APRIL 2022 Volume 48 No. 4
THE
ESPY AWARD LUMBER CO. DESERVES AN
Our 2022 Independent ProDealer of the Year leads the league in teamwork, vision and Hilton Head highlights
Mike Reeves, president
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HBSDEALER HARDWARE + BUILDING SUPPLY
04/22 TOP WOMEN
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Hillman Group’s Gaby Mann rests her case
PRODUCTS
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Smarter labor-saving solutions
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Durable siding steps up A solar-power experiment in Milwaukee
MARKET INSIGHTS COVER STORY
16 Award for Espy Lumber Company
30
Highlights from the ProDealer Industry Summit
32
Words of e-commerce wisdom: Hardware retailing leaders share insights and knowledge from their digital experience.
The 2022 Independent ProDealer of the Year has made a profound impact on Hilton Head since 1958.
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Espy Lumber Co. wins as a team Bonus awards for the original “Espy”
FROM THE EDITOR
NEWS & ANALYSIS
IN EVERY ISSUE
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Woodgrain shakes up the distribution industry
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True Value’s colorful acquisition
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“Lumberyard,” by any other name
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Meet the new HDA: The Hardlines Distribution Alliance
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Following up on Ward Lumber’s co-op
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Stat of the Month Product Knowledge People in the news 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 © 2022 by EnsembleIQ. All rights reserved.
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April 2022 HARDWARE + BUILDING SUPPLY DEALER
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STIHL Hardware All Stars It takes a little more to be an All Star. The HBSDealer Webinar Series will examine high performance, community-centric businesses during the Hardware All Star Webcast May 18. For other programs, visit HBSDealer.com/webinars
Nominations are open for leading women HBSDealer seeks nominations for Top Women in Hardware & Building Supply honorees in two categories: “Business Excellence” and “Rising Stars.” Find out more at HBSDealer.com.
The votes continue to pile up Poll questions and poll results are a regular feature on HBSDealer’s daily e-newsletter. Among the recent hot topics: Bitcoin.
Q
What do you think of Bitcoin now (around $44,000)?
6%
Priced about right
13%
A bargain
68%
Crazy high
13%
Too expensive Source: HBSDealer poll question.
Connect with us @HBSDealer
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April 2022 HARDWARE + BUILDING SUPPLY DEALER
Poll questions and results appear every week at HBSDealer.com.
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HBSDEALER HARDWARE + BUILDING SUPPLY
From the Editor
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
By any other name
SENIOR VICE PRESIDENT (HBSDealer, Drug Store News, Chain Store Age) John Kenlon, jkenlon@ensembleiq.com, 212-756-5238
Ken Clark Editor in Chief HBSDealer’s editorial style calls for “lumberyard” to be written as a single word. Maybe it’s time for that style to change. I’m not talking about splitting the word into two — “lumber yard.” Or even adding a hyphen, as in “lumber-yard.” I’m talking about banishing the word altogether. Why? Because the term “lumberyard” fails to adequately describe the complexity and sophistication of the business activities practiced by most of those companies commonly known as “lumberyards.” A while back, while researching a September 2020 cover story on Builders FirstSource, I asked CEO David Flitman for his thoughts on the term “lumberyard.” His response, polite and matter-of-fact, was, “We’re not a lumberyard, Ken.” (For the record, Builders FirstSource describes itself as a “Supplier of structural building products, value-added components, and services to the professional market for new residential construction and repair and remodeling.”) More recently, at the 2022 ProDealer Industry Summit, hosted jointly by HBSDealer and the National Lumber and Building Material Dealers Association, presentation after presentation demonstrated the expanding role of — for lack of a better term — the lumberyard. There’s the role of building industry consultant. There’s the role of manufacturer. There’s the role of financial advisor and financial services provider. There’s the role of retailer, design-showroom operator, logistics manager. A Summit presentation called “How to manage an unpredictable supply chain,” pointed to the following roles: SUPPLY CHAIN FACILITATOR “In this supply chain situation, almost to the start of the pandemic when there was information coming at us almost daily, we have been very insistent on overcommunicating with our company associates and also our customers about what is going on and how we are handling the situation.” — John Perna, Hamilton Building Supply
BUILDER EDUCATOR “We’ve just tried to work to help educate our customers on talking with their customers to make sure that they’re being transparent and fully upfront when they’re selling houses. Because, honestly, our customers should be as profitable as ever right now. The dealers are doing well, our customers should be as well. And we want to make sure that they are.” — Mark Hopkins, Hancock Lumber
CUSTOMER RELATIONSHIP MANAGER “If a really good customer walks into my yard and sees a truckload of OSB, and he needs it now, and I’m holding it for a guy who needs it four months down the road—that’s not a very good practice.” — Mike Reeves, Espy Lumber There's never a dull day for the modern “lumberyard.” Read more about the ProDealer Industry Summit at HBSDealer.com.
EDITOR IN CHIEF Ken Clark kclark@ensembleiq.com, 212-756-5139 LBM EDITOR Andy Carlo acarlo@ensembleiq.com, 845-891-5108 HARDWARE EDITOR Tim Burke tburke@ensembleiq.com, 773-216-7880 ADVERTISING SALES
Midwest & Southeastern States ASSOCIATE PUBLISHER Amy Platter Grant agrant@ensembleiq.com, 773-294-8598 Northeast and Great Lakes States REGIONAL MANAGER Greg Cole gcole@ensembleiq.com, 317-775-2206 AUDIENCE
LIST RENTAL MeritDirect Marie Briganti 914-309-3378 SUBSCRIBER SERVICES/CUSTOMER CARE TOLL-FREE: 1-877-687-7321 FAX: 1-888-520-3608 contact@hbsdealer.com PRODUCTION/ART
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 MARCH 29-APRIL 2, 2022, WASHINGTON, D.C. WWW.PRODEALER.COM IN PARTNERSHIP WITH THE NLBMDA, WWW.DEALER.ORG CONTACT: AMY PLATTER GRANT agrant@ensembleiq.com, PDIS DIRECTOR OF SPONSORSHIPS 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. 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 HUMAN RESOURCES OFFICER Ann Jadown EXECUTIVE VICE PRESIDENT, CONTENT Joe Territo EXECUTIVE VICE PRESIDENT, OPERATIONS Derek Estey
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News + Analysis
In Huttig, Woodgrain lands a big acquisition Huttig Building Products announced last October that it was reviewing strategic business alternatives – that’s business jargon for “looking for a buyer.” The St. Louis-based two-step distributor found one in Woodgrain Inc., a Fruitland, Idaho-based manufacturer and distributor of mouldings, doors and windows. Woodgrain, a privately held family business led by President and CEO Kelly Dame, operates six divisions and over 30 manufacturing and warehouse facilities in the United States and South America. “This acquisition will increase our footprint by expanding our network,” Dame said. “And by adding Huttig’s expertise and resources to our own, we are positioned to bring even more value to our respective customers and supply partners.”
Woodgrain's Hutttig deal is part of a trend for the Idaho-based company.
The deal calls for Woodgrain to acquire Huttig in an all-cash transaction valued at $10.70 per share, or approximately $350 million including the assumption of debt. Huttig’s Board of Directors unanimously approved the
acquisition, which is expected to close in the second quarter of 2022. “Our organizations share many of the same values, and we are certain that the Dame family will be great stewards of the Huttig brand and legacy that has existed since 1885,” said Huttig CEO Jon Vrabely. The move is part of an acquisition streak by Woodgrain. Last year, the company acquired two millwork facilities from Lowe’s. Most recently, it purchased the Thomasville Millwork door shop, which will. Supply Lowe’s stores with ReliaBilt interior and Therma-Tru Benchmark exterior doors across the Southeast and Mid-Atlantic. Earlier last year, Woodgrain purchased a Lowe’s millwork location in White House, Tenn.
True Value’s splash of color True Value Company acquired Yenkin-Majestic’s consumer paint business, bringing the Majic brand to the Chicago-based distributor. “The Majic paint brand deepens our strong portfolio of products, which today includes our flagship EasyCare brand, and enhances our capabilities in the agricultural and other specialty seg-
ments of the paint industry,” said John Vanderpool, division president for True Value manufacturing and general paint. True Value and Yenkin-Majestic have been partners for many years. Majic paint products have been made in Columbus, Ohio, since 1920. With the sale, Yenkin-Majestic said it intends to focus its resources on its polymers business.
At True Value, EasyCare has new company: Majic.
STAT OF THE MONTH The latest Home Depot annual report breaks down sales by 14 merchandise departments. Among them, the three most pro-focused LBM categories generated a total of $30.579 billion dollars for the year ended Jan 30. Here’s the breakdown. DEPARTMENT
Lumber Building Materials Millwork
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April 2022 HARDWARE + BUILDING SUPPLY DEALER
FISCAL 2021 SALES
% CHANGE
$13.344 billion $9.823 billion $7.412 billion
18.0% 13.5% 14.7%
HBSDealer.com
SAVE THE DATE
“An opportunity to listen and learn from the women in attendance, whether they were speaking or not.” - Top Women 2021 Attendee
Nov. 8-9, 2022 Fairmont Hotel Chicago
About the Event The HBSDealer Top Women in Hardware & Building Supply program honors women making outstanding contributions to their companies and their communities. We hope to help attract more women into the business, encourage those already here to stay, and show them how to reach the C-suite.
News + Analysis
Long-time distribution partners agree to merge Distribution America and PRO Group have been close business partners for years, hosting a joint buying event — the Executive Planning Conference — for the distributor companies affiliated with each group. As of April 1, the two companies tied the knot in a merger that creates the Hardlines Distribution Alliance, a service management company representing over 65 member distributors nationwide. Shari Kalbach, formerly vice president
and COO of PRO Group, has been appointed president of HDA and will direct the management team and staff. The new entity will be based in Denver. “With the formation of HDA, the orga-
Product Knowledge
FOLLOWING UP
Product: Hot Wheels Americana Series Epic Shine Premium Car Care.
Ward Lumber’s major sale
Manufacturer: AmericanaPRO Automotive Corporation of Syracuse, N.Y.
Ward Lumber’s dramatic move to become an employee-owned co-op has celebrated its one year anniversary. And so far, so good, CEO Jay Ward told HBSDealer. A little background: The employees of Ward Lumber purchased the 130-year-old business as a workerowned cooperative. The transaction marked the first employee ownership transition of its kind in the North Country region of New York State. The lumber, building products, and hardware store, which has locations in Jay and Malone, N.Y. and employs over 50 people, has been in Jay Ward’s family for four generations. Jay Ward remained onboard as CEO, which is just how the employee owners wanted it. “There was skepticism,” Jay Ward told HBSDealer. “’Is this really going to happen?’ and ‘is this really going to work?’” The answer to both questions is “yes,” Ward said. But the transition has required adjustments, learning and effort. Meanwhile, the benefits of employee ownership in terms of the team taking an ownership stake in the business,
Knowledge: The Hot-Wheelslicensed Epic Shine “nano-hydrophobic polymer spray detailer and coating enhancer” brings a long-lasting, deep-gloss shine to hot rods and other cars for grown-ups. It’s part of the family of made-in-the-USA car care products that includes Ceramix, Wash & Wax and All Wheel Cleaner. MSRP is under $25. Fun fact: The creator of the original Hot Wheels toy cars was Eliot Handler. His wife, Ruth Handler, created the Barbie Doll. Bonus fact: AmericanaPRO supports the Jimi Hendrix Foundation music programs for Autism and PTSD awareness.
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nization will be capable of offering more robust programs and services to respective distributor, retailers, and vendor partners,” said the company. “These enhanced programs will continue to allow independently owned hardware, farm and ag, lawn and garden, and paint retailers to compete in today’s competitive retail environment.” The imminent retirement of Dave Christmas, president and CEO of Distribution America, served as a catalyst for the creation of HDA, Kalbach said.
April 2022 HARDWARE + BUILDING SUPPLY DEALER
Jay Ward, CEO Ward Lumber
continue to work as planned. One recent example came from a Ward Lumber truck driver, who recognized a business opportunity while making a delivery. The driver, with a vested interest, called the CEO to personally explain the opportunity. “There are a lot of examples like that,” Ward said. “Many of them are small, but they all add up.”
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News + Analysis
News Map: Openings, Closings & Acquisitions Illustration of retailers and dealers in various stages of coming and going. For more retail news, visit HBSDealer.com. OPENING
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CLOSING
AQUISITION
IDAHO
PENNSYLVANIA
MISSOURI
VIRGINIA
Orafino
Lansdale
Nevada
Gloucester Point
Family-owned lumber and building materials dealer TAL Holdings is acquiring Orofino Builders Supply. This deal includes five locations in Grangeville, Kamiah, Lewiston, and Orofino, Idaho. The financial terms of the acquisition were not disclosed. Said Jason Blair, CEO of TAL Holdings: “Orofino’s values, culture and emphasis on community are a great fit with TAL. We could not be happier to join forces with such a well-established company and expand our presence in the Idaho market.”
Wilson’s Hardware and Locksmiths on Main Street is closing its doors. The store owners — Charles and Toni Venezia, will continue to operate the locksmith business. A farewell Facebook post reads: “We were proud to have survived the continued loss of parking and even the pandemic, but sadly our lease ends in April so given our age and some ongoing health issues we have decided to close the retail hardware store portion of the business.”
R.P. Lumber Co., Inc. continues to expand in the Midwest and announced that it has opened its latest location in Nevada, Mo. The opening marks the hardware and building materials retailer’s 82nd location and its 16th in Missouri. This past November, Edwardsville, Ill.-based R.P. Lumber also opened a new Missouri branch in Poplar Bluff. That move followed shortly after the dealer announced that it was acquiring Alexander Lumber.
Taylor’s Do it Center celebrated the grand opening of its newest location in Gloucester Point, Va., in early March. The opening marked the company’s 12th location in Hampton Roads. The celebration began with comments from Taylor’s Do it Center President and CEO Joe Taylor and Gloucester Point community leaders. “Our team is excited about adding this new location to the Taylor’s family,” said Taylor. “We look forward to being an engaged partner in the Gloucester Point community.”
April 2022 HARDWARE + BUILDING SUPPLY DEALER
HBSDealer.com
SAVE THE DATE: HBSDealer’s Top Women in Hardware & Building Supply gala is slated for Nov. 8-9 in Chicago.
A different path to diversity GABY MANN RESTS HER CASE ON LISTENING AND HELPING By Ken Clark
A
ll Points Screw, Bolt & Specialty Company of Pompano Beach, Fla., isn’t your typical Hillman Group distribution facility. “We package, we ship, we distribute the product, but we also actually create sales with inside and outside sales people, a customer pick-up counter and delivery trucks on the road,” said Gaby Mann, who as divisional vice president of operations runs the site. “We’re a standalone sales and shipping facility.” Just as her division is out of the ordinary, so too is Mann’s career path. It began in law school, flourished as a practicing attorney in Georgia, and then took a hard turn into the hardware and building supply industry when she and her husband purchased All Points and moved to Florida. While preparing for the Florida Bar exam, Mann discovered that she enjoyed her connection with the fastener business. “I didn’t think I was going to work there permanently,” she said. “But I loved it, and I thought it was so cool that we were actually making and selling products used to build permanent structures. So, I decided to change careers.” Qualities that have allowed Mann to flourish in the fastener field include a natural curiosity and a willingness to learn. “I came in not knowing anything,” she told HBSDealer. “We had only two employees at the time, but I turned to them to educate me. I let vendors educate me, and also the customers. People love to talk about what they do, and if you just listen, then you will learn so much from others.” The concepts of listening to others and helping others are the twin pillars of Mann’s concept of business and personal growth, especially as women gain traction in careers pre—Gaby Mann, viously — and sometimes currently divisional vice president of — dominated by men. operations, The Hillman Group At the Top Women in Hardware & Building Supply event (hosted by HBSDealer) in Chicago late last year, Mann was in the audience when a presenter quoted the former Secretary of State Madeline Albright: “There’s a special place in hell for women who don’t help other women.” “I jotted that down in my notebook, because I think that’s a pretty powerful message,” she said. “Women should encourage other women, and help and support and give them a safe space to discuss issues and be their mentor. I think that’s very important.”
“...And as people get more established in their careers, they want to give back.”
HBSDealer.com
Women helping women For Gaby Mann, the concept of helping others extends beyond the corporate world. Along with a friend who is a breast cancer survivor, Mann co-founded a charity to bring comfort to women who have experienced mastectomies. The charity involves donation and distribution of a discreet drainage pouch for postsurgery recovery, which can be a mentally taxing time for patients. (Learn more at bcalmed.org) She said when others at Hillman got wind of her effort, sourcing and graphics departments jumped in to help. “It just goes along with people wanting to help others,” she said.
From her vantage point, most of the companies and vendors she deals with day-to-day are represented by men, but the percentage of female participation is on the rise in the industry among both customers and vendors. On International Women’s Day, Mann shared her views on the topic in a message broadcast by Hillman all over social media. “It is important to celebrate contributions women have made in society. It is essential to recognize those women who have been groundbreaking and transformative in their respective fields to allow women to gain equality. Until we have something like ‘International People Day,’ we will not have succeeded with true equality.” One key area where she sees positive change is the increased willingness of managers to offer flexible work hours for the good of employees, their families and the company overall. Whether it’s a child’s doctor appointment, school event, or an unexpected family emergency, more companies are embracing work-life balance. The trend was growing before the pandemic and has accelerated since, she said. “Companies like Hillman and other distribution companies see the need for flexibility and are granting it,” she said. “Hybrid work environments and flexible shifts are crucial to really help bring equality into the workplace.” More good news, she told HBSDealer, is that people in the industry genuinely want to help others, whether that means writing a letter of recommendation, or making a phone call on behalf of a colleague. “And as people get more established in their careers, they want to give back,” she said. “So find those people who can be your mentors and who you can ask a lot of questions.” She added: “I think women are starting to study different fields and different professions and aren’t afraid to go out there and do it.”
HARDWARE + BUILDING SUPPLY DEALER April 2022
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Cover Feature
AN
Experience is the key to success in the thriving Lowcountry of South Carolina. Espy Lumber Company’s management team, from left: Tim Hurd; Don Owens, Nancy Phillips, Mike Reeves, Henri Madlinger and Rob McKean.
FOR
Espy Lumber Co. showcases the values of the independent dealer he bridge to the mainland changed everything. The year was 1958. Wesley Espy’s concrete plant had been supplying developers and contractors who were beginning to transform sleepy Hilton Head Island into a world-class tourist destination. That’s the year that Charles Fraser, known as the father of Hilton Head, asked Espy to open a building supply business to support development. The rest is history. “It’s hard to imagine how many projects we’ve been involved in through the years on this island,” said Mike Reeves, president of Espy Lumber. “And we’re still the only building supply business operating on Hilton Head proper.” It’s a proud distinction, but far from the only distinction for the two-location supplier of the South Carolina “Lowcountry.” Espy Lumber has been named 2022 Independent ProDealer of the Year by HBSDealer and the National Lumber & Building Material Dealers Association. (See sidebar.) The value-enriched, customer-focused dealer is engaged in a number of growth-oriented improvement projects, near the top of the list are an expansion of installed sales, and the roll out of a customized Six Sigma program. Both initiatives feed off the company’s problem-solving culture. In the case of installed sales, there was a time when Espy was receiving too many phone calls that complained about a product that was sold by Espy but installed improperly by a builder or a framer. “We’d go out and re-install the product, but we wouldn’t get paid for it,” Reeves said. “So we decided there had to be a better way. And that’s when we started 16
April 2022 HARDWARE + BUILDING SUPPLY DEALER
HBSDealer.com
HBSDealer.com
HARDWARE + BUILDING SUPPLY DEALER April 2022
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Cover Feature installing doors, because we didn’t want to deal with that call back. And those callbacks stopped.” Under the direction of Tim Hurd, the installed sales program has ratcheted up, generating millwork sales growth as it provides an additional service to Espy customers. Hurd describes the “trust factor” as a critical component of installation services. Every window manufacturer has unique installation requirements, and Espy makes it their job to follow their specifications. “The customer knows they’re doing business with Espy Lumber, instead of two guys in a pickup truck or a framer,” Hurd said. “When you think about it: is a framer really the right guy to be installing $100,000 worth of windows?” In the Hilton Head, six-figure window jobs and replacement projects are no exaggeration. Hurd described a $5 million 25-year-old house on the beach where a package is above six figures, and installation will run another $50,000. “Those doors are opening to us,” Hurd said. “I’ve quoted three houses like that in the last two weeks.” Regardless of the size of the project, success will be shaped by the details, processes and company culture that set the stage. And that’s where the ELCE program fits in. The customized LEAN management program is a major initiative at Espy. It’s a measurement-based strategy designed to promote continuous improvement. The E-L-C-E letters represent Evaluate, Learn, Control and Execute lead to standard operation procedures that include written manuals for each department, identifying waste in the process and continually working to reduce the number of steps and time it takes to reach a positive customer experience. Espy’s management toured both the Hilton Head Island and Okatie locations, focused on what can be done to improve process flow — in accounting, in operations, in sales. According to Rob McKean, who is co-leading the ELCE The Okatie, S.C., location expands Espy Lumber's reach to inland markets, including Beaufort, S.C. and Savannah, Ga.
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April 2022 HARDWARE + BUILDING SUPPLY DEALER
Espy Lumber keeps Hilton Head humminig.
THE INDEPENDENT PRODEALER OF THE YEAR Espy Lumber of South Carolina wins as a team. As the challenges of 2021 extend into the new year, a two-unit Hilton Head, S.C.-based pro dealer is continuing its focus on its values — honesty, respect, friendliness, among them — and its customers. And the results are award winning: Espy Lumber Co. has been named the 2022 “Independent ProDealer of the Year.” The annual award, selected by the editors of HBSDealer in concert with the National Lumber and Building Material Dealers Association, is designed to recognize a high-performance independent lumberyard (less than 5 locations) with a commitment to best practices and the best values of the lumber and building material industry. “I would like to thank the committee on behalf of Espy for this recognition,” said Mike Reeves, president and general manager of Espy Lumber. “Although the past few years have been challenging, our goal as a team at Espy has always been to create a professional environment that allows us to serve our customers to become their supplier of choice in our market.” Honorees are selected by HBSDealer and the NLBMDA. Shortly after the opening of the first bridge connecting the mainland to Hilton Head Island, ESPY Lumber was founded in 1958. As the area boomed, so did the business. Serving the Lowcountry from Hilton Head and also Okatie, S.C., the company spells out its vision clearly: “To be an enthusiastic team of professionals that is the contractor’s supplier of choice.” Past honorees of the Independent ProDealer of the Year award include Dakota County Lumber Co. of greater Minneapolis (2021); and Townsend Building Supply or Dothan, Ala. (2020).
HBSDealer.com
Cover Feature The “trust factor” is a critical element to Espy's intalled sales initiative.
project, initial examples of metrics to measure include truck returning times and first outs. “We’re committed to find our spots embedded in operations where we can improve our efficiency,” he said. The ELCE program even has a mascot: Studly Doright, who says, “Be sooo good they cannot ignore you.” Espy Lumber, where sales have grown to over $50 million in 2021, operates two locations. There’s a five-acre “bulging at the seams,” site on Hilton Head Island that replaced the original yard in 1972. And about 25 miles inland is the new Okatie facility, opened in 2001. Eight outside sales representatives work the Lowcountry. There were two good reasons for the Okatie expansion, Reeves said. First, the Okatie site provides a business safety valve against possible storm damage on the island. And two, Okatie is a springboard to new markets. “This location was in front of the expansion that’s going on today,” Reeves said. “We needed a place where the business was moving to, Beaufort and Savannah, as well as serve Hilton Head.” A sizable competitor sits just around the corner from Espy’s Okatie yard, in the form of a Builders FirstSource. Espy is no stranger to competition, and Reeves said it will focus on what it does best to serve 20
April 2022 HARDWARE + BUILDING SUPPLY DEALER
its market. The company’s sweet spot is the single-family new-custom home builder. “You can’t be everything to everybody,” he said. The company’s success is recognized in Fort Wayne, Ind., headquarters of one of Espy’s distributors, Do it Best Corp. “When it comes to lumber and building materials in the Lowcountry, no one does more to serve the needs of area pros and contractors than Espy,” said Dan Starr, Do it Best Corp. CEO. Frank Fletcher is Do it Best territory manager. “When you walk into either of their locations, it’s a busy place with smiling faces, neat and clean sales floors and impressive showrooms displaying the building products they promote,” Fletcher said. The sustainable competitive advantage for Espy isn’t just the experience of the team. It’s the way the various experiences feed off each other. “Our experience is very broad, and we all excel in something different,” said Henri Madlinger, an all-around lumber industry veteran who heads up commercial and marine business. He pointed
“It’s hard to imagine how many projects we’ve been involved in through the years on this island. And we’re still the only building supply business operating on Hilton Head proper.” —Mike Reeves, President, ESPY Lumber
to Reeves who rose to president from an outside sales position; Don Owens, a specialist in millwork; Nancy Phillips, who brings 25 years accounting background, and Tim Hurd, who excels in communication with customers. McKean, a relatively new addition to the management team and a New England transplant, brings new HBSDealer.com
AWARDS FOR THE ‘ORIGINAL’ ESPY initiatives in delivery and operations. The confluence of experience pays off every day. “We’re in a custom home builder market,” said Owens, the sole member of the management team who personally knew founder Wesley Espy. “And it can be complicated. It’s easy to make a mistake, and that mistake could end up costing $50,000 or $100,000. You really have to know what you’re doing out there.”
Long before the Entertainment and Sports Programming Network (ESPN) rolled out its Espy Awards to recognize athletic achievement, Hilton Head Island pro dealer Espy Lumber has been creating its own business highlights, scoring business home runs and board room game winners. The 2022 Independent ProDealer of the Year even has its own “Espy Awards,” given to winners of forklift drivers at morale-boosting company rodeos. Here are some other areas where Espy Lumber’s accomplishments and highlights deserve consideration for an “Original Espy Award.” ESPY AWARD FOR CAREER SERVICE Edward “Blue” Boldwin 45 years with Espy Lumber. Start date: Oct. 16, 1977. “We promote longevity,” said Mike Reeves, himself, a 40-year Espy veteran. “We think that’s huge in our industry.” ESPY AWARD FOR CORPORATE MASCOT: Studley Doright, the face of the company’s ELCE program. SPECIAL ESPY AWARD FOR RISING TO THE CHALLENGE “There’s no question that over the past two years, as we entered into the Covid-era, things became a lot more challenging, especially on the supply side,” said Mike Reeves, president. ESPY AWARD FOR COMMUNICATIONS (INTERNAL AND EXTERNAL DIVISIONS) For 15 years, ESPY has been publishing a customer-oriented newsletter providing market conditions, product information and staff profiles. Espy recently expanded its publishing effort to include a newsletter (now in its third installment) targeting employees. ESPY AWARD FOR CROSS-INDUSTRY TEAMWORK The management team is a big believer in roundtables with other dealers. And Espy Lumber has been involved in the process for nearly 20 years. “We get together, share information, and see who’s doing what right,” said Reeves. “We all have the same common goals and many of the same problems.”
Scenes from Okatie (pronouned “Oak-a-tee”) include filling orders of dimensional lumber and inspiring home owners with upscale windows and doors.
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THE ESPY AWARD FOR VISION Espy Lumber’s vision statement: “To be an enthusiastic team of professionals that is the contractor’s supplier of choice.”
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Products
Smarter labor saving solutions NE W PRODUCTS THAT CUT DOWN ON TIME AND MANPOWER ON THE JOBSITE. By Andy Carlo
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he latest Employee Situation Report from the Bureau of Labor Statistics showed the economy adding 7,600 residential construction jobs in March. Another 11,300 non-residential construction jobs are also added. The latest round of construction hiring has brought the industry back to pre-pandemic employment levels, according to the National Association of Home Builders (NAHB). But despite an increase in construction hiring, employment levels remain well below from where they should be. A report issued by the NAHB in February revealed that there remains about 330,000 open construction jobs. As a result, the housing market remains underbuilt; partially due to a lack of labor along with lack of lots, supply chain issues, and a lack of affordable housing on the market. In its most recent Construction Labor Market report, the Home Builders Institute said the residential construction industry must train and hire about 2.2 million new workers over the next three years to make up for those exiting the industry and keep up with housing demand. With a lack of labor so prevalent, manufacturers continue to release new products designed to cut down on the time needed to install materials while providing workers with greater ease. Here are some of the latest labor saving products on the market:
Metabo HPT has introduced its new 36V MultiVolt 2-Gallon Cordless Compressor. The brushless compressor delivers 135 Max PSI and weighs only 27.3 lbs., packing usability into a portable package. The compressor can drive over 1,000 18-gauge brad nails on a single charge while providing trim carpenters or remodelers all-day use without the restraints of an extension cord. It can run finish crews with 18-gauge brad nailers and even 15-gauge or 16-gauge finish nailers. It produces 1.6 CFM at 90 PSI and 2.3 CFM at 40 PSI. The locking regulator and 105 on/135 off pressure switch mean no worries about pressure wander or a pressure starved tool on the job. The oil-free brushless motor delivers more runtime, increased power, and extended durability with essentially no maintenance. With a 17-second refill speed there’s less waiting between cycles so you’re ready to go in no time. Metabo-HPT.com
Evolve Stone is a mortarless, colorthroughout manufactured stone veneer that installs with a standard finish nailer and delivers 10-times faster installation and half the weight of other stone veneers. Evolve Stone answers the need for a more efficient installation process with a highly workable, lightweight stone veneer product. The product also provides crews with more flexibility and is DIY-friendly, as it doesn’t require specialty training, specialty tools, mortar or staging. Evolve Stone was awarded “Best in Show” at the 2022 NAHB International Builders’ Show. Given the shortage of skilled masons, and the demand for realistic stone for both interior and exterior use, the product meets the demand for an authentic-looking, easyto-install, jobsite-friendly stone siding product. Evolvestone.com
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ACRE from Modern Mill is a biomaterial composed of upcycled rice hulls that naturally resists water, weather, pests, rotting, cracking, and splintering. The product can be cut and crafted with regular woodworking tools and no special equipment is needed. ACRE can be used in a variety of applications including decking, siding, and trim. The product does not contain any wood or wood fiber, making it truly tree-free. ACRE sheets offer the look and feel of wood, and can be cut, curved, shaped and molded to fit countless applications, both exterior and interior. Sheets are available in 4’ width x 8’ to 20’ foot lengths with a thickness of ¼ inch to 1 inch. Modern-Mill.com
LP NovaCore Thermal Insulated Sheathing is the latest innovation in the LP Structural Solutions portfolio. The sheathing panels are dual-layered and designed to minimize thermal bridging and energy loss, helping to make structures more energy-saving and cost-efficient over time. The product is one of the only insulated panel products on the market that combines XPS foam with an oriented strand board (OSB) substrate. The XPS foam provides continuous insulation with a higher R-value than standard sheathing and does not deteriorate over time, unlike some other foam insulation products. Despite the product’s add-ons for insulation, it still uses standard 2×4 spacing. Designed to defend against heat and cold, LP NovaCore Thermal Insulated Sheathing provides a continuous extruded polystyrene (XPS) layer between interior home spaces and the outside world. LPcorp.com
Shur-Line has introduced a new assortment of paint accessories, including paint brushes and trim and pad painters, that are designed for comfort and expert efficiency. The new assortment provides painters with the high-quality, affordable tools they need to get the job done with confidence, according to ShurLine. The Between the Boards Painter designed for painting between deck and fence boards, offers tear-resistant flocked pad that provides a smooth finish with all stains and paints. The threaded handle fits most extension poles, and its 6” width provides excellent coverage. Also, the Premium 9” Deck Pad with Detail Edge is faster than a roller and smoother than a brush, Shur-Line says. It’s Ideal for siding, brick, and concrete and features a durable, tear-resistant pad, a curved edge for both large and small areas, and a 3-position soft-grip threaded handle. Shurline.com
Trusscore Wall&CeilingBoard is designed with a high-strength polymer formulation and engineered to be the perfect alternative to traditional fiber-reinforced polymer and drywall systems. Trusscore’s tongue and groove interlocking system makes installation quick and easy, and the unique truss design provides industry-leading strength and durability. The product provides a smooth finish that is easy to clean, low-maintenance, and abuse-resistant. Trusscore is easy to install, featuring interlocking pvc wall panels that are quick and simple for DIY or professional installers.Hidden fasteners provide a smooth finish to walls or ceilings. Trusscore.com
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Vendor Spotlight LP Building Solutions continues to address labor issues through developing new products that install faster, including LP SmartSide Trim & Siding.
In praise of durable siding SAVING TIME AND INCRE ASING EFFICIENCY AMID INDUSTRY CHALLENGES By Cameron Bailey, LP SmartSide Senior Corporate Brand Manager
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For example, LP recently partnered with RSMeans, an industry leader in construction cost estimates, to conduct a third-party study to test LP SmartSide ExpertFinish Trim & Siding. The siding comes in 16-foot lengths (versus the 12-foot industry standard) and weighs 45% less than fiber cement. The study found that these prefinished engineered wood siding products helped to reduce the build cycle, resulting in a 36% faster installation than fiber cement products. What this means in terms of labor savings is that builders can finish three siding projects with LP SmartSide ExpertFinish products in the time it takes to complete two jobs with fiber cement products. So what’s the takeaway? LP’s proven siding solutions can provide enhanced efficiency, easier installation and longer-lasting performance. LP SmartSide products also require fewer tools to install and provide a durable exterior that helps withstand the passage of time.
Addressing Critical Industry Issues
ith the current state of the building industry As mentioned, supply chain disruptions and labor and the challenges that come with it, builders shortages amid COVID-19 have left construction are looking for ways to make up for project companies with weaker productivity and bottom lines. delays through increased jobsite efficiency. Meanwhile, the demand for renovations and new Many are planning way ahead, shifting schedules, and evolving builds has only increased. These ingredients create a their business models to adapt to things like supply issues and perfect storm for labor issues. lack of skilled labor. While transitioning to a new Beyond addressing labor challenges siding material can be intimidating and takes training, with a more efficient siding material, LP LP’s proven selecting a siding option with more durability and provides the technology to help ensure siding solutions workability can help save a considerable amount of builders have digital resources to help get time on installation. the job done right…and on time. LP crecan provide While maintaining a tidy worksite, completing a ated LP Remodeler’s Edge as a rewards enhanced quick installation, and executing a fast clean-up can and online hub for LP SmartSide efficiency, easier program seem like tall orders, there’s a siding solution out there remodeling contractors. LP SkillBuilder installation and that can address all of these issues. is a free, comprehensive digital resource longer-lasting LP Building Solutions (LP) has helped allow builders featuring LP SmartSide courses. Recently, to streamline the installation process by manufacturing LP also added 27 Spanish training videos. performance. a siding product with longer-lasting durability in mind. With more builders going online for anLP SmartSide Trim & Siding is a suite of engineered swers, these exclusive tools can help give wood products that includes siding, trim, soffit, fascia, and accesthem a leg up before the project begins. sories that, together, can lead to labor savings. Selecting the right siding option and utilizing the But how can builders trust these types of claims without ever resources available can help lay the foundation to help having used the product? Beyond word-of-mouth, manufacturers are save on labor and help give builders and homeowners increasingly investing in third-party studies to prove product benefits. confidence in their homes.
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Market Insights
Bliffert goes solar BLIFFERT LUMBER & HARDWARE HARNESSES THE POWER OF THE SUN IN MILWAUKEE.
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liffert Lumber & Hardware partnered with Arch Solar to install a solar array at its Chambers Street, Milwaukee, location, earlier this year. “Bliffert has always been deeply committed to our local community’s quality of life, and we are excited to invest in a solar solution that benefits the health of our environment and our community,” said Kevin Fogel, Bliffert Lumber & Hardware. The first full month of solar energy production in March exceeded expectations with a calculated environmental benefit of 9,606.11lb CO2 emission saved or the equivalent 72.58 trees planted. Arch Solar designed a custom solar solution for the Wisconsin climate for Bliffert’s Riverwest location. The solar array consists of 114 Bifacial LONGi solar panels, 57 SolarEdge P960 optimizers, and a 43kW SolarEdge inverter, the company said. “We are proud to invest in solar, a solution that is innovative and forward-looking in addition to saving costs and hope we can inspire others in the industry and the community to follow our lead. Arch Solar has been a fantastic partner in helping us realize this vision, and we are looking forward to more projects at our other locations,” said Fogel. The custom racking system, design by TerraGen of Ontario, Canada will optimize winter production with low sun angles and snow-covered panels. With an installation occurring in the
HBSDealer.com
Cost-savings is just part of the story behind the company's solar initiative.
month of January, this is truly a winter-ready system. The array (50.7kW-DC) will offset 54.67% of Bliffert’s electrical consumption with an estimated annual savings of $10,329 / 63,648 kWh produced by solar annually, according to the company. “Anyone in construction knows that reducing the environmental impact of the industry is a heavy burden to shoulder,” said Andrew Holmstrom, Arch Solar. “Bliffert’s commitment to reduce their carbon footprint and set an example for the community has been a motivating journey. For anyone looking to reduce their own environmental footprint, choosing Bliffert Lumber is your go-to hardware store or lumber yard,” said Holmstrom. Arch Solar has become leaders in the solar industry and is paving the way for renewables in Wisconsin. The company said, “We are firm believers in handshake ethics and have a diverse staff of trusted, licensed, NABCEP certified solar experts with over 100 years of combined experience.” Based in Milwaukee, Bliffert Lumber and Hardware has served contractors and homeowners in Southeastern Wisconsin for over 115 years. Since its incorporation in 1904, the company said it has helped the community grow by supplying building materials to hospitals, stadiums, new homes, and a variety of other projects.
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NLBMDA Update
Highlights from the Summit A DELEGATION OF PRO DE ALERS DARED TO SPE AK, LISTEN AND LE ARN
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ohn Adams, the nation’s second president, wrote: “Let us dare to read, speak, think and write.” To a large extent, that was the script during the 2022 ProDealer Industry Summit, which attracted LBM dealers and suppliers representing businesses across the country. They descended on the nation’s capitol for the first time since 2019, and the tackled an agenda that ranged from supply chain to diversity and labor, and from builder relations to succession planning. The event, organized by the National Lumber and Building Material Dealers Association and HBSDealer, also included awards and recognition for high performance in the yard, and
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dedication to the industry. While the Capitol Building was generally closed to visitors, Capitol Hill came to the Summit in the form of legislators and administrators. The first group promoted business-friendly policies, the second group described details of some of the less-thanfriendly regulations on the books. Headlining the Washington Briefing Breakfast were three members of congress: Rep. Blaine Luetkemeyer (R-MO), Rep. Adrian Smith (R-NE) and Rep. Rick Allen (R-GA). The most spirited of the three, Allen took the offensive against what he sees environmental extremism. “The problem with the economy is the new war on fossil fuel,” he said. “In this town, it’s a religion.” He also railed against regulations that restrict businesses from bringing growth and employment to their communities. “The good news is this,” he said ‘There are elections every two years.” Smith offered an optimistic note in his presentation to the dealers — a presentation that included
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Opposite page (clockwise from top left): Capitol Hill at night; Christi Powell of 84 Lumber and emcee Richard Laible engage in a multi-media diversity panel; Walter Foxworth of Foxworth-Galbraith Lumber takes the podium during the Awards Luncheon; Casino night attracted a crowd at the tables; The NLBMDA recognized a handful of partners for exceptional support. This page (clockwise from top): Larry Minor of the Motor Carrier Safety Administration explained trucking regulations, including drug testing; A panel of high-profile economists; Rep. Rick Allen (R-GA) shared his time and his thoughts with the group.
concerns over inflation and the labor shortage. “There is more bipartisanship in Washington than you think,” he said. Throughout the three-day event, the issue of the supply chain shortages and material scarcity cast a disruptive shadow on multiple presentations. It was tackled head-on by a panel of lumber leaders addressing “How to manage an unpredictable supply chain.” The panel hammered on several keys to success, especially engagement and communication. “I can’t say enough about how we need to communicate openly with each other and make that continue to work, because that’s what’s going to help us through this supply chain issue,” said Mike
HBSDealer.com
Reeves, president of Espy Lumber. “Consistency is what really would help our industry a lot right now,” said Mark Hopkins COO of Hancock Lumber Co. “Whether it’s just consistent lead time, a consistent price. It’s a challenge. And what we’ve been doing is just super communicating with our customers and vendors to try and make it as smooth as it possibly can be in a very difficult set of conditions.” As per tradition, the event featured a Lumber Dealers Political Action Committee (LudPAC) fundraiser, a ProDealer of the Year Awards ceremony, and networking events to encourage the sharing of ideas and the building of relationships. “This is truly a conference for dealers, created by dealers,” said Jonathan Paine, president and CEO of the NLBMDA. For more coverage of the 2022 ProDealer Industry Summit, visit HBSDealer.com.
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Market Insights
Words of e-wisdom HARDWARE INDUSTRY LE ADERS SPE AK FROM E XPERIENCE, AND OFFER ADVICE. By Tim Burke
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ou’re ready to establish your online presence. You realize customers begin their hunt for products and home repair ideas with their fingertips on the internet. You’re about to step forth onto that “cyber sidewalk.” Before you do, check out the plethora of advice from hardware industry leaders who have passed through the digital door — and earned experience. Michael Wynn, president of Sunshine Ace Hardware in Naples, Fla. said, “don’t let the growth in your brick-and-mortar stores hold you back from investing in e-commerce. “Our competition is investing heavily in improving convenience and redefining customer expectations. The more convenience you offer in e-commerce shopping, and delivery/pickup options, the more your core business will grow as well,” he said.
“Customers want and demand the full omni shopping experience. The only question is whether you, or your competition, will ultimately be meeting their needs,” said Wynn. Stew Elliott, owner of Elliott Ace Hardware, a four-store chain headquartered in Muskego, Wis., said, “shopping starts online, even if it finishes in-store. Try to keep your inventory in sync with Michael Wynn, president of the search results being Sunshine Ace Hardware. returned on your online channel. If you are constantly not stocking the common search result items, customers will start looking elsewhere first.” Try to be consistent across all channels, said Elliott, “consumers expect the same pricing, policies and service regardless of where, or how, they are making a purchase. In their eyes, all channels of an omnichannel merchant should function the same.”
Epicor for Retail solutions equip your team with intuitive tools that streamline operations and drive more revenue and profitability. That’s working with you, for you.
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Step right up to this sidewalk kiosk at Sunshine Ace Hardware; part of the whole “buffet of services” that exemplifies the new face of retailing.
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John Merrell, a Do it Best dealer and owner of Foley Hardware in Larchmont, N.Y., said, “customers start their product research online and are still looking to shop and support their local hardware store. Give your customers an opportunity to shop your store 24/7 online and continue to give you their business, instead of giving it to your online competitors.” Meg Taylor, communications director at Taylor’s Do it Center in Virginia Beach, Va., said: “partnering with our co-op was key in adding both significant strength and affordability to our offering. “Whether you’re a single location or multi-store, it’s imperative that you have one person on your team leading the effort. That said, it won’t be successful unless
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Market Insights “Be very responsive to processing online orders. The bar for response time on the internet has been set very high. Consumers expect quick and accurate responses and order processing.” —Stew Elliott, owner of Elliott Ace Hardware your entire organization embraces it. “We all know how fast e-commerce has grown, and it’s only going to continue to grow,” said Taylor.
The future is calling
“The idea that ‘my customers don’t shop online’ is misguided and makes me think of something that my father told me: ‘You will be out of business way before you lose 100% of your customers,’” said Mike Costello, CEO of Costello’s Ace Hardware, in Deer Park, N.Y. “He always created urgency around staying relevant to customers — so they didn’t become someone else’s customers.” Costello added: “Don’t wait. Overall, online sales are growing. The number of online shoppers is growing. The products that hardware stores sell are being searched for and
Checking online orders is Stew Elliott, owner of Elliott Ace Hardware in Muskego, Wisconsin.
purchased online. Failure to engage with these consumers is the equivalent of letting your phone ring without answering.” William E. Aubuchon, IV, president and CEO of Westminster, Mass.-based The Aubuchon Co., a large Orgill dealer, explained: “Same-day e-com-
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merce requires really accurate inventory. Before you even spend time on e-commerce, I would encourage dealers to spend time on creating a sustainable plan to operate with much higher inventory accuracy.” Aubuchon also said, “collaborate with a third party on the e-commerce software versus building it yourself. There are a lot of good options out there from wholesalers and other third parties — some who are particularly focused on our industry. Building and maintaining a solution yourself is very complicated and expensive.” Brian Mushel, who along with his wife is a new owner of Justus True Value Home & Garden in Clarks Summit, Pa., said, “do it as soon as possible. Technology has made it seamless and cost efficient to get your inventory online. You don’t have to offer shipping; only a buy online, pickup in-store.” Scott Jerousek a Do it Best dealer and owner of Farm & Home
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"Before you even spend time on e-commerce, I would encourage dealers to spend time on creating a sustainable plan to operate with much higher inventory accuracy.” —William E. Aubuchon, IV, president and CEO, The Aubuchon Company
Hardware in Ohio said, “find a good partner to help you. Celebrate wins, and if there are bumps in the road, treat people like people. You will be surprised how they treat you back when an occasional oversold happens or the product takes a few days to get to the store.” The hardware category is a large one. It encompasses a wide array of needs and wants. “We are seeing wants drive impulse buys, while needs are better served when the customer knows you have the products in-store or can provide alternative shipping and delivery options,” said Jerousek. The owner was asked: How do we earn and continue to maintain our customer relationships? His answer: “By never settling on doing business as usual; and by continually improving your customer experience.”
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Market Insights
Addressing the skills gap STANLE Y MAKES AND INVESTMENT IN THE SKILLED L ABOR POOL
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tanley Black & Decker’s inaugural Empower Makers Global Impact Challenge grant program is lending a hand to those who ‘make the world.’ And in doing so, the company says its out to help close the trade skills gap. Consider these stats: the median annual wage of a plumber ( requiring no college education) is $55,160, and there are 66,100 job openings in the field, according to Stanley. And that’s just one example. “Our purpose is to support ‘Those Who Make the World,’ and being able to fund educational programs and non-profits that are revitalizing trade careers directly
connects to our core mission,” said Diane Cantello, vice president of social impact at Stanley Black & Decker.. Fifty-nine organizations have been selected to receive $3 million to enable vital trade skills training and reskilling programs in the construction and manufacturing sectors, said the firm. The inaugural recipients include career development schools, community colleges, construction nonprofits and trade schools from around the globe committed
to positively impacting trade professions. The program, said the company, launched in 2021, awards up to $25 million in grant funding over five years to non-profits that are supporting trade workforce development initiatives with the goal of skilling and reskilling up to 3 million makers. The Empower Makers Global Impact Challenge will reopen for applications beginning October 1, 2022, through October 31, 2022. Recipients will be announced in early 2023.
Congratulations to our member,
ESPY LUMBER on being voted HBS Dealer’s 2022
“Independent ProDealer of the Year”!
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| 866-629-4141 HBSDealer.com
Big moves at Beacon
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eacon, the roofing and building products distributor with more than 400 locations in the U.S. and Canada, has made expansion moves in two states. In Pico Rivera, Calif., the distributor has opened a new OTC Network hub. According to Beacon, the OTC Network is a differentiated service model that solves the needs of customers by sharing market resources, inventory, and systems. Additionally, Herndon, Va.-based Beacon has opened a new greenfield branch in Little Chute, Wis., which will service the Green Bay-Appleton, Wis. market. The branch houses about 10,000 square feet of inventory for residential customers. The Pico Rivera location will service the Los Angeles market, housing approximately 120,000 square feet of inventory for both residential and commercial customers.
HBSDealer.com
Beacon's new OTC Hub in Pico Rivera, Calif.
Both new locations are stocked with leading roofing and complementary product brands, including Beacon’s Tri-Built private label brand. “These two openings prove our commitment to making Ambition 2025 investments to drive above-market growth and operational excellence,” said Julian Francis, president and CEO of Beacon. “They support organic growth as well
as enhance margins, improve working capital, and develop talent. The Pico Rivera OTC hub will also contribute to our lower emissions target by optimizing delivery routes in the highly congested Los Angeles market.” Both new locations are stocked with leading roofing and complementary product brands, including Beacon’s Tri-Built private label brand.
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People In The News Terrence “Terry” Horan has been named president and CEO of STIHL Incorporated. Horan will be responsible for the management of the STIHL Group’s largest market and subsidiary. Horan joins STIHL Inc. after a successful career as RPM Consumer Group president at RPM International Inc. Horan has also held various senior leadership roles including president and CEO of Horan DAP Products Inc., president of The Master Lock Company, president and CEO of the Robert Bosch Tool Corporation North America, and president of Dremel Power Tools. Do it Best Corp. has promoted Todd Miller to director of merchandising strategy and execution. Miller most recently served as the company’s Merchandise Manager for Plumbing and has more than 25 years of industry experience. He joined Do it Best in 1997 as an associate merchandise manager in plumbing before being promoted to merchandise manager of housewares Miller and cleaning in 2003. In 2008, he returned to lead the plumbing department. Miller will now be responsible for the development and deployment of the company’s category
management strategies, assortment planning, pricing, and development teams.
Matt Born and 84 Lumber President Maggie Hardy.
84 Lumber has named Denton, Texas Store Manager Matt Born as its Manager of the Year. Nick Boyd, who oversees stores across Texas, has been recognized as the 84 Lumber Area Manager of the Year for the second year in a row. Chris Moudy, co-manger of the company’s Clovis, Calif. Store was named Rookie of the Year.
Emery Jensen is our biggest single vendor partner and we rely on them very heavily. Emery Jensen is critical to our success and we wouldn’t enjoy as much success without Emery Jensen by our side. - Jay Ward Ward Lumber
LEARN MORE:
Or visit emeryjensendistribution.com
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LBM Advantage has hired Joe Burlison as vice president of Southwest Operations. Burlison has a rich, 30-year history in the lumber and building industry, having served in several key trader and sales roles, including a long period as south-central regional manager at a cooperative. Burlison will lead LBM Advantage’s new branch office in Houston, Texas, which is expected to propel the co-op’s plan Burlison for continued westward expansion. Both Burlison and Dan Ohmer, director of member sales, will also spearhead the recruiting and hiring of a southwest member sales team.
sor, effective Sept. 1. Brass has also been appointed to serve on the company’s board of directors.
McClain
WD-40 Company announced that CEO Garry Ridge will retire as the company’s top executive on Aug. 31. The move is part of a planned leadership transition, the San Diego-based manufacRidge Brass turer said. Steve Brass, who has served as the company’s president and chief operating officer since 2019, has been appointed to become Ridge’s succes-
HBSDealer.com
J.M. Huber Corp., the parent company of Huber Engineered Woods, has named Gretchen McClain as its new president and CEO. McClain has served on the board of the directors of the 135-year-old family-owned company. She succeeds Mike Marberry, who is retiring after a 25-year run.
House-Hasson Hardware has named William Hauge as senior vice president in addition to his role as chief financial officer. Hauge has served for five years as House-Hasson’s CFO. He has served as senior financial reporting manager for General Electric, a business unit controller Hauge for Alstom Power, Inc., and plant controller, American Safety Razor Company.
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Market Insights Home Depot Rental expects 2022 demand for outdoor tool rentals to match last year's all-time high.
Action at the rental desk THE HOME DEPOT RENTAL PL ANS TO OPEN 50 NE W CENTERS IN 2022
T
By Richard Porter he Home Depot Rental has spent the past 25 years offering pro-quality tools, trucks, and large equipment for almost every job. While learnings and improvement have been made each year as the company learns and evolves, the past 12 months have been a unique milestone with the rollout of new technologies, rental centers and fleet options. We, like many of you, felt like the world turned upside down in 2020. But this shift also enabled us to pause and adjust to the needs of our customers while reasserting our company’s values in an ever-changing landscape. While there was much excitement over our new offerings, we also continued to closely analyze trends and intensifying market demand to identify how to best serve the rental community. We’re taking what we’ve learned over the past two years to inform our multi-year rental expansion program, kicking off in 2022 with the opening of 50 new Rental Centers across the country. In 2021, we opened two Rental Operations Facilities in Houston and Nashville focused on enabling The Home Depot Rental to dispatch larger-class equipment more efficiently to jobsites from a centralized location. Rental Operations Facilities have become even more important as the needs of Pro customers have grown. In anticipation of a need for large equipment rental beyond the construction industry, we opened Rental Operations Facilities in New Orleans and Los Angeles to also serve as a disaster response resource. Hurricanes, tornados and earthquakes can devastate a community and accessible rental solutions can aid in a swift recovery response. Our hope is to continue identifying ways our business can serve the community, expanding our footprint outside of the construction realm. In addition to being prepared for intense weather, we also expanded on the needs of our Pro and DIY customers and created a resource to
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April 2022 HARDWARE + BUILDING SUPPLY DEALER
help make everyday life easier: Rent Online Pickup In Store, which offers the convenience of online reservations for tools and vehicles in the Rental Centers. Accelerated demand has yielded the need for new Rental Centers in new markets. Our rental solutions footprint has never been stronger, and we’re excited to continue rolling out Rental Operations Facilities and Rent Online Pickup In Store capabilities across the country. The need for a strong equipment rental partner has been underscored by the success of the housing market of the past 18 months. Home inventory is near record lows and turnover is strong, and the influx of homebuying means an influx of home renovating. The rental industry is reaching new customers endeavoring their own DIY projects and having the option to rent tools for these projects has been a successful area of growth over the past year. The Home Depot Rental saw an all-time high demand for outdoor tool rentals last spring, and we’re anticipating an equally hungry market this year. With the option to rent landscaping products from tillers to skid steers, we are empowering homeowners and professional landscapers alike with the tools to create a dreamy backyard oasis. With an ever-expanding Rental Center offering, we are equipping Pros with best-in-class products. 2021 saw more work for contractors across all segments. More work means more large equipment, tools, trucks and trailers will be necessary, and The Home Depot Rental is committed to offering top of the line products. Pros can see exciting new offerings in our Rental Centers including a wide variety of cordless tools and gas-powered tools from brand partners like Milwaukee, Makita and Hilti. Renting removes the time and cost commitment that comes with buying and maintaining new tools, and offers Pros the flexibility to rent for hours, days or, even weeks — offering Pros the freedom to grow their businesses at their own pace. The Home Depot Rental has experienced many notable moments in our 25-year history, but 2021 will certainly be a year to remember. We’ve learned from the rollercoaster ride of 2020 and implemented measures to better prepare for the twists and turns. Ultimately, the ride was worth it, and we are excited to bring everything we’ve learned into this new year.
Richard Porter, vice president of rental, repair, RLCs & services, The Home Depot, has served as vice president of The Home Depot Rental since 2017.
HBSDealer.com
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) Feb.: 1,769,000
NAICS 44413
(sales in $ billions)
50
1800
(sales in $ billions)
4
1700
40
1600
3
38.8
1500
30
1400 1300
34.5
34.1
31.2
2.88
34.0
2.98
2.80
2.55
29.6
2.35
2
2.48
20
1200 1100
1
10
1000
0
900
F
M
A
M
J
J
A
S
O
N
D
J
F
SOURCE: COMMERCE DEPARTMENT
DECEMBER 2020
Single-family starts
2021
JANUARY
0
FEBRUARY
2022
NOVEMBER 2020
2021
DECEMBER
JANUARY
2022
SOURCE: MONTHLY RETAIL TRADE REPORT FROM THE U.S. CENSUS BUREAU
(in thousands, SAAR) Feb.: 1,215,000 1400
HBSDealer Stock Roundup
1300
the percent-change performance of stocks based on April 7 prices
1200 1100 1000 900 800
600
F
M
A
M
J
J
A
S
O
N
D
J
ANNUAL CHANGE
700
F
SOURCE: COMMERCE DEPARTMENT
Existing-home sales (in millions, SAAR) Feb.: 6,020,000 7 6.5 6 5.5 5
35 30 BLDR 25 20 15 10 LOW 5 0 -5 -10 -15 -20 -25 SWK -30 -12 -10 -8
TSCO
DE
WY DJI
BECN
SHW
HD
-6
-4
-2
0
2
4
6
8
10
12
4.5
MONTHLY CHANGE
4 3.5
BECN (BEACON); BLDR (BUILDERS FIRSTSOURCE); BMCH (BMC STOCK HOLDINGS); DE (DEERE & CO.);
F
M
A
M
J
J
A
S
O
N
D
J
F
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
$4.00
Current
$3.00
14.0
6.0
2.0
100
80
Prior month
120
Prior year
16.0
3.6%
18.0
March 0.0
HBSDealer.com
20.0
60
107.2
$4.15
March
April 7
140
$2.00
$5.00
SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA
HARDWARE + BUILDING SUPPLY DEALER April 2022
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