Final Summer Hardware Show Ahead

More than 2,000 exhibitors and 40,000 attendees are expected to converge on Chicago, Il., for next month's National Hardware Show.

In addition to the expansive trade show, new product showcase and awards ceremonies, the Aug. l0-12 event at McCormick Place will offer a host of free seminars, including:

. "New Age in Distribution-or Who's Moved the MoneY?" (Aug. 10, Noon to I p.m.) by BradleY T. Farnsworth, president, The Farnsworth

Group, and John P. Hammond, managing director, National Retail Hardware Association;

. "Where is Lawn & Garden Headed From Here?" (Aug. I 1, Noon to I p.m.) with moderator Stan Pohmer, president, Pohmer Consultant Group, and panelists Dave Meder, director of garden centers, TruServ Corp.; Bridgett White, editorial director, Lawn & Garden Retailer, and John D. McGreevey, Jr., executtve director, Lawn & Garden Marketing &

Distribution Association;

. "The Last Frontier" (Aug. 12, 8 to 8:45 a.m.) by Dan Paul, President and c.e.o., General Management Technologies.

The cost is $100 to attend the World Powers Forum 2003, a roundtable discussion featuring Paul Ingevaldson, senior v.p.-lT & international, Ace Hardware CorP.; Steve Gilman, international director, B&Q PLC; Ray Colman, c.e.o., Woodie's DIY; Ron Beal, senior v.P. & general mgr.-hardware division, Orgill, Inc.; Guillermo Aguero, president & c.e.o., Sodimac, and Fengjiang Li, PhD., president & c.e.o., OBI Asia.

This year's show will be the last held in the summer and staged by both sponsor American Hardware Manufacturers Association and show manager Reed Exhibitions. Next year the two organizations will hold separate shows in the sPring, AHMA remaining in Chicago and Reed moving to Las Vegas, Nv.

Power Tool Demand Perks UP

Worldwide demand for Power tools is projected to increase neatly 67o a year to $27.3 billion in 2007, according to a new Freedonia GrouP studY. Advances will benefit fiom increasing construction and consumer spending, as well as rising demand for cordless models.

Electric tools (plug-in and cordless) dominate world demand, comPrising nearly three-fourths of power tool sales in 2002. Electric tools, most notably hand drills, are expected to remain the leading type of power tool due to their fiequent use in both consumer and professional applications.

Lowe's Adds Midwest Reload

Lowe's Cos. has opened its first flatbed distribution center in the upper Midwest, to supply 62 stores in Michigan, Indiana. Ohio, Illinois and Iowa.

In time, the DC will serve up to 100 stores in six states, including Wisconsin, where Lowe's has yet to expand.

The $13 million complex opened early last month on 39.8 acres in Grand Ledge, Mi. It includes a 4.6-acre indoor facility containing a rail spur built by CSX Transportation.

The chain now operates six flatbed centers nationwide to ship by rail products in bulk that lie flat, such as lumber, fencing, pipes and gutters.

Growth May Claim Virginia Dealer

Kellam & Eaton, Virginia Beach, Va., is once again edging toward the wrecking ball as its owner considers an offer to sell the property.

This is the third time since the late 1980s that owner David Kellam has considered an offer on the family hardware business.

The area is growing rapidly and developers want to buy the land, bulldoze the store and build four buildings covering 45,000 sq. ft.

One hurdle for developers is that part of the property is zoned for agricultural uses only. Right now Kellam said he is not ready to hang the "going out ofbusiness" sign yet.

Kellam & Eaton primarily serves commercial builders, and, according to Kellam, has done well against the big boxes. Despite this success, growth at the Beach is starting to outstrip available land.

"After a while, the value of the property becomes more than what the business can make out of it," he said.

His uncle, Willie G. Eaton, opened the business in 1928.

Small Hardware Stores Still Vital

Despite the proliferation of Home Depot and Lowe's stores across the nation, a new study reveals that locally owned hardware stores are holding their ground.

According to figures from the National Retail Hardware Association, hardware stores nationwide had sales of $23.6 billion in 2001. That number is expected to grow 2'7.5Vo to $30.1 billion by 2006.

What's encouraging for the independents is that this growth has occurred as revenues for the big boxes are expected to grow 33Vo from$112;7 billion in 2001 to a projected $150 billion by 20O6.

The projected annualized growth rate for hardware stores-57o by 2006-is not far behind the 5.97o rate predicted for big-box stores.

The statistics indicate that there is room for both big and small stores, not to mention lumberyards, to grab their share ofthe d-i-y and pro business.

One reason for such robust numbers, according to the NRHA, is the strong housing market. Consumers now see their home as the safest place to invest.

Another factor for the survival of the independent hardware is its ability to adapt.

"The idea of the mom-and-pop hardware store is a thing of the past," said Chris Jensen, a spokesman for the NRHA. "The owners nowadays are savvy about technology. They're very often a second- or third-generation owner, and they're looking at new ways to keep up with the competition."

The average annual sales volume for a hardware store is $1.13 million. Ace Hardware spokeswoman Paula Erickson said small hardware stores are able to offer competitive prices and help customers get in and out quickly.

Smaller stores also are able to tailor their offerinss more closely to their local markets, Erickson added.

New Hampshire Sawmill To Close

Timco, Barnstead, N.H., plans to close its doors this summer.

The mill is owned by Bridgeport, Ct.-based Aquarion, and according to its c.e.o., is closing because ',despite all of our efforts, the bottom line is the timber market has been depressed for several years."

Aquarion officials say they tried in vain to find a buyer for the mill.

The mill started out as Pittsfield Box and Lumber in 1944, eventlally becoming one of the Northeast's largest providers of eastern white pine lumber. Aquarion bought the mill in 1981, renamed it Timco, and made it a subsidiary.

In recent years, Aquarion has moved away from lumber, focusing more on water and wastewater.

More Lumber For Wisconsin Dealer

Kortendick Ace Hardware, Racine, Wi., has added a year-round lumberyard and a seasonal greenhouse.

The two new buildings cost $80,000, and according, to owner Russ Kortendick, are not just inventory expanders, but strategic moves.

Kortendick is betting that lawn and garden products will boost building material and hardware purchases.

The 30'x70' greenhouse foundation will be recovered each season with a new plastic dome

The free-standing lumber building has expanded the store's mix of lumber offerings. Previously, customers were limited to 8-ft. lengths of lumber, but the new building will carry 16 ft. boards.

As with the lawn products, Kortendick believes that more lumber means increased sales elsewhere. "plumbins and electrical-(we) can lose that if you can't get the luml ber from us," he said.

Kortendick said the expanded lumber line '.has been driven by our customers' requests."

Depot Fined For Business Practices

Home Depot will pay $510,000 in fines and update its business practices as part of an "assurance of voluntary compliance" agreement with the New Jersey Attorney General's office.

New Jersey officials said the Atlanta, Ga.-based chain agreed to the deal after the state initiated an investigation into whether it violated New Jersey's Consumer Fraud Act.

The action stems from dozens of consumer complaints against Depot in connection with its business practices, advertising policies, household delivery services and its refund policy.

As part of the deal, Home Depot must "investigate and resolve consumer complaints" received prior to filing the agreement with the state.

Home Depot, which has 58 stores in New Jersev. did not admit any wrongdoing.

This is not the first time Depot has butted heads with New Jersey. In 1993, Home Depot paid $4,200 to settle allegations it failed to include specific information in advertisements for lumber and building products. In 1996, the company paid $10,000 in penalties and costs for alleged violations of the state's advertising laws.

Fire Strikes Texas Lumberyard

Witt Builders Supply, Amarillo, Tx., iecently lost its showroom and warehouses to an early morning blaze, but was soon operating again from a temporary location.

The May 22 flr:e broke out shortly after midnight at the 55-year old business, and, according to v.p. Don Fagan, the fire destroyed blueprints, F.W. Dodge reports on construction activity in the Panhandle, and other plan room items forprojects now under way or contracted to begin soon.

Fagan estimated the loss at between $800.000 and $l million-or more. A recovered computer hard drive was sent to an information recovery specialist to retrieve some business records.

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