TOP WOMEN IN HARDWARE & BUILDING SUPPLY
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Field Guide to Fasteners
Connect with the latest trends. The informative, interactive 2024 Fastener Field Guide is online now. From the shelf to the job site, top fastener suppliers share challenges and successes. Find it at HBSDealer.com/report
Ken’s New Jersey Garage
The latest episode of Ken's New Jersey Garage demonstrates the effective, time-saving features of a scooping leaf rake. There’s more at HBSDealer. com/video
Wall Street & corporate earnings
Each issue of the HBSDealer Daily Newsletter brings you the latest stock prices for major industry companies. Plus, editors track the top line and bottom line performances in the regularly updated 10-Q Review. Find both at HBSDealer.com
From the Editor
Looking back, and ahead
Ken Clark, Editor-in-Chief
True Value Company has generated a disproportionately heavy share of headlines for Hardware & Building Supply Dealer over the last several years, and even more so in recent weeks, with its bankruptcy and sale to Do it Best.
Not all of that coverage has aged well. Consider the headline “ACON’s vote of con dence.” In it, the principal of the private-equity rm that had purchased True Value in 2018 said, “Rest assured, management is working hard to grow the value of your remaining equity in the business.” Also consider “Carter Lumber teams with True Value.” Carter converted to Orgill last year.
It’s not surprising that old stories don’t age well given the furious pace of industry change. Journalism, after all, is merely the rst draft of history.
But one article has aged well — our 2018 interview with David Thompson, owner of Thompson True Value Hardware & Rental of Marshalltown, Iowa. Thompson didn’t vote for the ACON deal, criticized the process and railed against the early policy of being charged $150 per store per month to
use the True Value brand — “A name that many of us had worked a lifetime to build,” he said at the time.
Six years later, I reached out to Thompson again. Looking back at the ACON deal, Thompson said that while dealer equity was unlocked, something else was lost. “We lost a lot of the family feeling,” he said. “This industry has always been very family oriented — from the manufacturers to the rep rms to the individual store owners. It’s pretty much what makes it all so much doggone fun.”
Since 2018, Thompson True Value has expanded. Dave’s son Paul is taking over the business. Business is strong. And in a word, the Thompsons are optimistic about the sale to Do it Best, partly because of the Fort Wayne, Indiana-based co-op’s balance sheet, and partly because of its structure.
“They’re a co-op, which by its very model exists only for the bene t of the membership,” he said. “That’s something that I’ve always felt extremely strong about.”
He added that it’s safe to say there are many True Value retailers who feel the same way.
“If this goes through [see page 10], all in all it will be a good thing for our industry,” he said. “I think Do it Best will strengthen the distribution network as far as trucking and warehousing. And I think those were a couple of our weaknesses.
“I hope in another six years if you and I have another conversation, you can come back and look at this conversation and say, ‘There he goes again, he nailed it.’”
Here’s hoping.
550 W. Bryn Mawr Ave., Ste. 225, Chicago, IL 60631 (773) 992-4450 Fax (773) 992-4455 www.HBSDealer.com
BRAND MANAGEMENT
SENIOR VICE PRESIDENT John Kenlon (516) 650-2064 jkenlon@ensembleiq.com
EDITORIAL
EDITOR-IN-CHIEF Ken Clark kclark@ensembleiq.com
EDITOR Robby Brumberg rbrumberg@ensembleiq.com
ADVERTISING SALES & BUSINESS
ASSOCIATE PUBLISHER Amy Platter Grant
MIDWEST & SOUTHERN STATES (773) 294-8598 agrant@ensembleiq.com
DESIGN/PRODUCTION/MARKETING
ART DIRECTOR Bill Antkowiak bantkowiak@ensembleiq.com
PRODUCTION MANAGER Patricia Wisser pwisser@ensembleiq.com
MARKETING MANAGER Kathryn Abrahamsen kabrahamsen@ensembleiq.com
SUBSCRIPTION SERVICES
LIST RENTAL mbriganti@anteriad.com
SUBSCRIPTION QUESTIONS contact@HBSDealer.com
CORPORATE OFFICERS
CHIEF EXECUTIVE OFFICER Jennifer Litterick
CHIEF FINANCIAL OFFICER Jane Volland
CHIEF OPERATING OFFICER Derek Estey
CHIEF PEOPLE OFFICER Ann Jadown
EDITORIAL ADVISORY BOARD
Levi Smith, CEO, Franklin Building Supply Steve Sallah, former CEO, LBM Advantage
Christi Powell, Women & Minority Business Enterprise Market Manager, 84 Lumber Neal DeLowery, Store Projects and Merchandise Manager, Aubuchon Co. Brad McDaniel, Owner, McDaniel’s Do it Center Joe Kallen, CEO, Busy Beaver Building Centers Tom Cost, Owner, Killingworth True Value
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.
connect with us
Pennsylvania Lumbermens Mutual Insurance Company (PLM) goes beyond providing coverages with an emphasis on preventing and reducing losses to safeguard our customers' operations. We allocate much of our resources to this purpose, more than many other carriers, to provide our customers with valuable, industry-specific knowledge and services to help them protect themselves, their employees, and their businesses.
Our Loss Control Representatives are experts in all aspects of risk management, especially in the lumber and wood industry. They partner with our customers through consultative services, helpful recommendations, and custom training plans to help mitigate areas of risk and build safer and more resilient lumber businesses.
Get more from your insurance policy with PLM’s Loss Control Representatives who are committed to the safety of your business.
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At presstime: Do it Best’s done deal
Describing its deal as "monumental" and "transformative" for the entire independent hardware industry, Fort Wayne, Indiana-based Do it Best nally announced the successful acquisition of True Value Company, a long-time competitor and rival.
True Value had led for bankruptcy on Oct. 14, with Do it Best stepping in as a stalking-horse bidder.
The acquisition—which became of cial Nov. 22—brings signi cant assets to Do it Best, including inventory, brand rights and paint manufacturing facilities. By acquiring these resources, Do it Best says it is poised for substantial growth and increased capability to support independent retailers.
Now comes the integration. Do it Best says it will operate True Value as a separate subsidiary and has estab-
lished new leadership teams. CEO Dan Starr appointed Nick Talarico as president of Do it Best and Dent Johnson as president of True Value.
Former True Value executives who will join Johnson’s team include Eric Lane, SVP of marketing; and John Vanderpool, SVP of manufacturing.
The list does not include True Value CEO Chris Kempa.
“This is a generational opportunity that will shape the future of our cooperative and our industry,” said Starr. “We’re focused on taking our time to get it right.”
For more on the continuing story, visit HBSDealer.com
Post-election perspectives
Donald Trump has retaken the White House. With well over the 270 electoral votes needed to win, Trump also garnered nearly 72 million votes compared to Kamala Harris’ roughly 66 million.
What next? Some of the relevant issues facing the industry and the administration include tariffs, green energy incentives, housing affordability, in ation, immigration and the overall regulatory environment, to name a few.
Here are some industry views:
“[The National Lumber and Building Material Dealers Association] looks forward to working with the Trump Administration and the entire 119th Congress to enact policies that address the nation’s housing
affordability crisis, increase housing supply, reduce burdensome regulatory practices that cripple small businesses and increase housing costs, and drive business friendly policy that supports economic growth in the United States.”
—Carl Harris, chairman of the National Association of Home Builders
“[Associated Builders and Contractors] looks forward to working with the Trump administration and Congress to advance policies that solve the issues that the construction industry faces, including the skilled labor shortage of more than half a million, widespread regulatory burdens and infl ation and tax challenges.
— Jonathan Paine, NLBMDA CEO “Throughout the campaign, voters consistently pointed to the lack of housing availability and affordability as a key issue in their voting decisions. Now is the time to take action to address the nation’s housing shortage and let builders build.”
— Michael
Bellaman, ABC CEO
Port strike follow up
The port strike lasted only three days along the Gulf and East coasts. But according to Bret Dewey, Builders FirstSource’s vice president of supply chain millwork, that was enough time to create major disruptions and backlogs throughout the greater United States supply chain.
Dewey shared an update on the impact of the port strike that ended in October during a recent Market Intelligence Webinar.
Workers and management agreed to a 70 percent wage increase over the duration of the ve-year contract. But there remains a sticking point, he said: automation. Both parties hope to have this dispute over automation resolved before a Jan. 10 deadline, he said.
Dewey said BFS investments in supply chain paid off during the stop-
page at the ports.
“Something that greatly helped BFS during this time was our investment in eight mill work reloads that service these affected markets,” he said. “Six of these reloads were rolled out over the last 18 months. This was huge in enabling us to service our customers.”
Bernie Marcus, 1929-2024
Bernie Marcus, who helped change the course of home improvement retailing by co-founding The Home Depot and overseeing its record-breaking growth, has died. He was 95.
Born in Newark, New Jersey, in 1929, Marcus graduated from Rutgers University and went on to a career in retail that included the regional home center chain Handy Dan Home Improvement in California.
At Handy Dan, two things happened that changed the course of home improvement history: He met Arthur Blank, and he was red from his job. In combination, the events paved the way for the creation in 1978 of The Home Depot, and its warehouse-style, DIY home-improvement approach.
In a statement, the Atlanta-based retailer said: “The entire Home Depot family is deeply saddened by the death of our co-founder Bernie Marcus. We owe an immeasurable debt of gratitude to Bernie.”
Product Knowledge
Product: Malco 7-in-1 C-RHEX Flip Bit Series
Manufacturer: Malco Tools of Annandale, Minnesota
MSRP: $19.99 Each model— #2 Phillips, T25 and #2 Robertson (square)—sold separately
Knowledge: Easy-to-clean, reversible and stackable sockets with an ultra-powerful magnet for secure fastening. Sockets t snugly on the driver shaft for more secure operation and storage. Reduces wobbling, slipping and tipping out. Works with any impact driver.
Fun fact: Malco Tools derives its name from a combination of the rst names of founder Mark Keymer and an early employee named Al. In the early 1950s, the tool maker operated out of Al’s garage and Mark’s basement.
Disaster relief continues
It’s been over two months since Hurricane Helene wreaked havoc throughout the Southeast, but the effort to rebuild has only just begun.
Western North Carolina, in particular, suffered catastrophic damage that will take years to recover from. To help speed that recovery, the hardware and building supply industry is stepping up. Ruth Kellick-Grubbs, a longtime business advisor in the LBM world, is helping to spearhead and coordinate the effort to support affected people, communities and businesses.
In a letter shared with the LBM community, Kellick-Grubbs offers a sobering view of the situation. She writes:
“There is utter, widespread, catastrophic
Overtime rule overturned
The U.S. District Court in the Eastern District of Texas struck down the Department of Labor’s (DOL) final overtime rule. Finalized in April 2024, the rule would have increased the minimum annual salary threshold that determines overtime pay eligibility under the Fair Labor Standards Act.
The DOL rule would have increased the minimum salary threshold for overtime exemption.
The court found that the Biden-Harris Labor Department’s 2024 overtime rule’s July 1, 2024, increase was unlawful as well as the scheduled Jan. 1, 2025, increase. Specifically, DOL’s final rule increased the minimum annual salary level threshold for exemption to $43,888 on July 1, and on Jan. 1 it was scheduled to increase to $58,656. In addition, salary thresholds would have been updated every three years starting on July 1, 2027.
In his ruling, the judge stated that while DOL has the authority to define and delimit the terms of the overtime exemption, “that authority ‘is not unbounded.’”
In light of this decision, the minimum salary threshold is once again set to $35,568, and the threshold for highly compensated employees is set to $107,432.
devastation. Early estimates are that over 126,000 homes have been severely damaged or destroyed. Hurricane force winds of 80-100 MPH hit before the main rain event, knocking down thousands and thousands of trees, power lines and cell towers. The rain event triggered incomprehensible flash
Three years ago, HBSDealer asked about the potential impact of 3-D printing on the homebuilding and construction industry.
“Will the future of housing be printed out in 3-D?” asked the Oct. 8, 2021 poll question.
There were 3-D optimists (14 percent) and 3-D deniers (38 percent). The plurality of responses expected a “small” role for 3-D printing (48 percent).
Time marches on, and innovations bring new opportunities to new markets. For instance, Azure Printed
flooding and over 1,400 landslides. Creeks and rivers were up to 28 feet over the top of the riverbanks.”
Now, as winter approaches, the need for relief—everything from building supplies, food, medicines, water and blankets—is intensifying.
How to help? Here are three ways.
Rutherford County Habitat for Humanity rutherfordhfh.org
NC Community Fund – Disaster Relief nccommunityfoundation.org
United Way of North Carolina unitedwaync.org
Source: HBSDealer Poll Question
Homes, Inc. a Calif.-based company that makes 3D-printed homes using recycled polymers, says it is expanding operations by more than 100 percent. Also, Amerimix, a division of Oldcastle APG, a CRH Company, says its 3D Printing Mortar Mix was provided to New Standard Homes, which resulted in the successful 3D printing of three concrete homes located in Shiner, Texas.
The new poll results suggest developments like these are helping to change industry attitudes.
TOP WOMEN IN HARDWARE & BUILDING SUPPLY
Industry achievement meets personal improvement in Chicago.
By the HBSDealer Staff
The mission continues.
HBSDealer’s fourth annual Top Women in Hardware & Building Supply celebrated the women who are driving innovation, breaking down barriers and blazing a trail for future generations.
It happened in Chicago Nov. 20-21. And the effort to support and recognize women in the industry continues year-round for the event and its stakeholders.
“Through leadership, dedication, and innovation, these remarkable women are shaping the future of the hardware and building supply industry,” said Amy Grant, associate publisher of HBSDealer. “Whether they are rising stars or experienced leaders, their impact is felt within their companies and across the entire business landscape.”
Attendees enjoyed an awards ceremony to recognize this year’s honorees, who were selected in two categories: “Rising Stars” and “Business Excellence.”
On awards night, several of the honorees shared personal words of wisdom and inspiration with the audience of 400 industry pros.
Rising Star Sarah Colpitts, a contractor sales specialist with Mass.-based Koopman Lumber said: “Carve your own path. Be you. Be the most prepared, most confident person
in every room. Settle for nothing less than excellence, and the world shall be yours.”
From the stage, Melissa Spencer, Metrie's chief people office shared: “Women increasingly feel like they belong in this industry, but there’s still lots of work to do. I don’t feel discouraged, I feel inspired. When women succeed, our businesses succeed.”
The Chicago event featured lessons in mindfulness meditation; inspiration from Melissa Stockwell, an American war hero and paralympic triathlete; and a masterclass on “badass story telling” to build your personal brand.
A major theme of the 2024 edition of the Top Women in Hardware & Building Supply awards event was the idea of advocating for yourself within your organization. Entering meetings and discussions with boldness, clarity, confidence and purpose is a recipe for success and growth.
Research commissioned by the National Hardware Show on the mindset of the female DIYer and practical advice on establishing Employee Research Groups (ERGs) rounded out the educational portion of the event, which will return to Chicago in November of 2025.
On the following pages, meet the Top Women of Hardware & Building Supply class of 2024. Congratulations.
BUSINESS EXCELLENCE
This award recognizes a leader who has demonstrated achievement, growth and success in the hardware and home improvement industry; embraced education and community service, and inspired others to follow a similar path.
Janelle Armentrout CFO/Co-Owner Midwest Lumber
Lysette Aviles Vice President, Human Resouces House-Hasson Hardware
Jo Barney Sr. VP-West Boise Cascade
Libby Berman VP, Chief Tax Officer LP Building Solutions
Laura Chronister Sr Director Store Operations L owe's
Bethany Cypher VP of Real Estate and Development 84 Lumber
Robyn Edgell National Sales Manager Me trie
Junyi Eng Director Global Supply Chain A rrow Fastener Company
Jodi Foster Director of Marketing BlueLinx
Laura Freeman Chief Human Resources Officer Orgill
Brittany Goff Director, Customer Service Center National Gypsum Company
Laura Gorringe General Manager Builders FirstSource
Charlotte Green VP, Central Selling and Installation Support Lowe’s
Stacy Hackworth
Senior Direct - Sales & Sales Support Ferguson
Shannon Hartley Branch Manager Frontier Building Supply
Jeri Hawkins
Senior Manager, PMO & VMO Kodiak Building Partners
Shawnda Henderson
Market Director of Truss, Arizona Building Supply US LBM
Sarah Hounslow President
Burlington Merchandising & Fixtures (BMF)
Brandy Humphries
Key Account Representative Builders FirstSource
Holly Kutcher
Vice President Retail Sales Deckorators
Charla Lang National Sales Manager Metrie
Diane Latterell Controller Simonson Lumber
Donna Lazur
Retail Execution Efficiency Lead Emery Jensen Distribution
Sarah Lee
Vice President - Purchasing Blish-Mize Co.
Amber Little
Chief Human Resources Officer Nation’s Best
Isabel Lockwood Location Controller Boise Cascade
Jessica Maki
Inside Sales Specialists
Cameron Ashley Building Products
BUSINESS EXCELLENCE
ELIMINATE THE CHAOS AND INEFFICIENCY OF MULTI-SYSTEM NICHE SOFTWARE.
Terrie McDaniel General Manager, Kennebunk, ME Location Hancock Lumber
Odessa Nelson Sr Director HR Program Mgmt & M&A Builders FirstSource
Amy O’Hara Regional Sales Manager Cornerstone Building Brands
Lisa Olson Store Owner United True Value
Laura Parson Hardware Manager
Jeffries Hardware & Wholesale Electric
Corinne Pech Product Data Manager Metrie
Kelly Pehler D irector of Sales Operations James Hardie
Carrie Pieper HR Manager Christensen Lumber Company
Tina Price Controller McCray Lumber Co.
Brenda Primano CFO Hingham Lumber Company
Wendy Radtke Executive Vice President and CHRO US LBM
Candy Rosebraugh Inventory & Process Manager Southeast Building Supply Interests
Laura Sampson Regional manager Old Masters
Anea Scarle Department ManagerExterior Millwork LMC
Lisa Schwartz Sal es Director ITW - R&R Division
Monica Siverio Vice President, Human Resources B uilders FirstSource
Stephanie Smith Senior VP, Supply Chain The Home Depot
Monica Smith Supply Chain DirectorWood Products Weyerhaeuser
Erica Snyder (not pictured) General Manager Dazey’s Hubbards
Jessica Thurston Principal Solutions Architect Do it Best
Get Deals on Brands You Already Buy
When
like Verizon, Staples, Best Buy, ADP, Estes and
Margaret Walbridge Communications Director Taylor’s Do it Centers Offer
Cicely Ware
Project Administration Specialist Do it Best Corp.
Kimberly Watson Vice President, Global Environmental, Health, Safety & Sustainability Masonite
Kate Weissman Member Sales Manager LBM Advantage
Sheryl Wyatt Regional Director, Plant Operations Simpson Strong-Tie
RISING STARS
This award recognizes a talented professional with the potential to make a significant positive difference within her company and within the industry for years to come.
Joanie Allen Regional Safety Specialist Colony Hardware
Meredith Baszkiewicz HR Manager Hamilton Building Supply
Courtney Batista Area Sales Manager The AZEK Company
Chantel Bender Controller Mandere Construction & Northwest Building Components
Chelsea Boisclair Senior Estimating Coordinator Arnold Lumber Company
Jacki Bregier-Poshak CEO/President KJ’s True Value Hardware
Jen Alai Store Sales Manager Knoebel Lumber
On day one we started with just a truck and a commitment to be the best. When the YellaWood® brand says you can trust us to deliver, those aren’t empty words; they’re actually proven words. And words we take seriously. Which is why we’ve been striving to give our very best every day for over five decades now. We can say with confidence that the Yella Tag can deliver like no other because it’s been shown to do just that. See all the other ways the YellaWood® brand has your back. Visit yellawood.com/for-dealers
Sarah Burgos Sr Director Finance Lowe’s
Mindy Clark (not pictured) Buyer
Jerry’s Home Improvement
Sarah Colpitts Sales Koopman Lumber
Brenda Corter Director, Program Management Office Masonite
Lisa Cravajal Service & Solutions Department Manager Allegheny Millwork & Lumber
Kait Dalton Assistant General Manager Delta Lumber
Vanessa Dim Assistant Manager, Meeks Fayetteville US LBM
Jennifer Dobbins Sales Team Lead-Hardware ITW Global Brands
Kristina Eanes Account Manager Madison Wood Preservers, Inc.
Ashley Elliott-Davis General Manager Southeast Building Supply Interests
Ellen Erlenbusch Account Coordinator Dakota County Lumber Co.
Tiffany Flores Assistant Store Manager Central Valley Foster Lumber Yard
Alycia Frazier Operations Process DeveloperNisbet Brower Building Materials
Kayla Garrett Ad Group Administrator Norcal Ace Group
Becka Gieseking
Outside Sales Representative Moore Lumber & Hardware
RISING STARS
Sheila Gjevre
Business Development
Consultant
Pennsylvania Lumbermens Mutual
Vanessa Graves
HR Manager
Buffalo Framing and Truss
Karly Grimaldi
Sales & Operations |Planning Manager OMG, Inc.
Lindsey Grove Director of Marketing Windsor Mill
Christine Hall
Implementation Program Manager TO OLBX
Julie Hein
Project Coordination Manager Orgill
Ceirah Heyneman Forest Product Trader Do it Best
Sara Holiday Accounts Payable Garner Building Supply
Charla Hosman General Manager Builders FirstSource
Kailey Jackson Continuous Improvement Project Manager Kodiak Building Partners
Amanda Joiner Inside Sales Rep Great Southern Wood Preserving
Jessica Jones Inside Sales Coordinator Builders FirstSource
RISING STARS
Jolene Kahalioumi Assistant Manager
White Cap Construction
Becky Kendall Inventory Specialist
Builders FirstSource
Huda Kahn
Inside Sales, National Accounts C ertainTeed Gypsum
Shelly Kleinhenz
Custom Hhome Dvision/ Outside Sales Rep
Dixieline Lumber and Home Centers
Jodie Kozler
Gypsum Category Merchant
C ameron Ashley Building Products
Leona Krajcik
Outside Sales Representative
Beacon Building Products
Koppers Performance Chemicals is a leading, global developer of innovative, patented wood enhancement technologies used in residential and industrial applications. Our products preserve, enhance and protect the beauty and performance of wood used in essential industries around the globe.
Koppers cares for the communities in which we live and work, and we take our responsibility to be a good neighbor seriously. At Koppers, we know that how we treat people matters because everything we do starts and ends with people.
Kristyl Lawson Learning & Talent Development Director Orgill
Cristina Leaver Market Development Manager Azek Company May Lee
Receiving Manager Ashby Lumber
Becca Lewis Floor Manager Montana Ace Hardware
Virginia Lewis Vice President Tart Lumber Company
Jennifer Loeffel Multi-Store Development Manager
RISING STARS
Erin Lundstrom Senior Buyer US LBM
Bree-Anna Maxwell Sales Coordinator, Home Improvement Warehouse Weyerhaeuser, Distribution Business
Rikki McQueary Logistics Supervisor Sun Mountain Lumber
Breanne Mee
Ecommerce Content Manager UFP Retail Solutions
Allison Meyer Communications Director Do i t Best
Chelsea Mongell Senior Process Improvement Analyst 84 Lumber
Renee Zaman, owner ofMazo Hardware in Mazomanie, Wisconsin
Paladin Point of Sale Transforms Mazo Hardware’s Inventory Management
When Renee Zaman’s old system failed, she turned to Paladin Point of Sale for its ease of use and comprehensive support. Paladin solved Renee’s problems and improved her diverse supplier management.
• Market Driven Inventory Management: This feature keeps Mazo Hardware at an optimal stock balance.
• Managed Services: Paladin experts monitor Renee’s firewall, switches and antivirus, ensuring her network runs smoothly and securely.
• Exceptional Support: Renee praises Paladin’s support for being responsive and understanding her needs.
“We’ve tailor-made our store to have what our customers want, so we order from a lot of different suppliers. Paladin’s system works really well for us. It shows us what’s selling and what isn’t and helps us place our orders.” With 45 years of experience supporting independent hardware stores, Paladin is an employee-owned company dedicated to making stores succeed. Call 800.725.2346 or visit paladinpointofsale.com
Maria Monsalve Senior Contracts Administrator Builders FirstSource
Stephanie Murphy Commodity Product Manager Boise Cascade
Mandie Pandola People and Culture Generalist Metrie
Brianne Papa Mid Atlantic Regional Sales Director Oldcastle
Lauren Parsons Sales Manager Bliffert Lumber
Kristin Peterson Marketing Manager Nation's Best Holdings
Monica Reese Director, Trend & Style Lowe's
Lauren Romero Learning & Development Professional, National Nail
Kristin Russell Specialized Sales Manager Cincinnatus Home Center
Victoria Schrowang Panel Products Trader LBM Advantage
Lesia Shamp Retail Home Improvement National Account Manager National Gypsum Company
Justine Simmons National Strategic Accounts Manager James Hardie
Kimberly Starling General Manager - Lumber Products Shared Services American Builders Supply
Megan Sumner Outside Sales Representative San Antonio Lumber Company
Tara Takano Domestic Sales Support Supervisor Hampton Lumber
RISING STARS
Janelle Thurlow
Office Manager/ Accountant
Flynn Lumber and Supply Co.
Diana Tronzano
National Account Executive
B lueLinx Corporation
Marcy Whitlock
Safety Specialist
Boise Cascade
Narom (Natt) Yin
Office Administrator
National Lumber Co.
Afton Yount
Product Line Manager -
Floor Coverings
Ridout Lumber Company
Victoria Zimmerman
HR Manager
Shepley Wood Products
Summit of Technology
FROM THE PRODEALER INDUSTRY SUMMIT, DIGITAL DESIGNS
By Robby Brumberg
Individual cases differ, but the story is the same: Technology is seeping deeper into the core of LBM businesses each day.
During the recent ProDealer Summit in Savannah, Ga., a handful of tech strategies were described by the industry leaders driving them. And they ranged from improved customer service to internal team building.
John Perna, president and CEO of Hamilton Building Supply in New Jersey, says he uses tech to “create operational efficiencies and reduce friction” for Hamilton Building Supply. In practice, that pertains largely to streamlining customer service. Perna says his company has invested in its online store (powered by TOOLBX) to make ordering easier and more efficient. Tracking online orders helps surface crucial data about new or existing customers, which can be used to analyze metrics like share of wallet and to see which product lines people prefer. An active online presence also provides an opportunity for speedy service.
The modern lumberyard is managing data analysis, artificial intelligence, customer service and corporate culture.
“Whichever dealer responds faster often gets the sale,” he says. Speed is just the beginning, however, as Perna says delivery is the brass tacks of the business. That means “being there when we say we’re gonna be there, and getting products to a site on time or even ahead of schedule.”
Hamilton recently upgraded its delivery management system, which Perna said was initially met with resistance from drivers and dispatchers, as it revealed underlying issues that needed to be addressed. Now, however, Perna says workers have come around on the new system, as it adds accountability and clarity to ensure everyone’s on the same page.
Part of that commitment to accuracy is taking photos of deliveries to document and confirm orders are correct. “We’ve added QR codes to deliveries to rate the experience. Customers can commend the driver or give feedback if something was screwed up,” he says.
Not everything has to be high-tech, though. “We prioritize face to face dialogue rather than an email. We don’t want to lose the human aspect of business, despite the use of tech,” Perna says.
There’s an app for that
According to Thad Shuler, president of S.C.-based Southern Lumber & Millwork Corporation: “The lumber industry’s 50 years behind other industries. We have to make it easy for customers to do business with us.”
To get his company up to speed, Shuler made a commitment to invest in an app, which he says took two years to build and refine. It was met with no small amount of resistance. “You’ve got to be committed to change, because people are always going to resist change,” he says.
The app, which was made for contractors, streamlines
online ordering and features the company’s entire inventory pictured in all its glory. It also captures crucial data points that enable Shuler’s team to analyze customer loyalty and to uncover potential sales angles. The data points are used to create a customer “report card.” Looking through data, Shuler considers: “What opportunities are you missing? If they’re buying lumber, what about doors and windows?”
The upfront costs of the app were not cheap, though Shuler says the ongoing monthly fee is “nominal.” Additionally, Shuler says the company created a landing page that hosts ads and sponsorship content to help recoup costs on a consistent basis.
The app streamlines the front end of the customer journey, but there’s still plenty to do to finish strong. Shuler prioritizes the importance of presentation, noting that customers have been spoiled by Amazon’s swift delivery methods. It’s one thing to deliver the correct items in a timely manner (Southern Millwork counts three different ways to ensure accuracy), but Shuler says his company strives to go the extra mile to make deliveries presentable and tidy.
Making peace, productivity with tech
Andrew Roise, VP of enterprise applications for Kodiak Building Partners, says technology in lumber is about “getting people to buy in and embracing a willingness to change.”
Roise, who previously worked with Epicor, suggests plucking low-hanging fruit when it comes to maximizing workplace tech before splashing cash for shiny new software. “Take advantage of proven solutions, as ERPs are expensive,” he says.
To extrapolate data in a meaningful manner (and to prevent duplicated effort), inter-departmental collaboration and communication is essential. Ensure your different departments are on the same page regarding customer analytics as it relates to opportunity tracking, wallet share, truck utilization and project cycles, he says.
Whatever system or software you opt for, it’s essential that it “helps employees do their jobs better” and helps you “strengthen
your strengths,” Roise says. Anything else is likely just additional, potentially expensive noise.
Speaking on the topic of AI, Roise takes a hopeful yet practical view. “Your job’s not going to be replaced by AI; it’ll be replaced by someone who uses it effectively. Learn how to add value on top of AI,” he says. Roise cites Read AI, which can summarize and transcript meetings in real time, as a particularly useful tool. Ultimately, those who learn to wield AI to boost sales or increase efficiencies have little to lose and much to gain.
Cybersecurity should also be on the minds of lumber pros. Roise says his team shows Kodiak execs real-time cybersecurity attack attempts to drive home the level of the problem. The company also uses multi-factor authentication, and it consistently educates employees on how to safeguard data.
Getting your team on board
“Tech can solve a lot of problems, the tough part is choosing the right software for your specific company,” says Neil Agarwal, president and CEO of Frisco Woodline.
The other tricky bit is getting (and keeping) everyone on the same page of music. He says Frisco Woodline is “mostly a Google business” and prioritizes other cloud-based services (like Dropbox) to ensure data preservation. It also uses a platform called Ninety to increase communication and collaboration.
“People come from all walks of life in this industry, but it’s on us to make sure everyone understands how their work ties to the larger goal,” says Agarwal.
When it comes to tech, Agarwal suggests it’s not enough to enforce new tools or tactics in a topdown manner. “Identify internal champions and influencers who can assist with change. Find people in different departments who can help champion the change you want to effect. You can only do so much from up top. You have to have buy-in, or your change is doomed to fail,” he says.
Whatever you do, avoid the trap of chasing shiny software or buzzy brands just because you heard a competitor’s using it. “Make sure it’s a real problem you’re trying to solve. Ensure with your team that what you’re investing in is worthwhile,” suggests Agarwal.
Then, follow up. And continue to do so. “After each project, we talk about what went right and what went wrong and do a debrief. We’re trying to foster a culture of continuous improvement. If you don’t hear frustrations or challenges, they’ll fester. You have to solicit honest, transparent feedback,” he says.
That sort of open honesty is essential when it comes to rolling out new tech— or when doing just about anything else in business.
Fiskars vs. Woodland Tools: a case study
By Robby Brumberg
Back in the spring of 2022, employees of garden tool manufacturer Fiskars noticed a new competitor on the shelves of Blain’s Farm & Fleet and other major retailers. That new brand was Woodland Tools.
The Fiskars employees noticed something else: some Woodland Tools products were strikingly similar to Fiskars’ garden pruners, loppers, herb snips and tree trimmers. And later came the discovery that the Woodland Tools brand leaders consisted of former Fiskars employees.
Fiskars sued. Woodland Tools countersued.
And on Oct. 30, Woodland Tools released a victory press release. “Woodland Tools Prevails in False Advertising Trial Against Competitor Fiskars.” Not only had a judge previously ruled in favor of Woodland and had cleared it of all of Fiskars’ allegations, but Woodland’s counterclaim of false advertising by Fiskars for several of its products were largely successful.
In the recent press release, Mike Kollman, who co-founded Woodland Tools with Keegan Nesvacil, a former Fiskars employee, stated: ”Though our team at Woodland Tools did not initiate
litigation with Fiskars, we are grateful to have prevailed on our counterclaims of false advertising. Protecting consumers from misleading advertising is essential to maintaining trust in our industry, and we're pleased with the outcome, which supports transparency and fairness for everyone."
Efforts to reach Fiskars for comment on the case were unsuccessful. But court documents reveal hard feelings from the company founded in Finland in 1649. The complaint spells out the allegations. “In spring of 2022, Fiskars noticed newcomer Woodland Tools, Inc. and, despite being new, Woodland Tools was able to place its garden tool products in large retail chains.”
Fiskars posited that Woodland Tools “was formed not to compete through innovation, but to copy Fiskars and free ride on Fiskars' investments in its products, customers, and business.”
In the complaint, Fiskars elaborates: “Formed by a former Fiskars employee, Woodland Tools actively recruited Fiskars employees in order to acquire the knowledge and information they possessed related to Fiskars’ business practices, confidential information, and trade secrets. Woodland Tools used this information
to gain an unfair competitive advantage, improperly exploiting Fiskars’ success. In addition, Woodland Tools deliberately copied Fiskars’ product designs and marketing strategy despite representing to consumers that it was responsible for its designs.”
None of it stuck in court. However, the summary judgment permitted Woodland Tools’s counterclaims to proceed. These included claims for the invalidity of Fiskars’ patents and false advertising related to cutting power and country of origin.
In a blog post on the case, legal scholar Rebecca Tushnet, who is a Frank Stanton Professor of the First Amendment at Harvard Law School, offers more context:
"Fiskars alleged that Woodland engaged in false advertising when it described its Regular Duty Bypass Pruner as 'designed in the USA' because Woodland actually copied Fiskars’s version of the tool—which would mean that Woodland did not design its tools at all. Fiskars presented no evidence of consumer deception, and didn’t show literal falsity. Woodand’s founders testified that they designed at least some part of every Woodland product in the United States, and Fiskars does not offer any evidence to contest that testimony.”
Regarding Woodland's counterclaims, Tushnet said: "Fiskars advertises some of its products as having 'up to 3x more cutting power.' Woodland alleged that this statement and similar '2x' or '3x' power-based claims were ambiguous and misleading to consumers because the advertisements/packages didn’t identify what other tools Fiskars’s tools are more powerful than. Ambiguity means consumer confusion evidence is required.”
On Long Island, long on optimism
COSTELLO’S ACE HARDWARE SETS AMBITIOUS COURSE
UNIONDALE, NEW YORK—Costello's Ace Hardware demonstrated its strong family values and documented its growth to an audience of key suppliers recently.
And like the donuts-and-coffee and peanut-butter-and-jelly combos that were provided at each seat of the general session, the two-day Vendor Summit ran with the theme of "Better Together."
The Deer Park, New York-based chain with 50 stores shared a wealth of statistics demonstrating growth since 2021, from the size of its delivery eet (up 250 percent) to the number of internal promotions throughout the company (100).
Costello's Ace CEO Michael Costello described the event as a big one for the
family- owned retailer.
During the general session, Ace leaders including Michael Costello and Ken Goodgame, SVP of marketing and merchandis-
The Oak Brook update
Oak Brook, Illinois-based Ace Hardware’s third quarter earning reports included gains and declines. Topping the income statement was $2.4 billion in revenues, up 2.8 percent from the third quarter of 2023.
Net income was $99 million for the third quarter of 2024, a decrease of $31 million from the third quarter of 2023.
According to Ace, this decrease was due to higher planned expenses as the company continues to make strategic investments in its supply chain infrastructure and digital marketing expense
to support future growth.
“In this challenging environment, it’s encouraging for me to report growth in new stores, growth in our digital business, and overall growth to $2.4 billion for the quarter," said John Venhuizen, Ace President & CEO. "I’m never particularly pleased to report a decline in net income, but it was almost exactly on plan and nearly $100 million for the three-month period.
Total retail revenues from Ace Retail Holdings LLC (ARH) for the quarter were $203.4 million, an increase of $8.5 million, or 4.4 percent, as compared to the prior year third
GROWTH MODE
Costello's Ace Hardware's new store activity.
Tri County (Md.) Hearth Patio Center, Q1 2024
Farmingdale, N.Y. relocation, Q2 2024
Belimore, N.Y. remodel, Q2 2024
Warrenville, N.J. Paint and Hardware, Q3 2024
All Pro Chimney and Home, Q3 2024
Crofton, Md. Ace Hardware, Q3 2024
Bernardsville, N.J., Q4 2024
Cedar Knolls, N.J., Q1 2025
ing, made clear that they are headed in the direction of growth. A slide demonstrated the path from $180 million in total sales in 2024 to $375 million in 2030.
"We're optimistic for a number of reasons. First of all, there's a lot of opportunity out there," Michael Costello told HBSDealer. "There's a lot of competition. But there's a lot of opportunity for us to be the succession plan for so many great stores out there that don't have one. And also there are some new markets that are growing, and they're ready for a hardware store to come in and be a part of these communities."
quarter. The Westlake Ace Hardware chain experienced a 1.9 percent decrease in same-store-sales, while the Great Lakes Ace Hardware chain experienced a 1.7 percent decrease in same-store-sales in the quarter.
The new stores opened by Westlake and Great Lakes Ace since the end of the second quarter of 2023 contributed $12.1 million of incremental revenues during the third quarter of 2024. Westlake and GLA together operated 253 stores at the end of the third quarter of 2024 compared to 233 stores at the end of the third quarter of 2023.
Residential Construction/Sales
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