HBSD-0122 by ensembleiq

JANUARY 2022 Volume 48 No. 1

THE RISE OF US LBM NATION US LBM continues to grow its ranks during challenging times

WE’RE BACK!

Join us in Orlando for the 2022 Dealer Market February 24 - 26, 2022 Join us and celebrate our 175th anniversary at our first in-person event in two years. Leverage our online-buying tools at this truly hybrid event and improve your margins. Discover something new while you walk the floor and collaborate with any of more than 2,000 vendors. Generate new ideas for your stores and meet face-to-face with Orgill services team members. Visit our concept stores or rest your feet and attend in-person workshops or clinics — and take home ways to improve your business.

Whether you’re a current Orgill customer or are interested in learning how we can help your business, register today and get ready to join us in Orlando for this one-of-a-kind celebration.

Celebrate With Us!

Bring a friend and join our 175th birthday party at the Universal Orlando Resort, Friday evening, February 25th. We’ll have the park all to ourselves and it should be a blast — all on us!

Learn more today:

1-800-347-2860 Ext. 5141 Orgill.com

01/22

HBSDEALER HARDWARE + BUILDING SUPPLY

INDEPENDENT PROFILE

16 Fusek’s accelerates in Indy PRODUCTS

27 28

Product focus: Outdoor Power Equipment Paint products Smart Home

MARKET INSIGHTS

Inside the mass timber movement

32 COVER STORY

18 US LBM lights up the industry 21 An acquisition timeline 23 Building on a legacy

New England sees a big acquisition Top Women Interview Series: Lita Adele of U.S. Lumber

Retailers rise to e-commerce

24 FROM THE EDITOR

NEWS & ANALYSIS

IN EVERY ISSUE

10 10 12 12

10 10 14 36 38

The Heart of the Deals

Vaccination vs. vexation Long on shortages Concord elevates ‘Design’ Industry meets inflation

Stat of the Month Product Knowledge News Map 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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MARCH 20-22 Gaylord Texan Resort & Convention Center | Grapevine, TX

SPECS is the premiere event for store planning and facilities professionals that brings together leaders from the nation’s top retailers and suppliers to learn, share ideas, develop business partnerships and solve problems across the physical retail space.

REIMAGINE. INNOVATE. EXECUTE. Learn more at www.SPECSshow.com

Produced By

Here's What's Online See more and share more when you follow us on Linkedin.

Watch the replays: “Home Improvement Outlook,” and more, a two-part webcast series from the experts at John Burns Real Estate Consulting. Visit HBSDealer.com/webinars.

Fasten-ating Products The Fastener eBook, tracking innovation from across the category. Visit HBSDealer.com/report.

The votes continue to pile up HBSDealer publishes weekly poll questions on pressing industry matters, and other topics.

Are employees quitting your company?

21% No

47%

Yes, more than normal

31%

Yes, but not more than normal Source: HBSDealer poll question. (n=177)

Connect with us @HBSDealer

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Poll questions and results appear every week at HBSDealer.com.

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From the Editor

HBSDEALER HARDWARE + BUILDING SUPPLY

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

The Heart of the Deals It was a year of intense acquisition activity. The HBSDealer Acquisition Tracker recorded 70 headline-grabbing deals between Jan. 4 ( US LBM-Gilcrest/Jewett) and Dec. 28 (Rocky’s Ace Hardware-Karp’s Hardware). That’s not counting consolidations among vendors and suppliers. And that’s well above the figure from 2020, during a pre-vaccine pandemic-hindered M&A season. The experts who dig into the nitty gritty of mergers and acquisitions will tell you that no two acquisitions are the same. It follows, inarguably, that some deals are more interesting and more important than others. But which deals? It’s not always possible to watch a recently merged company soar up the stock market as was the case with Builders FirstSource and BMC. (See the location of BLDR all by its lonesome in the top right corner of the Quikrete Industry Dashboards stock chart on page 38). Happily, there’s another indicator: The HBSDealer Acquisition Tracker Reader Engagement Rankings, based on 2021 pageviews at HBSDealer.com. Here are the top 10 acquisition stories, along with overall rank: R.P. Lumber; Alexander Lumber (2) Tractor Supply; Orscheln (5) US LBM; Higginbotham Bros. (6) US LBM; ACS. (8) Builders FirstSource; Cornerstone (19) R.P. Lumber; Stock + Field (23) Aubuchon; Delray Plus (24) US LBM; Mid-Cape (26) US LBM; three independents (28) US LBM; Home Center Supply (37)

Ken Clark Editor in Chief together two family-owned businesses. Alexander Lumber's Watt Alexander shared his take: “Once we decided it was time to make this change, our goal was to find another family-owned company—rather than a private-equity backed competitor,” he said. Where’s BLDR-BMC? The initial, August 2020 report of the Builders FirstSource-BMC merger would have topped the list in 2021. With all of the LBM activity, it’s easy to forget the wow-factor of the Tractor Supply acquisition of Orscheln Farm and Ranch when it was announced. With a stroke of a pen, 167 stores in 11 states joined the TSCO team. (You can also see TSCO’s Wall Street performance on page 38.) Higginbotham Bros. wasn't US LBM's biggest acquisition by a long shot — that would be ACS, which had 70 locations out West, including Meeks Lumber. But Higginbotham generated slightly more engagement. Chalk that up to the Higginbotham history — founded in 1881 — and scope of business that waded US LBM deeper into hardware-and-DIY waters. Busy buyer: Five of the top 10 acquisition stories of 2021 were orchestrated by US LBM. Seems like a great topic for a cover story. (See page 18.)

Some observations Surprise at the top. With all the private equity money chasing deals, the most-viewed acquisition story of the year was a deal that brought

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

SENIOR VICE PRESIDENT (HBSDealer, Drug Store News, Chain Store Age) John Kenlon, jkenlon@ensembleiq.com, 212-756-5238 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 CONTRIBUTING EDITOR Ken Ryan ryankgr@aol.com, 516-567-3034 Editorial Inquiries: Direct questions to Editor in Chief Ken Clark. 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 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

connect with us

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RETURNING LIVE

March 29 - April 2, 2022 Hyatt Regency Washington on Capital Hill in Washington, DC The ProDealer Industry Summit is the Premier Event for LBM Dealers, Distributors and Suppliers. Connect with decision makers and industry leaders for unparalleled networking and education.

www.ProDealer.com

News + Analysis

Supreme Court blocks mandate One of the most consequential Occupational Safety and Health Administration (OSHA) regulations of recent times was blocked by the Supreme Court in a decision handed down Jan. 13. At issue: a Covid-19 vaccination mandate that was introduced through an Emergency Temporary Standard (ETS). The rule would have applied to businesses with 100 or more employees and would have required those employees to be fully vaccinated or comply with weekly testing requirements.

Product Knowledge Product: QuikSizer Instant Diameter Gauge Inventor: U.S. Marine veteran Thomas. K. Barnhill Knowledge: Inspired by a tool that helps jewelers determine their clients’ finger sizes, the QuikSizer quickly sizes up small, round objects such as nuts, bolts, pipe and tubing. It features standard and metric scales, and is verified to a certified machinist pin for accuracy. Fun fact: Barnhill’s tool was chosen out of thousands of entries in the “Making it… With Lowe’s” product-pitch contest, involving online voters, Lowe’s execs and Shark Tank star Daymond John.

Here's what the Supreme Court wrote in an unsigned opinion: "Although Congress has indisputably given OSHA the power to regulate occupational dangers, it has not given that agency the power to regulate public health more broadly. Requiring the vaccination of 84 million Americans, selected simply because they work for employers with more than 100 employees, certainly falls in the latter category." The National Lumber & Building Material Dealers Association and the National

Association of Home Builders were among the industry groups concerned with the onerous nature of the mandate. For the latest on the vaccine-mandate situation and other Covid-19 workplace issues, visit HBSDealer.com.

STATS OF THE MONTH

Long on shortages

Do-it-yourself and do-it-for-me consumers are feeling the pinch of supply chain challenges, but not to the same extent—DIFM is feeling it more. According to the latest Home Improvement Research Institute Monthly Tracker, DIFM were less likely to experience Severe shortages “no shortages” and more likely to experience Moderate shortages “moderate” or “severe” shortages for their Low shortages home improvement projects. No shortages Here are the stats:

4.8%

5.9%

100%

21.5%

29.5%

18.9%

21.2%

54.9%

43.4%

QuikSizer inventor, Thomas Barnhill

DO IT YOURSELF

DO IT FOR ME

Source: HIRI/TFG Monthly Tracker December

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

Trust. IT’S EARNED. THE VACMASTER BLUE SERIES

THE PROFESSIONAL SERIES

THE SPECIALTY SERIES

News + Analysis

Concord rebranding elevates ‘Design’ Concord Lumber Corporation announced that it will now operate under the corporate name of Concord Building & Design Center. Based in Littleton, Mass., and founded in 1946, the dealer has grown from a single lumberyard in Concord, Mass., to 10 locations throughout eastern Massachusetts. “As we’ve grown each of our divisions has operated under its own name, we’ve decided after months of research and due diligence that the best path forward for our company’s continued growth and commitment to excellence is through unity,” Concord Building & Design Center said on its website. The Concord Lumber and Littleton Lumber brands will be named Concord Lumber & Design Center, The Kitchen Works locations will become Concord Kitchen & Design Center, and Forester Moulding & Millwork will be called Concord Millwork & Design Center.

NOTABLE & QUOTABLE BlueLinx Holdings Inc. awarded its eligible hourly and salaried employees with a year-end cash and/ or equity bonus valued at almost $3 million dollars.

ColorWorks Paint & Decorating Centers will transition to Concord Paint & Design Centers eventually but are not making any changes at this current time. This transition will be taking place over the next 6 months via a phased approach. Customers will begin seeing the new name appearing on statements, receipts and invoices, signs, trucks, websites, social media profiles, and more. “Ultimately, we are very excited about this next phase in our company’s journey,” the company said. “There is a multitude of benefits to having our company operate under a uniform name the most important one being our ability to better service our customers.”

The board of directors, senior management and I recognize that employees are the most important aspect in building stronger companies and we are capping off 2021 with a $3 million investment in our employees to recognize their collective efforts, contributions and resiliency.” — Dwight Gibson, President and CEO of BlueLinx.

Industry meets inflation Analysis from the National Association of Home Builders (NAHB) shows that all inputs for residential construction have climbed 17.3% over the past 12 months and is 22.7% higher than its pre-pandemic level. Here’s how the NAHB breaks down recent increases: Softwood lumber (seasonally adjusted) increased 6.9% in November and has gained 16.1% since September. The recent trend of mill prices suggests that the softwood lumber PPI is headed for another sizable gain in December. Steel mill products prices rose 2.4% in November, the smallest monthly increase

since May 2021. The last monthly price decrease in steel mill products occurred in August 2020, and the index has climbed 151.4% in the months since. Ready-mix concrete (RMC) gained 0.9% in November after increasing 0.1% in October. The index for RMC has risen 8.3% since January 2020 and 6.6% year to date — the largest year-to-date increase in November since 2005. Gypsum products declined (-0.2%) for only the second time in 2021. Gypsum products prices have

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

climbed 19.8% over the past 12 months and are up 18.8% in 2021. Exterior and interior architectural coatings increased 1.5% and 0.2%, respectively, in November. Neither index has declined since January 2021. In regard to residential construction services, building materials wholesaling decreased 1.4% in November, and building materials retailing declined 1.6%. The wholesale and retail services indices measure changes in the nominal gross margins for goods sold by retailers and wholesalers. Gross profit margins of retailers, in dollar terms, have declined 22.1% since reaching an all-time high in June 2021, but remain 33.4% higher than the January 2020 level, the NAHB reported.

HBSDealer.com

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

CLOSING

AQUISITION

CALIFORNIA

Sacramento Emigh Ace Hardware and Emigh’s Outdoor Living will jointly fill an El Dorado Hills location formerly occupied by a CVS Pharmacy. The hardware store will take up about 12,000 sq. ft., while Emigh’s Outdoor Living store-within-a-store will fill some 6,500 sq. ft. The Emigh family opened its first hardware store in downtown Sacramento back in 1908.

CALIFORNIA

CONNECTICUT

Morgan Hill

Stamford

Hale Lumber Co., which for more than half a century used the attention-grabbing marketing slogan “Go to Hale,” closed its doors. The Morgan Hill lumberyard was sold to make way for a residential development and a more pedestrianfriendly downtown.

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

Massachusettsbased Rocky’s Ace Hardware’s store count swelled to 38 with the acquisition of Karp’s Ace Hardware in Stamford, Connecticut. Karp’s is a 97-year-old, third-generation retailer. Rocky’s celebrated its 95th anniversary throughout 2021.

PENNSYLVANIA

Allensville Your Building Center (YBC) is acquiring Allensville Planning Mill, operator of three True Value Hardware and building supplies locations in central Pennsylvania. Altoona, Pa.-based YBC, an employee owned company, operates 17 locations, in addition to the Allensville acquisition.

HBSDealer.com

made in america* ƒ THREE WORDS NOT EVERYONE CAN SAY

Dear Dealers, Thank you, on behalf of all the employees of STIHL Inc. We are proud to manufacture, market and distribute the number one selling brand of chain saw worldwide and the number one brand of gasoline-powered handheld outdoor power equipment among landscape professionals in America.** We are also incredibly proud that the majority of products we sell in the U.S. are actually made here in Virginia Beach, VA. 2021 brought significant challenges for all of us, but we stayed STIHL Strong and experienced another record sales year! This success was in large part, due to the tremendous efforts of STIHL Dealers, and we thank you. While none of us can be certain what the future will bring, we will not let uncertainties slow us down. We continue to work diligently to overcome supply chain challenges as we plan in 2022 for more new products in our expanding battery range and groundbreaking enhancements to our gas range. Thank you again for your continued support. We send our best wishes for a safe and prosperous year. Together we will remain STIHL Strong in 2022. Sincerely, The Employees of STIHL Inc.

* A majority of STIHL products are made in America of U.S. and foreign materials. ** “Number one selling brand” claim based on 2007-2020 syndicated Irwin Broh research of the U.S. professional landscaper market. ©2021 STIHL

Independent Profile Fusek's Hardware owners Steve and Sue Fusek, who just opened a second store, stand with two-time Indy 500 winner Takuma Sato. Steve is also business manager for the race car champion.

PHOTO COURTESY OF RAHAL LETTERMAN LANIGAN RACING

Fusek’s Hardware accelerates in Indy FUSEK’S TRUE VALUE OPENS SECOND, BIGGER STORE; BUSY OWNER SCORES VISIBILIT Y, OUTDOOR SPACE. By Tim Burke

ith a belief in owning, rather than leasing, and confidence in Indianapolis, Steve Fusek, owner of Fusek’s True Value Hardware, recently opened a second store in the city. “We had a soft opening,” said Fusek, “we’ll have a grand opening in the spring of 2022, around the end of March.” HBSDealer caught up with the busy Fusek — who also serves as business manager for two-time Indianapolis 500 winner Takuma Sato — to ask him why he decided to expand. “We’ve been wanting to grow for a while now,” the owner said. For Steve and Sue Fusek, it all came down to finding the right property. “We we’re looking to buy this time. Our original store is a leased space. Buying the property was key.” Fusek said, “we wanted to be about 12,000 to 15,000 square feet inside and we wanted an outdoor space.” The outdoor space would solve some things that were lacking at the downtown store, said Fusek. “We wanted to expand our outdoor, our lawn and garden, just expand the whole offering. We really couldn’t do that at our original urban store. This new location has more of a rural feel to it, which we like.” The original Fusek’s True Value Hardware, located in the heart of downtown Indianapolis in the historic Lockerbie neighborhood, was established in June 2004 by Steve and Sue Fusek. The 10,000 square foot store was their first venture into retail hardware. “Hardware was top of the list of most needed elements to make a revived downtown more livable,” the Fusek’s said. At the new store, the owner said they are getting a great response from neighbors; additionally, there is the much sought-after store visibili-

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ty he was looking for. “There is great traffic on Washington Street. We figure about 27,000 cars a day. And people here are happy to see a hardware store in this area,” said Fusek. “We filled a niche coming in here — there was no hardware store before,” he said. The new store’s biggest sellers so far are Milwaukee Tool, “our single biggest driver,” he said, along with Benjamin Moore paint. Size matters as well with this new store. “We are a well-stocked, well-versed store, not a little store,” Fusek said. “And we went bigger in the plumbing department because there is a need.” Expanding to a second store in a business climate with significant supply chain issues might seem like a daunting task, but Fusek feels that he’s prepared. “When a customer walks into our new store, they don’t feel a supply chain issue — this store is full. True Value did a great job with inventory.” Since he’s expanded to a second store, he’s very busy these days, and his ‘new store buzz’ comes right across the phone as Fusek offers up some advice for other hardware owners thinking of growing. “I’m a big fan of owning property. If things don’t go as you expected, you can always sell, which give you a better ‘out’ if you need it,” he said, “and have a wholesaler who supports you.” Before he had to run, this busy twostore owner said, “I manage an Indy car driver on the side,” he laughed, “between that and running two stores, that’s enough for now.”

Steve Fusek wanted to own his new store, not lease, and wanted more space inside and out. He achieved that plus greater visibility in Indianapolis.

HBSDealer.com

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Cover Feature

THE RISE OF US LBM NATION The building products distributor continues to widen its national footprint through calculated acquisitions. By Andy Carlo

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HBSDealer.com

s the industry battled supply chain issues, inflation, price fluctuation, and labor issues in 2021, the challenges didn’t sway US LBM from growing its ranks. Rather, the building materials distributor became even more powerful through the calculated acquisitions of major regional players combined with greenfield openings. Since November of 2020, US LBM has made 21 acquisitions running from single unit yards to completing its acquisition of American Construction Source — a rising pro dealer powerhouse — that added more than 70 locations in Arizona, Arkansas, California, Colorado, Minnesota, Missouri, Nevada, Washington, and Wisconsin. While that acquisition was completed in June, the Buffalo Grove, Ill.-based company added major players to its stable throughout the past year including Brand Vaughan Lumber, Gilcrest/Jewett Lumber Company, Professional Builders Supply, Higginbotham Brothers, and Mid-Cape Home Centers, among others. According to US LBM President, CEO and founder L.T. Gibson, the blueprint for expansion is the same plan that was put into place when the company was founded in 2009 with 16 locations in 3 states. “Our strategy has been the same since US LBM was founded: to partner with market-leading businesses that have similar cultures to ours, strong teams and are additive to US LBM, either by bringing us into a new market or expanding our presence and capabilities in an existing market,” Gibson says. “What we saw in late 2020 and throughout 2021 were numerous opportunities for us to execute our strategy, and we’ll continue to take the opportunities to add when and where it fits our criteria and makes sense for us to do so.” Fueling the opportunities is the move made by Bain Capital Private Equity when it acquired a majority stake in US LBM in late 2020. “Bain has been a tremendous partner,” Gibson notes. “Just as we do with our local divisions, they provide us the support and resources needed for us to make additional acquisitions and to continue to grow our business. They’re excited for our growth and the opportunities that exist when we bring these market-leaders together.” The company reached approximately $9 billion in gross sales for 2021, including revenue from companies acquired during the year. US LBM is obviously not randomly throwing darts at a map when it chooses to acquire companies. Rather, the dealer is looking for businesses that have a great local presence and reputation, a complementary culture, and high-quality management teams in markets that are growing. “We spend a lot of time in due diligence analyzing various aspects of each target business,” says US LBM Senior Vice President of Mergers and Acquisitions Jim Hooper. “We not only look at the quantitative factors around the business, like historical growth and quality of earnings, but we also spend a lot of time analyzing the qualitative factors of the business like the reputation of the business and, most importantly, the quality of the management team and their desire to help us take the business to the next level.” Hooper notes that management continuity is one of the most important factors for US LBM in most acquisitions. “We spend a HBSDealer.com

Brand Vaughan Lumber, serving the greater Atlanta metro market, was among the major regional players acquried by US LBM in 2021.

HARDWARE + BUILDING SUPPLY DEALER

Cover Feature

J.P. Hart Lumber & Components (above) in Texas and Maner Builders Supply, serving Georgia and South Carolina (left), have helped build upon US LBM's national presence.

lot of time ensuring that we have alignment with the local management team both from a culture and future expectation standpoint.”

Big in Texas

Texas celebrates all things big, and US LBM acted accordingly last year. The Lone Star State remains one of the fastest-growing U.S. markets for the past several years, including some of the nation’s largest housing markets: Dallas/Fort Worth, Houston, Austin, and San Antonio. Hooper says these markets are growing at above-average rates in comparison to the rest of the country. “We have been working over the past several years to find the right entry points in several key markets in Texas,” Hooper explains. While heading into 2021, US LBM employed a strategic plan to attack Texas “in a big way,” according to Hooper. And the right opportunities became available, including Higginbotham Brothers, J.P. Hart Lumber and Hart Components, Oldham Lumber, and Arrowhead Trim & Stairs. The series of Texas acquisitions gave US LBM well over 40 new locations in the state. “The unique aspect of our strategy in Texas is that we have built out a portfolio in Texas now that serves a variety of geographies and customer segments,” Hooper says.

“Through J.P. Hart, we service all of the large MSA’s in the state where a majority of the large production builder business is. Through our Higginbothams acquisition, combined with our existing Parker’s business, we now service a majority of the smaller, yet growing markets in the state.” Moves made in Texas were also beneficial during the pandemic as a flight to the suburbs and secondary markets strengthened. Through the Higginbotham purchase and its Parker’s Building Supply division, US LBM can now service the secondary markets including DIY and smaller trade efforts. With the additions of Oldham and Arrowhead, US LBM now has additional coverage in the Dallas/Fort Worth market, allowing the company to service customers with additional product lines, Hooper notes.

In the mix

Throughout its history of expansion, US LBM has been striving to offer a diverse product mix. The company currently sits at about 72% specialty products, including doors, windows, cabinetry, roofing, siding, decking, drywall, millwork, engineered components, and 28% wood products. “Our customer base runs from custom home builders to national builders to commercial builders to specialty contractors,” Gibson says. “Our divisions run the range of providing materials and manufactured components and construction and installation services to large

“Our strategy has been the same since US LBM was founded: to partner with market-leading businesses that have similar cultures to ours, strong teams and are additive to US LBM, either by bringing us into a new market or expanding our presence and capabilities in an existing market.” —L.T. Gibson, CEO and Founder, US LBM

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

US LBM Acquisition Timeline national builders or large custom production builders to others that operate a more ‘home center’ model and service contractors and DIYers.” Additional divisions focus on specialty offerings such as drywall, windows, doors or millwork. “Our strategy is simple – provide the customer what they need and whatever we provide them with, we do it well,” Gibson says. It’s not a one-size-fits-all approach either as US LBM adopts specific plans and programs around how it can best serve the customers in its markets while continuing to grow its business. “The advantage of us coming together as one enterprise is that in one market we may have strong relationships with specific customer types or a range of competencies in a category or specialty area, and we’re able to build on those relationships or embed and replicate those capabilities in other markets,” says Gibson. Gibson also noted that he is particularly proud of the company’s charitable arm, the US LBM Foundation, founded in 2013. In 2021, it donated more than $400,000 to charities. Its efforts included partnering with the Gary Sinise Foundation to help build custom housing for wounded veterans, providing funding to support tornado victims, and teaming with Meals on Wheels to combat hunger and isolation among senior citizens.

Supply challenges

But looking to the rest of 2022 and beyond, disruptions continue to daunt the industry. Supply chain issues continue to be a challenge while long lead times across multiple product lines have increased the cycle time from start to close in residential construction. “In some cases, this caps the ability of our customers to grow,” says Pat Managan, senior vice president of Supply Chain at US LBM. “Additionally, volatility in commodity lumber and panel prices add complexity for our customers in how they take their products to market.” The buying power and national strength of US LBM have been key in assisting customers in local markets. US LBM’s

Acquired this past September, Mid-Cape Home Centers strengthens US LBM's presence in Massachusetts and New England.

HBSDealer.com

Here are the acquisitions US LBM has made since November 2020. Company Acquired Zeeland Lumber & Supply Ridgefield Supply

11/1/2020 12/1/2020

Tri-County Building Supplies

12/17/2020

Gilcrest/Jewett

12/31/2020

Jennings Builders Supply

12/31/2020

Villaume Industries

2/1/2021

Higginbotham Brothers

5/1/2021

J.P. Hart Lumber & Components

7/1/2021

Brand Vaughan Lumber

7/1/2021

American Construction Source (ACS)

7/1/2021

Home Center Supply

7/1/2021

Massey Builders Supply

8/1/2021

Junior's Building Materials

8/1/2021

North Georgia Building Supply

8/1/2021

Mid-Cape Home Centers

9/1/2021

Northern Building Supply

9/1/2021

Oldham Lumber

10/1/2021

BuilderUp

11/1/2021

Arrowhead Stairs & Trim

11/1/2021

Barrons

12/1/2021

Professional Builders Supply

12/1/2021

size allows it to navigate the supply chain. Gibson says that US LBM has strengthened its relationships and partnerships with strategic suppliers, enhanced the company’s demand planning process and increased communications to help battle the supply chain environment. “With supply chains tight, those relationships have been critical in allowing us to keep running our day-to-day operations while still organically growing, opening five roofing and siding focused greenfields last year and two more this year,” Gibson says. “Those greenfields have been in adjacent areas to existing markets for us, allowing us to grow with and support our customers as they expand, knowing they can rely on the brands, service, and quality we bring.” Events of the past 18 months have also accelerated customers buying into using new technology. Gibson notes that US LBM was one of the first dealers to introduce a mobile app and now the company is focusing on how it can build on technology, including making it easier for customers to do business with the company. The LBM industry is ripe for additional acquisitions to come. The next four to five years are projected to witness large numbers of owners and executives retiring from family-owned LBM businesses. Gibson says independents are looking to sell for a variety of reasons, including the pandemic, supply chain, tax and labor issues, while seeing record sales dollars, in large part HARDWARE + BUILDING SUPPLY DEALER Januar y 2022

Cover Feature because of high lumber prices and now inflation—all of which are occurring against a backdrop of strong forecasts for construction. “Obviously, there may be more opportunities and competition because of the general condition of the market and the country, but our philosophy has not changed—we’re still looking to partner with the best companies in their markets with strong teams in place,” the CEO says. US LBM expects demand to continue outpacing supply in the coming year. Gibson also points out that the flexibility of remote working coupled with the rising costs for renters is

pushing more people to buy in new places. “Starts and permits may bounce up and down month to month, which we just saw with November housing starts being below the forecasted rate nationally but shattering expectations in December with the highest levels since March. But the consensus is that we’ll see the overall trend continue to be upward in 2022 and 2023 nationally,” Gibson says. With new construction rates differing from region to region, US LBM benefits from its geographic diversity. “In other markets, you might see new construction growth at lower rates balanced by higher rates in repair and remodel, and the diversity of our product mix, geographies, and operational expertise allow us to realize those opportunities, “We spend a lot of time too,” Gibson explains. ensuring that we have “Ultimately, our vision is to create alignment with the local the most respected and admired compamanagement team both ny in building products distribution,” Gibson says. “We’ve seen over the past from a culture and future two years just how much faster we can expectation standpoint.” go when we’re all moving in the same —Jim Hooper, VP mergers and acquisitions, US LBM direction together.”

Maintaining and building new legacies US LBM looks to enhance the abilities and culture of its associates and businesses. US LBM President and CEO L.T. Gibson says the company strives to enhance the work of its local leaders and teams. This includes the everyday service and support of customers by providing its divisions and companies with the right tools, resources, expertise, and financial needs so that they can be successful and win in their local markets. “The buying power and national strength of US LBM are important and help acquisitions with access to new products or lines they couldn’t carry before,” Gibson says. “We have dedicated internal teams that support new businesses through technology, human resources, recruiting, purchasing, and finance that help provide local leaders the ability to focus on their market and customers more directly.” Although the advantages of US LBM’s systems and buying power are important, the company looks for its acquisition partners to bring something new to the table too. Whether it’s a new capability, a new market, and territory or complimenting a market where US LBM has an established presence but is looking to do more. Gibson notes that when US LBM acquired American Construction Source in July, the move brought much more to the table than an additional 70-plus locations.

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“We added in key markets while we were able to augment our supply chain organization and model, which was one of the real value adds for us through the acquisition,” Gibson says. US LBM is also focused on the people who join the company through acquisitions. “It’s not just helping new acquisitions fill key positions, but helping them to cultivate and grow their existing team members through our suite of training programs,” says Wendy Whiteash, chief human resources officer and executive vice president, culture, at US LBM. Training includes US LBM’s Yellow and Green Belt Lean Six Sigma programs and “Pulse,” which is a year-long training program for the organization’s next generation of top leaders. The latest edition of Pulse was launched in December and more than half the class of 24 participants are from divisions that weren’t part of US LBM 15 months ago. “We are one company. So when businesses join US LBM, that also gives new associates more opportunities to grow in their careers,” Whiteash says. “If they’re in a specialist support role, now they have a path forward where they may have the opportunity to not just support one business, but perhaps a market or region. Or if they’re on a leadership track and their home division doesn’t have an opportunity for them to progress, with our nationwide network, there might be an opportunity for them to move into another division.”

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Building on the Brand Vaughan foundation Brand Vaughan Lumber wasn’t shopping its business around this past year. But in recent years, the pro dealer built a relationship with US LBM CEO L.T. Gibson and Jim Hooper, US LBM senior vice president of mergers and acquisitions. “We have a vision for how our brand can grow and the opportunity to partner with an organization that has the same mission for people and values along with the resources and desire to grow in a sustainable way opened up further conversations,” says Jon Vaughan, regional vice president at US LBM and former owner, CEO and president of Brand Vaughan Lumber. A desire to reinforce a seven-decade history serving the metro Atlanta market, along with aspirations of future growth, eventually led the dealer to join the US LBM family of companies. “We see the opportunity to grow the business, grow our people, grow in innovation, and have the capital to scale and grow,” Vaughan told HBSDealer. With about 250 employees, Brand Vaughan sells framing lumber, engineered wood products, trusses, roofing, siding, windows and exterior doors, interior doors and trim, metal products, and concrete accessories. The business also provides installed services for structural framing, siding, windows and doors, and interior doors and trim.

Brand Vaughan Lumber joined the US LBM family of businesses this past summer.

US LBM is also proud of the legacies of the companies it has acquired. “Our model is to acquire market-leading businesses, so we see a lot of value locally in both the names customers know and trust,” Gibson says. “Ultimately, we’re one company and operate as such; however, some of these names have histories that go back more than a century and helped to build and establish this entire industry and are known far beyond their local area.” But what about continuing these legacies and attracting new personnel to the industry? US LBM is increasingly leveraging its name as a national hiring brand, particularly to help attract newcomers to the industry. “We’re not looking to change our go-to-market strategy, and we are proud of our shared legacies," Whiteash explains. "But the attraction of joining a growing, national company and what we can offer through training, benefits, and more while maintaining that lo-

Since joining US LBM, Vaughan says one of the parent company’s most impactful moves has been the ability to open a truss shop while providing expertise. “That was something that was very needed for us, and US LBM immediately saw the opportunity to add that capability and invested,” Vaughan says. “That will make huge strides for our business.” Additionally, US LBM has been invaluable in assisting Brand Vaughan through supply chain challenges. “Being able to help other divisions with inventory through transfers, assessing the market and relating it to our inventory position, and creating a strategy to deal with supply disruptions going forward will be huge for our business,” Vaughan explains.

cal connectivity and community presence is incredibly appealing to candidates from outside of the industry and new members of the workforce." One of the areas US LBM has focused on is rebuilding the pipeline of leaders and creating the next generation of LBM management. US LBM continues to evaluate and try new approaches to recruiting and retaining top talent including targeted recruitment campaigns, utilizing tech in hiring and onboarding, bonuses, recognition, and advertisements. The company also recently launched a trainee program in several markets, Lead US, providing recent hires the opportunity to learn through hands-on and classroom experiences and build a career in sales, management, logistics and supply chain. But US LBM has found that what stands out in the modern workforce is company culture while making roles and environments more inviting for everyone. “Over the past several years, we’ve also made a concerted effort to encourage and attract more women into the industry by raising awareness of the variety of career paths available and sharing success stories of the women of US LBM today,” Whiteash says. “Employees don’t want just a job, but a place where they can belong, and build and grow a career while doing rewarding work,” Whiteash adds. “We’re an inclusive and open culture — there are unlimited opportunities for everyone.”

“We are one company. So when businesses join US LBM, that also gives new associates more opportunities to grow in their careers.” —Wendy Whiteash, chief human resources officer and exectutive VP, culture, US LBM

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HARDWARE + BUILDING SUPPLY DEALER Januar y 2022

Outdoor Products At Home Depot (left) and elsewhere, it's not just about the product, it's about the platform.

legislation,” Schieber said. “But down the road, we might be hard pressed to find it in residential areas.” On the merchandising side of the business, the move to battery powered product raises the stakes for that initial sale into a specific battery platform. “Once they buy our platform, they’re in our platform,” said Todd Zimmerman of Worx, a popular brand of Positech. Meanwhile, the battery powered movement has its own challenges — the availability of lithium ion is limited by the general supply chain issues. And as electric cars become more popular, that could add to the scarcity. And battery-powered products reduce air pollution and noise pollution, the environmentally friendly story of batteries is clouded by less visible factors — the energy required to harvest precious metals to produce batteries, for instance. Gas-powered product is particularly strong among the pro segment, who rely on BAT TERIES SURGE IN THE OUTDOOR the run time and power of the gas products. POWER EQUIPMENT AISLE Tom Cost, owner of Killingworth (Conn.) True Value told HBSDealer: “I am on the he years-in-the-making trend toward battery-powered lawnmowside of advocating for cleaner burning gas ers, leaf blowers and other species of outdoor power equipment engines along with cleaner burning fuels.” is gaining a push from legislatures that are either moving to ban In California, Augie Venezia of Fairfax gas-powered OPE, or considering to do so. Lumber and Hardware told HBSDealer: California is moving toward such a ban that would include gas-powered “We face the fact that the state does not lawnmowers, and it could take effect as early as 2024. Some have the infrastructure to cities — including Washington, D.C. — have already banned distribute the increase in certain gas-powered OPE products. needed electricity to take The retail responses vary, but battery-powered product the place of gasoline, diesel is gaining prominence on shelves everywhere, according and propane.” to Memphis, Tenn.-based Orgill’s Alan Shore, director of Meanwhile, the market seasonal merchandise, and Matt Ray, senior category continues to see gas-engine manager, outdoor living. “Nearly all retailers seem to be innovations tthat boost fuel transitioning some of their power equipment assortment efficiency and reduce noise. to battery-powered alternatives,” said Shore. The battery pow“Many of the traditional gas equipment manufacturers are ered movement is still adjusting their assortment to incorporate more battery-powlooking for its holy-grail ered options,” added Ray. moment, Zimmerman Demand and competition are charging forward. said. “Whoever’s the first “There is far more promotional and buying activity manufacturer out there —Matt Ray, senior category manager, surrounding battery-powered categories as vendors that can provide a battery outdoor living, Orgill's Alan Store compete to get their platform/batteries into the markettechnology that can give place,” said Brad Schieber, merchandise manager for them the run time of a outdoor power equipment at Fort Wayne, Ind.-based Do it Best Corp. gas blower at the power of a gas blower “This is especially true for handheld OPE.” will change the game forever. But that’s Gas powered product “will never go away completely, barring nationwide going to take a little while.”

A charging category

“Many of the traditional gas equipment manufacturers are adjusting their assortment to incorporate more battery-powered options.”

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

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Worx Nitro 80V 21” Self-Propelled Lawnmower With the Worx Power Share platform, the Worx Nitro leverages the expanded power of four 20V high-capacity batteries for “gas-like performance.” A high-efficiency brushless motor parts and an Auto-IntelliCut Technology adjusts for various lawn conditions. A charge-level indicator provides a quick reference to the remaining run time. Worx.com

Cub Cadet SurePath semi-autonomous commercial mower What does semi-autonomous mean? The Valley City, Ohio-based company explains that the operator simply sets the preliminary cut line, and the PRO Z SurePath units will perform straight cutting paths with an auto-zero-turn at the end of each pass with the touch of a button. The SurePath units are equipped with Global Positioning Satellite technology and a sophisticated four-wheel steering system that’s designed to make cutting more efficient and more precise than traditional lap bar steering systems. CubCadet.com

Makita ConnectX The Makita ConnectX Portable Power Supply is Makita’s highest capacity battery with a full 1,200 watt hours. The innovative backpack-style energy-delivery system can connect to compatible ConnectX, XGT and LXT products via a cord and adapter. And it can also be removed and mounted directly onto a compatible mower for up to 3 hours of cutting. Makitatools.com

STIHL MS 881 R Magnum Chain saw In addition to its recently launched STIHL Professional Battery 135 Platform, STIHL continues to improve its gas-powered engines. Case in point: the rugged MS 881 R Magnum, gives pros the largest, most powerful saw in the STIHL lineup. Pros can tackle the toughest and most demanding jobs thanks to the updated engine design and up to 41” guide bar length. Time-saving design and features include greater fuel efficiency and the stop switch, which automatically returns to run position after the engine is stopped, reducing the chance of flooding the engine when starting. Stihlusa.com

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Outdoor Product News

Stanley’s outdoor power play Stanley Black & Decker completed the acquisition of two companies in the outdoor power equipment industry: MTD Holdings Inc., and Excel Industries. “The combination of these two high-quality, complementary businesses with our existing outdoor business creates a powerful growth engine with approximately $4 billion in annual revenue across the $25 billion-plus outdoor power equipment industry,” said Stanley Black & Decker CEO, James M. Loree. The purchase price for the two transactions, New Britain, Conn.-based Stanley Black & Decker said, totaled $1.9 billion inclusive of standard purchase price adjustments. The world’s largest tool maker purchased the remaining 80% ownership stake in MTD Holdings Inc. The company provides cordless electric outdoor power equipment with brands such as DeWalt, Craftsman and Black+Decker. Going forward to next year, Stanley Black & Decker said it will continue to expect these acquisitions to contribute approximately $0.50 of EPS accretion. The firm said it is incorporating $0.20 to $0.30 of deal related charges into its full-year 2021 GAAP earnings per share guidance. “These transactions will be accretive to our 2022 earnings and have the potential of further margin expansion as we integrate these great businesses,” said Loree. “Combined, this is a platform well positioned for growth

and to lead the electrification of outdoor products with a strong portfolio of iconic brands, industry-leading innovation and extensive engineering and manufacturing capabilities,” said the CEO. The company said MTD inspires people to care for and enjoy the outdoors. It is known for innovative and award-winning lawn mowers, snow blowers, trimmers, and outdoor power equipment for both residential and commercial markets. Founded in 1932, MTD is headquartered in Valley City, Ohio. The MTD family of brands includes Cub Cadet, Troy-Bilt, Robomow, Rover, and WOLF-Garten. Founded and based in Hesston, Kansas, Excel is a leading designer and manufacturer of premium commercial and residential turf equipment under the distinct brands of Hustler Turf Equipment (Hustler) and BigDog Mower Co. (BigDog). “The acquisitions add deep customer relationships in retail and more than 2,500 independent equipment dealer outlets serving the professional category,” said Loree. “We welcome the 8,100 associates from MTD and Excel to Stanley Black & Decker and look forward to a seamless integration process.”

Toro tees up with the R&A The R&A, the U.K.based governing body of golf, has named the Toro Company as a founding partner and official golf course maintenance partner for its planned community golf facility at Lethamhill in Glasgow, Scotland. The development aims to make golf more accessible, appealing and inclusive for

people of all ages and backgrounds by creating an open and affordable pathway into golf that helps drive the fu-

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ture of the sport. At the heart of facility, the R&A said it is committed to showcasing the gold standard in golf course maintenance, turf care, equipment innovation and development. To that end, they have selected Toro to join them in the development and fulfillment of their mission. “It is both humbling

and exciting to see Toro’s equipment and irrigation solutions advance the R&A’s sustainability efforts, and we look forward to helping its team bring plans for the new facility to reality,” said Peter Moeller, vice president of international at The Toro Company. As part of this role, Toro will be the exclusive supplier of all course maintenance equipment to the new facility.

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Paint Products

PPG is primed for pros at Home Depot A NE W, OR ANGE HOME FOR SPEEDHIDE, MULTI-PRO, PERMA-CRE TE AND MORE.

The Home Depot will also stock localized specialty assortments based on needs of certain segments and specifications, the companies said. “Through this expanded strategic relationship with The Home Depot, we are leveraging the strengths of our combined organizations to deliver tremendous value to the professional customer,” said Jaime Irick, vice president, architectural coatings, U.S. and Canada. “We look forward to utilizing PPG’s team of paint experts, leading professional paint products, and national, digital fulfillment network in combination with The Home Depot’s vast national store footprint to service the professional and drive strong growth for both organizations.” Other PPG products that have long been sold through the Home Depot include PPG’s Glidden brand, as well as Liquid Nails adhesive and Olympic stain.

A Gush of fresh air There’s more PPG on the shelves at Home Depot.

ittsburgh-based paint giant PPG is rolling out a new pro-oriented product lineup and services offering at The Home Depot. The full product lineup will also be available through HD Supply, a wholly-owned subsidiary of The Home Depot and a leading national distributor of maintenance, repair and operations (MRO) products. “We’re proud to expand our relationship with PPG to ensure The Home Depot is a one-stop-shop for paint, supplies and other items to help pros complete their projects with ease and convenience,” said Chris Waits, vice president, merchandising, The Home Depot. “Our enhanced relationship with PPG will allow us to further deliver on the needs of our pro customers.” At the Home Depot, the new product lineup began rolling out on shelves in the fourth quarter of 2021 and will be available in all U.S. Home Depot stores. The two companies announced the expanded partnership Wednesday morning, bringing to Home Depot a lineup of PPG sub-brands that includes: PPG Speedhide Interior, PPG Break-Through!, PPG Multi-Pro, PPG Speedhide Pro-EV Zero, PPG Perma-Crete concrete paint and stain, PPG Permanizer exterior paint and PPG Copper Armor. The PPG pro product line available at The Home Depot and HD Supply will continue to be available at PPG Paint stores and independent dealers. And as the paint giant expands its reach with The Home Depot, PPG independent dealers will also continue to maintain exclusives with PPG Weather King, Wonder-Tones, PPG Manor Hall and Ultra-Hide. “Our hope is that dealers will benefit from the national visibility of PPG through our expanded relationship with The Home Depot and HD Supply, in order to drive brand preference for pros, no matter where they prefer to shop,” a PPG spokeswoman told HBSDealer.

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One of the front-and-center featured products from the recent National Hardware Show Habitat exhibit, Gush’s Cair Air-Purifying interior paint promotes an ambitious list of benefits. In addition to its titular air-purifying power — by purifying indoor spaces of airborne pollutants — the odorless, zero-VOC paint also “absorbs and releases moisture to maintain humidity at comfortable levels.” Singapore-based Gush embraces a sustainable image. It commits to planting ten trees per house painted through Eden Reforestation Projects.

Seen in Las Vegas: Cair’s air-friendly coatings.

HARDWARE + BUILDING SUPPLY DEALER Januar y 2022

Smart Home Products

Smarter products for high-tech homes COMMUNICATION MEE TS AUTOMATION Lisa Goulian Twiste

“All these devices are starting to talk to each other through Amazon, Google or Apple Home. It’s starting to work pretty seamlessly, and it doesn’t take a PhD in physics to use them,” Farnsworth said. “Customers want to make life better, easier and more efficient, and a lot of Smart Home products are enabling that. If the oven is on and shouldn’t be, it shuts automatically. If a garage door has been open for three hours straight, it automatically closes. There are doors that lock themselves at 10 p.m. and thermostats that act according to your habits. A homeowner can now install his own alarm system — something unthinkable 10 years ago.”

A growing list of smart products

Smart Home illustration from Homedepot.com

he concept of Smart Home technology is nothing new. It can be traced back to the turn of the 20th Century with the introduction of remote controls and the first home appliances. But the Smart Home of today is something much more complex and transformative. It’s a place where systems can communicate with each other and be controlled with a smart device either inside the home or out, making life easier and more convenient. People really started taking notice of modern Smart Home technology about a decade ago with products like speakers, light switches and robotic vacuum cleaners, but it’s only in the last five years we’ve seen mass adoption in appliances, lighting, HVAC, audio/visual, computers, home security and other categories. According to industry statistics, the Smart Home market went from $55 billion in 2016 to nearly $80 billion last year, and a recent report from Fortune Business Insights said this number should reach $622 billion by 2026. According to Grant Farnsworth, president of the Farnsworth Group and a respected analyst of the building/construction and home improvement industries, the market is growing more rapidly because the latest generation of products is easier to use, more intuitive and less intimidating to homeowners. At the same time, contractors are becoming more comfortable with Smart Home technology due to fewer callbacks, simplicity of the products, ease of installation and connectivity of platforms.

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The Smart Home market has seen an explosion of new products in the last few years, from Nest Protect, a smoke and carbon monoxide detector that alerts you of potential danger, to the Wyze Cam v2 Wi-Fi-enabled camera, which lets you see everything going on at home without paying a monthly fee, There’s Garagesmart, which includes tools that simplify tasks like storing large items, parking a car safely in your garage and lifting the top off a truck. And we are also seeing a proliferation of wholehouse air-purification systems and smart light bulbs that adjust to your mood as part of a more recent trend emphasizing the connection between a Smart Home and a healthy home. Wayne, a leading maker of water management solutions, recently introduced the Basement Guardian HALO, the first Alexa-compatible device to give homeowners real-time control of and information about the operation of their basement sump pump. According to Adam Justice, CEO of Grid Connect, which worked with Wayne to develop the HALO, Smart Home technology has come a long way — even since the 2018 launch of Gemini, the first-generation Basement Guardian product. “It started with products that would make people say, ‘Ooh, that’s neat. I can turn a light on or off.’ Now, it’s about devices that can solve specific problems,” Justice said. “The Gemini sump pump was a nice monitor type experience, but the new product has much deeper integration and was designed with ‘smart’ in mind from the beginning. The

"It started with products that would make people say, ‘Ooh, that’s neat. I can turn a light on or off.’ Now, it’s about devices that can solve specific problems." —Adam Justice, Grid Connect

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The Basement Guardian Halo smart pump with app.

setup is easier, the app is better, and Wayne HALO will alert you well before the system is going to fail.” Wasserstein, a leading smart-home accessory manufacturer and Made for Google product partner, features nine accessories made exclusively for the new Google Nest Cam and Google Nest Doorbell. In terms of innovation, Christopher Maiwald, founder and managing director of Wasserstein, points to the introduction of the sleep monitoring function of the Home Hub 2nd gen by Google Nest, which enables the device to monitor your sleep habits without the use of a smartwatch. “In addition, the new Google Nest Cam (battery) and Nest Doorbell are best-in-class, utilizing hardware and software with a notable commitment to privacy and security,” he said. “This is another trend amongst smart home technology: a greater focus on home security. At Wasserstein, we are proud to support this line with premium accessories that keep your smart devices safe and functioning at their highest level to provide the ultimate home protection.”

but it’s been slow growth, said Electric Merchandise Manager Greg Fields. The co-op’s most popular category continues to be light bulbs, followed by connected thermostats and door locks. “We provide our member stores with a connected home planogram so they can feature the products merchandised together in one single location,” he said. “However, in electrical, we also feature the connected light bulbs in our light bulb planograms as a way to provide store owners with an opportunity to up-sell the consumer in the light bulb aisle.” Maiwald says that when his company first started talking to retailers about in-store programs in 2017, even Best Buy, one of the most progressive retailers when it comes to emerging technology trends, took a conservative approach in buying and only offered to test products online. “Fast forward to 2021, and they have now significantly extended the number of Smart Home brands they carry far beyond the obvious choices of Google Nest, Ring, Amazon and Arlo,” he said, adding that Best Buy will carry five Wasserstein products in-store and now offers the entire product portfolio online. “As the appetite for smart home technology grew, so did retailers’ interest in Smart Home accessories.”

How “Smart” are home improvement retailers?

When it comes to selling Smart Home products, home improvement retailers are still trying to figure out whether to cluster them in one section or market them within their specific category. A recent visit to a Lowe’s and a Home Depot in Hackettstown, New Jersey, showed Lowe’s doing the former in a locked display at the front of the store, and Home Depot the latter, with Google Nest products in the electrical department and Nest, ecobee and Emerson Sensi smart thermostats in their own display closer to the registers. “It’s still about customers first and what they want from any particular category, and being a smart product may be third or fourth on someone’s list of what they want in a light switch,” Farnsworth said. “That’s where they’re running into trouble: there are a lot of disparate categories, and they’re trying to put it all together for the consumer to put across the message: it does everything you want and it’s a smart device.” Do it Best continues to see growth in connected home SKUs,

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Top Image: Smart floodlights from Wasserstein. Above: Crossover smarts: The Wasserstein Solar Panel can quickly charge the Nest Cam.

HARDWARE + BUILDING SUPPLY DEALER Januar y 2022

Industry Q&A

The Brock Commons Tallwood House at the University of British Columbia.

Inside Mass Timber THE CEO OF STRUCTURL AM SHARES THE STATE OF THE BUSINESS

hile the pandemic has had long-term impacts on inflation, the supply chain, and labor, among other pieces of the residential-construction puzzle, the mass-timber market has been impacted as well. HBSDealer discussed mass timber and how obstacles have been overcome with Structurlam CEO, Hardy Wentzel. The company’s top executive also provided insight into where the company is headed. Here’s what Wentzel had to say about the mass timber market and the future of Structurlam. HBSDealer: How did the pandemic impact the progress mass timber solutions were making in the construction market? HW: The pandemic did have an impact, but we were able to navigate around it. In early 2020, we had several large projects in production, and our clients wanted us to continue on through COVID. They had confidence they would have a workaround solution. That got us through a large part of the crisis, but we are still feeling lingering effects today. Some projects were postponed and delayed, especially the ones that were about to put a shovel in the ground. Those are the projects where people hit the pause button. There have also been ripple effects in regard to the supply chain impact on lumber and the cost of lumber. The cost of the raw materials we buy, such as lumber, has risen. We don’t make the lumber that Structurlam goes into mass construction. CEO, Hardy Lumber is about 50% of our input cost to make Wentzel mass timber — when it goes up three times in pricing, you can imagine how that causes a lot of concern for everyone. We are not a vertically integrated group and we do not have to be. We can buy lumber anywhere. The other part of COVID that impacted us was the

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construction of our new plant in Arkansas. We put a shovel in the ground in March 2020 and had hundreds of containers of mass timber manufacturing equipment from Europe and North America that were fortunately not held up because of our planning and organizing. So we had COVID implications on our mainstream business as well as building our plant, but the plant is scheduled to start-up in the coming weeks. HBSDealer: How is Structurlam advancing its message about mass timber solutions? HW: A lot of the messaging is happening on many levels. We have sales engineers in all the major markets. They are mass timber specialists who are supported by Structurlam’s technical services group in British Columbia. We’re also able to reach quite a wide audience through our social media outreach and are also seeing more mainstream media outlets cover mass timber and sustainable building. Our mass timber specialists are all engineers or architects who talk to developers and building owners, architects, engineers, and builders. We have a lot of technical support materials to figure out loads, fire codes, sound acoustics, and all of the technical questions about building with a new building material. HBSDealer: What type of edge does Structurlam provide its customers?

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HW: We call it the “Structurlam Advantage.” Our company has been making glue-laminated timber for nearly 60 years. Structurlam has a legacy of making very complex, heavy timber structures. In 2011, we were one of the first producers of cross-laminated timber (CLT) and we’ve already completed hundreds of projects for key customers, including Google, Walmart and Microsoft.

That was a big revelation when the building code people allowed us to increase from 6 to 18. But as you go up from 6 to 12 to 18, there are different requirements on fire protection. With these building code changes, I think we are going to see a big uptake on multifamily and mixed-use mass timber construction. HBSDealer: What is the long-term goal for Structurlam when it comes to the use of mass timber in construction?

HBSDealer: How many mass timber projects are underway that include Structurlam’s involvement? HW: Our sales funnel starts with a lead from serious people and it’s filling in nicely for 2022. It’s construction, which always has schedule changes, so it’s important to be nimble in our industry. But we have a robust order file and we can do more.

HW: Our ultimate goal is to bring awareness to the sustainability and structural benefits of mass timber. Mass timber construction is faster, more efficient and more precise than traditional construction methods, with buildings constructed approximately 25% faster than with concrete and up to 90% less construction delivery traffic. Mass timber buildings have a third of the greenhouse gas warming potential of concrete buildings, and nearly half that of steel buildings. We can grow trees and grow more than we harvest. The trees are the lungs of our planet — they keep the carbon in the tree and give back the oxygen. When you put it in mass timber, the carbon is stored. That’s a huge story.

HBSDealer: Is mass timber being used more in commercial construction or residential construction? And what might lie ahead for residential construction? HW: Commercial — but we see opportunities for growth in residential construction. In the multi-family sector, there have been new code changes. The International Building Code in the United States now allows up to 18 stories of mass timber construction.

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Acquisitions National Lumber in 2020 was recognized by HBSDealer and the NLBMDA as ProDealer of the Year.

Builders FirstSource builds in New England NATIONAL LUMBER OF MANSFIELD, MASS., JOINS THE TE AM By Andy Carlo

he drumbeat of consolidations across the LBM industry is reverberating with particularly high volume in New England, where another major regional pro dealer signed a deal with a large and growing national power. In early January, Builders FirstSource announced that it had completed the acquisition of National Lumber. The move combines the cover story of HBSDealer in September 2021, with the cover story of October 2020. Based in Mansfield, Mass., National Lumber has been one of the largest independent dealers in New England. The company operates 19 locations in Massachusetts, Connecticut, and Rhode Island with more than 700 employees. According to Builders FirstSource, National Lumber is expected to reach sales of about $440 million in 2021. The financial terms of the acquisition were not disclosed by Builders FirstSource. “We are thrilled to further expand our capabilities into New England by welcoming National Lumber to the Builders FirstSource family,” Dave Flitman, president and CEO of Builders FirstSource, said in a press release issued this morning. “The company’s diverse building materials and service offerings, which include prefabricated components to millwork and their strong R&R mix, will add even more depth to the value-added solutions Builders FirstSource customers rely on.” Flitman also noted that Builders FirstSource will while continuing to pursue additional acquisition opportunities.

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

“Following 87 years as a family-owned company, we are excited about our future with BFS, the biggest, and more importantly, the best supplier of building materials to professionals in the country,” said Steven Kaitz, National Lumber Co-CEO. “My sister, Margie, and I have been stewards for over 45 years of a business built by our grandfather, dad, uncle and now our dedicated employees, who will get to share in our continued success.” In 2020, National Lumber was recognized by HBSDealer and the National Lumber and Building Material Dealers Association as the ProDealer of the Year. National Lumber President Manny Pina, along with other key members of senior leadership, will continue their tenures managing local operations following the acquisition. The JIAN Group LLC acted as financial advisor to National Lumber. National Lumber’s portfolio includes 10 lumberyards, 11 Benjamin Moore paint locations, 7 Kitchen Views showrooms, and 2 Reliable Truss and Components manufacturing facilities. The company also operates specialized divisions that include engineering, drywall, installed insulation, and custom millwork manufacturing. Builders FirstSource’s acquisition of National Lumber marks the third in a string of major acquisitions of high-profile Massachusetts-based independent dealers in the past six months. Last September US LBM acquired Mid-Cape Home Centers with six locations in the southern coastal region of Massachusetts. In December, Hyannis, Mass.based Shepley Wood Products joined Kodiak Building Partners. Dallas, Texas-based Builders FirstSource operates about 580 locations in 42 states. This includes facilities in 85 of the top 100 housing markets.

The October 2020 cover story (top) is now part of the September 2021 cover story (above).

HBSDealer.com

Top Women interview series LITA ABELE’S CAREER JOURNE Y IS FUELED BY A DESIRE TO ACHIE VE

ita Abele’s journey to the corner office stands out as an LBM success story with several plot twists. She arrived in the U.S in 1981 as an immigrant from the Philippines, taking jobs as house cleaner and nanny. Drawing from her inner strength — and unlikely inspiration from a bold character in a prime-time soap opera — Abele followed her dream to own a business. She learned the ropes of the lumber industry from her husband (Merrill Abele, now semi-retired), and is now pulling the strings as president and CEO of U.S. Lumber, an industrial and commercial supplier based in Woodbury Heights, N.J. From its modest 3.5-acre yard across the Delaware River from Philadelphia, the certified minority- and woman-owned business has supplied a number of high-profile projects in the tri-state area, from the Freedom Tower in New York City to Lincoln Financial Field, home of the Philadelphia Eagles. Hers is the kind of story that audiences love to cheer: the rise of the goal-oriented, highly determined outsider and the triumph of the construction-industry underdog. And during the recent Top Women in Hardware & Building Supply event, the audience responded with shouts and applause when she described her determination during the early years. In a recent interview with HBSDealer, Abele shared thoughts on her career as well as advice for others. “I am a dreamer,” she said. “I had a goal. And my goal was to be my Lita Abele, president and CEO, U.S. Lumber.

HBSDealer.com

own boss. I really wanted to have my own business. And that was always in my mind.” She describes her journey to success as being fueled by effort and will power. She taught herself much of what she knows about business. And she received a little inspiration from a popular TV show. “I remember watching that show 'Dynasty' and especially Joan Collins,” Abele said. “I liked the way she conducted herself. She had style. Her character was mean sometimes, and I don’t want that. But I liked her style, and every time I saw that, I thought to myself: I want to be a businesswoman and a boss.” Abele’s persistence and personality were revealed in the details of a story she shared during a presentation at the Top Women event in Chicago: “A prospective customer didn’t want to give me any time at all, no time. They will just close the door. So I said, ‘OK, what time will the superintendent come to the site?' They said, 'Six o’clock.' So, before six o’clock, I am already at the —Lita Abele, president site. So when I got there, he and CEO, U.S. Lumber cannot say, he’s not there. I just forced myself to the door. And I said, 'Just give me five minutes. Not even five minutes, three minutes.' I just introduce myself, I gave my card, a [U.S. Lumber] pad and some pencils, and he became a loyal customer.” Abele has learned to use her personality and her humor in her business dealings. It’s important to build relationships with customers. “You have to know the accounts payable person on the other side. And there’s always please and there’s always a ‘thank you.’” And her career advice to others is also straightforward: “I have just four answers: work hard, persistence, determination and common sense. I share that to everyone. And then they will say, 'How did you overcome, you are in the male dominated men?' I said, 'just be yourself.' When I go to networking, I look at the name tag of people, and then no matter who is it, I just introduce myself. I don’t have any guilt or anything for my success because I am a dreamer. I set up a goal and I want to reach that goal. That’s what also I’m telling women, minorities and everybody that wants to start their own business.” Abele took over as U.S. Lumber CEO in 1992. “They told me there would be no U.S. Lumber if I took over. So I said to myself, and only to myself, ‘We will see.’”

“I have just four answers: work hard, persistence, determination and common sense. I share that to everyone...”

HARDWARE + BUILDING SUPPLY DEALER Januar y 2022

Market Insights

Retailers rise to E-commerce E X TENDING ‘HELLO AND A HANDSHAKE’ TO THE ONLINE ARENA By Tim Burke

magine your hardware customer – who loves to touch and feel all the keys, hammers, grinders, shovels, yard tools and everything else – staying home to buy on the internet. Unthinkable, right? But it’s happening. In fact, it’s happened. Pursuing a story that has accelerated throughout the pandemic and that shows no signs of receding in importance, HBSDealer turns to influencers and stakeholders — and of course, retailers — from across the hardware industry to address the intersection of hardware retailing and internet commerce. A major issue: The impact of e-commerce on a hardware store’s top and bottom lines. “Everyone sees that e-commerce is growing, but alongside sales growth are customers’ expectations for performance,” said Jared Littmann, who along with his wife Marlene Niefeld, own K&B True Value Hardware in Annapolis, Md. Customers want a one-click experience with as little of their time invested as possible. “Our job is to meet their needs while figuring out how to broaden the online shopping basket,” Littmann said. The couple bought the business in 2007 from Littmann’s in-laws, Ken and Bobbie Niefeld. Within a three-mile radius you reach two Home Depots, he said, and e-commerce represents an opportunity to grow customer counts. “We are competitive with other brick-and-mortar businesses, but we’ve got to do better to gain local online market share,” said Littmann. At the store counter or scrolling thru a website at home, commerce online now integrates with in-store hardware operations at businesses across the country, like at Pleasants Hardware in Virginia, owned by Taylor's Do it Center.

Be robust

In the village of Larchmont, N.Y., along Long Island Sound, 18 miles northeast of Midtown Manhattan, you’ll find Do it Best dealer John Merrell, owner since 1982 of Foley Hardware. He viewed online sales simply as a necessity. “Retailers must have a robust website with e-commerce options because that’s what consumers expect today.” These services are becoming attractive for the hardware store space. Merrell’s customers, for instance, can browse products, read reviews, compare items and check the in-store inventory — all on their website. “All of these attributes help our sales team be more productive on the phone and in the store, so we do not lose the sale to our online competitors,” Merrell said.

Net expectations

Meeting customers where they are and researching products online, is how Meg Taylor, communications director at Taylor’s Do it Center in Virginia Beach, Va., views the marketplace today. She sees web shopping as an extension of in-person hardware operations. “Whether your store is small or large, there are only so many things you can carry in the physical store,” she said. “E-commerce is a great way for us to significantly extend our product offering and reach additional customers,” she said. Her family business, first opened in 1927, has 20 neighborhood stores serving coastal Virginia to North Carolina. Doing business online has other benefits. “Making a purchase on a business’s website is also something customers and consumers in general have grown to expect in this evolving retail landscape.” Bob Taylor, Meg’s father and former president, left the helm of Taylor’s in 2001 when he was asked to head Do it Best Corp., Taylor’s buying cooperative, headquartered in Fort Wayne, Ind. After 15 years he returned home to serve as Taylor’s chairman of the board.

Put the ‘E’ in commerce

Independent hardware stores, traditionally, are prided on the tactile, however, commerce via the internet is causing that norm to evolve. “Everyone is online, researching, buying and skimming reviews. Covid has greatly accelerated start up sites like ours. Even grocery stores have their items

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

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in an organized, shoppable format. This puts us in front of our customers and prospective customers 24/7,” said Brian Mushel. He’s the new owner along with his wife of Justus True Value Home & Garden in Clarks Summit, Pa., a small borough near Scranton. At his business, customers are able to view his real time inventory and buy online or come into their store to make a purchase. “E-commerce is essentially commerce today.” – That’s from Scott Jerousek, owner of Farm & Home Hardware. Commerce over the internet offers his business, “a platform to expand our local and national brand quicker than we ever thought possible.” Jerousek works with wife Cindy and a team of more than 100, serving a diverse client base in Wellington, Ohio. “We need to meet our current and prospective customers where they do business,” said Jerousek. “Our core business is in servicing our primary market, however we have found opportunities in leveraging our distribution power with our hardware partner, Do it Best, to fulfill ship-to-address items across the country.” Instant feedback, the ability to turn on a dime, and an infinite opportunity to grow the customer base, are the 'e-benefits'. There are plenty of statistics that demonstrate how often customers check a store website before they come in.

Customers today often start their search for ideas and products online; and many hardware stores, like Foley Hardware, want to be their go-to website.

in our stores, such as aisle, bay, and slot, and whether or not the store is open or closed for the day,” said Aubuchon. The CEO said when it comes to e-commerce, “the hardware store industry cannot win on delivery, however we can win on the most convenient local curbside and drive-thru experience.” Hardware owners strive to be top of mind for their customers. Open your digital door Owners put the focus today on modernizing their hardware busi“E-commerce is simply another way to serve cusness to make sure it meets customers at their desired point of contomers,” said Mike Costello, CEO of Costello’s Ace tact; but there’s another factor: Inviting them in to see all you offer. Hardware, headquartered in Deer Park, N.Y. Bill Kiss, head of e-commerce, digital marketing and innovation The business operates 37 Ace Hardware stores in strategy at Ace Hardware in Oak Brook, Ill., adds perspective. N.Y., N.J., Md. and Va. It was founded in 1973 by Vin“It’s less about e-commerce,” said Kiss, “and more cent Costello and owned by six of Vinnie’s about that digital storefront being a front door to your 10 children. local store; meaning it’s the first place consumers usu“It’s a way that we can serve them ally look when thinking about a store or service.” outside of traditional business hours. It is immensely critical to get it right in terms of a fast, Most importantly, it’s the way that some friendly experience to get the consumer to where they customers prefer to shop,” he said. want to go and find what they need, he said. “Our founder saw us as problem solvStew Elliott, of Elliott Ace Hardware, a four-store ers, product experts and good neighchain in Muskego, Wis., near Milwaukee continues bors,” said Costello. that theme. About offering variety, Michael Wynn, Commerce on the internet has been valuable bepresident, and one of six family owners of cause it allows him to present the depth and breadth of Sunshine Ace Hardware in Naples, with his inventory. 11 locations in Southwest Fla., said some Elliott said “e-commerce replaces the phone call asking if of his locations have large gift, fishing and we carry an item and have it in stock. And during the worst commercial paint departments in addition of Covid, it was extremely valuable. E-commerce and curbto the core hardware assortments. —John Merrell, owner, Foley Hardware side pickup gave our customers a safer way to shop.” “As convenience has been redefined by online shopping, we continue to support our original value proposition by proOwn the convenience Commerce on your website is about giving customers what they viding ship-to-home, curbside or locker pickup want, so owners adapt and evolve. options to meet the customers’ needs wherever it “We focus on local same-day e-commerce where the customer can is most convenient for their busy lives.” get what they want within minutes after visiting our website via in-store Wynn said e-commerce is “really about owning shopping, pickup, or curbside,” said William E. Aubuchon, IV, president convenience in the mind of their customers.” and CEO of Westminster, Mass.-based W.E. Aubuchon Co., Inc., an Meet your customers where they want to be – that’s Orgill dealer with 107 stores in eight states. They also purchase from how hardware today evolves to online commerce. Emery Jensen Distribution, he said. “The key role our website plays is helping a customer underFor more e-commerce coverage, visit HBSDealer.com. stand what we have in stock, where items are physically located

“Retailers must have a robust website with e-commerce options because that's what consumers expect today.”

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER Januar y 2022

People In The News

The Home Depot's Bill Lennie, and the Spirit of Life AN ADVOCATE FOR CIT Y OF HOPE, AND A SURVIVOR.

s a 26-year Home Depot veteran, Bill Lennie is intimately familiar with the industry icons who have led the City of Hope fundraising campaigns in recent decades. He was there in 1993 for his first Spirit of Life celebration honoring Bill Patterson of HomeBase. And as a cancer survivor, Lennie brings a personal passion to his new role as the fund raising lead for the California research and treatment facility, famous for its advances in the fight against cancer, diabetes and other life-threatening diseases . Lennie was diagnosed in 1988. “There’s a wave of emotions that hit you when you’re first diagnosed with cancer,” he said. “First, you ask yourself, ‘why me?’ and ‘what did I do to cause this?’ But those questions quickly fade to ‘what now?’ And ‘what’s next?’” When he was tapped as the 2022 Spirit of Life honoree, Lennie had no hesitation to jump on board for the chance to help City of Hope continue its innovative treatments and its groundbreaking research that impact more than one hundred million lives every year around the world. “City of Hope is a global leader in the fight against cancer and other life threatening diseases,” he said. “Their groundbreaking research and innovative treatments impact over one-hundred million people globally each year. They create the answers to that question of ‘what now?’ “Their work depends on philanthropy and the generosity of industries like ours,” he said. “Once you face that question of what now, you have a burning desire to do things to try to create that answer for other people who are faced with that situation.” It’s not easy to explain the outpouring of support the hardware and homebuilding industry directs to City of Hope. But that support will be on full display at the Spirit of Life Gala, which will return live and in-person Feb. 7 at the Hyatt Regency Orlando, Fla. Bill Lennie, City of Hope was built on the prinSpirit of Life honoree. ciples of compassion, excellence, integrity, and collaboration. “Their culture resonates strongly with the culture of our industry,” Lennie said. “Our industry is filled with compassionate people who find ways to get involved and give back to their communities to make a difference for others’ lives. I think that’s why it resonates so well with our industry. “When it comes to City of Hope, it is an industry-wide cause. We take the gloves off, and we work collaboratively to make a difference for people and fight catastrophic diseases.”

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

The hardware and homebuilding industry has raised more than $170 million over the years for Duarte, Calif.-based City of Hope. The fundraising efforts have been led by many of the best-known names in home improvement, including Leonard Herring and Robert Strickland of Lowe’s — the first honorees — and the executive leaders who founded The Home Depot, Bernie Marcus, Arthur Blank and Pat Farrah. One of the common themes of past Spirit of Life honorees is the understanding that cancer affects us all, either directly or indirectly. Another is a desire to do something about it. Following in the footsteps of iconic industry leaders to take on the Spirit of Life mantle comes with a mix of emotions including pride and humility, Lennie said. “And those feelings were immediately followed by a sense of purpose and responsibility for making sure that the 2022 campaign is successful,” he added. “You want to do everything possible to enable City of Hope to continue its profound work.”

Excerpt from Bill Lennie’s remarks during City of Hope Virtual Tour: All of us are impacted by cancer in our lifetime. For me it has been as both a survivor of early-stage cancer at the age of 33, and, more recently, by the loss of my brother-in law Darin Bowe. Darin was diagnosed with non-Hodgkin’s T-Cell Lymphoma in 2007. He was treated at the Mayo Clinic for a period of 10-years. The City of Hope served as a consultant to Darin and his wife Kelly, providing confidence his treatment plans were correct and that everything possible was being done. We lost Darin on August 20, 2017, but those 10-years allowed Darin to see his son through high school, graduate college, and start his professional career. You cannot put a value on that time. The Bellardi Family story motivates us to stay on this mission and allow us to celebrate success. Darin’s story reminds us that we have much more work to do.

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TAL Holdings, the Pacific Northwest-based home improvement and LBM dealer, announced that it has named Jason Blair as the company’s new CEO. Blair arrives at TAL from Wilco, a chain of farm and ranch stores also based in the Pacific Northwest. Blair Blair will succeed David Dittmer who will transition to managing director of mergers and acquisitions for TAL. Levi Smith was promoted to CEO of Boise, Idaho-based Franklin Building Supply. He succeeds Rick Lierz, who remains with Idaho’s largest independent LBM dealer as chairman of the board. Franklin Building Supply is a full-service pro dealer with 15 units across Smith southern Idaho and northern Nevada, including lumberyards, door shops, truss and cabinet manufacturing and design centers.

Kramer

Orgill’s senior vice president of purchasing, Jeff Curler, has been promoted to the role of executive vice president of purchasing; and David Mobley, currently senior vice president of sales, Curler Mobley has been promoted to the position of executive vice president of sales. The announcements is a part of a series of moves, including the retirement of Brett Hammers, EVP of sales and purchasing. Master Magnetics promoted Alex Onda to senior manager of operations. The Castle Rock, Colo.-based company also promoted Trisha Lycas to senior manager, sales and marketing. Onda Onda Lycas has been with Master Magnetics since 2015, managing the primary supply chain functions. Lycas joined Master Magnetics in 2018.

Northpoint Roofing Systems, based in Woodstock, Ga., announced its appointment of Katrina Kramer as vice president of people. Most recently, Kramer was a VP of human resources for a medical device company headquartered in New Hampshire

Pat Sullivan, owner of Sullivan Hardware & Garden, located in Indianapolis, Ind., and a member of Do it Best Corp., received the “Sagamore of the Wabash” award, one of Indiana’s highest honors given for distinguished service for the state and residents. Sullivan Hardware was founded by his father Robert Sullivan in 1954, and Pat took over in 1990. He opened two additional stores, one in Indianapolis and the other in Cicero, Ind.; and purchased Allisonville Nursery in Fishers, Ind.

Pat Sullivan, right, with Emmis Communications CEO Jeff Smulyan.

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER Januar y 2022

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) Nov.: 1,679,000

NAICS 44413

(sales in $ billions)

1800

(sales in $ billions)

1700

1600

39.9

39.8

37.6

1500

34.7

1400

38.7

2.82

2.76

34.5

2.76

2.86

2.86 2.55

1300

1200 1100

1000

900

N D J F M A M J J A S O N SOURCE: COMMERCE DEPARTMENT

OCTOBER 2020

Single-family starts

NOVEMBER

DECEMBER

2021

SEPTEMBER 2020

OCTOBER

NOVEMBER

2021

SOURCE: MONTHLY RETAIL TRADE REPORT FROM THE U.S. CENSUS BUREAU

(in thousands, SAAR) Nov.: 1,173,000 1400

HBSDealer Stock Roundup

1300

the percent-change performance of stocks based on Jan. 13 prices

1200 1100

120

1000 900

BLDR

100

800

600

ANNUAL CHANGE

700

N D J F M A M J J A S O N SOURCE: COMMERCE DEPARTMENT

Existing-home sales (in millions, SAAR) Nov.: 6,460,000 7

80 60

TSCO

SHW

6.5

LOW DJI

WY BECN

SWK 0 -10 -8 -6 -4 -2 0 2 4 6 8 10

5.5 5 4.5

MONTHLY CHANGE

4 3.5

BECN (BEACON); BLDR (BUILDERS FIRSTSOURCE); BMCH (BMC STOCK HOLDINGS); DE (DEERE & CO.);

N D J F M A M J J A S O N

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

Current Prior month

120

Prior year

16.0

3.9%

18.0

December 0.0

$3.00 $2.50

14.0

6.0

2.0

100

20.0

115.8

$3.31

December

Jan. 13

Januar y 2022 HARDWARE + BUILDING SUPPLY DEALER

140

$2.00

$3.50

SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA

HBSDealer.com

"An opportunity to listen and learn from the women in attendance, whether they were speaking or not." - Top Women 2021 Attendee

Returning in 2022

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.

INTRODUCING OUR NEW PRO LINE OF LASERS WE DON’T BUILD ORDINARY.

COMPATIBLE WITH THE TOUGHBUILT CONNECT APP Available for iOS and Android

AVAILABLE AT LOWE’S

HBSD-0122

Articles inside

Top Women Interview Series: Lita Adele of U.S. Lumber

Retailers rise to e-commerce

New England sees a big acquisition

Inside the mass timber movement

Product focus: Outdoor Power Equipment

Fusek’s accelerates in Indy

Paint products

The Heart of the Deals

An acquisition timeline

News Map

Smart Home

Building on a legacy