HPM GROUP

here’s a special set of circumstances involved with managing a business from the middle of the Pacific Ocean, over 2,500 miles away from the nearest supply chain link. But HPM has managed to keep their operation alive and well for a century. In its fifth generation of ownership, HPM is proud to serve the four major islands of Hawaii.

HPM was established in 1921 by Kametaro Fujimoto, a Japanese immigrant with an entrepreneurial spirit. A contractor by trade, he had come to Hawaii as a plantation worker, but upon leaving the field, decided to branch out on his own. “He decided to start his own lumber planing mill because back then options were very limited when it came to material for houses,” explains Jason Fujimoto, the organization’s current CEO and President and Kametaro’s great-great grandson. “He would bring in large timbers from the Pacific Northwest and he would plane them into construction grade building materials.” And thus, Hawaii Planing Mill (HPM) was born. Today, they are much more than a lumber supply company. With over 440 employees (not including over 40 open positions left vacant due to a labor shortage), 40 locations positioned all over Hawaii’s four major islands, and departments ranging from home design centers to hardware retailing to building materials manufacturing, they’ve diversified to become full-service providers for the communities they serve. Their latest venture—motivated by rising costs of living that are making home ownership an increasingly impossible goal for locals and HPM’s desire to support the people who have enabled their success—is pre-fabricated housing. “Anything we can do to leverage our competencies as an organization to provide affordable housing solutions…that’s going to be some of our major focus areas,” explains Fujimoto.

HPM joined ALLPRO in 1986 (before Fujimoto’s time)—the beginnings of a long and beneficial relationship. “We definitely wanted to expand our paint and sundries business… [and] ALLPRO was the premier buying group. It was very desirable for us to join… and leverage their resources and buying power to help us buy better and compete against a lot of the regional paint stores that existed in our market back then.” Benjamin Moore, HPM’s main paint manufacturer since 1959 (the same year Hawaii officially became a state), has also been instrumental to their success. “We helped build the Ben[jamin] Moore brand here in the Hawaiian islands. They’ve been very supportive. They’ve always provided full representation for us over the years. Through their reps, they join our sales team in making joint sales calls with our staff, they’ll do job site walks, they help provide specs and technical expertise for all the different projects we work on whether it’s a hotel, a repaint job for a condominium, down to just meeting with our largest customers.”

Being so far removed from the typical supply chain routes, inventory and stock is of paramount concern. “Logistics are challenging,” acknowledges Fujimoto. “Times are much longer, between six and ten weeks. Our carrying capacity for inventory has to be much greater to manage the different ups and downs or spikes in demand…. And beyond that we have to make sure that we can distribute our inventory across each island because again—getting inventory from one store to another on a different island is not that simple. We have to be spot on with our forecasting.” Having these strategic partnerships have helped HPM gain access to product lines that are meaningful to their customers in a reliable way.

As much as HPM embraces the benefits and support of these organizations, their core strengths lie in their values, which Fujimoto identifies as: heart, character, and growth. These three tenets are never far from Fujimoto, or any of his employees’ minds. “Everyone puts in their 100%,” a claim which is justified by HPM’s status as 100% employee owned. In fact, they were one of the first businesses in the nation to develop an ESOP back in 1977. In 2006, their 100% goal of employee ownership was fulfilled. “[The staff] get to share in the benefits of HPM’s success as we do well. The key is making sure that people are in the know and they understand what their company is doing and all the exciting things that we’re embarking on and how we’re doing financially, all that leads to increased engagement amongst your team.” To communicate with so many staff across the varying demographics of each island, Fujimoto releases two video updates every month. Using multiple forms of communication from written newsletters to video updates to two all-hands meetings per year keeps the company’s culture and values intact. Having so many heads in the game and eyes on the prize helps maintain the third of HPM’s core values: growth. “You’ve got to have that passion and be committed to learning….Not just for our current team but for all of our future generations.”

Although Fujimoto sits at the helm of an expansive (and impressive) operation, he sees his role as inextricable from his people—those that came before him and those that have yet to come—whether they are employees, customers, or simply other islanders. Fujimoto sees the HPM business as a vehicle to

enact positive change. “We’re ensuring everything we do helps our community build better and live better,” he shares. This is reflected even in the company’s 100 year anniversary plans. The campaign Fujimoto is most excited about is their “100 Acts of Service” initiative, which had Fujimoto with his team conducting a highway clean up just a few days prior to our interview. “We have our community to thank for [this milestone],” relays Fujimoto. “Our communities are very loyal. They all have long memories. Unless you’re going to move, you’re stuck with the same people. It’s good and bad, but if you’re coming from the right place with the right intention and the right values you can really build a thriving community and an enduring organization for the long term.”

Congratulations on 100 years in business, HPM! We’re proud to have you as one of our own and looking forward to seeing what you accomplish in the next 100!

Q:

if your entire staff had the day off, where could we find you all? WITH THEIR FAMILIES AT THE BEACH, JUST HANGING OUT.

Q: Early riser or a night owl? A: I am definitely an early riser — I wake up about 4 every morning and I go to bed at 8:30.

Q: Nicest beach in Hawaii? A: Well, I am biased because I live here on the big island. I like Hakuna / Hakuma Beach or Monacia beach.

Q: If you were a paint color, which would you be and why? A: I’ve only owned vehicles that are black, it’s not really a pretty color but I like it. I think black trim is coming back.