HBSD- January 2024

JANUARY 2024 Volume 50 No. 1

THE ALL-AMERICAN ISSUE Veterans find a home in the home improvement industry

01.24 TECHNOLOGY

28 DIY at the hardware checkout: Inside an experiment in self-service at the point-of-sale.

PRODUCTS

30 Orgill’s new cleanup crew is built for business.

31 Innovation around the house.

31 STORY 20 COVER The All-American Issue

Veterans find a home in the home improvement industry.

FROM THE EDITOR

INDEPENDENT PROFILE

TOP WOMEN

8 An interview with our man from the Marines.

18 Upstate New York’s Erie Materials maintains its forward course with an organic approach to growth.

32 After working her way up the ranks, Lea Allah now helps build opportunities.

MARKET INSIGHTS

10 Product Knowledge

NEWS & ANALYSIS

10 The NLBMDA presents a checklist of legislative priorities.

12 Winter windfalls at a Chicago hardware store.

12 Three letters, big buildingmaterial agenda for QXO.

26 Survey examines projects and budgets.

26 The NAR housing market forecast.

IN EVERY ISSUE

33 People 34 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: $132 one year; $240 two year; $17 single issue copy; Canada and Mexico: $180 one year; $342 two year; $20.40 single issue copy; Foreign: $180 one year; $342 two year; $20.40 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 © 2024 by EnsembleIQ. All rights reserved.

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

Top Women Watch the official Top Women in Hardware & Building Supply event sizzle reel at Youtube.com/ HBSDealer. And the highlights keep coming year-round at the Top Women in Hardware & Building Supply Linkedin page.

More locations, more news Updated regularly from press announcements, external media reports and original reporting, the Interactive News Map tracks openings, closings and acquisitions from across the hardware and building supply industry. Visit hbsdealer.com/map.

The Golden Hammer strikes, with heart HBSDealer once again will recognize “Golden” performances at a live event in Las Vegas, Feb. 27. The event will celebrate best new products along with some of the outstanding examples of community service. Find out more at HBSDealer.com/goldenhammer2024.

When you connect with us, you connect with the industry @HBSDealer

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From the Editor 550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631 (773) 992-4450 Fax (773) 992-4455 www.HBSDealer.com

Attention to Service

BRAND MANAGEMENT SENIOR VICE PRESIDENT John Kenlon (516) 650-2064 jkenlon@ensembleiq.com EDITORIAL

H

BSDealer for months has been collecting thoughtful comments about the leadership-inducing experiences that hardware-and-building-supply pros gained from their service in the U.S. military.

One of the happy circumstances of this project is that our team has its own in-house veteran.

His name: Greg Cole. The Seymour, Ind., native joined the Marines in his late teens, serving in California, Carolina and Tennessee. Today he is regional account manager for HBSDealer.

What follows is a slightly edited, From-the-Editor exclusive:

EDITOR-IN-CHIEF Ken Clark kclark@ensembleiq.com

Ken Clark Editor-in-Chief

From the Editor: On page 20, we have comments from veterans telling us how their time in the military influenced them.

What about you?

Greg: My military occupation specialty was 6413, that translates to high level radar altimeter technician. And to make a long story short, I did a lot of work outside of my specialty as a material control expeditor. Think Radar O’Reily from M.A.S.H. I was the person who knew how to find things and order things and work with suppliers. That experience led to a job as a purchasing agent when I left the Marines. And I think part of my success in sales is that I’ve been on both sides of the desk.

From the Editor: Of the approximate $500 billion in annual military spending from that period, what percentage went directly across your desk?

Greg. I couldn’t tell you.

HBSDealer's Greg Cole: Once a Marine (left), and always a Marine (right).

From the Editor: Greg, you told me once how you were inspired to be a U.S. Marine. You felt that if you could make it through boot camp and earn your stripes, then there’s nothing you couldn’t accomplish in life.

Greg: That is exactly right. And I still live by that motto.

From the Editor: I’ve often watched you at trade shows as you approach someone who is wearing a Marine Corps pin and you say, ‘I’d like to shake your hand.’” That’s pretty cool.

Greg: That’s part of being a Marine.

There’s a bond. Definitely.

From the Editor: Let’s say $100 billion.

What else can you share about how you were shaped by your service?

Greg: You know, to this day, I will still use ‘Sir’ or ‘Ma’am’ when speaking to people. That comes from just being a Marine.

From the Editor: I’ve noticed that. You don’t have to do that with me anymore.

Thank you for your service.

Greg: Thank you, sir.

Read more veterans stories on page 20. And we continue to invite you to share your military experience with us.

And thank you for your service.

8 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

LBM EDITOR Andy Carlo acarlo@ensembleiq.com HARDWARE EDITOR Tim Burke tburke@ensembleiq.com ADVERTISING SALES & BUSINESS ASSOCIATE PUBLISHER Amy Platter Grant MIDWEST & SOUTHERN STATES (773) 294-8598 agrant@ensembleiq.com REGIONAL MANAGER Greg Cole NORTHEAST & GREAT LAKES STATES (317) 775-2206 gcole@ensembleiq.com DESIGN/PRODUCTION/MARKETING ART DIRECTOR Bill Antkowiak bantkowiak@ensembleiq.com PRODUCTION MANAGER Patricia Wisser pwisser@ensembleiq.com MARKETING MANAGER Kathryn Abrahamsen kabrahamsen@ensembleiq.com SUBSCRIPTION SERVICES LIST RENTAL mbriganti@anteriad.com SUBSCRIPTION QUESTIONS contact@HBSDealer.com

CORPORATE OFFICERS CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF OPERATING OFFICER Derek Estey CHIEF PEOPLE OFFICER Ann Jadown CHIEF STRATEGY OFFICER Joe Territo EDITORIAL ADVISORY BOARD

Levi Smith, CEO, Franklin Building Supply Steve Sallah, CEO, LBM Advantage Christi Powell, Women & Minority Business Enterprise Market Manager, 84 Lumber Neal DeLowery, Store Projects and Merchandise Manager, Aubuchon Co. Brad McDaniel, Owner, McDaniel’s Do it Center Joe Kallen, CEO, Busy Beaver Building Centers Tom Cost, Owner, Killingworth True Value Permissions: No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher.

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News + Analysis

National priorities, the checklist

Product Knowledge

‘WASHINGTON UPDATE’ BRE AKS DOWN KE Y ISSUES FOR 2024 Heading into a politically active 2024, here are the National Lumber & Building Material Dealer Association’s legislative priorities, as broken down by NLBMDA Government Affairs Director Jacob Carter.

Credit Card Competition Act: The legislation addresses excessive credit card swipe fees by enabling LBM dealers to access more credit card payment networks outside of Visa and Mastercard. Additionally, the act requires the largest credit-card issuing banks to allow at least one payment transaction network to be used on their credit cards that is not Visa or Mastercard.

While this is legislation on the NLBMDA’s radar, the issue is spread among just about all independent, smaller retailers. “Every retailer we talk to has a big issue with swipe fees,” Carter told HBSDealer.

In 2021, credit card swipe fees jumped by 25% to a record $137.8 billion, according to the NLBMDA. While heavyweight retailers such as Walmart and Target have the ability to absorb the fees, they are a major burden for smaller retailers and businesses.

Affordable Housing Credit Improvement Act: This bill expands the Low-Income Housing Tax Credit to build 2 million homes over the next 10 years. Currently, the legislation has 200 cosponsors in the

House of Representatives and 30 in the U.S. Senate with a breakdown of 50% Republican and 50% Democrat, Carter said.

Trucking Legislation: The House Transportation and Infrastructure Committee already approved a number of pieces of legislation that would benefi t the supply chain while adding more truck drivers to the system. This includes the License Act, which reinstates waivers to streamline the CDL testing process. Additionally, the Ship It Act allows for states to voluntarily increase truck weight limits on federal highways to up to 91,000 pounds.

Tax package: Carter is optimistic that a new tax package will be passed in January, which permanently provides a 100% bonus depreciation allowing for immediate tax deductions for the purchase of equipment, machinery, and vehicles. Carter noted that what’s on the books now is gradually being phased out. While a 100% deduction was allowed from 2018 to 2022, it was dropped to 80% in 2023, and will fall to 60% in 2024, 40% in 2025, 20% in 2026, and phased out in 2027.

Manufacturer: Simpson Strong-Tie Knowledge: Ideal for mass-timber projects in earthquake-prone areas, the new beam hanger provides a concealed connection to preserve a wood-only look. Product brings an allowable design load of approximately 20 kips (equivalent to 20,000 pounds of force).

Mass Timber fun fact: During The United Nations Climate Change Conference (COP 28), a coalition of 17 countries, including the United States, endorsed a resolution calling for more mass timber in construction.

— from “Washington Update Webinar: A State of Play”

Hedge funds and housing A bill in Congress is proposing to ban hedge funds from owning single-family homes after a decade-long phaseout period.

The idea behind the Democrat-sponsored bill, with the name “End Hedge Fund Control of American Homes Act of 2023,” is to help increase the supply of homes available for purchase to families.

Product: Steel Concealed Beam suitable for high-drift, high-capacity seismic applications.

The web site of Senator Jeff Merkley (D-Oregon) points to data from 2021 showing growth in Wall Street’s home ownership rates. For example, in 2021, large hedge fund investors bought 42.8% of homes for sale in the Atlanta metro area and 38.8% of homes in the Phoenix area.

10 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

Should hedge funds be banned from single-family home ownership?

24% No

76% Yes

Source: HBSDealer Poll

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News + Analysis

Dealer Advice: Weather windfalls A CHICAGO HARDWARE STORE HE ATS UP DURING WINTER Clark Devon Hardware, a 100-year-old hardware and janitorial supply store, prides itself on its ability to help customers maintain the city’s buildings, even the old ones, even on the coldest days in the Windy City.

“Anyone who has maintained an old steam boiler knows that there is an art to keeping these systems running well,” said Xan Flink, CEO of the Northside business.

He shared some of his winter sales strategies with HBSDealer: “If we have a lot of snow on the way or are in the middle of a storm, pretty much every foot of available space will be used for shovels, ice melt, snow blower oils and fuels. The way we look at it, on a snowy day people are only leaving the house for

A ‘Spirit of Life’ triumvirate THE INDUSTRY R ALLIES ONCE AGAIN FOR CIT Y OF HOPE Three hardware and homebuilding leaders and their organizations are joining a distinguished list of industry giants who have helped raise more than $175 million since 1983 for City of Hope.

The 2024 Spirit of Life Award honorees are: Kevin Campbell, president, Moen; Jeff Lorberbaum, president and CEO, Mohawk Industries; and Tom Koos, president and CEO, PrimeSource Brands.

The honorees share a common goal to help City of Hope fast-track their mission toward lifesaving cancer and diabetes research and patient care. The trio will be recognized Feb. 26 during City of Hope’s Spirit of Life Award gala in Las Vegas. And the fundraising continues throughout the year.

Learn more at cityofhope.org.

Xan Flink, left, with managers Brane Bijelic and Sine Somerville.

one thing, so we might as well give the customer what they want,” said Flink.

“If we have more cold weather and less snow,” he said, “then the focus shifts to plumbing and heating and our pro customers. In those seasons the big movers are space heaters, pipe fittings and pipe clamps – repairing frozen and busted

pipes – steam and hot water radiator valves, radiator air vents, propane, gas cylinders and torch heads.”

The front of the store has always been their ‘showroom’ for snow blowers and salt spreaders.

“We also typically dedicate two or three prime end caps to impulse winter items, windshield deicer, car snow brushes, hats and gloves, hand and foot warmers,” the CEO said.

“We have 20 feet of shovels in our seasonal department and another 20 feet of weather seal products like window insulation kits, self-adhesive foam tape, and door sweeps.”

Occasionally they will get lucky and have a winter with lots of snow and then a few stretches of really cold weather. “Those seasons are the ones you remember and are real nice profit drivers.”

Three letters, big plans A new player in the building-products-distribution industry intends to become a market leader and an industry consolidator while pushing the use of technology, including AI and B2B e-commerce.

The name: QXO. “QXO’s strategy is to create a tech-forward leader in the building products distribution industry through accretive M&A and organic growth, including greenfield openings, with the goal of generating outsized stockholder value,” said entrepreneur and founder Brad Jacobs.

Over the course of his career, Jacobs has raised $30 billion of debt and equity capital, including three IPOs, and led approximately 500 merger and acquisition transactions across multiple industries. Jacobs is also the founder of United Rentals and United Waste Systems.

Jacobs will become chairman and CEO of QXO upon the closing of a $1 billion cash investment into SilverSun Technologies.

After spinning off the existing SilverSun business, the remaining company, QXO, will be a standalone platform for “significant acquisitions,” according to Jacobs.

The company said the building products distribution business is highly fragmented

12 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

and noted that there are nearly 7,000 distributors in North America and 13,000 in Europe.

QXO said its data shows that the industry has generated compound annual revenue growth of 7% over the last five years.

QXO also said the percentage of industry revenue derived from e-commerce is currently only mid-single digits, and this share is expected to triple by 2030.

The new company plans to expand the use of tech including price optimization, demand forecasting, warehouse automation and robotics, automated inventory management, route optimization for delivery fleets, supply chain visibility, and end-to-end digital customer connectivity.

“We expect to achieve a revenue runrate of at least $1 billion by the end of year one, at least $5 billion within three years, and tens of billions of dollars over the next decade,” Jacobs said. “QXO’s scale should elevate the customer experience, increase sales force effectiveness, and enable margin expansion.”

QXO has not revealed where its boots will land when it comes to an initial industry acquisition and what type of materials distributor it is targeting.

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In Sagamore Beach, Mass., Lumber Plus makes it easy for customers and contractors to engage with the materials and designs.

Lumber Plus expands in Boston

miles southeast of Boston in Sagamore Beach, Mass.

This opening follows showroom openings in Miami, Tampa, Houston, and Mississauga just outside of Toronto. The next couple of openings are slated for New York and Puerto Rico.

While decking is emphasized, it’s not just hardwood decking but also a portfolio of featured composite and PVC brands. Wall and ceiling products are part of the mix with an array of innovative thermally modified wood products. Despite a wide variety of materials, immersive product interaction is the focus at Lumber Plus.

The Wall Mount Studios at Lumber Plus provide an immersive, hands-on experience for contractors and homeowners alike. They replicate real job site environments, enabling visitors to witness product installations in lifelike settings.

This interactive approach empowers individuals to engage directly with materials, facilitating a deeper understanding and aiding in making well-informed choices during their selection process, according to Lumber Plus.

“When you step into our showrooms, you step into a world where you can touch, feel, and experience full-scale decks, inviting pergolas, and alluring feature walls,” Fugiwara says.

Each location has dedicated sales teams available to guide visitors and encourage exploration of the comprehensive product range. Private spaces are also on-site to cater to the needs of architects, designers, and contractors to hold meetings with their clients.

“While each showroom exhibits unique traits, they are unified in upholding Lumber Plus’ core spirit: delivering a superior shopping experience to contractors, architects, designers, and end-users,” Fugiwara says. “We believe in empowering our customers to physically engage with our materials, ensuring that their choices are informed and confident.”

THE INNOVATIVE DE ALER ADDS DR AMATICALLY TO THE CUSTOMER E XPERIENCE. By Andy Carlo

O

ne of the most dynamic building material retailers to arrive on the scene is Lumber Plus.

Showcasing an impressive array of decking, cladding, walls and ceilings, among other building materials, the company has opened five locations with its sixth on the way.

The company’s showrooms are more than just displays. “As an innovator in the lumber industry, our commitment to our customers goes beyond just providing materials; it’s about creating an exceptional experience,” Guto Fugiwara, president of Lumber Plus, told HBSDealer.

Late last year, Lumber Plus debuted its latest location about 50

14 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

If you have a Top Showroom you would like to share, please contact LBM Editor Andy Carlo at acarlo@ensembleiq.com.

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Independent Profile

In Syracuse, Erie Materials maintains its forward course AF TER A 50-YE AR RUN, THE BUILDING PRODUCTS DISTRIBUTOR WILL ORGANICALLY OPEN AN 11T H LOCATION THIS YE AR. By Andy Carlo

C

entral and Upstate New York’s Erie Materials has been nailing down a serious reputation for 50 years.

Since its founding, the Syracuse, New York-based building materials distributor has expanded to 10 locations, including a centralized distribution center. Erie Materials has plans in the new year for its 11th location, slated to open later this year in Poughkeepsie, New York, roughly the mid-way between Manhattan and Albany.

Asked how the company continues to mount success, Erie Materials President Chris Neumann told HBSDealer, “I think we have been able to maintain a simple philosophy that my father opened this business with: Sell quality products at fair prices and provide superior customer service.”

Founder Bob Neumann first opened the doors to Erie Materials in Syracuse on June 6, 1973. At the time, the company included a single building, an old delivery truck, a broken forklift, and three employees.

Erie Materials suffered a major loss in 2023, when Bob passed away on Sept. 18. In one of his last statements regarding Erie, the founder described the company he built: “The industry is a lot different than when we started 50 years ago. We’ve adapted to the increased competition by upping our service levels, growing in scale, and continue to recruit talented people.

Without these high-quality and knowledgeable people, Erie Materials

18 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

Syracuse, N.Y.-based Erie Materials was founded in 1973.

wouldn’t be as successful as it is today.“ Reflecting on those thoughts, Bob’s son Chris says, “It sounds easy but you can’t execute that strategy without exceptional people and we have been very fortunate to always have long-standing committed people.”

Erie Materials has also been open to diversifying its product offerings over the years while sticking with a focus on exterior building materials. Over the years, the company has expanded its categories from residential roofing to

Erie Location Openings Founded in Syracuse, N.Y. - 1973 First new branch: Auburn, N.Y. - 1982 Binghamton, N.Y.- 1985 Elmira, N.Y. - 1994 Scranton, Penn. - 1995 Utica, N.Y. - 1996 Watertown, N.Y. - 1997 Williamsport, Penn. - 2003 Albany, N.Y. - 2006 Syracuse Distribution Center - 2006 Poughkeepsie, N.Y. - (2024)

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commercial and metal roofing, vinyl siding and specialty siding, windows and doors, decking and railing, stone veneer, seamless gutters, and tools.

According to Chris, diversification of products has been key to moving through highs and lows in the building cycle and the economy.

Additionally, every location Erie has opened has been a greenfield. While there have been companies up for sale, Erie made a decision not to pursue acquisitions.

“Buying another company has always been out of our comfort zone,” Chris says. “We also put such an emphasis on our culture that we never wanted to inherit anyone else’s.”

The company president adds that when Erie has opened locations it has always had a core of existing Erie employees, particularly at the branch leadership levels.

Erie Materials currently doesn’t operate in any major metro markets. This includes 9 locations in New York state and two in Pennsylvania (Scranton and Williamsport). With that said there may be less competition but also less total market share to capture, Chris says.

“Upstate New York and northeast Pennsylvania have been very consistent. There haven’t been a lot of spikes or downturns in business volume. We have to make adjustments to our business model but probably not much compared to other major markets.”

The company’s customer mix is broken down by about 65% remodeling contractors, 15% home builders and new construction, and 20% commercial roofing contractors.

When Erie Materials opened under the guidance Bob Neumann, it was an existing failing business that he bought with everything he had at the time. Prior, Neumann had spent eight years in a sales and two years in management at a local lumberyard.

During his previous tenure, Bob recognized there was a need for better service in the market. He also had a desire “to do his own thing,” Chris says.

Modest goals were originally set for Erie, This included making enough profit to support his family “and to take my mom on vacation once a year,” Chris says. “Early on, he worked harder and longer than anyone.”

Chris Neumann: “Investing in people and culture has never been more important.”

For five decades, Erie Materials has left the majority of its profits in the business, a strategy that promotes flexibility and confidence.

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As the company grew, Bob hired people based on personality and potential instead of experience.

These employees grew into leadership roles and challenged him to expand and grow.

“He empowered people to make decisions on their own and developed what turned out to be a very hands off leadership approach. He would often say ‘Hire good people and let them do their job’,” Chris says.

When it came to business wisdom, Bob had another plan he stuck with.

“I once asked him when I was really young what the secret to owning a business was,” Chris says. “He said ‘don’t spend more money than you make’. I laughed and asked him again and repeated the same answer.”

For five decades, Erie Materials has left the majority of its profits in the business. The move has given the company the flexibility and confidence to make investments in inventory, equipment, people, and infrastructure when we need to.”

He also always emphasized the importance on taking care of customers and employees. “It didn’t matter how big of a customer or what role an employee had — everyone was important to the success of Erie,” Chris notes.

Erie has also kept up with the times by continuing to upgrade tech platforms, including its customer relationship software (CRM), a digital customer portal, a POD system, and interfaces with manufacturers.

Today’s market challenges include a supply chain that has not fully recovered from the pandemic, resulting in inconsistent lead times for products. Labor has also been an issue with finding and retaining quality employees more difficult than ever.

“Investing in people and culture has never been more important,” Chris says. “Give them a reason to join, but more importantly: Give them a reason to stay.”

HARDWARE + BUILDING SUPPLY DEALER Januar y 2024

19

THE ALL-AMERICAN ISSUE Veterans find a home in the home improvement industry

T

By Ken Clark

he connection between the military and the hardware and building supply industry is drilled into the foundation of these United States.

From the tools that supplied the soldiers of the Revolutionary War to the lumber that the Army Corps of Engineers or the Navy Construction Battalion (better known as the “Seabees”) used to expand or fortify positions at home or around the globe, this industry has played an oversized role in support of the armed services.

General Grant himself worked at his father’s hardware and leather goods store in Galena, Illinois, before the start of the Civil War. And thousands of soldiers have followed that path, serving customers, and then their country in times of peace and hostility.

In recent weeks, HBSDealer reached out to readers and collected examples of industry professionals whose careers were shaped in one way or another by their experiences in the armed services.

20 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

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And speaking of the Navy Seabees, Adam Hendrix served in this specialized branch from 1989 to 1996. Today he’s the president of Chic Lumber serving the Saint Louis area, and in 2018 he accepted the award as HBSDealer and National Lumber and Building Material Dealers Association’s Independent ProDealer of the Year.

He shared this: “I was a builder (carpenter) in the Seabees and deployed to Desert Shield and Desert Storm while attached to Amphibious Construction Battalion 2. The Navy instills team work as well as responsibility: A school taught me the construction trade and as Seabees, we build and we f ight.

“I was taught many different construction types from concrete and block walls to finish carpentry which serves me still today in the lumber and hardware business. Having building experience means that I understand the needs and concerns of builders. In addition, the Navy provided me with the tools that I use daily: communication skills, time management, and accountability. Everything in my professional career I owe to what I learned in the military.”

Referring to the famous Seabee expression, Hendrix added: “’Can Do’ is more than a motto — it is a way of life.”

Before he became an employee of Osterville Hardware, in Osterville, Mass., Ed Phillips served in the United States Air Force, and later as a civilian police officer. In both cases, he served with man’s best friend.

Phillips, a retired Master Sergeant of the US Air Force Reserve, has three decades of great stories, but says he is “trying to keep it short.” He shared the following: “I served in the USAF from 1982-2004. About half active duty and half reserve. I was recalled to active duty in early 2000’s in support of the events of 9-11. I am now retired

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from USAFR. “My service was as a Military Working Dog Handler in the Security Police. I have done bomb dog support for three presidents and I continued as civilian police officer in central Florida.

“I am proud of my service as a police officer, and I have always been drawn towards creative projects, no matter where I am in life.

One example would be a kennel renovation project in the late 80’s. We were working in a war area kennel and we completely updated it through self-help projects.

“Years later that base got a state of the art facility all due to our efforts and input on the future design.

“I have several jobs that were glad to support my reserve career: Oviedo Police Dept., Home Depot, Lowe’s, Lifetime Cabinetry, Superior Stone, City of Deltona Parks and Rec. My service and civilian jobs have led me to where I am now, happily semi-retired in Cape Cod working for a great little family run hardware store.”

Rick Adams is currently a senior director of technology for Lowe’s, supporting merchandising technology.

He served in the Air Force for 13 years, during which time he bore a heavy responsibility.

“During my time in service I was entrusted with ensuring our ground-based nuclear deterrent force was always on alert, and our up-and-coming airmen were properly trained and equipped to be vigilant with that mission.

Through that lens I developed a key sense of honor, trustworthiness, and dependability both within myself and others. It takes great people to accomplish great things, and without investing in others and hold ourselves accountable to excellence we will fall short of our goals no matter what the stakes are.”

HARDWARE + BUILDING SUPPLY DEALER Januar y 2024

21

The military connection Here are some of the ways that hardware stores, home centers and building supply dealers march in unison with the armed services.

Employment of veterans. Dealers like the skill set, discipline and work ethic cultivated by the military culture. Also, experience in leadership as well as moving large objects from points A to B, can translate smoothly to the job site.

Supplying military bases: Bases make great customers, for new construction or basic base maintenance.

Education programs: From service to civilian training, businesses add to their recruitment and retention tactics by offering workshops or training sessions that could benefi t military personnel or veterans transitioning to civilian life and learning new skills or trades.

Lowe’s veteran Anthony D. Ripley— or “Rip”—is currently a Lead Product Manager for Lowe’s Digital. The military career of the Naval Postgraduate School graduate and retired Marine Corps officer spanned from 1995 to 2019.

He served at the Pentagon as the Science and Technology Lead for The Marine Corps Expeditionary Energy Office, developing cutting edge technologies.

“I worked in construction growing up and during my military service, so I bring the perspective of a DIY and a Pro customer to our business.

My military service as the Science and Technology Lead for Marine Corps Energy at the Pentagon specifically prepared me in that I collaborated with many different organizations such as DARPA, ARPA-E, the Office of Naval Research, Research Labs, Industry, and academia to take technologies from an idea to testing them in the field.”

Military Discounts: Got military ID. Get your military discount.

Also from Lowe’s, 11year military veteran (Army Green Berets) Kevin Mullen is currently a senior director of digital engagement, supporting the Pro customer from a digital perspective. He commented: “Army Green Berets thrive in austere and demanding environments by building and leveraging key partnerships, becoming subject matter experts on mission-critical tasks in short fashion, and by adapting their teams to the needs of the mission.

“Army Special Forces routinely operate in the ‘grey’ in similar fashion to the Home Improvement industry where the solution to a given problem is difficult to identify, holistically comprehend, and solution against.

“The motto of the Green Berets is that ‘humans are more important than hardware,’ which easily translates to the world of Home Improvement.”

Mikael Cook’s experience in Afghanistan from 2016 to 2022 included heroic achievement and deadly tragedy. The harrowing account of his efforts, along with a network of other veterans, to rescue Afghan allies from the enemy is chronicled in his book: “Life and Death at Abbey Gate: The Fall of Afghanistan and the Operation to Save our Allies.”

Today, Cook is a key account manager for FastenMaster, and he manages the fastener company’s business with The Home Depot.

He shared the following description of the lasting impact of the experience.

“This experience has helped me greatly in my leadership responsibilities at work. Being able to establish and lead a team to execute a life or death mission for our allies at a moment’s notice was an experience that translates well to any leadership position working alongside others to achieve a common goal.”

A veteran of the earlier Persian Gulf War, Todd Skaggs was stationed aboard the USS Pratt DDG-44, out of her home port of Charleston, South Carolina. Skaggs today is Vice President, West, for BlueLinx Corp. He shared the following about his experience: “Serving in the US Navy during the Persian Gulf War gave me a great appreciation on how to be prepared for

22 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

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both the routine but also the unexpected.

“Also, how to lead and motivate in a tense and difficult environment and how to raise my level of performance in order to achieve team goals and objectives. It truly changed my life and I see it surface every day in some shape or form.”

A Wall of Fame in Atlanta At The Home Depot’s Store Support Center in Atlanta, Georgia, there is a wall display saluting the service of the tens of thousands of veterans and military spouses who work at The Home Depot.

The inscription on the display reads, “Service members, veterans and military family associates have always been an important thread in the fabric of our culture. We are honored to have them as part of our team.”

The display also features a monitor that drives awareness of various company military focused events, associate support policies, and veteran and military spouse spotlights.

As an example of a special event, the world’s largest home improvement retailer last month took its Kids Workshops program to more than 100 families at the Naval Air Station in Jacksonville, Fla. Parents helped their children make Christmas crafts after they gathered for the holiday tree lighting ceremony. There was also a Kids Workshop at Camp Pendleton in San Diego, California.

“We’re grateful to partner with Naval Air Station Jacksonville and Camp Pendleton to bring the magic of Kids Workshops directly to military families,” says Erin Izen, senior director of workforce programs and military relations at The Home Depot. “The Home Depot is committed to giving back to the military community, especially those families who may not be together this holiday season.”

24 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

Michael Revis is operations manager for Builders FirstSource in Jacksonville, Florida. He was inspired by love of country to join the U.S. Army, where he served from 2012 to 2015. As an ammunition specialist, he said his training and focus served as ideal preparation for the lumber and building material distribution busines. He shared: “My branch of service’s mission was to supply logistics, to bring the fight to the enemy or to be the best support operation that we could be. Specifically in my unit, our goal was reconnaissance. It was all about delivering that fight forward and getting the most out of it with the most knowledge. That translates to my role here.

“We try to set ourselves as number one to be the best, and I think at all the military service branches, that’s always our goal — to make our nation the best. And that’s a similar mindset to what we have here at BFS.”

Terence Burgess, a 15-year army veteran served the United States in a variety of roles, including Cannon Fire Direction Specialist and Single-Channel Radio Operator. Burgess has been a territory sales representative for Saddle Brook, N.J.-based Arrow Fastener since 2019. The voices of other military veterans are echoed in his comments: “The building products industry values and appreciates the culture of the military and as a veteran, I am grateful for that. I bring those positive qualities learned during my time in the Army — teamwork, discipline, accountability and dependability to my job with me every day.”

HBSDealer.com

PRODUCTS

All-American stories Channellock

Meadville, Pennsylvania-based Channellock last year rolled out what it called one of the largest product launches in recent company history.

The new product line includes 100% U.S.A.-made, professional-grade Phillips, multi-bit, square recess, slotted, and TORX screwdrivers; pry bars; assorted screwdriver and pry bar sets; and soft-sided tool tote bags, rolls, pouches, and backpacks.

The addition of these new SKUs brings the company’s total number of American-made products to over 175.

“These new products reinforce our company’s commitment to American manufacturing and to its hardworking tradespeople,” said Jon DeArment, president and CEO. “Since we opened our doors in 1886, American-made has remained an integral part of our story. Our goal is to manufacture everything we can here in Meadville. If that’s not possible, then we do our best to source it elsewhere in the U.S. We only look to other countries if our domestic suppliers can’t meet our rigorous quality standards.”

Eklind Tool Company

Henning Eklind, a Swedish immigrant, designed the company’s fi rst hex key product in 1948 in the company’s Chicago factory.

And Eklind Tool Company has been making them and improving on them ever since.

In 1996, the company moved to its current 110,000 square foot manufacturing facility in Franklin Park, Illinois.

Domestic manufacturing is described as both a mission and a selling point.

“We are proud to employ over 100 people in our Franklin Park, Illinois factory, and we are proud to contribute to our local, state and USA economy,” the company says .

The company is a clear leader in the market of foldup Hex-Key sets. The complete product range includes L-Key, T-Key, Screwdriver and Fold-up tools with Hex, Ball-Hex, TORX and tamper resistant tips.

Spec Ops Tools

With every purchase of a Spec Ops tool, the company donates 3 percent to support veteran and first responder causes. The company, founded in 2018 by a team of veterans, describes its approach as heavily veteran influenced.

“Our military ties and mission for social good is woven into everything we do,” the company says.

Giving back takes the form of non-profit partnerships, direct charitable contributions to organizations, individuals and their families, event sponsorships, and more.

While tools are produced in the United States and Taiwan, with some items coming from off-shore factories in China and Vietnam, the company says it has plans in the works to transfer more of its existing production to the U.S., where it would be in a position to employ more veterans.

The company stands by its hand tools with a warranty described as a no-questions-asked replacement. The mission statement: “To never forget those who serve us and never fail those we serve.”

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER Januar y 2024

25

Market Insights

Craftsman examines projects and budgets WITH INTEREST R ATES HIGH, HOMEOWNERS ‘TACKLE HOME IMPROVEMENT.’

A

new survey released from Craftsman found nearly two-thirds of homeowners (65%) see home improvement projects as an alternative to buying a new home, given high interest rates in the housing sector.

“We set out to further explore the impact today’s housing climate has on Americans, and found that many homeowners would rather roll up their sleeves to tackle home improvement projects on their current home than give up their coveted low-rate mortgages for a new home,” said Doug Redpath, president, hand tools, accessories and storage at Stanley Black & Decker.

The Craftsman Home Field Advantage Survey also unveiled a variety of insights that they say are steering home improvement trends this year: The reason for the project: The primary reasons for a home improvement project are to create more comfortable living environments (52%), to enhance the aesthetic appeal of their home (50%) and to improve overall home value (47%).

The most popular areas for improvement: The most commonly consid-

The timeline: 3 in 5 homeowners (60%) say they have tried to execute a home improvement project themselves in the last 12 months, while 2 in 3 (66%) say they plan to make home improvements in the next six months to a year.

More than half of respondents are budgeting more than $5,000 on their home improvement project.

ered projects include painting (51%), bathroom improvements (44%) and kitchen improvements (41%).

The desired budget: More than half of homeowners (54%) surveyed say their approximate budget for their home improvement project is $5,000 or more, and over a third of homeowners (37%) say their budget is more than $10,000. However, those who have refinanced their mortgage in the past three years have a much higher budget with nearly 2 in 3 (64%) saying their approximate budget is more than $10,000.

The NAR forecast AN IMPROVING PICTURE FOR INVENTORY AND HOME SALES

T

he National Association of Realtors (NAR), known for its optimism, is forecasting increasingly positive conditions in the housing market.

The NAR projects existing-home sales will rise by 13.5% to 4.71 million units sold in

2024 from a total of 4.1 million in 2023. The NAR also expects the median home price to increase by 0.9% to $389,500.

“Metro markets in southern states will likely outperform others due to faster job increases, while markets in the Midwest will experience gains from being in the

26 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

Also, said Craftsman, 3 in 4 homeowners (76%) say they would consider using a maker space and/or tool library to access tools for future home improvement projects. As a ressponse, the tool manufacturer is donating up to $100,000 worth of products to four maker spaces throughout the U.S. As part of this initiative, said the firm, each organization will hold various Craftsman sponsored workshops throughout 2023-2024 for participants to learn how to accomplish basic to advanced home projects such as carpentry, woodworking, general home maintenance and more.

Partnering organizations include the Denver Tool Library, Asheville Tool Library, Station North Tool Library and Open Works, said the company.

most affordable region,” according to NAR Chief Economist Lawrence Yun, in an official NAR statement.

Yun also said that rent prices will calm down further in 2024, which will hold down the consumer price index.

He predicts foreclosure rates will stay at historically low levels in 2024, comprising less than 1% of all mortgages.

Additional forecasts from Yun include the U.S. GDP growing by 1.5% and avoiding a recession. But he also said new job additions will slow to 1.7 million

HBSDealer.com

5. Harrisburg-Carlisle, Pennsylvania

Demand for housing is expected to recover in an environment of lower interest rates, says the National Association of Realtors.

7. Nashville-Davidson-MurfreesboroFranklin, Tennessee 8. Philadelphia-Camden-Wilmington, Pennsylvania-New JerseyDelaware-Maryland 9. Portland-South Portland, Maine housing demand, which it expects to outperform other metro areas in 2024. In order, the markets are as follows: 1. Austin-Round Rock-Georgetown, Texas 2. Dallas-Fort Worth-Arlington, Texas 3. Dayton-Kettering, Ohio 4. Durham-Chapel Hill, North Carolina

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“The demand for housing will recover from falling mortgage rates and rising income,” Yun said. “In addition, housing inventory is expected to rise by around 30% as more sellers begin to list after delaying selling over the past two years. The selected top 10 U.S. markets will experience faster recovery in home sales.”

•

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10. Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia

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next year compared to 2.7 million in 2023 and 4.8 million in 2022.

The NAR pointed to good news—relatively—on the mortgage front. After hitting the 8% mark in late 2023, mortgage rates should average around 6.3% in 2024.

Lower rates could also provide a boon for remodeling activity as many homeowners have held off major projects.

Regarding housing starts, Yun is forecasting 1.48 million units in 2024. This includes 1.04 million single-family starts and 440,000 multifamily starts.

The NAR has also identified 10 real estate markets with the most pent-up

6. Houston-The Woodlands-Sugar Land, Texas

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HARDWARE + BUILDING SUPPLY DEALER Januar y 2024

27

Technology

DIY at the hardware checkout INSIDE AN E XPERIMENT IN SELF-SERVICE AT THE POINT-OF-SALE. By Tim Burke

S

elf checkout is commonplace in grocery and mass retail. But can hardware stores make it work?

It’s easy to visualize: Customers stepping up to your self-checkout station. No cashier. Just them and their hardware items. And their credit card. They tap, or swipe, grab the receipt, and go about their day.

But is it easy to execute?

The Aubuchon Company is one retailer experimenting with self-checkout. The Massachusetts-based family-owned company, which operates more than 100 stores, deployed a prototype a little more than a year ago in its Middlebury, Vermont, location and has since been refining the program, said Will Aubuchon, CEO. The results are promising. The CEO said their customers appreciate the option to check themselves out.

“It’s important to note that we never force customers to use the option,” he said. “When the line for our traditional registers backs up, we notice more self-checkout use. However, overall usage is still pretty low, about three to four percent of all transactions.”

The company will be adding self-checkout to four more of their stores in the coming months, and another 20 stores in 2024.

This is a hands-on business, so what led the Aubuchon

28 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

This young customer checks out on his own at the hardware store. Aubuchon Company plans to expand self-checkout services at two dozen retail hardware stores this year.

Company to launch self-checkout kiosks?

“The primary reason to launch self-checkout was to embody our core value of innovation and change,” said Aubuchon.

At Aubuchon, a general rule for business improvement is this: “Prioritize progress over perfection and be adaptable,” he said.

This concept relates to self-checkout technology in a couple of ways.

“Goal number one is to offer a new convenient option for customers,” Aubuchon said. “Whether we like it or not, there is a new muscle-memory/customer-expectation being built up by consumers today — particularly in convenience retail formats.

Increasingly, shoppers are given the option of using self-checkout, a technology that was introduced first in supermarkets in the late 1980s. The FMI, a grocery association, reported that 30 percent of transactions were self-checkout in 2021, almost double from 2018.

“We predict that not offering some version of self-checkout one day will feel like not accepting credit cards.” And with a comment that reflects the uncertainties built-into retail technology adoption, he added: “We may very well be wrong.”

“Goal number two is to support sales by saving some limited amount of time at checkout so that our team can spend more time assisting customers,” said the CEO. The timing of Aubuchon’s entry into self-checkout coincided with the new capability of the retailer’s POS vendor, Mi9 Retail, to support the move. And

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the store was willing to give it a test, while supporting the shift in consumer behavior to fast convenient checkout.

This young customer checks out on his own at the hardware store. Aubuchon Company plans to expand self-checkout services at two dozen retail hardware stores in 2024.

Easy is the word

Executing this new point of sale technology was relatively simple, by design. “Since we exclude cash, special orders and hard-toring-items like nuts and bolts, our self-checkout unit is relatively easy to maintain and manage,” he said. “All that exists is a touch screen, wireless scanner, payment terminal and receipt printer.”

Ultimately, the success of the initiative depends on the customers attitude toward the system.

Some of them clearly like it, preferring a streamlined checkout without the social interaction with employees, and in some cases, they are able to “skip the wait” if the checkout line is long.

“We focus on convenience, allowing our customers to have the shopping experience that they desire, including checkout options,” he said.

They have had positive feedback, he said, about the ease of the simple three-step process: Step one: Optional phone number input for points/rewards; Step two: Scan items; and Step three: Pay to complete the transaction.

From an owner’s standpoint, the question is: Is self-checkout worth the investment?

While other retailers have made large investments in self-checkout with the goal of reducing payroll in order to generate a positive ROI, the situation at Aubuchon is different, the CEO said.

“Our POS vendor made it affordable for us to add and test self-checkout, allowing us to focus more on the benefits of enhancing the shopping experience for some customers who prefer the convenience of a self-checkout option,” he said.

Traditional checkout is far better for accepting cash, promoting new loyalty signups, and handling hard-to-ring items like small items and special orders, he said.

Aubuchon Company operates more than 100 stores.

HBSDealer.com

Lowe’s bolsters its self-checkout During Lowe’s third-quarter earnings call, Joe McFarland, executive VP of stores, updated investors on self-checkout strategy. “This past quarter, we fully retired the old self-checkout systems and have shifted to the proprietary self-checkout systems that we built for the home improvement shopper,” he said.

They’ve seen greater customer adoption of these new systems since they’re so much easier to use, he said. “In fact, our front-end transformation is well underway, with approximately 450 stores planned by the end of this year.”

Over a three-year timeline, he said, “we’re revamping the checkout experience across all of our stores and increasing the selling space at the front, where we’re adding more merchandise right at checkout, with a new design that makes it easy to showcase graband-go items,” said the VP. “And with this front-end transformation, we’re shifting to an easy-to-use assisted self-checkout, with cashiers who will be right there to answer questions and help customers when they need it,” said McFarland.

“However, our self-checkout option can handle points/rewards for existing members, plus a prompt to round up to a local charity if we have an in-store campaign occurring.”

For other independents thinking about rolling out self-checkout, Aubuchon offered advice. First and foremost, he said, “you must have a point-of-sale provider that can furnish the software and IT support.”

Also, he reminds, the more complicated you make self-checkout the more difficult it will be to get your customers to adopt it. If it’s easy to use, customers will enjoy the experience.

“Have fun with it and be creative,” said Aubuchon.

“There is a lot of negative stigma around self-checkout, but as the deployment of this tech deepens in the retail sector, we need to make sure the interaction is just as positive as any other checkout experience.”

HARDWARE + BUILDING SUPPLY DEALER Januar y 2024

29

Cleaning Products

Orgill polishes a ‘must-win’ category NE W BR ANDS AND CONTINUED URGENCY IN THE CLE ANING-PRODUCTS AISLE

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he global pandemic pushed the cleaning products category into a national obsession.

And all that mopping, scrubbing, fighting germs and ‘cleaning house’ continues to light up cash registers.

According to statistics from Allied Market Research, the U.S. cleaning products market was valued at $1,957.9 million in 2020, and is projected to reach $2,898.5 million by 2030.

E-Cloth packaging tells the story: “Just add water.”

“The pandemic brought on a surge of demand for cleaning products, and the category remains in a position of growth today,” said Matthew McDowell, senior category manager of home products for Memphis, Tennessee-based Orgill.

“Increased social media interest, coupled with a heightened desire for home cleanliness, have left today’s consumers seeking more innovative options in cleaning products.”

With that background, Orgill recently took steps to refine its offering to take advantage of the category’s growth and to help its retail customers serve their markets with more focused planograms.

O-Cedar brings “enzyme cleaning power” to hard floors.

Swiffer Wet Jet is described as an all-inone spray mopping system.

New vendors to the distributor’s cleaning products lineup are Libman, E-Cloth, O-Cedar and Swiffer. Introduced in mid December, the new assortment has everything from eco-conscious, microfiber solutions to industrial strength push brooms.

“Post-pandemic consumer behavior makes this a must-win category at Orgill,” McDowell said.

These recently onboarded vendors have shown strength in the online marketplace, earning shelf-space throughout the industry in recent years, he said. And the revitalized assortment marks a move away from the choice-overload that was prevalent during the pandemic.

“Orgill’s dealers found that brand diversity was a necessity during the pandemic years, but we have heard desire from the field to repair mixed, unproductive planograms to create more uniformity in the assortment,” he said.

Orgill’s home products strategy also is informed by consumer trends.

“Today’s shoppers are willing to trade price for functionality, durability, and time savings,” he said. “That behavior rewards local retailers with lower price sensitivity and enhanced margin opportunities on brands that are recognized on a national level. By expanding our footprint to include price point variation, our dealers can also cater to the more cost-conscious shopper.”

Libman’s Wonder Mop features microfiber GRIPSTRIPS.

30 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

He pointed to the example of the Libman options—all the top SKUs that are available at the big box are in the mix. But they’ll also “carry some key opening price point alternatives” helping independent dealers “win sales on core items like angle brooms and roller mops.”

Orgill is building supply chain stability, too.

McDowell described that consideration a top priority during the recent line review.

“In 2023, we placed an emphasis on rebuilding the category’s foundation, which was rocked by vendor discontinuations, SKU consolidations, and supply constraints,” McDowell said. “We will focus that same attention on being at the forefront of industry innovation for 2024 and beyond.”

Independent options:

“Orgill’s primary focus throughout this review was to create a core cleaning assortment that caters to the needs of the dealer community as a whole.

We took a customer-centric strategy that will drive retailer success in the independent channel, and we believe these updates can make Orgill dealers the destination for Cleaning within their respective markets.”

—McDowell

Power Play:

“Due to Orgill’s increasing presence in the Pro segment, we also see major growth potential in commercial cleaning in the coming years. Libman’s High Power assortment will be a key contributor to that growth, and we anticipate early customer adoption to that line.”

—McDowell

HBSDealer.com

Products

Innovation roundup ALL AROUND THE HOUSE, PRODUCTS ARE GE T TING SMARTER. HERE ARE A HANDFUL.

S

ometimes innovation can disrupt businesses, and even industries. Sometimes innovation simply improves the experience of opening and closing a cabinet door.

In that spirit of incremental improvement — in the kitchen, the garage, the exterior of the house and even in the airwaves — HBSDealer here has collected a handful of innovative products that improve the function, comfort and efficiency of the home.

UniSoft soft-close adapters

Kernersrville, N.C.-based GrassAmerica, a supplier of functional hardware for the cabinet industry, promotes its UniSoft soft-close adapters as examples of engineering ingenuity as well as simplicity. Mounted on the upper corner of a cabinet, UniSoft provides a soft, smooth, and quiet soft-closing action that eliminates harsh, unwelcome noises that often occur when cabinet doors are shut.

It can be installed for both heavy and light doors at any time during a cabinet’s lifecycle, including the production process, the time of installation, or after the cabinet is installed to retrofit existing cabinetry.

The adapter is non-handed with a low profile design, and its damper is concealed in a brushed nickel casing, allowing it to blend in with a hinge finish.

UniSoft’s wide ranging applications include door overlays for face frame cabinets and frameless cabinets on full overlay doors. Highly adaptable, it can be manually adjusted by the turn of a screw to achieve the desired closing speed. Grassusa.com

ecobee thermostat

Smart thermostat maker ecobee, and parent company Generac Power Systems, announced that all of its smart thermostats released since 2014 can now integrate with Generac 4G LTE cellular propane tank monitors to monitor fuel levels in the propane tank right from the smart thermostat screen.

“By integrating fuel monitoring and ecobee smart thermostats, we’re helping customers simplify monitoring their home’s energy needs and giving peace of mind that their generators are ready to power on in an outage,” said Kyle Raabe, executive vice president of consumer power at Generac Power Systems.

The Generac propane tank monitor is a small, cellular device that attaches to the outside of the propane tank and monitors the amount of remaining fuel, helping homeowners avoid fuel run outs and plan for deliveries. The ecobee smart thermostat also sends alerts if the monitor falls offline or needs new batteries. Generac.com

HBSDealer.com

StackTech from ToughBuilt

ToughBuilt Industries StackTech mobile stacking toolbox system brings innovative solutions to a rapidly growing market, projected to expand by a compound annual growth rate (CAGR) of 8.3% in the ten-year period between 2022 and 2032, according to a June 2022 market research report.

The storage system, describe by the company as an innovative storage ecosystem, scored points on social media, generating more than 19 million impressions in just a two week period after its launch.

“StackTech joins the market with multiple patented competitive advantages that redefine the category, offering unrivaled functionality, comprehensive breadth of line, solid durability, and a groundbreaking transportation system.” Said Michael Panosian, co-founder and Chief Executive Officer of ToughBuilt. “Professionals can trust our commitment to continued innovation that will shape the category for years to come. By entering this category, we harness opportunities to grow and secure new revenue streams to increase our global brand leadership and promote greater shareholder value.” Toughbuilt.com

XCEED Lap Siding from Versatex

Versatex introduced XCEED Lap Siding, an advanced cellular PVC cladding for residential construction and remodeling that offers contractors new color trends, an improved installation experience and greater dimensional stability.

The product comes in 16-foot lengths to minimize butt joints. And XCEED includes a unique, self-leveling feature, VZ Drop-Lock, that maintains a level line course to course.

“XCEED is physically profiled for faster, easier and more exacting installation,” said John Pace, Versatex president and founder. “Our in-depth conversations with construction-industry veterans inspired a whole range of innovations.”

Other features include: A significant reduction in thermal movement; A heat-resistant acrylic capstock that minimizes fade while ensuring color hold; and A color palette developed with the assistance of third-party color specialists. Versatex.com

HARDWARE + BUILDING SUPPLY DEALER Januar y 2024

31

Top Women Profile LE A ALL AH WORKED HER WAY UP THE R ANKS, NOW SHE HELPS BUILD OPPORTUNITIES.

By Ken Clark

L

ea Allah’s official bio describes a person who came into the building material industry with little-or-no knowledge of building materials.

Well, after 19 years at Builders FirstSource (beginning with Stock Building Supply before the merger), Allah walks the walk and talks the talk. She’s worked inside sales, office administration, inventory control, safety coordinator— positions that provided front-row seats and hands-on experiences with the nation’s largest prodealer.

As senior human resources director, and the lead of the BFS’s Diversity, Equity and Inclusion efforts, Allah was recognized as a Top Women in Hardware & Building Supply business excellence honoree in 2022. More recently, she provided insights during the 2023 Top Women event as a speaker on the topics of recruitment and retention.

She elaborated on her background and her hiring advice in the following Q&A with HBSDealer: HBSDealer: Did you ever predict that you would become part of the LBM industry?

Lea Allah: Not really. Despite my husband working in construction, I never seriously considered joining the industry myself. Truth be told, I didn’t initially see a space for me within the LBM field… or should I say, I didn’t understand there was space for me; Lea Allah of Builders as not only a woman, but a woman of color.

FirstSource

HBSDealer: How did it come about?

Lea Allah: When I transitioned from the retail/hospitality sector, I was uncertain about the next steps in my career. It was a former colleague who introduced me to the LBM industry, connecting me with individuals working at a local building supply company. She passed on my contact details to the local sales leader, who then reached out for an interview. I interviewed for an entry-level sales coordinator position aiming learn the business. I openly spoke of my desire to learn and grow within the company. Fortunately, I had leaders who really listened and gave me opportunities to grow through role changes and special projects.

HBSDealer: What general qualities do you look for in a potential hire for BFS? Lea Allah: Character, integrity, a drive for personal growth, a strong work ethic, and alignment of personal values with our organizational values are the key qualities I seek when evaluating potential hires at BFS. HBSDealer: What advice do you have for women to enter or advance their careers in this industry?

Lea Allah: If you’re considering stepping into this industry, rest assured, there’s a spot waiting for you. Sometimes, taking a chance is essential. Never underestimate your worth; through dedicated effort and commitment to personal growth, you can achieve anything you set your sights on. The endless contributions women bring have the power to significantly mold the future landscape of LBM. To learn more about Top Women in Hardware & Building Supply, visit HBSDTopWomen.com.

“If you’re considering stepping into this industry, rest assured, there’s a spot waiting for you. Sometimes, taking a chance is essential. Never underestimate your worth.”

—Lea Allah, Builders FirstSource

32 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

People in the News

Hoshida

TAL Building Centers in the Pacific Northwest named Susan Hoshida as its new chief financial officer. Hoshida brings over 24 years of experience to the role. Most recently, she served as TAL’s corporate controller.

She has previously held positions at Fred Meyer, CHEF’STORE, and Pacific Seafood.

Ford

Doug Ford of Balston Spa, New York-based Curtis Lumber was elected Dec. 7 as the new Chair of the Northeastern Retail Lumber Association. Ford assumes the role following the two-year tenure of Nick Kuiken from Kuiken Bros. Inc. as Chair. Ford is an experienced member of the NRLA and the Lumber and Building Material Dealers Foundation.

Tester

LMC, the lumber and building materials buying group, has named Mike Tester as its new South Central regional manager. Tester, formerly the Southeast regional manager for LMC, has been with the buying group 23 years and has been in the lumber and building materials industry since 1988.

Enmark

Sims

Kovar

Cantu

Cook

Hayes

84 Lumber has named Pete Cantu as its new area manager in the company’s Western Division. Cantu began working with 84 Lumber in 2003, when he was hired as a store manager in Lubbock, Texas. In 2008, Cantu and his team were awarded the Western division sales award. His team was again awarded the Western division sales award in 2019.

McCoy’s Building Supply has promoted Mike Cook to regional manager. A 13-year veteran of the LBM dealer, Cook will oversee 12 locations in the greater Houston market. Cook is a graduate of Texas State University and began his career with McCoy’s through the company’s Management Development Program while working at the Tomball, Texas store.

Colorado-based Kodiak Building Partners promoted Beau Hayes to a new position of leadership. Hayes, who previously served as president of Jones Heartz Building Supply, Drywall Material Sales, and Western Interior Supply, will now lead Kodiak’s Gypsum Division as senior vice president.

The Helpful Hardware Company, LLC, a 19-strore Ace retailer based in Georgia, named David Enmark as its new Chief Executive Officer.

Enmark, an executive with more than 15 years of retail hardware experience, was previously held numerous roles in the business development division of both True Value and Do It Best.

Tando Composites, a division of Derby Building Products, named Aaron Sims regional sales manager, Southeast, covering Maryland to Florida. The company says Sims is an experienced leader who helped drive the AZEK brand in its early days and did the same with the TruExterior brand when it was launched as part of Boral.

Deere & Company named Deanna Kovar as its new President of Worldwide Agriculture and Turf, Small Ag and Turf, and Regions 1 and 2, which include the company’s presence in Asia, Africa, and Europe.

She replaces Mark von Pentz who is retiring.

Kovar joined Deere in 2000 and spent most of her career in positions in channel and product management.

Fort Wayne, Ind.-based Do it Best promoted Danielle Gonzalez to a new position within the corporate office team. Her new role is merchandise coordinator in farm and ranch, rental and store supplies.

Gonzalez HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER Januar y 2024

33

Monthly Retail Sales, not adjusted

Residential Construction/Sales 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 (sales in $ billions)

(in thousands, SAAR) Nov.1,560,000

NAICS 44413 (sales in $ billions)

50

1800

4

1700

40

1600 1500

43.1

43.5

40.2

42.2

40.9

3.32

3

39.9

3.56 3.17

3.24

3.27

3.40

30

1400

2

1300

20

1200 1100

1

10

1000

0

900

N

D

J

F

M

A

M

J

J

A

S

O

N

SOURCE: COMMERCE DEPARTMENT

SEPTEMBER 2022

Single-family starts

OCTOBER

0

NOVEMBER

2023

AUGUST 2022

SEPTEMBER

OCTOBER

2023

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

(in thousands, SAAR) Nov.: 1,143,000 1400

HBSDealer Stock Roundup

1300

the percent-change performance of stocks based on Jan. 4 prices

1200 1100

150

1000

BLDR

900

120

800

600

N

D

J

F

M

A

M

J

J

A

S

O

ANNUAL CHANGE

700

N

SOURCE: COMMERCE DEPARTMENT

Existing-home sales (in millions, SAAR) Nov.: 3,820,000 7

90 BECN

60

MAS 30

SWK LOW

6.5

0

6

DJI

SHW WY

HD

TSCO

5.5

-30

5

0

3

6

9

12

15

4.5

MONTHLY CHANGE

4 3.5

BECN (BEACON); BLDR (BUILDERS FIRSTSOURCE); BMCH (BMC STOCK HOLDINGS); MAS (MASCO CORP.);

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

80

Current Prior month

120

Prior year

16.0

3.7%

18.0

December 0.0

$4.00 $3.00

14.0

6.0

2.0

100

20.0

60

110.7

$3.09

December

Jan. 4

34 Januar y 2024 HARDWARE + BUILDING SUPPLY DEALER

140

$2.00

$5.00

SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA

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