MAY 2021
Vol. 47 No. 5
Meet the 2021 Class of STIHL Hardware All Stars 50 OUTSTANDING STORES Sharona and Cecil Eiserer run the Wood Shed of Carrollton, Mo.
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HBSDEALER HARDWARE + BUILDING SUPPLY
INDEPENDENT PROFILE 16 A centennial achievement at
Stewart Builder Supply
PRODUCTS 32 Hand tools hit home and beyond 34 Glove manufactures are feeling it 36 It’s time to talk about ticks,
and prevention
MARKET INSIGHTS 38 The insurance landscape:
prevention, risks and trends from PLM
40 The eCommerce business
40 A new kind of century club 46 Top Women in Hardware
Sharona and Cecil Eiserer, in the Wood Shed, Carrollton, Mo.
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feels the heat
& Building Supply: Jean Fahy of Do it Best
Cover Story: The Annual STIHL Hardware All Stars issue Fifty high-performing, innovative, community and service oriented hardware stores, one from each state.
FROM THE EDITOR
NEWS & ANALYSIS
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10 True Value gains reversal
Ward Lumber strikes a deal for employee ownership. (It’s not an ESOP.)
from Stanley
10 Lowe’s buys Stainmaster 12 US LBM ventures deeper
into Texas
14 NAHB does the math
36
32
on housing regulations
14 Photo of the month: Prom
Night at H & H Home & Hardware
IN EVERY ISSUE 10 Stat of the Month 12 News Map 14 Product Knowledge 48 People in the News 50 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 © 2021 by EnsembleIQ. All rights reserved.
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MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
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MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
Supply chain/ Pricing issues
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FROM THE EDITOR
A new deal for workers at Ward Lumber Ward Lumber has been sold. And here’s the twist: The company was sold to the employees of Ward Lumber.
Oh, you mean an ESOP? No. It’s not an ESOP. The 130-year-old 50-employeee business is now a worker-owned cooperative — a move that received the support and guidance of the Cooperative Development Institute (CDI.coop). President Jay Ward — he keeps that title post transaction — had been interested in the employee ownership model for decades. About 25 years ago he approached his accountants with questions about the vastly more familiar Employee Stock Ownership Plan (ESOP). “I was told we can’t do that,” Ward told HBSDealer. “It’s too expensive. It’s too complicated. ESOP’s require valuations every year. There are ERISA regulations, and it’s really complex. So I kind of put it out of my mind.”
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Ken Clark Editor in Chief 99% the ability to run this company and gain wealth from this company.”
You mean, like an ESOP. Again: No. This is not an ESOP. It’s not as if Ward is on a crusade for the co-op structure. But he wants people to know that it’s an option. “Because there’s a lot of 50-something baby boomer type independent business owners in our industry — Your readers,” he said. “And if they close their doors, there’s not a lot of people that are going to come along and reopen up that business.”
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LBM EDITOR Andy Carlo acarlo@ensembleiq.com, 845-891-5108 CONTRIBUTING EDITOR Ken Ryan ryankgr@aol.com, 516-567-3034 Editorial Inquiries: Direct questions to Editor in Chief Ken Clark. ADVERTISING SALES
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So, it’s not an ESOP? It’s not an ESOP. The idea for a worker-owned cooperative sprung upon Ward as the family sold off its Ward Pine Mill manufacturing division about three years ago. “I just started reading about it and followed it all the way down the rabbit hole,” He told HBSDealer. “By 2 a.m., I had learned that a worker-owned cooperative was simpler, it was less expensive. It vests direct control in the employee owners — as opposed to an ESOP, where there’s a trustee or trustees making the big decisions. “There’s too much of the 1% that runs this world, in my opinion,” Ward confided to HBSDealer. “This is my little push back, my little act of resistance by trying to give the other
EDITOR IN CHIEF Ken Clark kclark@ensembleiq.com, 212-756-5139
Pictured: Jay Ward of Ward Lumber, now owned by its employees.
For Ward Lumber, easier and more lucrative options were available. “But this was the right thing to do,” Ward said, considering the contributions the workers made to the business over the decades. “And if we can enlighten even one or two independent dealers, and we save an independent business, then that’s a win.” Any questions? Check out our story on Ward Lumber at HBSDelaer.com and share your thoughts at news@hbsdealer.com. HBSD
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
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NEWS + ANALYSIS FOLLOWING UP
True Value gains reversal from Stanley Chicago-based True Value Company has resolved an issue with Stanley Black & Decker, which has reversed a previous decision to stop supplying the distributor (April issue of HBSDealer). An agreement to continue the relationship followed meetings and communications between True Value’s leadership, Stanley and also independent hardware retailers who were surprised by Stanley’s intentions. It remains unclear what originally caused Stanley to alert True Value last month that Stanley had planned to cease shipments at some point in the future. And neither company provided additional details with HBSDealer about their reconciliation. John Fix, president of Cornell’s
STAT OF THE MONTH
The number of consecutive months in which the national median existing-home price for all housing types showed a year-over-year gain. In March, the latest month of available data, the median price was $329,100, up 17.2% from March 2020. Source: National Association of Realtors
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Hardware in Eastchester, N.Y., a long time True Value dealer, shared with HBSDealer a letter he wrote to Stanley Black & Decker CEO James Loree, before Stanley changed course.
“What possible reason could your company have to cut off selling to independent hardware retailers, many who have been selling Stanley and Black & Decker items since before you and I were born?” Fix wrote. Reflective of the mindset of the independent, Fix added that a large number of independent family businesses have been loyal customers of Stanley for decades “or in our case, over a century.” In late March, True Value CEO Chirs Kempa had described Stanley’s cessation notice as “inappropriate and unlawful.” Stanley alerted True Value of its reversal and intent to continue shipping through True Value Company on April 14.
Lowe’s buys Stainmaster Lowe’s announced that it has acquired the Stainmaster carpet and flooring brand. The purchase includes all brandrelated intellectual property from Stainmaster’s parent company Invista, along with all related trademarks and subbrands. Stainmaster has been carried exclusively by Lowe’s since 2010 and now joins the retailers private label assortment. Financial terms of the acquisition were not disclosed. According to Lowe’s, the acquisition is a step in delivering Lowe’s “Total Home” strategy unveiled by the home improvement giant last year. The plan includes elevating the retailer’s assortment while providing consumers with the
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
Stainmaster has been a Lowe’s exclusive since 2010.
products and brands they trust for every project across their homes, Lowe’s said.
NEWS + ANALYSIS
US LBM ventures deeper into the heart of Texas US LBM is acquiring Higginbotham Brothers, the hardware and building supply dealer with 40 locations in Texas and Oklahoma. Following this deal, US LBM said it will operate more than 320 locations nationwide. Financial terms of the acquisition have not been disclosed. Higginbotham Brothers was founded in 1881, when the company opened its first general store in Texas. Today, the dealer supplies professional builders, remodelers, and DIYers with lumber and a deep catalog of specialty building products, including hardware, windows, doors, and plumbing materials, along with interior and exterior paint. Corby Biddle will continue to lead Higginbotham Brothers’ day-to-day operations as president and general manager, US LBM said.
Higginbotham Brothers Co. has a rich Texas history.
“Both Higginbotham Brothers and US LBM are about putting people first, from customers, to employees, to our local communities,” said Biddle. “We’re excited to join US LBM and for the benefits this partnership will bring, such as new tools and training for our employees and access to a wider range of specialty building products and manufacturers for our customers.”
In the fourth quarter of 2020, Higginbotham opened its 40th location in Liberty Hill, Texas. “Higginbotham Brothers is focused on building relationships and providing customers with the best products, service, and knowledge, making them a perfect fit for us,” said US LBM President and CEO L.T. Gibson. “This acquisition expands our network into Oklahoma, and with nearly 60 locations between Higginbotham Brothers and Parker’s Building Supply, US LBM now has a significant presence across the rapidly growing Texas construction market.” Earlier this year, US LBM acquired Gilchrest/Jewett with five locations Iowa. Founded in 2009, US LBM has grown to become one of the nation’s largest building material distributors and suppliers. The company is based in Buffalo Grove, Ill.
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
ACQUISITION
ohio kansas
Beloit
Bomgaars Sioux City, Iowa-based farm-andranch retailer Bomgaars opened a store in Beloit, Kan. The new location brings the company’s store count to 100. The. 35,500 sq. ft. store formerly operated as a Shopko.
Akron
West Hill Hardware West Will Hardware, an iconic Akron business that dates to 1930, is closing. “It is with heavy heart and hammer to announce we will be ending our illustrious 90 years of service,” owner Richard Tschantz announced on Facebook. The business shuttered for good at the close of April. pennsylvania
colorado
Avon
Alpine Appliance Center Kodiak Building Partners acquired Alpine Appliance Center, the home appliance supplier with locations in Avon and Basalt. The move marks the 27th acquisition in Kodiak’s 10 years of business
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MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
Corry
Corry Lumber Sander’s Markets, a seven-location unit grocery store chain with a location in Corry, Pa., acquired the Corry Lumber True Value Hardware. Sander’s Markets last year added a True Value Hardware Store to its Jefferson, Ohio, grocery store location.
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NEWS + ANALYSIS Product Knowledge Product: Titebond DuraMaster Sealant Manufacturer: Franklin International., based in Columbus, Ohio. Knowledge: Titebond DuraMaster Sealant is the first elastomeric, water-based sealant with 100% joint movement. In other words: building materials move, here’s a sealant that moves with them. The expanding sealant makes it four times more durable than other acrylic latex sealants. DuraMaster delivers adhesion to all the most common building materials. And it comes in 13 colors. Fun fact: Franklin International was the first to make the adhesive used for peel-and-stick postage stamps.
Exposed: the cost of regulations While mounting lumber prices have added as much as $36,000 to the cost of a new single-family home, regulations are also taking their toll. A report from the National Association of Home Builders (NAHB) indicates that regulations imposed by all levels of government account for $93,870, or 23.8%, of the current average sales price ($397,300) of a new single-family home. According to the NAHB, of the $93,870 figure, $41,330 is attributable to regulation during development, and $52,540 is due to regulation during construction. “This study illustrates how overregulation is exacerbating the nation’s housing affordability crisis and that policymakers need to take bold steps to reduce or eliminate unnecessary regulations that will help builders increase the production of quality, affordable housing to meet growing market demand,” said NAHB Chairman Chuck Fowke. This study on the cost of regulations does not take into effect how rising lumber and other material prices
over the past 12 months have raised housing costs, however. NAHB completed another report last month that shows rising lumber prices, which have soared more than 250% since April 2020, have added $35,872 to the price of a new single-family home. This figure is on top of the $93,870 cost due solely to regulation. While NAHB’s previous regulatory estimates in a 2016 study were fairly similar, the price of new homes increased substantially in the interim. When applying these percentages to Census data on new home prices, the data show an estimate that regulatory costs in an average home built for sale went from $84,671 to $93,879 — a 10.9% increase during the five-year span between NAHB’s 2016 and 2021 estimates.
PHOTO OF THE MONTH A new Crittenden County high school tradition is emerging in the aisles of H & H Home & Hardware in Marion, Ky. — prom photos. Store Manager Shana West created “Prom Night at the Hardware Store” with the help of several of the store’s high-school age employees. The idea is to help H&H secure its place in the community. West explains: “One of our most important marketing goals is to be
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MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
H&H employee Lili Newcom with Tanner Way in the rental aisle.
perceived within our community as ‘THE place’ — it’s all about the experience. “Everyone’s always looking for the new, trendy, unique, not-like-everyone-else thing. And I’m happy to provide that experience.” More Prom Night at the Hardware Store photos can be seen at HBSDealer.com.
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INDEPENDENT PROFILE
A centennial at Stewart Builder Supply The pro dealer continues to rise to the challenge in Tennessee and Kentucky.
Bill Stewart (left) and Brent Stewart, the third and fourth generation at Stewart Builder Supply. The dealer’s customer base ranges from multifamily construction and DIY sales to spec builders and luxury homes.
By Andy Carlo
A
s the industry battled the challenges of COVID in 2020, another hurdle arose: the massive surge in a demand for building supplies. Stewart Builder Supply, with three locations in Tennessee and Kentucky, met the challenge while keeping its customers and employees safe. At the same time, the pro dealer continued to provide a high level of service. Moving ahead to 2021, Stewart Building Supply is celebrating its centennial. “For over 100 years, Stewart has focused on building relationships, building trust and providing the best services,” says Bill Stewart, owner of Stewart Builder Supply. “Our tenured employees have built key relationships with customers that allow us to serve them as their needs changed in different housing markets.” Each Stewart location has an identity of its own. For example, the dealer’s Hopkinsville, Ky., location caters to large spec builders along with multi-family construction due to a nearby military base. In Dickson, Tenn., the focus is on homeowners and DIY sales in addition to custom and spec builders. Larger, luxury home builders, both custom and spec, is the target in Brentwood, Tenn. “The challenge is recognizing these differences and acting accordingly while keeping a cohesive company,” Stewart says. Overall, Stewart’s customer mix is made up of 90% professionals and 10% DIY customers. Within the pro segment, Stewart’s customer base is about 75% home builders, 15% remodelers, and 10% multifamily construction. During the height of the pandemic, the sales and management team faced a stressed supply chain along with having to communicate increases in material costs and shipping delays caused by the virus. But Stewart Builder Supply overcame the difficulties. “We strive to be the best building material dealer in the area and contribute to the success of our customers,” Stewart explains. “As a family-owned business, we are a close group. The employees support each other and focus on teamwork for the benefit of the customer.” And employees, along with their efforts, don’t go unrecognized. The company celebrates the personal milestones and the birthdays of Stewart’s 70-plus employees. In honor of its 100th anniversary, each store location is planning special celebrations, including being involved in the Music City Grand Prix, a trip rewards program, and cook-outs for customers and em-
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MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
“Our tenured employees have built key relationships with customers that allow us to serve them as their needs changed in different housing markets.” —Bill Stewart, Co-Owner, Stewart Builder Supply
ployees. Stewart will abe the Co-Grand Marshall of the Old Timer’s Festival in Dickson. They are also in the process of establishing a Stewart’s Scholarship in recognition of this special time in their history. Stewart Builder Supply shows a deep commitment to the communities it serves as well. Each location contributes to area causes such as Eagle Scouts, churches, and disability projects, including wheelchair ramps. A few years ago, Stewart was able to give back to a family in need while participating in a project with the “Extreme Makeover: Home Edition” reality TV show. When it comes to maintaining its level of service to customers, Stewart continues to invest in itself. New lifts, delivery vehicles and piggy-back lifts have been brought on board. Stewart has aligned itself with well-known vendors that want to help the business grow. The pro dealer implemented Epicor BisTrack and a GPS fleet management system. “Stewart is always looking for ways to improve operations, increase sales, and uphold customer service all while looking at other opportunities for growth,” Stewart says.
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C O V E R F E AT U R E
WINNER’S LIST
The 2021 Class of STIHL Hardware All Stars
T
he following pages document a very special class of All Stars. Representing each of the fifty states, these high-performing, community-oriented, innovation-fueled businesses were tested over the past 12 months. And they passed with flying sales. Case in point is our All Star on the cover: Wood Shed Lumber & Hardware Supply of Carrolton, Mo. Entering the store is a visual experience, enhanced by a welcoming cedar porch, shiplap siding, wide aisles and an antique wagon among the merchandising tactics. In February, the versatile retailer expanded with a Wood Shed Outdoor Power & Rental, just across the street from the main store. “We’ve got a lot of small towns around us and they’ve shown tremendous support for us,” said co-owner Sharona Eiserer. Like most All Stars listed here, the business rests on the foundation of a friendly and knowledgeable staff. “We have a lot of folks that have been in the industry for a good while,” she added. “They’re local, and lot of them have been in the construction industry. Their expertise is the reason we offer that good, customer-friendly service.” Our cover photo doesn’t lie. The friendly Wood Shed has “All Star” written all over it. And there are 49 more worthy honorees on the following pages. Congratulations to the entire class of 2021.
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MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
Alabama: Arab Lumber Alaska: The Lumberyard Arizona: Page Lumber Arkansas: Gazaway Ace California: Chet’s Hardware Colorado: Kroegers Ace Connecticut: Chatfield Power Equipment Delaware: Fenwick Hardware District of Columbia: Frager’s Hardware Florida: Franks Cash & Carry Georgia: Maycrest Hardware Hawaii: Tanaka Hardware Idaho: Jacobs Lumber Co. Illinois: Schauer’s Hardware Indiana: PC Home Center Iowa: Norbys Farm Fleet Kansas: Arrowhead Hardware Kentucky: W.D. Bryant True Value Louisiana: Interstate Building Materials Maine: Lumbery Massachusetts: Klem’s Michigan: Peter’s True Value Minnesota: Wenner Do it Best Mississippi: Revell Ace Hardware Missouri: Wood Shed Lumber & Hardware Montana: Billings Hardware Nebraska: Beaver Hardware Nevada: Fernley Big R New Hampshire: County Store Hardware New Jersey: Tanis Hardware New Mexico: Village Hardware New York: Crest Hardware North Carolina: Mountain View Home & Hardware North Dakota: Cavalier Do it Best Home & Lumber Ohio: Hemley Hardware Oklahoma: Cornerstone Ace Hardware Oregon: Bandon Supply Pennsylvania: Busy Beaver Home Improvement Rhode Island: Mount Pleasant Hardware South Carolina: Landrum Hardware South Dakota: MAC’s Tennessee: Youngblood Builders Supply Texas: Magnuson Ace Hardware Utah: Circle B Irrigation Vermont: Goodro Lumber Virginia: Overstreet Ace Hardware Washington: Ace on Francis West Virginia: Thomas Hardware Do it Center Wisconsin: Kimp’s Ace Hardware Wyoming: Jenkins Building Supply
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C O V E R F E AT U R E
accessories serves local DIYers, builders and vacationers. Customers can also shop online for the best deals in town. ARKANSAS
Gazaway Ace
Arab Lumber’s Trey Hamilton, on the job with his daughter, Anne.
ALABAMA
Arab Lumber
This highly successful family-owned business has been in operation since 1963 when B.C. Gazaway founded it. More than 50 years later, grandson Todd has kept the merchandise fresh with store resets and re-arranging prominent fixtures within the store for maximum effect. Todd likes to tout his company’s status, proclaiming it to be “hands down” the most “helpful” crew to embrace the Ace promise of legendary customer service.
He’s a former North American Hardware & Paint Association Young Retailer of the Year. She’s a former nurse who came on board full time in February. Together Trey and Katie Hamilton own Arab Lumber, which prides itself on service. A healthy sporting goods business has successfully introduced hunters to building supplies, and builders to hunting. “We offer the best customer service with good prices and the rest takes care of itself,” said Trey.
Kroegers ACE, Durango, Colo.
Plaza Mural project—one of the many ways manager Joel Krueger and his team give back. Kroegers earmarks about $50,000 annually for local charities, especially children, the needy and women fighting breast cancer. “We do it because it’s the right thing to do and the community rewards us for that,” Krueger said.
ALASKA
The Lumberyard
It’s imperative The Lumber Yard have the right products for its customers because getting to Bethel ain’t easy. “Our most unique feature is that we are completely off the road system, isolated, as are all of our local customers,” owner Mike Langlie said. “Everything comes in by barge or plane. As such, we focus on providing the right mix of LBM and hardware items in our store and stocking plenty of inventory for customers.” ARIZONA
Page Lumber
Perched atop Manson Mesa at an elevation of 4,300 feet—and 600 feet above major vacation destination Lake Powell— Page, Ariz., has seen a spike in population, and Page Lumber has been there to seize the opportunity. This one-stop shop for all things lumber, building supplies and
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Chet’s Hardware, Avalon, Calif.
CALIFORNIA
Chatfield Power Equipment, Southbury, Conn.
After nearly seven years of careful coordination, Chet’s Hardware moved into a new building in May 2020, continuing its role as the island’s lone hardware store and one of its oldest businesses. The new Avalon location includes a garden nursery, and owners Mike and Cinde Cassidy are consulting with the Catalina Island Conservancy to offer an extensive selection of native plants.
CONNECTICUT
Chet’s Hardware
Chatfield Power Equipment “Don’t get boxed in by the big guys— Chatfield’s is here to help.” That’s been the company mantra for more than 50 years. This True Value retailer will service everything, not just what it sells. Its extensive line of power equipment has earned Chatfield’s the distinction of being named a Scag Pro Gold dealer as well as a Stihl Elite dealer.
COLORADO
Kroegers Ace
Kroegers Ace is all about community. The century-old Durango business recently supplied the paint, brushes and other materials for a 300-foot Town
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
DELAWARE
Fenwick Hardware
When general manager Steven Lehukey noticed that some of the flags being flown in the community were frayed, he
HBSDealer.com
decided to make amends. And so began the Forever Flag program. The June 14 event encourages customers to bring their tattered flags to the store for disposal and receive a 15% off coupon for a new flag. “I just wanted to bring a little attention to the flag,” Lehukey said.
50th anniversary as a hardware business with two locations that sell everything from chicken feed to paint. And a dishpan or two. GEORGIA
Maycrest Hardware
Here is Savannah’s one-stop-shop for the DIYer. Under new owner Kyle Adai, Maycrest Hardware opened a new rental center, engaged in a store renovation and expanded its shelves with thousands of new items. During the transformation, the store maintained its friendly, neighborhood feel. An outdoor kitchen showroom and an impressive selection of Diablo tools are also highlights. Maycrest Hardware enjoys a tradition of serving Savannah since 1960.
Park has performed some meticulous screen repair and other renovation work for the master-architect’s homes. But there’s nothing pretentious about the shopping experience: “Were just a good ole hometown hardware store,” said Richard Schauer, third-generation owner. The nostalgic soda pop and candy aisle has been a tasty and profitable recent addition.
HAWAII
Tanaka Hardware
Frager’s Ace Hardware, Washington D.C.
DISTRICT OF COLUMBIA
Frager’s Hardware
In 2020, Frager’s Ace Hardware celebrated its 100th anniversary. The Capitol Hill hardware store (The Capitol Building is within eyesight) is part of the A Few Cool Hardware Stores family in and around Washington, D.C. To honor its centennial, owners Gina Schaefer and Marc Friedman threw an All-Star-worthy celebration: each month the store raised money for local non-profits and publicized a local small business. FLORIDA
Franks Cash & Carry
The story goes that Frank Schissler III needed a dishpan to make pickles and thought it would be a shame if his rural hometown of Freeport couldn’t provide it. And so began the start of Frank’s Cash & Carry, which just celebrated its
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Tanaka was once renowned for manufacturing tin lunch containers called bento bakos—two-part, round, stackable containers that held rice in the lower container with the main course on top. Today, this All Star is a full-service dealer known around the island as the place that carries “a whole lot of stuff.” Fourthgeneration proprietor Lori Tanaka Koga took over as president in 2021. IDAHO
Jacobs Lumber
Deep in the heart of logging country, Jacob’s Lumber Company is very careful about sourcing local lumber. Its savvy customer base knows a Canadian wrapper when it sees one. But supporting local is just one of the traditions of community service here at the Kamiah All Star. Jacobs Lumber is the inaugural recipient of the local school district’s KamiahCares Community Business Award. ILLINOIS
Schauer’s Hardware
With a few Frank Lloyd Wright homes sprinkled in the area, Schauer’s Hardware in the Chicago suburb of Forest
David and Sara Stemler of PC Lumber & Hardware, New Albany, Ind.
INDIANA
PC Lumber & Hardware
It’s Kentuckiana’s largest locally owned lumber and hardware dealer. And the 90,000-sq. ft. New Albany showroom is a remodeler’s dream for selection and inspiration. Owner David Stemler points to trust and reliability as competitive advantages, plus “the best overall value for your money due to the overall quality of product and services delivered. We enjoy giving back to the community that supports PC.” IOWA
Norbys Farm Fleet
Earning the moniker “biggest little store in every town,” the business started by Loren and Connie Norby in 1962 (and now run by Paula Norby) has grown to 12 locations. From pet rescues to scholarships, Norbys lends a helping hand—and financial resources—toward numerous local activities. They’ll even provide the fish to fill your pond as part of Norbys Fish Days.
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the inventory situation. (It was down to scraps.) Second, he led a transformation of the store’s mindset that is best described as “Yes, we have that.” A 25-year veteran of Westlake hardware, Schaper summed up his retail philosophy this way: “Give the customer what they want.” KENTUCKY
LOUISIANA
Long tenured employees, loyal customer base, and family ownership across four generations: That’s how W.D. Bryant True Value earned its All Star status. Two locations — Corbin and Williamsbrug — deliver expertise in building, remodeling, gardening or just plain repairing projects. W.D. Bryant was founded 1928, and continues to prove its commitment to serve its Kentucky communities.
Founder and CEO Kyle Martinez is no stranger to industry awards. Two years after he founded the Many, La., business, Martinez was named a Young Retailer of the Year in 2016. Since then, the story is one of growth and service. The company has grown from seven employees who focused on contractors to a team of 23 people who embrace builders and walk-in DIYers.
W.D. Bryant True Value
Arrowhead Hardware, Baldwin City, Kan.
KANSAS
Arrowhead Hardware
When Kent Schaper took over Baldwin City’s Arrowhead Hardware in 2018, he made two big moves. First, he fixed Halfpage_Ad.pdf
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MASSACHUSETTS
Klem’s
Lumbery, Cape Elizabeth, Maine.
MAINE
Lumbery
“Our goal is to get people to think differently about lumber,” said Lumbery founder and CEO Michael Friedland. The Cape Elizabeth business stepped into the ring in late 2020 with an idea to bring locally sourced forest products to its customers. The All Star is also passionate about its customer service. For instance: A convenient membership-model Tool Library allows customers to check out tools for a couple of days.
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This third-generation family business in Spencer, Mass., rocks the slogan “We’ve got it!” — a reflection of the breadth of assortment. The pandemic curbed the retailer’s outdoor event programs, but the Records & Burpee Children’s Zoo at Klem’s is a fan-favorite in Central Massachusetts. President and CEO Jessica Bettencourt says the best part of the job is “working with an amazing staff who care about the customer and go above and beyond.” MICHIGAN
Peter’s True Value
Owner Peter Grebeck is a big believer in “old-fashioned” service. The thirdgeneration True Value Hardware Store
Peter’s True Value, Milford, South Lyon and Lake, Mich.
owner operates stores in the Michigan towns of Milford, South Lyon and Lake. “The biggest reason people come to small stores for is service and product knowledge,” he told the Detroit Free Press. Check and check.
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MINNESOTA
MONTANA
Fifth-generation owners Pat and Carl Wenner know what it takes to thrive. The family has 125 years of experience in the hardware industry, and the result is a unique blend of culture and expertise. And hardware isn’t the only business the Wenner family excels at — see Wenner Gas Co., Wenner Funeral Home and Speedway convenience store of Cold Spring.
You don’t thrive in this business for 120 years unless you understand people. At Billings Hardware & Garden Center, that understanding is founded on science: a detailed personality assessment is part of the training for staff. The end result is an optimized matching of behavioral styles to serve customers and build teamwork.
Wenner Do it Best
MISSISSIPPI
Revell Ace Hardware
Established in 1950, Revell is now a 9-store chain that never stops evolving, according to owner Joe Rooks. “Our diversification over 71 years sets us apart from others. In the past two years, we’ve taken on a line of trailers and are now selling over 400 trailers per year. We’ve had great success bundling a zero-turn mower, handheld equipment and a trailer all for one low monthly price. Trailers have definitely been a huge success for us.” MISSOURI
Wood Shed Lumber & Hardware
The class of 2021 cover story, Wood Shed Lumber & Hardware is led by a husbandand-wife team that is standing up for their community in All-Star fashion. Sharon Eiserer is a church deacon, Cecil Eiserer owns a construction company, and when they’re not managing their lumberyard, hardware store and new rental center, they’re engaged in plans to renovate abandoned homes in a style to make Carrollton, Mo. proud.
Billings Hardware
NEBRASKA
Beaver Hardware
Originally built in 1890 as a single brick building, the original stained-glass windows are still intact more than 130 years later, having survived a 2014 tornado that tore off the roof and took a shed with it. Customers from across Nebraska gravitate to this destination store where they are often personally met by co-owner Christy Pankoke, Roscoe the dog, and treated to freshly popped popcorn. NEVADA
Fernley Big R
Small store charm meets big-store selection in this beloved, rural retailer. Community involvement includes an active social media presence, and extends to support for numerous local charities and organizations, especially groups that serve the unique needs of veterans. Farm, ranch and home supplies are the focus here, and a generous offering of Western clothing is a bonus.
Tanis Hardware, Haledon, N.J.
NEW JERSEY
Tanis Hardware
This northern New Jersey institution (exit 155 on the Garden State Parkway) is known as the “Paul Bunyan of small hardware stores,” as it maximizes every inch of its 3,800 sq. ft. The Haledon, N.J. store is also known as “Your local, friendly, one stop, mom and pop shop.” Owner Skip Tanis, a skilled woodworker, has repaired and restored carousel horses for the Seaside Heights historical society. NEW MEXICO
Village Hardware
The father-son team of Chuck and Zane Watkins operate a grocery store and a pecan farm in Hatch, N.M. The Watkins family also operates this oneof-a-kind hardware All Star. Chuck purchased the store from his partner and remodeled and remerchandised as he converted it to Do it Best. The store’s expanded offering—from farm supplies to NAPA Auto Parts—exists to better serves the community.
Wood Shed Lumber & Hardware, Carrollton, Mo.
NEW YORK NEW HAMPSHIRE
County Store Hardware
The review says “Good, old-fashioned hardware store, and a lot more.” In Miiford, N.H., this merchant is “not the biggest hardware store, but definitely one of the best when it comes to selection and service,” wrote an All Star nominator. County Store is not afraid to make big moves, either, like its conversion to the Ace Hardware co-op in 2021.
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Crest Hardware
This Brooklyn business might have the coolest web site in all of hardware (See for yourself at cresthardwarenyc.com.) Located in the cool-andcollected Williamsburg neighborhood, Crest Hardware & Urban Garden Center is a back-to-back Best of Brooklyn award winner in 2019 and 2020. Owner Joseph Franquinha continues the legacy founded by his father, Manny, in 1962.
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OKLAHOMA
Cornerstone Ace Hardware
Mountain View Home and Hardware, King, N.C.
NORTH CAROLINA
Mountain View Home and Hardware
Energized by the experience of running a pro-focused dealer in Virginia, Scott and Tammy Moore in 2018 took their talents to King, N.C., and established a 10,500 sq. ft. store with an emphasis on outdoor living, and the results have run ahead of projections ever since. Alongside outdoor furniture, fountains, grills and fire pits, Mountain View offers gifts—the home impressions department—and small engine and grill repairs. NORTH DAKOTA
Cavalier Do it Best Home & Lumber
An All-Star characteristic on display in Cavalier, N.D., is a focus on growth. Last year, Cavalier acquired an old Shopko building and more than doubled their retail space. The new home center has a full-service lumberyard as well as everyday home essentials, plus apparel. Cavalier also invested in a robust online presence, implementing digital marketing strategies to attract customers looking for home improvement solutions online. OHIO
Hemley Hardware
Undaunted by the pandemic, owner Chris Hyatt oversaw the construction of his new 24,000 sq. ft. store virtually. This All-Star space in Thompson, Ohio, boasts a completely remodeled paint department with the newest technology in paint-mixing machines. Additionally, Hyatt doubled the size of the workwear and shoe departments and rearranged the industrial tooling, hardware, and trucking divisions for optimum merchandising effect.
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CornerStone is known for carrying great brands— STIHL, Craftsman, Milwaukee, etc.— but is not afraid to break out of the box, said owner Caleb Potter. “Just before Christmas 2020, we invested in a laser engraving machine. It was a new service and is providing a great return. We engrave tumblers and cutting boards and displayed it on the sales floor so customers can see all the different items we can personalize.”
solution for all basic home repair, electrical, and plumbing for the community. In addition to products and services, Mount Pleasant is a PPG Paint store, and offers convenient U-Haul rentals— especially for college students moving to and from Providence.
OREGON
Bandon Supply
Visits to construction sites as a small child inspired Tom Stadelman to start a hardware business—Bandon Supply— from scratch more than 20 years ago. Today, Bandon Supply’s Outdoor Living and Rental Center encompasses a rental store, feed store, garden center and service department all under one roof. “We understand that while we can’t necessarily have all people’s business, we’re grateful for what we have,” Stadelman said. PENNSYLVANIA
Busy Beaver Building Centers
Since a local ownership group took over the Busy Beaver brand in 2013, the business has lived up to its name, opening home centers — and serving communities — with a remarkable industriousness. With stores in western Pennsylvania, northern West Virginia and eastern Ohio, the company’s 25th location opens September in a 55,000-sq.-ft. former AMC Theatre in Delmont, Pa.. CEO Joe Kallen emphasizes “friendly, expert help” for every shopper. RHODE ISLAND
Mount Pleasant Hardware
Not your basic hardware store, Mount Pleasant Hardware in Providence, R.I. offers window and screen repairs, glass cuts, pipe threading, and is the
Landrum Hardware, Landrum S.C.
SOUTH CAROLINA
Landrum Hardware
Landrum Hardware in Landrum, S.C. is a full-service location providing electrical, plumbing, hardware, tools, lawn and garden, housewares, and farm supplies. Owners Shawn and Susan Evans are the third family to own and operate the business, starting in 2013. In 2018 the business moved to a new 15,000-square-foot facility. “Customer service focus is the key to all of it,” says Shawn Evans. “We make sure we have the store stocked with what people need, and the people to help them find it.” SOUTH DAKOTA
MAC’s
Founded more than 50 years ago, MAC’s has grown to 14 locations in Minnesota, North Dakota and South Dakota along with a central office and distribution center in Moorehead, Minn. The company’s slogan is “Not just another hardware store.” That’s because MAC’s carries a full line of hardware and supplies while specializing in heavy-duty items for industrial-sized projects. MAC’s handles professional tools, fasteners in bulk, chain, rope, and cable, as well as a full line of upholstery.
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TENNESSEE
Youngblood Builders Supply
Youngblood Builders Supply is one of the longest running yards you’ll find in Memphis, Tenn. and is regarded as a fixture in the community. With an almost five-acre lumberyard and 10,000-square foot hardware store, Youngblood is ready to service customers whether they’re building a tree house or a dream house. The dealer takes care of remodelers, rental property owners, apartment management groups, industrial customers, government and community organizations. TEXAS
Magnuson Ace Hardware
Located in Friendswood, Texas just outside of Houston, Magnuson Hardware has been an Ace dealer and authorized STIHL dealer for 13 years. With NASA headquarters located right down the street, Friendswood is a NASA community. In addition to carrying traditional core hardware lines from Ace, the dealer is also a STIHL Certified Gold mechanic. “From the standpoint of operating a store, each hardware store has to tailor itself to the market, and we’ve done a good job at that,” owner Jeremey Magnuson says.
you could want when it comes to building materials and hardware. Established in 1930 by Harry and Mildred Goodro as a sawmill, today Goodro carries tools, hardware, paint, doors, windows, roofing, and flooring in addition to other categories. Goodro maintains a steady blog with home improvement tips along with an E-Showroom. VIRGINIA
Overstreet Ace Hardware
Overstreet Hardware in Lynchburg, Va. has grown to become much more than a hardware store. The dealer offers a full-service rental department, featuring equipment rentals and a large selection of wedding and party accessories. Owners Paul and Chuck Overstreet say the company strives to offer competitive rates and expert, personalized service. The dealer’s goal is to provide the proper equipment and expertise required to serve all of its customers’ needs.
Goodro Lumber
Located in East Middlebury, Vt., Goodro Lumber carries just about everything
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Thomas Do it Center in Point Pleasant, W.Va. is the dealer’s second location in addition to its Gallipolis, Ohio store. The dealer prides itself on its diverse delivery fleet, meeting the construction needs of area contractors and homeowners. Thomas supplies nearly every aspect of new residential builds and major remodels, including custom kitchen design. The dealer is well-known for its special events and is proud to sponsor community causes, non-profit, and youth events.
WISCONSIN
Kimp’s Ace Hardware
Circle B Irrigation
VERMONT
Thomas Hardware Do it Center
Kimp’s Ace Hardware, Kimp, Wis.
UTAH
Located in Hyde Park, Utah, Circle B Irrigation was established by native Utah farmers. The family owned and operated company started as an irrigation provider and has evolved to offer unique solutions for its community. In 2017, Circle B expanded into a 20,000 sq. ft. retail location to service customers’ home improvement needs. In addition to residential, commercial, and industrial irrigation equipment, the dealer offers a wide selection of tools, mowers, lawn care, and plumbing products. They also have a small engine repair shop and metal fabrication services.
WEST VIRGINIA
Ace on Francis, Indian Trail, Wash.
Adding power equipment and a rental business catapulted Kimps to “the place” status for local customers, according to third-generation owner Craig Kimps, whose business continues to exceed expectations with “above and beyond” service and breadth of offerings including an expanded 132-foot STIHL display. “Being what we call ‘hometown strong’ has always contributed to our success,” Craig said. “The roots my grandfather and father planted here are most definitely our foundation.”
WASHINGTON
WYOMING
For more than a decade, Dawn Gregg and her husband Bruce were asked by their Indian Trail customers to open a much-needed hardware store in their neighborhood. The new location, which opened in 2021, is smaller than the other two stores, but Dawn promised “to squeeze just as much into that building as we can so we can serve those neighbors who have supported us for the last 17 years.”
Jenkins Lumber & Hardware in Etna, Wyo. was acquired by Kodiak Building Partners in 2019, but the dealer retains much of its original flavor. The lumber and full-line hardware dealer continues to place a big focus on adding quality service to its customers’ projects. “We try to do what we say we are going to do when we say we are going to do it,” says President Mike Jenkins. “We get engaged in customers’ projects and help them solve problems.”
Ace on Francis
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Jenkins Lumber & Hardware
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PRODUCTS
Hand Tools hit home and beyond The industry has rolled up its sleeves with innovation for DIYers and pros. A recent HBSDealer.com survey question explored the ability of the homeowner/DIYer to take on more sophisticated projects. The answer: Yes they are — or so say 69% of survey respondents. The survey may have lacked a scientific sample size (n=40), but the results stand to reason. As DIYers generally sheltered in place throughout the pandemic, there was plenty of time to roll up their sleeves and tackle a project, and learn from the experience. There aren’t many home projects that can get off the ground without some kind of hand tool, and that leads to the images here. The products collected on the following pages represent an overall upgrade to the typical homeowner’s tool box, plus a few specialty products for the professional tradesman or technician.
CHANNELLOCK 968 Forged Wire Stripper
The Meadville, Pa.-based tool maker expanded its line of specialty tools with the introduction of the new 968 Forged Wire Stripper. Created with those in the electric, automotive and HVAC industries in mind, the tool is made in Meadville from 100% forged U.S. steel. Built with Xtreme Leverage Technology, the tool requires considerably less force to cut than traditional high leverage designs, reducing hand fatigue. And a springloaded handle offers easy, one-handed operation. Channellock.com
Jorgensen Classic Adjustable Handscrew
Stanley Fatmax High Velocity Hammer
Built with Stanley Antivibe Technology that isolates vibrations to the hammer’s head, this striking tool minimizes strain on the wielder’s arm. Plus, its designed with a new, soft grip material with an industrial design for better comfort and less arm fatigue. A magnetic nail starter allows for one-handed nail placement. And on top of it: Stanley says the head is “precision balanced.” Stanleytools.com
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The Jorgensen handscrew combines a vintage design along with highperformance features. It is crafted to ensure maximum strength and durability with seasoned, straightgrain hard maple wood jaws married with col-drawn steel spindles and nuts with special double-lead threads. The result is a clamp that holds tightly over broad areas, with a wide distribution of pressure. What’s more, the clamp secures odd angles easily. Ponyjorgensen.com
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Gearwrench 90-tooth ratchets
Gearwrench’s 90-tooth ratchet line provides a 4-degree swing arc for greater access in tight spaces. The precision-engineered, highstrength pawl gives increased durability, helping the ratchets exceed ASME torque performance requirements. For those who prefer a chrome handle, the full polish versions are easy to clean and ergonomic to be easier on the hands. For those who prefer it, the solvent-resistant cushion grip is comfortable but tough enough to handle shop life. Gearwrench is a brand of Apex Tool Group. Gearwrench.com
Johnson programmable digital Level
Johnson’s most robust and accurate digital level, the JLX 24” programmable digital level has the accuracy and durability required for professional applications. It features pre-programmed ADA compliance, drainage and roof pitch modes that simplify measurements for the most common digital level applications — Note: it can also be customized to an individual job. It also comes with a non-marring wall grip and its crystal clear vials were designed to never fog, leak or crack. Johnsonlevel.com
Klein Lineman’s Claw Milled Hammer
Another specialized product from Klein Tools, this large-headed hammer is ideal for installing staples and lag bolts on utility poles. The 26-ounce head weight — well-balance to effectively withstand off-center hits — is relatively light, compared to a 32 oz. that would be typical on a tool this length. The fiberglass handle with textured grip prevents slippage, and a lanyard hole in the handle offers convenient and safe tethering. Kleintools.com
ToughBuilt Hawkbill Folding Knife
The Hawkbill Folding Knife is designed to provide fast cuts and open in a quick, onehanded motion with the thumb or flick of the wrist. The knife has a heavy-duty grip handle and liner lock, which brings the blade back in the caseing. The cutting tool is designed to cut through everything, ensures maximum productivity on the job site. The curved 3.25” titanium coated blade, ideal for pull cuts, slicing, cable skinning, VCT tile, linoleum, and carpet. The tool includes an integrated flat pry tool, perfect for removing small nails and tags. The lanyard hole and belt clip allows for a safe and comfortable every-day carry. Toughbuilt.com
MIDWEST Offset Left Aviation Snips
With an offset left design, the MWT-651OL cutting tool flows material away from the blades and positions the user’s hand above the work area for best maneuverability when cutting full sheets or tight left curves. The bottom blade is serrated to boost cutting efficiency. This model is easiest used in right hand, and it is made in the USA. Midwestsnips.com
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PRODUCTS
Glove manufacturers are feeling it Fingertip control, or close to it, has a grip on the category. They don’t make gloves like they used to. They make them better. Or at least, they make them more conducive to job site tasks like picking up loose nails or operating a power tool — even in bad weather. Among the recent innovations in the work glove category is GRX, a PrimeSource brand, which rolled out a Cut Series of comfortable and durable work gloves, as part of its larger safety category. The new gloves, the GRX Cut Series, feature PalmWick Technology that lets the worker’s hands breath. Plus an ExaGrip coating helps prevent slips. And the marquee feature of the Cut Series is the cut-resistance quality of the glove. The company believes that when a worker at a job site removes his glovers — for comfort, to sign a document, or to use a touch screen phone — there’s a chance the worker might not put the gloves back on. That’s why GRX designed the gloves for comfort and compatibility with touch screens, the company said. The Cut Series gloves are clearly The Wells Lamont FX3 Impact Protection Synthetic Palm Work Glove.
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GRX Cut Series gloves from PrimeSource are in the vanguard of a trend toward durable, grippable and comfortable work gloves.
labeled for the degree of durability — from ANSI 2 to ANSI 9 — a measure of cut resistance. GRX encompasses a comprehensive safety-product offering. Other safety products in the works include highvisibility vests and hard hats. Wells Lamont, a company that has been making work gloves since 1907 is recognized on the retail shelf for its donkey-head logo (indicative of the slogan: “stubborn about quality”). The company’s FX3 line is designed to provide the dexterity to pick up a tiny screw, and the durability to handle the toughest jobs, the company said. A heavy-duty case-in-point is the FX3 Impact Protection Synthetic Palm Work Glove. In it, the glove combines several materials and features in one high-tech glove: the impact protection of thermoplastic rubber, the flexibility
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
of spandex, and the hardiness of synthetic leather, The synthetic leather palm provides excellent resistance to abrasion, puncture, and tears. Also, a lightweight stretch fit spandex forms to the back of the hand to keep the hand nimble and comfortable. The TPR knuckle backs and D30 protective palm patching also provide added impact protection. Overall, the Wells Lamont FX3 line focuses on perfecting the fit, flex and feel of high-dexterity work gloves, without sacrificing hand safety and protection. Such an effort to combine protection and dexterity is also alive at Westchester Protective Gear, a division of PIP, the global industrial safety company. Westchester is the maker of the John Deere Hi-Dexterity with Touch protective gloves. The safety product is described as a pair of hi-dexterity waterproof gloves with 40 gram Thinsulate lining and fingertips built to interact easily with touchscreen devices. An adjustable hook-and-loop fastening system neoprene (synthetic rubber) wrist helps keep cold out and heat in.
From Westcchester Protective Gear, the John Deere Hi-Dexterity with Touch protective gloves.
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TRADE
INDUSTRIAL
PRO SERIES
CUT
COLD WEATHER
LADIES
PEST CONTROL
It’s time to talk about ticks Professional Pest Management Association sounds the alarm. Ants, roaches, and unwanted rodents all have their downsides. But outside of mosquitoes, few pests have scarier statistics than ticks. Here are a few, collected by the Professional Pest Management Association. Tickborne diseases can be transmitted into a person’s bloodstream in as little as 36-48 hours after the initial bite. From 2010 to 2018, the CDC estimates that approximately 476,000 people were diagnosed with and treated for Lyme disease each year in the U.S., which amounts to over 4.2 million total estimated cases during that timeframe. Recent research has concluded that tickborne Lyme disease has been detected in all 50 U.S. states. In a recent survey among over 800 U.S. homeowners, commissioned by the NPMA and conducted online by The Harris Poll, 58% of Americans reported they have either seen a tick before or have had to remove one from themselves, someone else or a pet.
Cindy Mannes, executive director of PPMA, stated: “As we head into warmer months where tick populations are particularly prevalent, we encourage all pest control companies to join the cause to help
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educate consumers on the dangers associated with ticks and the steps they can take to ensure their property is properly protects to help safeguard themselves and their loved ones from tick-related health threats.” The NPMA is helping to raise awareness of tick dangers and the need for tick prevention through the creation of new consumer campaign through TickTalk.org, which kicked off during the first ever Tick Awareness Week May 10-16 (officially recognized by Chase’s calendar of Events). The effort includes tips, maps videos and other preventative tools. Not all ticks, cause Lyme Disease. But why take a chance? For retailers, growing tick-awareness creates a sales opportunity, especially — but not exclusively — in rural areas. Products that address the problem come in a variety of forms. For instance: Thermacell Tick Control Tubes Developed at Harvard University School of Public Health, Thermacell Tick Control Tubes are a no-spray, zero mess, easy way to kill deer ticks and prevent them from spreading Lyme disease and anaplasmosis to pets and family. With six control tubes per box, each box treats about 1/4 Acre of property per application.
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
Ticks N All This tick repellent was formulated with natural ingredients to repel ticks and other insects for up to 4 hours. Among the 11 active ingredients are castor oil, and the oils of sesame, cedarwood, rosemary, peppermint and geranium. Black Flag Flea & Tick Killer Concentrate This specially formulated remedy is designed to transform outdoor spaces into a no-bite zones with a ready-to-spray hose-end treatment. The concentrated spray helps protect lawn, trees and shrubs from fleas, ticks and mosquitoes for up to 12 weeks. Simply connect the treatment to the garden hose and activate the spray with a flip of a switch. The RESCUE! GoClip GoClip is a longlasting spatial repellent device that keeps pests away with the power of allnatural essential oils. The GoClip easily attaches to a person’s waistband, shorts pocket or shoe/boot as well as a dog collar or harness, and it lasts up to two weeks. Works against mosquitos and also ticks.
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INSURANCE INSIGHTS
The insurance landscape For LBM industry, an ounce of prevention is worth a pound of cure. By Ken Ryan
F
rom COVID-19 concerns to unrelenting severe weather events, the insurance industry is going through many changes causing dealers to find themselves with higher insurance premiums, more stringent underwriting criteria, and reduced capacity. These issues create more reasons for the LBM industry to understand the potential liability issues that threaten their business operations and to stay vigilant in protecting their livelihoods, insurance experts say. “The days when [LBM leaders]
said, ‘I’m not too concerned with risk management, that’s why I have an insurance policy,’ are over,” said John Smith, president and CEO of Pennsylvania Lumberman’s Mutual (PLM) Insurance Company. Smith and members of his executive team addressed industry leaders at HBSDealer’s “State of the Insurance Industry” webinar. The hourlong presentation delved into complexities of the insurance business and how LBM executives can take measures to safeguard their businesses.
Some takeaways: The Benefits of Risk Management Active risk management efforts are important for a number of reasons, PLM executives said: They help:
Avoid or reduce the potential for a loss to occur.
Minimize damage and injury in the event of a loss.
Defend your business—in the event of a catastrophic loss that goes to litigation.
However, as the executives pointed out, having the best-defined safety policy is no good unless company management and personnel adhere to it. Smith provided a cautionary tale of what can happen if safety practices aren’t followed. What he called a “first-class operator,” a company committed to loss control allowed a young man to get behind the wheel of a truck even though they knew he didn’t have a valid license. “He got in the truck and killed somebody. They knowingly did that. How are we going to defend that case?” His advice to business owners: Be personally involved in risk management. He recalled a site visit with an owner who knew her building. Before they left her office, she grabbed a pair of wire cutters. As she came upon an extension cord lying across the floor, she took out the cutters and cut the cord. “She knew extension cords are responsible for
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HBSDealer.com
more fires than you could imagine,” Smith said. “Little things like that can prevent a claim that you may not be able to afford later.” Smith suggested businesses shouldn’t expect to be penalized if a business owner had all safety measures in place and their building still burned to the ground. “They will be penalized, however, if they neglect electrical maintenance or fail to replace a 15-year-old microwave oven in the kitchen.” Threats and cybersecurity According to John Kennealy, VP of claims, cyber risk has quadrupled in the last 9-10 months during the age of COVID; therefore, he said it is incumbent upon LBM dealers to provide ongoing education to their employees. “Because of COVID many people are working from home and that opens up threats,” he said. “You can have the strongest firewall, but the weak links are people who think they are getting an email or link from their boss at home and click on it and bring on malware, and now the company is being held hostage (by ransomware).” Twice a year PLM employees go through cyber training where they invite family members to participate. The reason? Say an employee brings home a company laptop and his teenager unsuspectingly clicks on an area he shouldn’t. Suddenly, the company could be at risk. Kennealy advises business owners to talk to their insurance brokers regarding cyber coverage. “At the end of the day it is about education and being vigilant.” Businesses have free access to cybersecurity services including eRiskHub, a risk management portal designed to help prepare and respond to data breach and cyberattacks.
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“Because of COVID many people are working from home and that opens up threats.You can have the strongest firewall, but the weak links are people who think they are getting an email or link from their boss at home and click on it and bring on malware, and now the company is being held hostage (by ransomware).” —John Kennealy, VP of claims, Mutual (PLM) Insurance Company
Climate impact Wildfires in California. Hurricanes in the Gulf. Tornadoes and straight-line winds in the Midwest. And now snow, ice storms and power outages in Texas. Climate change is fueling wildfire and windstorm exposures, in turn driving up costs and liability. “In more than 40 years in the industry I could probably count on one hand the number of claims on the liability side of over $5 million,” Smith said. “In the last two to three years, there have been six or seven claims of over $5 million, which is unprecedented in the industry. When you have that type of loss it is hard to recover.” While Mother Nature is hard to predict, there are steps LBM dealers can take to minimize or perhaps mitigate the damage. For example, if your business is located in a windprone area, susceptible to wildfires, trim or remove your shrubs and other fire hazards. If you’re located in a flood zone, examine where you place your
forklifts and commercial vehicles. “It’s a matter of walking through your operation and seeing where you might have a weakness.” Kennealy said. Securing favorable renewals Insurance costs are rising but PLM experts say adhering to loss control measures can result in fewer, less costly claims that can keep premiums down. Panel experts advised keeping in close contact with your broker and insisting that the broker have a strong knowledge of your business. “I’ve heard stories where a business hasn’t heard from their broker in a year,” Smith said. “I know of companies who wanted to hire a consultant to look into their insurance needs when the real problem was that the broker was not doing his job. If you’re spending money on a consultant what you need to do is fire your broker.” Smith suggested shopping your program once every three years with other insurance carriers/brokers.
Other takeways...
PLM executives encouraged dealers to report all claims, no matter how insignificant they might be, and to do so immediately (same day) that you become aware of the claim;
Allow staff to only do those jobs that they are trained for and have the skill to do;
Social inflation is driving up costs; younger juries are handing out bigger awards—in some cases, mid-seven-figure awards;
Work in partnership with insurance, said Steve Firko, SVP business development. “Can we avoid some of the catastrophic losses that could raise their premiums [by working together]? Yes, we can.”
HARDWARE + BUILDING SUPPLY DEALER MAY 2021
39
ECOMMERCE
As eCommerce grows, so grows fraud By Dan Berthiaume According to a new study from Juniper Research, “Online Payment Fraud: Emerging Threats, Segment Analysis & Market Forecasts 20212025,” the value of losses due to eCommerce fraud will increase 18% to over $20 billion by the end of this year from $17.5 billion in 2020. The research found that fraudsters are targeting consumers as they increase their eCommerce use during the COVID-19 pandemic, exposing
40
many retailers’ insecure online fraud mitigation processes. Juniper Research also determined that China will become the largest single eCommerce fraud market in the world, accounting for over 40% of eCommerce fraud losses globally in 2025 with more than $12 billion in losses. The study identified China’s massive eCommerce market and a relative lack of fraud detection and prevention platform deployment as the key drivers behind the country’s rapid eCommerce fraud growth. According to Juniper Research, online retailers operating in China should invest in fraud detection and prevention now, or they will increasingly face damage to their already slim operating margins. Across all markets, the study recommends that retailers utilize artificial intelligence (AI)-based behavioral biometrics to increase security across all potential fraud channels. While online retailers will be ready to reduce fraud rates from their current levels, Juniper says they will be hesitant to introduce extra friction into the checkout process. The report identifies that clear messaging around security checks and automated behavioral analytics leveraging artificial intelligence are key capabilities in preventing fraud without disrupting customer experience. “While the need for security is
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
A new kind of ‘Century Club’ The term “century club” has long been used to describe a company as it crosses the 100-year-old milestone. These days, societal and technological changes can give the term a new meaning — those with digital sales growth of more than 100 percent. Earlier this year, Lowe’s maintained its membership in the digital Century Club by reporting 121% fourth quarter sales growth at Lowes.com. That stat marked the third straight quarter of triple-digit eCommerce comps for Lowes.com. Meanwhile, revenue at Acehardware.com jumped 272% in 2020.
Tractor Supply became a four-time member of the club, as it reported triple-digit percentage growth in eCommerce sales for its first quarter — it’s fourth in a row over 100 percent. CEO Hal Lawton explained: “The work we did last year to improve our omnichannel capabilities continues to resonate with our customers,” Lawton said. “Ongoing improvements to the customer experience for better search capabilities and enhanced personalization are being recognized by our customers.”
greater than ever, the competitive eCommerce environment means merchants will need to ensure that extra security checks are justified to the user, or they risk higher cart abandonment rates,” said study co-author Susan Morrow, associate analyst, Juniper Research.
This article appeared first in Chain Store Age, sister publication of HBSDealer.
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MARKET INSIGHTS
Big night for a good cause Bill Boltz of Lowe’s celebrated the Spirit of Life Award from City of Hope.
The Hardware and Homebuilding Industry raised millions for City of Hope this year. Joe McFarland, left, presented the Spirit of Life Award to Bill Boltz.
An industry-wide effort to support the California-based City of Hope, a hospital known around the world for its groundbreaking cancer research and compassionate treatment, hit the airwaves May 10. It was the night of the annual Spirit of Life Gala celebration — forced into a virtual program, but losing nothing of its real-life inspiration. Lowe’s Executive VP of Merchandising Bill Boltz was the guest of honor. “This event has come to be one of the biggest nights of the year for the hardware and home improvement industry,” said Boltz. “And whether it’s virtual or in person, it’s always just really special to see the folks from our industry come together to support such an incredible organization like the City of Hope.” The night produced incredible figures. The Spirit of Life Gala brought $2.6 million in donations to City of Hope. On top of that, events throughout the year, especially a Lowe’s orchestrated “miles for hope” campaign, brought this year’s contribution from the Hardware and Homebuilding Industry to about $4.5 million. [For more information about City
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of Hope, visit CityofHope.org.]. The cast of characters for the ceremony included, Lowe’s CEO Marvin Ellison, surprise commentary from Boltz’ family, and a performance from country music star Lee Brice. But the real heroes were the doctors and nurses in the trenches at City of Hope. Among them is Dr. Linda Malkas, a City of Hope researcher, shared the story of her personal crusade to deliver on a promise to a former patient, a nine-year-old girl named Anna Olivia Healey, who died from a rare form of cancer in 2005. Malkas’ research, funded in part by contributions from the Hardware and Home Building Industry, led to the creation of a promising drug AOH1996. Those are her initials. That’s the year she was born. The event also included the story of Tiffany Jones, a City of Hope patient who described her successful battle with a rare form of cancer, a battle that she’s winning. Boltz himself described his own personal brush with the disease. “I like countless others have had my life forever changed by this disease that the City of Hope worked so hard to defeat,” he said. “I recently lost my
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
father to cancer and both my mom and my sister are cancer survivors. So like it is for so many, It’s personal, and as my life and career progressed, my passion for the cause and the amazing work being done by this organization has continued to grow.” In his acceptance speech, during which he shared the stage with his colleague and former Spirit of Life honoree Joe McFarland, Boltz described City of Hope as an independent biomedical research hospital that is grounded in providing compassionate care and groundbreaking research. He pointed to the “unbelievable” growth and success of the research hospital since 1913, when it was founded. “This year marks my 39th year in the industry. In my career, I’ve been really blessed to work for some top-notch leaders,” Boltz said. “Those who have taught me just how important it is for an organization and an individual to give back to its community and I’ve been able to observe countless individuals, donating time, money, and support the causes and organizations that make a positive impact on the world around them.”
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Builders FirstSource acquires John’s Lumber A day after it reported giant sales and earnings increases for its first quarter, Builders FirstSource announced that it acquired John’s Lumber. Based in Clinton Township, Mich., John’s Lumber operates two locations and serve the Detroit metro area. Builders FirstSource said the move gives it a firm foothold in the 41st largest single-family housing market in the nation, including a region where half the state’s housing starts are completed annually. Revenue at John’s Lumber for the past 12 months was approximately $49 million. Financial terms of the acquisition were not disclosed. “I’m happy to welcome Bill Brys and
44
John’s Lumber of Clinton Township, Mich.
all of his team members to Builders FirstSource,” said Dave Flitman, CEO of Builders FirstSource. “John’s Lumber is known locally for having great people focused on providing high-quality products and services to their customers.” Builders FirstSource already operates 14 locations throughout
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
Michigan. Flitman said the acquisition will benefit its current yards in the state and allow for expansion in the dealer’s value-added product offerings. “We will continue to reinvest in our business and pursue accretive tuck-in acquisitions that create value for our business and our customers,” Flitman noted. Mike Aggeler, a family owner and board member of John’s Lumber, added, “My dad’s philosophy was simple — treat customers right, and they will return time after time.” Based in Dallas, Texas, Builders FirstSource operates nearly 550 locations in 40 states. The company merged with BMC Jan. 1.
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MARKET INSIGHTS
Female purchase power examined Nearly half of the U.S. population made a kitchen and bath home improvement purchase online or in stores in 2020, and women accounted for more than half of those buyers. According to Checkout information from The NPD Group, women were more likely to buy kitchen and bath products than lawn and garden, paint, hardware, or other home improvement products. Last year, women accounted for nearly 60% of kitchen and bath products sold online, and 52% of in-store sales. In 2020, eCommerce accounted for 28% of kitchen and bath improvement sales but, with few exceptions, both online and in-store purchases of the products grew by double-digits
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across all U.S. regions. with higher rates of home During the pandemic, with purchasing by women in 2020. many home improvement According to the National retailers remaining open, Association of Realtors some consumers told (NAR), single, female buyers NPD that they would visit accounted for 19% of the home improvement stores homes purchased in 2020, the more often once COVID-19 highest it’s been in 10 years. restrictions were lifted. While “Marketing efforts need to NPD Group’s there is little differentiation reflect the leading role women Joe Derochowski) between the kitchen and bath of all ages are playing in products purchased online versus in home improvements, and engage them stores, women were much more likely accordingly,” says Joe Derochowski, to purchase kitchen cabinets in stores, vice president and home and home while making more showerhead and improvement industry advisor for The faucet combo purchases online. NPD Group. “It is incumbent upon The rise in home improvement market retailers to get innovative and make a purchases by women also tracks stronger connection.”
HARDWARE + BUILDING SUPPLY DEALER MAY 2021
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An advocate for the industry Jean Fahy of Do it Best Corp. feels a responsibility to give back. Regardless of gender, Jean Fahy is one of the lucky ones – a leader who has been able to take her passion and turn it into her profession. She’s been looking at floor plans since she was a little girl, a byproduct of living in a series of houses built and designed by her father. “It was really comfortable for me to go into LBM,” said Fahy, the building materials division manager for Fort Wayne, Ind.based Do it Best Corp. “I mean, it was just absolutely a perfect fit.” Fahy was also a perfect fit in the inaugural 2019 class of Top Women in Hardware & Building Supply. She respects authenticity. She encourages leaders to make the extra effort to bring “diversity of voice” into the corner office. And she uses the phrase “bad ass” to describe some of her female peers and mentors in the industry (cases in point: Renee Coffman of Vancouver, Wash.-based TAL Holdings and Marianne Thompson from Canada’s Home Hardware.) In an interview with HBSDealer she shared some LBM insights and how to approach closing the gender gap. Her advice to those climbing the corporate ladder: It’s important to understand your strengths and focus on them. It’s also important to know that the most important thing in business is collaboration and teamwork in support of a mission. On the ability to appreciate clashes with job-site building superintendents: I love those confrontations. It used to fire me up, in a good way, to find the root cause of a problem and de-escalate an emotional situation with facts. And once you go head-tohead with a superintendent, 99% of the time, it will only improve your relationship with them. They’re checking for weaknesses, and once
46
you know that you can be strong, direct and factual, then you can handle those situations. Be confident, but at the same time, be willing to admit when you’re wrong. That combination works so well in this industry, and that’s one reason I love it. On early career influences: Karen Strauss [of Merillat/Masco Cabinet Group] was the first female executive that I ever knew and worked with. She was very professional, extremely smart and held her own in the boardroom. She was often the only woman in the room and always did so well — I really looked up to her. From working with Karen, I developed an understanding and appreciation of being authentic. Karen carried herself with strength and authenticity. She also encouraged and supported me in the organization. And that meant quite a lot. On the difference between a mentor and an advocate. An advocate is different than a mentor. An advocate is someone who says, ‘I’m going to help you get to the next level because I believe in you.’ I think
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
By Ken Clark
that is how we actually break through to the next level across the industry. And I would imagine that the majority of women, wherever they are in their leadership role, had somebody advocating for them. On steps toward diversity I really do believe that we – the people in power, including the men in power -- have to make a stand. They should want to diversify, because it’s proven over and over in scientific studies that the more diverse voices you have in a company, the more financially successful the company becomes. And so we have to specifically make this intention for diversity, and advocate for those people and get them to the next level. On realizing that other people in the industry might be watching: After I left Petty Windows & Cabinets (in Tucson, Ariz.), a former Petty co-worker shared a story with me. He said that as he was mentoring a young female associate at Petty, he used my career path as an example of what she might accomplish. Jean Fahy ‘She started in the same role as you, and now she’s a national accounts manager,’ he told her about me. When he shared that story, it was such an aha moment for me. I thought to myself, ‘Wow. Someone’s looking up to me now.’ That’s when you realize that you have a responsibility to help people and be a mentor.
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PEOPLE IN THE NEWS
Nackers and Kathrein
Do it Best Corp. announced that Gary Nackers, vice president of lumber and building materials, will
retire from his position on June 1. Nackers will be succeeded by industry veteran Russ Kathrein. Nackers joined the Do it Best team in 1999. The executive was promoted to vice president of lumber and building materials in 2014. Since that time, he has led the team through some of the most tumultuous years in the LBM industry’s history while never wavering in his support for the success of independent Do it Best member-owners. Kathrein joined the company in 2020, most recently serving as an LBM business development manager. In this
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role, Kahtrein has worked to grow sales and market share for the LBM division, as well as develop new and existing LBM relationships with member-owners. BlueLinx Holdings announced that Mitchell Lewis will retire as president and CEO, effective June 7. Following a comprehensive search process, Lewis which commenced in the fall of 2020, the company’s board of directors has elected Dwight A.K. Gibson as the Company’s incoming president and CEO. The succession is Gibson also effective June 7. Gibson will be appointed to the board once he joins the company with Lewis serving in an advisory capacity until the end of 2021. Lewis will also remain Zelch a director on the BlueLinx Board after his retirement. BlueLinx also promoted Gregg Argall to vice president of national accounts. Argall most recently held the general manager for the Chicago and Madison, Wis. markets. Additionally, BlueLinx BlueLinx announced that Dave Zelch has been hired as general manager for the building products distributor’s Minneapolis and Duluth, Minn. branches. Zelch joins BlueLinx after spending 12 years with Sherwin-Williams in a variety of sales and marketing roles of increasing responsibility. Most recently he served as the global vice president overseeing marketing and business development efforts for the OEM division of the industrial coatings business.
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84 Lumber named Mark Olivani as its Manager of the Year, Nick Boyd as its Area Manager of the Year, and Bailey George as Olivani Rookie of the Year. Olivani has been with the company for more than 25 years and currently manages the Conroe, Texas store. Boyd manages stores across Texas and has been with the dealer for 20 years. This was also the first time in company history that all three sales award winners were presented to sales associates who reached over $100 million in sales in one year. These winners include Matt Born (Gold), Dan Jones (Silver) and Chuck Frerichs (Bronze). Kodiak Building Partners has hired Mark Hayes as president of Forest Tek and Overseas Lumber. In his new role, Hayes will oversee all aspects of the division’s operations. He will report to Pat Flood, executive vice president of Kodiak’s Retail LBM and Gypsum businesses. The business includes Forest Hayes Tek Lumber, with a location in Tavernier, Fla., along with Overseas Lumber in Big Pine, Fla.
Mackin
management, marketing, pricing, and supply chain, the company reported. Prior to joining Beacon, Bennett served as executive vice president of merchandising and supply chain at Total Wine & More. Bennett also had an 11-year career at The Home Depot, holding the roles of general manager for kitchen installation programs and divisional merchandising manager, home services programs, and concluding as vice president of pricing and analytics. Meadville, Pa.based Channellock, Inc., a leader in the manufacture of highquality pliers and assorted hand tools, is proud to announce the promotion of Lynn Reynolds Burchill Reynolds to Marketing Manager and Ken Burchill to Product Manager. These promotions will help ensure the company’s continued growth and future success, the company said.
Concord Lumber Corporation named Jack Mackin as its next President. Tim Lancaster, who has been acting CEO, remains as a member of the board of directors, alongside CFO David Perry and Duncan Facey, former vice president of forest products at LBM Advantage. Ed Schatz will continue in his role as chairman.
Joe Hendershot celebrated 40 years with Hamilton Building Supply. Hendershot started his career at Hamilton Building Supply through a work co-op program with Trenton High School in 1981 His first job was working in the lumber yard and he soon showed interest in working within the store, supporting inventory purchasing, and receiving. Before long, Hendershot was promoted to the store counter and has held a sales associate role at the Hamilton, N.J. for more than 30 years. Roofing and building products distributor Beacon has appointed Jonathan Bennett as executive vice president and chief commercial officer. The new EVP will be responsible for the company’s integrated go-tomarket strategy comprising selling excellence, category
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HARDWARE + BUILDING SUPPLY DEALER MAY 2021
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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) Mar.: 1,739,000
NAICS 44413
(sales in $ billions)
50
1800
(sales in $ billions)
3
1700
43.8
40
1600
2.58 2
1500
30
1400
32.2 27.9
1300
30.5
2.16
33.1
2.17
2.03
1.90
1.81
27.2
20 1
1200 1100
10
1000
0
900
M A M J J A S O N D J F M
JANUARY 2020
SOURCE: COMMERCE DEPARTMENT
Single-family starts
FEBRUARY
0
MARCH
2021
DECEMBER 2019
2020
JANUARY
FEBRUARY
2021
SOURCE: MONTHLY RETAIL TRADE REPORT FROM THE U.S. CENSUS BUREAU
(in thousands, SAAR) Mar.: 1,238,000 1400
HBSDealer Stock Roundup
1300
the percent-change performance of stocks based on May 6 prices
1200
C
250
1100
BLDR
1000
M
Y
900
DE
200
800
CM
600
ANNUAL CHANGE
700
M A M J J A S O N D J F M SOURCE: COMMERCE DEPARTMENT
Existing-home sales (in millions, SAAR) Mar.: 6,010,000 7 6.5
BECN
MY
150
CY
WY
CMY
SWK
100
K
LOW
TSCO
SHW
DJI
50
HD
6 5.5
0
5
2
4
6
8
10
12
4.5
MONTHLY CHANGE
4 3.5
BECN (BEACON); BLDR (BUILDERS FIRSTSOURCE); BMCH (BMC STOCK HOLDINGS); DE (DEERE & CO.);
M A M J J A S O N D J F M
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
4.0
80
50
Current Prior month
120
Prior year
16.0
6.1%
18.0
April 0.0
$2.50 $2.00
14.0
6.0
2.0
100
12.0
20.0
60
121.7
$2.95
April
May 6
140
MAY 2021 HARDWARE + BUILDING SUPPLY DEALER
$1.50
$3.00
SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA
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