of each day, attendees will receive an email containing all of the information that they wanted to capture from exhibitors and products,” according to the Show organizers. And what’s more: No spam.

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A milestone and a mantra: “Evolve or else . . .” Industry leaders understand the retail landscape has changed, and will continue to change at an increasing fast pace. It’s not enough to do the things that brought success in years and decades past. “You need to know your market,” said Mark Westrum, a partner of Westrum Timber Mart of Rouleau, Saskatchewan. “You need to know what people want. You need new and fresh ideas — and this is the place to get them.” The event’s 15-plus different product categories — from plumbing to pet to paint — are infused with ideas that will

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The latest and greatest in grilling and chilling (and more) will be on display in the Tailgate, Backyard & BBQ section. Don’t miss the party on Wednesday afternoon from 4:30 to 6:30.

The Big Show What: The National Hardware Show New Dates: Tuesday, Sept. 1 to Thursday Sept. 3 Where: The Las Vegas Convention Center Who: Thousands of hardware, building supply and other industry professionals are expected. Why: “The 2020 Show will certainly be like no other,” said Rich Russo, industry vice president for the National Hardware Show.

Show Schedule Tuesday: 9 a.m. to 5 p.m.

Wednesday: 9 a.m. to 5 p.m. Thursday: 9 a.m. to 1 p.m. Once registered, attendees will also have access to the NRHA AllIndustry Conference.

shape future sales. “We’ve connected the industry for 75 years, and we’ve seen it evolve,” said Emily DeMarco, director of marketing for the National Hardware Show. “And we’re bringing that experience to the Show floor.”

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The NRHA All-Industry Conference How are today’s leaders and industry disrupters winning the retail game? That’s one of the topics on the agenda for the North American Retail Hardware Association’s All-Industry Conference. Registered attendees of the National Hardware Show have access to the NRHA event, which provides a central stage — literally and figuratively — for a continual lineup of seminars, keynotes, panels and award presentations. The 2020 conference lineup offers insights into industrywide topics, including omnichannel retailing, the ever-changing consumer, generational trends and more. Visit Nationalhardwareshow.com for updates.

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You can taste the difference With grills growing in sophistication and with retailers

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BREAKING NEWS!

NEW DATES FOR THE NATIONAL HARDWARE SHOW: SEPT. 1-3, 2020.

competing to be the leading chilling-and-grilling destination in their markets, the 2020 backyard section is a can’t miss feature of the 2020 Show. The latest and greatest in grilling, outdoor living and more can be found in the Tailgate, Backyard & BBQ section. And there’s no better way to test a trend than to taste for yourself. The Annual Tailgate, Backyard & BBQ Party will offer everything you’d expect in a tailgate party, and more (especially free food and drinks). Visit Nationalhardwareshow.com for updates.

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A keynote with Starr Power Dan Starr will appear on the NRHA Village Stage Tuesday morning at 10 a.m. to present the Show’s opening Keynote on the topic of “How Independents Are Still Disrupting.” Starr is the CEO of Fort Wayne, Ind.-based co-op Do it Best Corp. And the talk will highlight the value of the independent, and how the most successful retailers remain relevant through disruption.

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Calling all inventors The Inventors Spotlight area allows inventors to showcase what might be the next big product or service to revolutionize the home improvement industry. This year, the inventors will set up on the main show floor, conveniently located next to the popular New Product World. “The National Hardware Show lives and survives on innovation,” says Russo. “New product introductions are lifeblood to the industry.”

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More Made in USA Supply chain disruption along with global trade disagreements are two of the factors that have

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intensified the spotlight on domestic manufacturing. The 2020 National Hardware Show will celebrate Made-in-USA product in Show-floor displays and award presentations.

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A Lancaster Buying Show It’s not the first year for the National Hardware Show to co-locate with the Lancaster Buying Show. But it will be the first year for Lancaster’s wares to be on display directly on the NHS floor in the Central Hall. The Torontobased distributor is a major player in the paint-and-sundry category, with seven distribution centers in the U.S. and Canada.

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Social opportunities abound The 2020 National Hardware will play out on Twitter, Facebook, Instagram and YouTube. Stay connected @NHS_ Show, and #NHShow.

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An app that makes suggestions The official NHS Mobile App gives attendees access to their My Show account, a personalized online planning tool. It not only provides recommendations, it guides them around the Show floor through the power of geolocation.

“We are honored to be a part of this industry for 75 years, and to share a history of innovation.” —Rich Russo, Industry Vice President, NHS

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BREAKING NEWS!

NEW DATES FOR THE NATIONAL HARDWARE SHOW: SEPT. 1-3, 2020.

National Hardware Show Vendor Spotlight The following featured vendors represent a wide variety of Big Show attendees and just a small sample of the kinds of companies in attendance offering solutions and bringing innovation to the home improvement industry.

1. PRESSURE PRO PRESSURE WASHERS AND ACCESSORIES Pressure-Pro, Inc. is a leading manufacturer of professional pressure washer equipment designed and assembled in the USA. With over two decades of cleaning expertise and an expansive product portfolio in the pressure washer industry, the company develops and manufactures high quality products that represent the latest technology and innovation.

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2. SEVILLE CLASSICS Seville Classics is a consumer packaged goods company that specializes in designing and manufacturing innovative housewares and hardware products for home and business use. Product specialization includes closet and garage storage and organization, wire and stainless steel shelving and worktables, bin racks, natural- fiber basket sets and hampers. Sevilleclassics.com

4. TUB O TOWEL’S A heavy duty multi-purpose cleaning wipe, the Tub O Towels contains Bond Buster Technology that instantly breaks the molecular bond between dirt and surface. The polypropylene, non-cotton fabric ensures maximum durability and performance. A powerful cleaning agent formula keeps every wipe moist. A VaporLock canister prevents the wipes from drying out. tubotowels.com

3. THE INVENTOR LADY The Inventor Lady, Rita Crompton, helps inventors with a variety of issues like prototypes, manufacturing, distribution, crowdfunding and licensing. As a licensing agent, Crompton helps clients entering the marketplace with products ranging from Lawn and Garden Products to Home Decorating. Gadgets, gizmos and great ideas are all part of the program. Inventorlady.com

5. WESTINGHOUSE OUTDOOR POWER EQUIPMENT Westinghouse Outdoor Power Equipment continues to bring innovation to the hardware industry that has everyone talking. From the iGen4200 Hybrid Inverter Generator to our brand new 20V+ and 40VMAX+ Cordless Lawn Garden Tools, Westinghouse delivers features and quality you can be sure of.

6. Z GRILLS Promoting “the way real wood pellet BBQ should taste like,” Z Grills is a leading manufacturer of pellet smokers, charcoal and gas grills with extensive design and R&D experience. We are also one of the largest manufacturers of stainless steel kitchen equipment.

westinghouseoutdoorpower.com

Zgrills.com

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7 10 9. DURA Dura Plastics describes The Dry Box (shown here) as “the safest, smartest and most secure outdoor valve box ever made.” The companyis a leading manufacturer of PVC fittings and other irrigation related products. Dura is a leading manufcaturer of PVC fittings and other irrigation related products. It operates its own manufacturing facility in Celina, Tenn.

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10. EARTH KIND A pioneer in pest prevention, plantbased repellents ensures that rodents, spiders, moths, and ants literally “stay away” from homes, all while protecting humans, pets and the environment with a scent that is offensive to pests but pleasant to humans.

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7. ADAMS USA Adams Manufacturing is North America’s leading supplier of iconic American-made outdoor resin furniture and accessories. The contemporary line of outdoor resin furniture is perfect for value-oriented consumers looking to elevate their outdoor space without compromising on comfort or quality. Adamsmfg.com

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8. CROSSMASTER HAND TOOLS Intermax Tools introduces Crossmaster Hand Tools & Accessories. Intermax Tools sources manufacturing and distributes its own line of hand tools and accessories known as Crossmaster. Located in Miami, Fla., the company is strategically located for import and export distribution. It extends its wholesale services and products to hardware stores; distributors; retail chains; specialty suppliers; and other retailers. Crossmasterusa.com

11. EMBERS GRILLS The Embers Family of Gas Grills in unison with Charcoal/Wood Pellet Smokers drive innovation and quality into the outdoor cooking space. 3 Embers — Performance and Innovation, Even Embers — Best in value and quality, Trail Embers — Heavy gauge construction including precise control. Embers Grills deliver an extraordinary experience. www.embersgrills.com

12. FLEX SEAL FLEX SEAL: Seeps into cracks & holes and dries to a watertight, flexible, rubberized coating. FLEX SHOT: The easy way to caulk, bond and seal. FLEX SEAL LIQUID: Brush, roll, dip or pour on a variety of surfaces and objects. FLEX TAPE: A super strong, rubberized, waterproof tape that can patch, bond, seal and repair virtually everything. Flexsealproducts.com

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INDEPENDENT PROFILE

Costello’s Ace Hardware A desire to be ‘famous for more’ fuels an ambitious growth plan.

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ce Hardware Corp. has a catchy slogan for its member dealers: “Famous for Four.” It’s a rallying cry to dominate in the core hardware-store categories of paint, power, home preservation and backyard-and-BBQ. Costello’s Ace Hardware checks all four of those boxes, and then some. “We want to be famous for more,’” said Joey Costello, director of marketing for the growth-focused 36-store hardware chain based in Deer Park, N.Y. “Those four categories — they line up perfectly for us,” he explained. “We are fully embracing Ace’s new growth strategy. It really aligns with our beliefs in the things that we feel are important. And a large part of that is the focus on premium brands and those four essential categories — But we take it a step further.” Costello’s merchandise strategy marches famously into hot tubs, the hearth business, patio and outdoor furniture, and seasonal merchandise, especially Christmas. With this product mix and a focus

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Costello’s Ace Hardware delivers a “Backyard Experience” in North Brunswick, N.J. The 36-location, Deer Park, N.Y.-based retailer has ambitious growth plans.

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CEO describes a culture of growth on e-commerce and business-to-business sales, Costello’s has embarked on an ambitious five-year growth plan to achieve $250 million in revenue and 75 stores by 2025. Much of that growth is expected to take place through acquisition in the Mid-Atlantic region (see sidebar). Costello’s newest store — in North Brunswick, N.J. — showcases several approaches to retail fame. No fewer than five hot tubs invite inspection near the entrance. And in a neighboring display, fireplaces decorate an entire wall. During a reporter’s recent visit, patio furniture and a fire pit served as a conference area for a discussion of what the company calls its “Backyard Experience,” a concept promoted in big letters on the store’s exterior. Costello’s Ace carries fireplaces in eight stores. It also carries hot tubs in eight stores. “We know that our customers are interested in finding ways to spend more time in their backyard, ways to have community at home,” said Doug Cashmere, vice president. “They are building their backyard — with grilling, with the patio, and with hot tubs.” There’s more than just relaxation to be found in a hot tub, Cashmere

Costello’s Ace Hardware CEO Michael Costello looks to build on the company’s long history of growth. In this regard, here’s how he describes the company’s legacy and future:

The North Brunswick store includes the latest signage package from Ace.

said. “The one benefit that doesn’t get talked about a lot is just the family community,” he said. “Unwinding at the end of the day, after the kids’ soccer game — It’s part of a trend to hang out at home, and we really believe in that.” The company further believes in the power of paint, especially Benjamin Moore, which is also promoted on the outside of the building in big letters. The North Brunswick store features the latest Benjamin Moore décor package and product assortment, including the paint brand’s exterior stain line, Arborcoat. Other areas of growth include e-commerce, where the company intends to double its sales in 2020. Also, The Supply Place businessto-business unit is described as low-hanging fruit for sales growth. Around 2018, The Supply Place sales represented about 6% of Costello’s overall sales. By the end of 2020, it is projected to increase to more than 10%. And by 2025, Costello’s hopes The Supply Place will generate 20% to 25% of overall sales. “We’re investing a lot into that part of the business because the opportunities are there,” said Costello. Johanna Dorn, category manager of hearth & hot tubs, with Joey Costello.

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Twenty years ago, our founder Vincent Costello saw an opportunity when a large regional home center exited dozens of vibrant Long Island markets after struggling to compete with the incoming box stores. He was convinced that the disenfranchised consumers in these communities were thirsting for personal service and convenience. And that if they could find this in a local hardware store, then they would gladly support it. “His decision paid off, and over the next two decades Costello’s store count grew by more than 7 times — and our revenue and staff by more than 10 times. The opportunity that will keep us on our current trajectory is growth through acquisition. There are an increasing number of successful hardware stores out there without a succession plan. We will help extend the legacies of retiring owners while fulfilling their wishes for a smooth transition for their dedicated staffers and loyal customers.

The ambitious growth plans are just part of the family culture at Costello’s Ace, said Costello. The business for decades was guided by the growthfocused leadership of Vincent Costello, who became involved in the company in 1976. Vinnie died in 2016, but the culture he created lives on in his six children who now run the growing family business. “It’s all about family and community and being of service to our neighbors,” Costello said. “That’s part of our culture of growth. You can have all the strategy in the world, but if you don’t have the right culture in the building, it’s not going to go anywhere.”

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PRODUCTS

Fasteners behind the scenes

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t’s sometimes what you don’t see — or hear — that brings value to the job site. Here are a couple of recent examples from the fastener category.

Strong-Drive WSV Subfloor screws

Simpson Strong-Tie has introduced a new line of Strong-Drive WSV Subfloor screws designed to reduce driving torque, increase installation speed and nearly eradicate the squeaking caused by poorly fastened subfloor sheathing. Re-engineered from head to point, Strong-Drive WSV Subfloor screws feature a ribbed head design to countersink screws for a clean, finished appearance and a Strong-Drive VSW Subfloor screws reduce driving torque and increase installation speed.

variable thread to ease driving torque and speed fastening jobs when used with the Quik Drive auto-feed screw driving system. For contractors, fastening subflooring with WSV screws provides the power necessary to hold the sheathing to the joists, eliminating gaps that can lead to squeaking and costly callbacks on newly installed floors. According to Simpson StrongTie, upgrades were made to the screws with contractor input. By combining lower torque with greater fastening power, the WSV provides faster, easier installation of subfloor sheathing with the strength to eliminate the gaps that lead to squeaking and callbacks. Available in 1¾”, 2”, 2½”, and 3” lengths, Strong-Drive WSV Subfloor screws have a yellow zinc coating for interior applications and are the only fasteners to be dual-evaluated per ICC-ES AC233 and ICC-ES AC120. Screw features include a redesigned point and thread pattern provide easy starts and up to 25% less torque, which translate to faster driving. Lower installation torque also means less wear on tools. A deep-recessed 6-lobed ribbed head provides clean countersinking and more secure bit retention for easier installations. Additionally, the holding power of WSV screws reduces the gaps between the joist and subfloor that cause floor squeaks. WSV screws can be backed out easily, facilitating future access to floor cavities. Strongdrive.com/wsv

Camo gets commercial

CAMO EdgeClip and EdgeXClip — for angled pattern boards — are engineered to reduce installation time for any type of grooved decking,

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CAMO EdgeClip reduces the installation time on decking.

including wood, capstock or PVC. The clips have recently been performing in some heavy-duty jobs in the commercial sector—including a new 20,000-square-foot Trex deck at Philadelphia’s Pier 3 and an 8,000-square-foot Fiberon deck at the Hop Meadow Country Club in Connecticut. Contractors installing a brand new, 24,000-square-foot ipe hardwood deck at the Newport Harbor in Rhode Island are also using the CAMO Drive stand-up tool for 5X faster installation with Edge Fastening, expected to be completed the first week of March. Proven in the residential sector, CAMO Drive has three attachments for edge fastening, face fastening or EdgeClips saving installers time and stress on their bodies. The clips can also be driven with the new easy-to-use Never-Miss Guide included in every pail of clips. CAMO Starter Clips are also available for the first and last board to achieve a completely fastener-free surface on grooved decking. The CAMO EdgeClip was designed for traditional 90-degree decking patterns, and installing the clip could not be easier. You simply slide the clip onto the joist with the gusset in the groove. No partial installation required. Slide the next board into place before fastening the clip. Camofasteners.com

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PRODUCTS

Barrier upgrades

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uilding product manufacturers continue to introduce new pieces to the overall barrier system designed to tighten-up a home while preventing unwanted moisture and air from seeping into a structure. Here is a collection of some of the latest products, product lines and accessories designed to protect a home.

Barricade Wrap Plus Drainage from Barricade Building Products is a drainable house wrap that allows moisture and bulk water to drain from behind cladding. The wrap features a non-directional gap design that can be installed in any direction, reducing scrap on gable ends without affecting drainability. The manufacturer said that the drainage wrap allows for over 90% drainage efficiency. The wrap also features surfactant resistance against pressure washing, job site chemicals, and sugars from tree sap and wood sidings, as well as UVresistance for up to nine months. Standard drainable house wrap comes in widths between 60 and

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120 inches and lengths of 100 to 200 feet. BarricadeBP.com Georgia-Pacific has launched DensDefy Accessories, comprised of liquid flashing and a transition membrane primarily used in the DensElement Barrier System. DensDefy Liquid Flashing is a flexible, liquid flashing membrane that seals and protects against water intrusion for transitions between substrates (at rough openings, penetrations, joints, sheathing fasteners, and seams) and unwanted air movement in new or existing wall assemblies as part of the DensElement Barrier System. The product creates an elastomeric flashing membrane that is highly durable and eliminates the need for joint reinforcing tape, reducing overall preparation time. The product is fast cure, moist cure, may be applied in low temps, can tolerate rain immediately after application, and is easy to

install. The DensDefy Transition Membrane is a flexible, self-adhering membrane used to maintain continuity of the above-grade water-resistant barrier and air barrier at complicated transition areas of the DensElement Barrier System. BuildGP.com

LP Building Solutions has launched LP Structural Solutions, a branded portfolio of framing and sheathing products technologically engineered to combat the resiliency demands of different geographical markets. Included in this portfolio is the newest resiliency-driven product: LP WeatherLogic Water Screen. The product is available as a synthetic polymer-based screen that can be used with OSB and a WRB house wrap or in conjunction with an integrated panel, like LP WeatherLogic Air & Water Barrier. It maximizes the moisture protection of a home and potentially extends the life of the exterior surfaces by adding increased ventilation and drainage. The product is a lightweight, easy-to-install and mold-resistive screen that works well with all other LP structural products. It also comes with a 25-year warranty. LPCorp.com

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SMARTHOME TECH

Turning on the excitement (remotely)

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ire safety can be a life or death consideration. And that’s probably why it leads all other smart home features in home-buyer “excitement.” It’s also the smart home feature with the highest percentage of prospective home buyers who expect to have it in their home. Those findings are part of the smarthome story that emerges from a recent Home Shopper Insights & Builder Brand study from Builders Digital Experience (BDX). Fire safety, smart thermostats, surveillance and entrance monitoring products were the top four smart home features in terms of consumer excitement, according to the survey. The BDX survey’s base was 4,427 home buying prospects. They were asked: “When purchasing your next home, which of the following best describes your opinion of each of these Smart Home automation features.” The smart thermostats category benefited from the buzz around

Google’s 2014 acquisition of Nest Labs, makers of the Nest Learning Thermostat — for $3.2 billion. According to a Freedonia Group, U.S. demand for smart and connected thermostats is forecast to increase 23% per year through 2022 to 14.5 million units. Ramped up efforts by utility companies, homebuilders, and HVAC contractors to promote these products based on their cost- and energy-saving benefits will also help sales. The smart and connected thermostat market is expected to transition to become more replacement-oriented between 2022 and 2025, which will correspond with declining sales. By then, most households interested in these products will have purchased one, according to Freedonia. In the meantime, there are plenty of products and trends that are just beginning their product-purchase life cycle. And the team at BDX says they spotted quite a few at CES, initials that used to stand for “Consumer Electronics Show,” a massive event hosted by the Consumer Technology Association earlier this year. Smart Home Excitement Melissa Morman, coWhen purchasing your next home, which of the following best describes your opinion of each of these Smart Home automation features? founder of BDX and chief experience officer, pointed AUTOMATION NICE EXPECT EXCITED FEATURE TO HAVE IT TO HAVE IT TO HAVE IT to smart water controls Fire safety 33% 36% 20% as a ready-for-primeSmart thermostat 37 31 18 time product. Homes are Surveillance 42 23 17 ten times more likely to Entrance monitoring 43 23 17 Air quality management 42 23 14 be damaged by a water Lighting control 42 19 14 leak than a fire. And the Water/plumbing monitoring 47 18 13 average cost to repair a Smart plugs 41 16 13 Access management 40 16 13 home that springs a leak Smart appliances 38 15 13 is close to ten grand. Voice control 36 11 13 Phyn smart home water Audio/video control 38 13 12 Window covering control 41 12 12 leak detectors are among Source: BDX Home Shopper Insights the brands to watch.

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Phynn’s auto shutoff mitigates damage.

With Phyn Plus’ built-in shutoff valve, homeowners can remotely turn off the water when alerted to problems. Water/plumbing monitoring lead the BDX Smart Home Excitement chart in the “Nice to have it” metric, with a 43% rating. And also in the water management category, Hydraloop has emerged as a smart system to recycle household water, while Watergen actually promotes the ability to create water. CES also displayed a trend toward wellness — not just for humans, but for all beings in the home. For instance, a self-cleaning litter box called iKuddle, not only claims to automatically clean and bag cat poop, it intelligently analyze the contents of a litter box to collect a pet’s health data. For dogs, consider Wayzn, a smart-camera, smart-sensor alternative to a hole in the door through which pets can come in and out. Security — essentially door locks and entrance monitoring — continued to develop and were well represented at CES. There were also products that might still sound like science fiction, such as the Ektoskeleton suits that could conceivably be used on the job site to reduce fatigue of workers. Overall trends from CES were listed by Morman in no particular order: smaller, faster, lighter, cheaper, smarter and better.

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MARKET INSIGHTS

New owners for a West Coast powerhouse By Andy Carlo American Construction Source (ACS) has acquired Homewood Holdings LLC from Building Industry Partners (BIP), the LBM industry-focused private equity investment firm. The Homewood portfolio includes eight locations in California, Washington, and Arizona: Homewood Building Supply in greater Sacramento, Calif.; Evergreen Lumber, Eagle Creek Siding and Custom Choice Door in greater Seattle-Tacoma, Wash.; and The Door Mill in greater Phoenix, Ariz. The locations serve custom, regional, and national production home builders, residential and commercial contractors, and DIY customers in each operating company’s respective local market. Homewood will continue to operate under its existing brand names, ACS said. Terms of the deal were not disclosed. “ACS is excited to add Homewood to our growing portfolio of service-oriented lumber and building materials locations,” said James Drexinger, CEO of ACS.” Prior to the acquisition, ACS’s brands included Meek’s, Arrow Building Center, Breckenridge Building Center, and Edwards Building Center. While ACS has locations in the West, including California, Colorado, Nevada, and Washington, this move substantially increases its presence in the region. BIP and industry veteran Jim Stockman, CEO of Homewood Holdings,

Now part of the American Construction Source platform, Homewood expects growth to accelerate.

began putting together its western pro dealer lineup in 2016 with a vision to build a best-in-class Western U.S. lumber and building material pro dealer organization. Following the acquisition of Homewood Building Supply, a pro dealer serving the greater Sacramento market, Homewood Holdings went on to make seven strategic add-on acquisitions in western markets. The most recent move by Homewood — last August — was the acquisition of Total Trim Construction, Inc., which provides interior trim, moulding, and door installation services to multi-family builders and commercial and hospitality developers and contractors. Stockman will remain with the pro dealer as a member of the ACS executive team, the Springfield, Mo.-based company told HBSDealer. ACS operates more than 70 locations in 9 states, serving home builders, repair & remodel contractors, and DIY consumers. The company is backed by Angeles Equity Partners and Clearlake Capital Group and was launched in September 2018 with the acquisition of Meek’s Lumber. Right out of the gate, that move gave ACS more than 50 locations in four states. “ACS is excited to “BIP has long add Homewood to our focused on growing portfolio of supporting the service-oriented lumber building industry’s most talented and building materials business leaders in locations.” becoming owner—James Drexinger, CEO, ACS operators and

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realizing their entrepreneurial visions,” said Matt Ogden, founder and managing partner of BIP. “We knew Jim for over a decade before we partnered at Homewood, so it’s particularly rewarding for BIP to realize this success together in Jim’s entrepreneurial debut.” BIP has served as the co-founder or equity capital sponsor in the formation of some heavyweights in the LBM ranks, including U.S. LBM, Holdings, Kodiak Building Partners, and U.S. Fence Solutions Company, among others. “We’re very proud of the business we’ve built at Homewood and the seven acquisitions we’ve brought into the Homewood family since 2016,” Stockman said. “I think we’ve realized ourvision of building a pro dealer organization across multiple markets that cares deeply about serving its customers, while also being a place where employees love to work. As our highly successful partnership with BIP concludes, we’re excited about Homewood’s future and continued growth as part of the ACS platform.” Looking back at the formation of Homewood Holdings LLC, BIP Managing Partner Zach Coopersmith says creating the company was a solid move despite recent downturns in commodity prices. The deal reflected a “people-first” investment philosophy, he said. “Homewood was a ‘textbook’ investment for BIP in terms of investment thesis, operator partnership, strategy, and execution,” he added.

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Join us in Chicago Nov. 4-5, for the Top Women in Hardware and Building Supply Awards Gala! Visit HBSDealer.com for more information.

Go ahead. Underestimate this executive. Stacey Tank enjoys steamrolling stereotypes. By Ken Clark

As VP of home services at The Home Depot, Stacey Tank leads three businesses at the world’s largest home improvement retailer — Home Depot Interiors, Home Depot Exteriors and Home Depot Measurement Services. The former Heineken and GE executive swims in deep waters and pushes boundaries on two fronts. One, she carries the flag of women in home improvement; and two, she shows communications professionals everywhere that it’s possible to make the jump to a role leading a business. Tank was Home Depot’s VP of corporate communications and external affairs before her promotion in 2018. She spoke with HBSDealer about her career, and some of the people she met along the way. On industry stereotypes: I think it’s fun to be underestimated. I’ve been underestimated my whole life, and if you look at that as an opportunity and position of advantage, it can really work for you. So I’m sure every day I walk into a situation where someone makes a snap judgment and underestimates me. And when you’re able to help them, support them, surprise and delight them with what you’re able to offer, how you’re able to serve — I love that feeling. And you’re able to help re-norm people’s ideas about whether it’s a woman in construction or a working mom or whatever else someone might be stereotyping about. On the emergence of females in the industry: One of my favorite things to see in our stores is the many female pros who are running incredibly successful businesses. When I’m in the store, we see what you would think of as the

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archetype of a pro — a male builder, et cetera. But we have as many female pros, and we want to support them with the same enthusiasm. On mentors along the way. It was important when I got into the business world to have women like Anne Marie Campbell and Carol Tome, who not only were symbols of what was possible, but who have become friends and mentors and sponsors. [CEO] Craig Menear hired me, and has been incredibly generous as a coach and mentor. Crystal Hanlon is another female leader who started as a cashier in the stores and over 30 years later is northern division president. She is incredibly people- and culture-oriented and always an inspiration to me. So there are many. Actually, it’s an embarrassment of riches in many ways.

MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

On the orange apron culture. We have a very values-oriented servantleadership style culture that’s all about the front-line associates and serving them and making their lives easier and creating career opportunities for them to grow. And that really spoke to me. Thoughts on advice for home improvement careers. Maybe a couple of thoughts. I think that folks should take the biggest, hardest jobs that they can find because they’ll learn the most from those. And find people who are willing to teach you what they know. Another thought would be that we all have a tremendous responsibility to pull people up behind us every single time when we’re in a position to do so. Pave a wide path to make it easier for those who will follow us to achieve whatever dream they have for themselves.


PEOPLE IN THE NEWS Trex has named CFO and EVP Bryan Fairbanks as the composite decking manufacturer’s next CEO. Current president and CEO James Cline Fairbanks announced that he will retire and become Trex’s next chairman of the board. The transition is expected to take place on April 29. At that time, current chairman and former CEO Ronald Kaplan will move to vice chairman. Tractor Supply Company has promoted Seth Estep to executive vice president, chief merchandising officer. John Ordus has been named as the company’s executive vice president, chief stores officer; and

HBSDealer.com

Colin Yankee has been elevated to executive vice president, chief supply chain officer. Yankee and Christi Korzekwa, senior vice president of marketing, have also been named to Tractor Supply’s executive committee. Jake Gress has been promoted to the newly created position of L&W Supply vice president of operations. Gress has been in the industry for over 17 Gress years, spending the last 10 with L&W Supply. In his new role, Gress will be responsible for L&W Supply’s operations function, including safety, compliance, fleet and real estate, along with the marketing, merchandising and training teams.

Lumber Liquidators CEO, president and board member Dennis Knowles resigned from flooring specialty retailer, effective Feb. 5. The board of directors has appointed Charles Tyson, Lumber Liquidator’s chief customer experience officer, as interim president and principal executive officer. MaterialsXchange, online commodity trading platform, has named Ashley Boeckholt as its new chief revenue officer. He will be responsible for driving the industry’s Boeckholt traditional lumber and forest products companies into the digital world and the B2B marketplace for selling and buying raw materials, including lumber, OSB, and plywood.

HARDWARE + BUILDING SUPPLY DEALER MARCH 2020

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) Jan.: 1,567,000

NAICS 44413

(sales in $ billions)

40

1600

(sales in $ billions)

3

1500

33.3

30

33.3 30.7

30.3

1400

2.32

29.1

28.2

2.4

2

2.19

2.19

2.18

2.19

20

1300

1

1200

10 1100

0

1000

J

F

M

A M

J

J

A

S

O

N

D

OCTOBER

J

2018

SOURCE: COMMERCE DEPARTMENT

NOVEMBER

0

DECEMBER

OCTOBER 2018

2019

NOVEMBER

DECEMBER

2019

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

Single-family starts (in thousands, SAAR) Jan.: 1,010,000 2000

HBSDealer Stock Roundup

1050

the percent-change performance of stocks based on Feb. 20 prices

1000

80

950

70

900

BLDR

60

850

50

750

J

F

M

A M

J

J

A

S

O

N

D

ANNUAL CHANGE

800

J

SOURCE: COMMERCE DEPARTMENT

Existing-home sales (in millions, SAAR) Jan.: 5,460,000 5.6

BMC

40 30

HD

SHW

20 10

LOW

WY

SWK

DE

0 DJI

-10

5.4

-20 5.2

TSCO

BECN

-20 -20

-15

-10

-5

-10

5

MONTHLY CHANGE 4.8

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

J

F

M

A M

J

J

A

S

O

N

D

J

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)

5.0 4.5

100

5.5

$2.50

Current

$2.00 80

6.0

Prior month

120

Prior year

4.0

3.6% 3.5

34

January

130.7

6.5 60

February

140

MARCH 2020 HARDWARE + BUILDING SUPPLY DEALER

$1.50

$2.47 Feb. 27

$3.00

SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA

HBSDealer.com


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