Small is beautiful

credit crunch (and, by the way, a highly centralized banking system is also problematic), smaller dealers and distributors have little opportunity to invest in new innovations or take advantage of growth opportunities when they arise. I've often argued that creating strong links with one's surrounding community is the key success factor for independents. Now, there's one more reason why that's the case and it could prove to be a game changer: crowdfunding.

Crowdfunding is one of a growing number of alternative financial models enabled by the Internet and filling the gaps not addressed by the existing financial system. The idea behind crowdfunding is that many people can contribute small amounts of money to enable big things to happen.

oR MANy woRKINc in the sustainability movement, one book-Snc/l Is Beautiful: Economics as If People Mattered-provided the spark that inspired their careers.

Turns out. economics isn't a dismal science after all, and it's too important to be left to self-important politicians or obfuscating policy wonks. Instead, this book argues that economics can provide a potent framework for building healthy and sustainable communities. The book is still relevant 40 years after its first publication, and its author, E.F. Schumacher, is revered among academics and professionals working in a range of fields from development economics to green building. Why? It shows that decentralized, community-centric economic development policy improves sustainability and builds local resilience.

Sustainability and local resilience are two issues of supreme importance to the home and shelter supply chain: the fbrmer, because that's what's driving growth, competitiveness, and innovation; the latter, because the long-term health of our industry is directly related to the health of our local and regional economies.

But while our industry creeps toward sustainability, it's heavily reliant on centralized supply chains and international-scale corporations. Scale and centralization have benefited consumers with lower prices, due mostly to offshore manufacturing. But too much of a good thing is, well, not a good thing. Many argue that high energy costs associated with a globalized supply chain make it inherently unsustainable. But the point I want to address is that it also leaves local economies vulnerable, evident today in high unemployment, diminished construction activity, and increasing closures of independent dealers.

For independents to remain competitive they need, among other things, access to capital. Given the current

To date, crowdfunding has been limited to grants, product pre-purchases, and micro-loans. But that's about to change. The JOBS Act, which goes into effect next year, will allow crowdfunding sites to begin selling equity shares in companies, enabling capital to flow directly to smaller firms, bypassing Wall Street altogether. It may be too late for some firms, but this could prove to be a valuable path to survival, growth, and competitiveness for small independent companies whose fate is still undecided-especially for those who can draw on the good will of their communities.

Independents interested in this path should start getting ready now. Simply listing your company's offer on a website isn't going to be nearly enough. Start building your business case and begin strengthening ties to your future investors: your community. Develop some innovative ideas that will make a difference-a green building training facility, perhaps? Ultimately, whether you want to raise equity investment or contribute to a creative idea, crowdfunding could prove that not only is small beautiful, but it's a sound financial strategy, too.

JaY TomPt Managing Partner William Verde & Associates

O'Neal Brothers, Lauret, De., has closed after 57 years lf you're looking for quality and value from your insurance provider, please contact us at 800.752.1895 or log onto www. plm i ns.com/adlBP.

Owner Chris Johnson is continuing to sell from his Laurel home, as O'Neal & Johnson Hardware & Building Supply, and hopes to open in a new storefront in the fall.

Lowe's will invest $5 million to repair and enlarge its flatbed distribution center in Thomasville, N.C., that was damaged Nov. '17 by a tornado.

LaValley Building Supply, Middleton, N.H., suffered damage to a dry kiln in a June 20 fire.

Westlake Ace Hardware closed its 16-year-old store in NW Dallas, Tx., July 31 and its S-year-old unit in St. Charles, Mo., July 1.

Palos Ace Hardware, patos Heights, ll., owners Dan and Pattie Harris earlv this fall will add an Ace in a former True Value shop in Lemont, lt.

Southern Hardware, Petersburg, Va., is closing after 65 years.

Northwest True Value Hardware, Roanoke, Va., will build a $1.5-million, 20,000-sq. ft. store #7 in Ridgeway, Va., by early next year. Jason Yopp will serve as mgr.

Frattallone's Hardware, Arden Hills, Mn., opened store #18-a 12,000sq. ft. unit in St. Louis Park, Mn.

D.W. Moodv True Value Hardware, Montgomery. Al., closed July '14 after 62 years.

Jones' Ace Hardw?r'e, Vermitlion, S.D., is expanding to take over the space vacated by a srster grocery store.

Kodiak Building Partners Denver, Co., acquired the assets of specialty dealer Gulf & Basco, Houston, Tx.

TW Perry added a Design Center in Gaithersburg, Md.

Beacon Roofing Supply, Peabody, Ma., opened branch #200 in Myrtle Beach, S.C.

Wausau Supply, schofietd, wi., has acquired 40 acres in Rapid City, S.D., to build a 59,400-sq. ft. DC.

At PLM, we understand that you need an insurance company with property and casualty insurance products and services that you can trust today and tomorrow.

For over 1 OO years, our experts have been providing quality claims and risk management services to the lumber, woodworking and building material industries. Remember, "you get what you pay for." We understand wood. We know your business... because it's our business too. Wood is all we do.

fohn K. Smith, CPCU President and Chief Executive Officer