HBSD-07-0822

JULY/AUGUST 2022 Volume 48 No. 7

INDUSTRY LEADERBOARD THE

Tracking sales, trends and strategies of the hardware and building supply industry's top players.

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HBSDEALER 07-08.22 HARDWARE + BUILDING SUPPLY

INDEPENDENT PROFILE

16 Solon Springs Mercantile, part of Hardware Hank, launches e-commerce.

MARKET INSIGHTS

24 Momentum builds for Do It For Me – and pros benefit.

TRUE VALUE REPORT

26 CEO Chris Kempa shares his thoughts on labor, supply, inflation and more.

PRODUCTS

28 Windows and doors ride a remodeling wave.

18

TOP WOMEN

32 Interview Series: Robin Everhart, senior vp, LP Building Solutions

COVER STORY

18 The Industry Leaderboard The top players of hardware and building supply exhibit exceptional growth amid a formidable field of challenges.

28 FROM THE EDITOR

NEWS & ANALYSIS

IN EVERY ISSUE

8 If you see someone, say something.

10 State of the Nation for housing: Market cools.

12 Product Knowledge

10 Everything must go at the Grommet.

34 Quikrete Industry Dashboard

14 News Map

12 Lowe’s CEO Marvin Ellison talks home improvement.

Hardware + Building Supply Dealer (ISSN 2376-5852) is published monthly, except for July/August and November/December, which are double issues, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631. Subscription rate in the United States: $110 one year; $200 two year; $14 single issue copy; Canada and Mexico: $130 one year; $235 two year; $16 single issue copy; Foreign: $150 one year; $285 two year; $16 single issue copy; in all other countries (air mail only). Digital Subscription: $75 one year; $140 two year. Periodical postage paid at Chicago, IL., and additional mailing offices. POSTMASTER: Please send address changes to HBSD, Circulation Fulfillment Director, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631. Copyright © 2022 by EnsembleIQ. All rights reserved.

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

The HBSDealer One-on-One Video Series HBSDealer editors are talking to some of the most interesting people in hardware and building supply. Follow along at HBSDealer.com, and subscribe to Youtube.com/ HBSDealer.

Shanna West, co-owner H&H Home and Hardware

What’s behind the garage door?

Check out the latest episodes of Ken’s New Jersey Garage, featuring new product demonstrations filmed inside an actual Garden State garage. Available only at HBSDealer.com

Made in USA: The E-Book Domestic manufacturing is in the news. Read all about it in the latest digital, interactive, educational HBSDealer E-Book.

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Go to HBSDealer.com and click on the E-Book window located on our homepage.

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HBSDEALER HARDWARE + BUILDING SUPPLY

From the Editor

If you see someone, say something.

H

ere’s a simple way to remember our approach to discovering—and covering— the next generation of leaders for the HBSDealer GenNext special feature coming to print and digital pages in October.

If you see someone, say something.

If you see someone – under 40 years of age —leading a team in a way that suggests that someone is on the path to long-term success in the hardware or building supply industry, say something to HBSDealer, because that’s exactly who we’re looking for.

If you see someone who is every bit as comfortable around stacks of dimensional lumber as a seasoned lumberyard hand, and yet this someone also has the aptitude for data and digital communications every bit as competent as a sought-after Silicon Valley recruit, say something. Because it’s clear that technology is going to play an increasingly important role in the distribution of building materials and the retail business.

If you see someone stand up in a meeting against the prevailing opinion voiced by experienced colleagues, and this someone sensibly and respectfully wins the room with arguments backed by logic and data, say something. Because future leaders can't be afraid to disagree.

On the other hand, if you see someone who agrees to take on the task that no one else wants, and throws himself or herself into the matter in a way that gains respect from customers and colleagues, well then, we want to know about him or her, too.

To those who suggest the 40-yearage limit should be stretched upward, remember that Napoleon was only 31 when he crossed the Alps with his Revolutionary army.

HBSDealer’s editorial team enters this project knowing full well the perils of attempting to identify future leaders.

8

Hardware + Building Supply Dealer An EnsembleIQ Publication 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631 hbsdealer.com HBSDealer On The Web • HBSDealer Info Services SENIOR VICE PRESIDENT (HBSDealer, Drug Store News, Chain Store Age) John Kenlon, jkenlon@ensembleiq.com, 212-756-5238

Ken Clark Editor in Chief

We have had our successes. Back in 1999, we recognized Bob Taylor as an “industry innovator,” when he was president of his family hardware store business. He entered the Home Channel hall of Fame in 2012 as CEO of Do it Best Corp. We identified Michael Cassidy as one of “Seven to watch in 2007,” long before he took on the role of CEO at T.W. Perry.

Of course, we have had our misses, which we hope the reader willy generously allow us to pass over without extended comment.

The point is: We need your help.

If you see someone, say something. We’re here to listen at news@ hbsdealer.com.

EDITOR IN CHIEF Ken Clark kclark@ensembleiq.com, 212-756-5139 LBM EDITOR Andy Carlo acarlo@ensembleiq.com, 845-891-5108 HARDWARE EDITOR Tim Burke tburke@ensembleiq.com, 773-216-7880 ADVERTISING SALES

Midwest & Southeastern States ASSOCIATE PUBLISHER Amy Platter Grant agrant@ensembleiq.com, 773-294-8598 Northeast and Great Lakes States REGIONAL MANAGER Greg Cole gcole@ensembleiq.com, 317-775-2206 AUDIENCE

LIST RENTAL MeritDirect Marie Briganti 914-309-3378 SUBSCRIBER SERVICES/CUSTOMER CARE TOLL-FREE: 1-877-687-7321 FAX: 1-888-520-3608 contact@hbsdealer.com PRODUCTION/ART

DIRECTOR OF PRODUCTION Michael Kimpton mkimpton@ensembleiq.com, 647-557-5075 CREATIVE DIRECTOR Colette Magliaro cmagliaro@ensembleiq.com ART DIRECTOR Bill Antkowiak bantkowiak@ensembleiq.com TOP WOMEN IN HARDWARE & BUILDING SUPPLY NOV. 8-9 2022, CHICAGO, ILL. WWW.HBSDTOPWOMEN.COM/2022 CONTACT: AMY PLATTER GRANT agrant@ensembleiq.com, ASSOCIATE PUBLISHER EDITORIAL ADVISORY BOARD Levi Smith, CEO, Franklin Building Supply Cally Fromme, VP of communication and culture, Kodiak Building Partners Steve Sallah, CEO, LBM Advantage Wendy Whiteash, EVP of culture, US LBM Holdings Tom Cost, owner, Killingworth True Value Brad McDaniel, owner, McDaniel’s Do it Center Joe Kallen, CEO, Busy Beaver Building Centers Permissions: No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. For reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295.

Who are today’s next-generation leaders? Let us know.

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CORPORATE OFFICERS CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF HUMAN RESOURCES OFFICER Ann Jadown EXECUTIVE VICE PRESIDENT, CONTENT Joe Territo EXECUTIVE VICE PRESIDENT, OPERATIONS Derek Estey

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News + Analysis

High pricing pressure, cooling activity in the forecast According to the Harvard Joint Center for Housing Studies (JCHS), the nation’s housing market is at an “inflection point” after a record-shattering performance in 2021.

Higher interest rates are cooling off the home buying market while a large number of apartments under construction should bring some relief on the rental side.

But for lower-income households and households of color the pressure of high housing costs is unlikely to relent.

Released by the JCHS, The State of the Nation’s Housing 2022 points to the surging prices of gas, food, and other necessities making matters worse.

Although demographic shifts are favorable, unemployment is low, and wage growth remains strong, housing demand hinges directly on the ability of fiscal policymakers to successfully cool inflation without causing a recession, the JCHS noted.

“There is also the longstanding challenge of producing affordable homes, given the high cost of building materials and land as well as the shortage of labor,” said Chris Herbert, managing director of the center.

“The lessons learned during the pandemic have led to a number of proposals to greatly expand the housing safety net and provide increased support for first-generation homebuyers. While these measures have yet to be implemented, it is important to continue the policy debate over the best approaches to making housing affordable for all.”

Home price appreciation nationwide increased 20.6% in March 2022, marking the largest jump in three decades, and is continuing to rise. The runup has been widespread, with 67 of the top 100 housing markets experiencing record-high appreciation rates, the JCHS said.

According to the most recent existing-home sales report from the National Association of Realtors, total sales fell for a fourth straight month in May and declined 3.4% as existing single-family home sales were down 3.7% from the prior month and 7.7% from April 2021.

The median existing single-family home price reached $414,200 in May, up 14.6% from May 2021.

Rents are also up, rising 12% in the first quarter of 2022 with increases in several

The Harvard Joint Center for Housing Studies released its "State of the Nation's Housing 2022" report.

metro areas exceeding 20%.

After trailing the pace of household growth for almost a decade, residential construction has finally picked up.

Single-family starts hit 1.1 million in 2021, exceeding the million-unit mark for the first time in 13 years.

With interest rates rising, on top of double-digit home price increases, the income and savings needed to qualify for a home loan have skyrocketed, raising the financial hurdles for first-time and middle-income buyers.

“At today’s prices, the typical down payment that a first-time buyer would need for a median-priced home is $27,400,” said Alexander Hermann, a senior research analyst at the Center. “Without help from family or other sources, this would rule out 92% of renters, whose median savings are just $1,500.”

At The Grommet, ‘Everything must go’ Back in 2017, the marriage of Ace Hardware Corp. and The Grommet, the new-product discovery platform, was described as a powerful combination for product innovation and retail differentiation.

And Ace anticipated the unleashing of “the unbridled creativity of the local entrepreneur,” when it acquired a majority stake in the e-commerce start up.

The co-op also saw the combination as a response to the dominance of Amazon on the e-commerce path to growth.

10

Judging by the size of the crowds, The Grommet was a big hit at Ace Conventions with its eye catching products and merchandising. But the end is near for the Grommet, as a Linkedin post from Jules Pieri, The Grommet founder and former CEO, shared that the platform is laying off 44 people and will close for good July 31.

Grommet products attracted atttention at Ace Conventions, including this display from the Dallas show in 2018.

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

At the Grommet’s web site, a liquidation sale notice went up explaining: “Everything Must Go.” Since 2008, Grommet launched over 3,000 products from small businesses and emerging entrepreneurs, building a community of over four million loyal customers, said a note on its website. FitBit and SodaStream were among the early Grommet hits.

The online consumer retailer, which began as The Daily Grommet, is closing its digital doors and liquidating its inventory, offering up to 60% off.

When asked for comment about the closing, Pieri said on her post she was, “wildly proud of the human legacy and business model innovation.”

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News + Analysis

Marvin Ellison on home improvement market share There’s an old saying about retail, it’s a punch-in-the-nose business. In order to get market share, you have to take it from someone else.

Lowe’s CEO Marvin Ellison hinted as much during a recent executive team discussion with investors that was promoted as a “fireside chat.” His comments included the following: “This is a big marketplace. When you think about the entire home improvement available market, I mean, it’s roughly $900 billion. So, it’s obviously very fragmented. You take us and our largest chief competitor [The Home

Lowe's Marvin Ellison

Depot], and we’re going to make up less than $400 billion of that $900 billion addressable market,” said Ellison.

He continued: “So, there’s a lot out there. Having said that, without question, we think the efficiency of our supply chain, and the execution, and the inventory management of this team gives us the ability to take some share away from smaller regional players.”

The investor presentation also touched on the growth of the pro business, the expanding brand portfolio and the slowly recovering supply chain. Visit HBSDealer. com for details.

Product Knowledge

Tariffs in the mix

Product: Stand-Up Weeder

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The latest HBSDealer reader poll followed up on a campaign from the National Retail Federation that called for a repeal of tariffs on goods from China, as a tactic to reduce inflation.

“Independent researchers and government agencies agree that ending tariffs is the fastest way to relieve the pressure of higher prices that American businesses, workers and consumers are facing every day,” said NRF President and CEO Matthew Shay.

Arguments to keep tariffs in place include a desire to protect U.S. industry, encourage domestic employment and alter the balance of trade.

Here’s the breakdown:

Should the U.S. repeal tariffs on Chinese products?

57%

No Yes

43%

Source: HBSDealer Poll Question. (n=197)

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July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

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

14

CLOSING

ACQUISITION

OREGON

MARYLAND

NEW HAMPSHIRE

Bend

Baltimore

Rochester

Kodiak Building Partners has agreed to acquire The Miller Lumber Company, established in 1911.

Charley Miller will remain president of Miller Lumber, his brother Harry Miller will continue as vice president, and his sister Connie Marshall will remain the CFO.

After 45 years serving the Bolton Hill neighborhood, Belle Hardware closed its doors in June. The store was the last of four in the Fried family. Mickey Fried told the Baltimore Fishbowl newspaper a variety of reasons led to the closing, including a pending rent hike.

Hammond Lumber Company has acquired Brock’s Building Materials, a third generation, family-owned company located in Rochester, N.H. With the acquisition, Hammond now has nearly 900 employees and 22 locations across Maine and New Hampshire.

CALIFORNIA

TEXAS

VIRGINIA

Santa Rosa

Dallas

Richmond

Westlake Ace Hardware will acquire Guerneville Fulton Ace Hardware. The 12,000 square foot store north of San Francisco in Sonoma County joins 12 other Westlake hardware stores in the Golden State. The deal is expected to be final on Aug. 29.

Nation’s Best added Advanced Window Systems (AWS) to its network of brands. AWS maintains a large warehouse south of Dallas and a showroom in the Dallas Design District where they meet with customers and suppliers

Kempsville Building Materials has completed the addition of a new 18-acre, 120,000 sq. ft. warehouse facility near Richmond, Va. The division of Carter Lumber operates eight locations and two manufacturing facilities in Virginia and North Carolina.

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

Independent Profile Solon Springs Mercantile owners Ken and Meg Thoreson believe their new e-commerce platform takes customer service to a higher level.

E-commerce comes to Solon Springs Mercantile HARDWAREHANK.COM BOOSTS CUSTOMER SERVICE FOR UPPER MIDWEST RE TAILER. By Tim Burke

E

-commerce came to Solon Springs Mercantile in February. And it didn’t take for the owners of the rural Northwest Wisconsin store to recognized the engagement between customers and the new Hardwarehank.com platform.

“We have noticed that customers are coming in to make purchases with far more knowledge than they had in the past about specific products,” said Meg Thoreson, co-owner, with husband Ken. “They’ve gone online to our trusted site and done their research, appreciative that we now have another portal to see what is available for pick-up in our rural store. It’s really the first step of the sales process — I call it our ‘silent salesperson.’”

Solon Springs Mercantile is part of United Hardware Distributing Company, a member-owned cooperative based in Maple Grove, Minnesota, which provides hardware distribution services for more than 800 stores, the majority of which operate under the Hardware Hank trade name.

The Thoreson’s purchased Solon Springs Mercantile in 2002, after recognizing the potential for the business in this rural community, located in a popular cabin, recreation and vacation area. In June 2004, their store was demolished by a fire.

“We believed in our business plan and rebuilt the store in a new location in town in 2005 and have been expanding our offerings since that time,” she said.

The diverse retail store —a mix of hardware, sporting goods and general merchandise—serves both year-round and seasonal residents, with a significant consumer segment being people who own vacation properties in the region. Also, it enjoys serving many generations of customers in the area, and the store generally draws customers from a 20-mile radius.

Sandy Dresen, senior e-commerce manager at United Hardware Distribut-

16

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

ing Company, said the co-op launched the site with 10 test stores. There are now 128 stores that are e-commerce-enabled.

The average local hardware store carries 10,000-12,000 products, said Dresen.

“With more than 40,000 products available on our e-commerce platform, this sales channel allows consumers to significantly increase their shopping options beyond what’s available in-store,” Dresen said.

For Solon Springs Mercantile, the development feels like a game changer.

“E-commerce is an important element of providing the highest level of customer service,” said Thoreson.

“We’re able to offer more items to our customers via the e-commerce site, building and expanding our brand awareness and strengthening our oneon-one relationships with customers.”

Solon Springs Mercantile plans to continue to promote the e-commerce program both online and in the store.

“We are always looking for the next valuable tool or product to be relevant to our customers," Thoreson said. "We’re continually evolving, reflecting what our customers want.”

E-commerce 101 For other hardware store owners planning an e-commerce program, or those who are fine tuning existing programs, here are some tips and takeaways from Solon Springs.

“We’ve found that the e-commerce site further strengthens our in-person relationships with our customers, as it also helps to attract new customers to our store — people who hadn’t yet discovered us, but found us via location and by product need,” said Thoreson.

“Launching online shopping is like opening a bricks and mortar store. You need to have a plan and execute against it to achieve your specific goals,” she said.

“Customers need to be invited to use the new branded service, and we’ve found that a guided tour of the site can be very helpful,” said Thoreson. (At Solon Springs Mercantile, a 36-inch touch-screen kiosk is a valuable customer-education tool).

Make sure that you use your existing marketing tools to announce the new site — your website, in-store signage, social media or newsletters.

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COVER F E ATURE

THE 2022

INDUSTRY LEADERBOARD

By Ken Clark

Top players exhibit exceptional growth amid a formidable field of challenges.

B

uilding material and supplies dealers scored double-digit sales gains for the second consecutive year, according to the official tally from the U.S. Census Bureau.

The subset of hardware stores meanwhile increased 6.7 percent in 2021, on top of a gangbuster, work-from-home, spend-on-the-home, 20.5 percent gain in 2020.

In addition to rapid growth, the highlights from the top 10 of the HBSDealer 2022 Industry Leaderboard reflect all the major trends affecting hardware and building supply dealers.

In no particular order: consolidation, material shortages, pandemic-re-

18

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

lated consumer shifts and continued demand for home improvement.

“The home improvement consumer remains engaged,” said Ted Decker, CEO of The Home Depot, which has a stranglehold on the top spot of the Leaderboard. “Customers continue to tell us that their homes have never been more important and project backlogs are very healthy. We believe that the medium to longer term underpinnings of demand for home improvement have never been stronger.”

The Industry Leaderboard begins here with the top 10, and continues on pages 20 and 22 with hardware and building supply dealers ranked ’ by sales. Data was acquired through individual company reports, various media reports; HBSDealer digital surveys, telephone outreach, and estimates based on locations and market conditions.

The Leaderboard uses seven company classifications: LBM, hardware store, specialty distributor, home décor, farm and ranch, paint store and home center. Companies whose data includes estimates are marked with an asterisk.

HBSDealer.com

Jumping up the board is Dallas-based Builders FirstSource, now within striking distance of $20 billion in sales after the completion of its merger with BMC. And the company’s go-to-market strategy leans heavily on investments in technology. “We are transforming the homebuilding industry through our investments in digital, expanding valued-added offerings for our customers, and making strategic acquisitions that bolster and extend our industry leadership position,” said CEO David Flitman.

Several household names have disappeared from the Leaderboard, because of industry consolidation: National Lumber of Mansfield, Mass., acquired

by Builders FirstSource; Orschein Farm & Home, a 167-store retailer, purchased by Tractor Supply; and most recently Foxworth-Galbraith Lumber, a 28-unit Southeastern LBM leader, now part of US LBM Holdings.

Sales in $ millions NAICS 4441 Building material and supplies dealers Year

2021

2020

2019

2018

Sales:

416,262

368,503

327,257

322,681

13.0%

12.6%

1.4%

5.6%

Year

2021

2020

2019

2018

Sales:

37,765

35,393

29,360

28,059

6.7%

20.5%

4.6%

8.4%

YOY % gain:

NAICS 44413 Hardware stores

YOY % gain: Source: U.S. Census Bureau

And if you’re looking for Walmart or Amazon, retail industry giants that both sell billions of dollars in home products, here’s the ruling: The 2022 Leaderboard tracks only those companies which generate a majority of their sales in home improvement or construction products or services.

2022 INDUSTRY LEADERBOARD TOP 10 Rank

Company Location of Headquarters

Dollar Sales

Percent Change

Highlights

$151,200,000,000

14.5%

Executives don’t seem overly concerned by high interest rates. Homeowner customers are investing in, prop customers are backlogged through the year.

1

The Home Depot Atlanta, Ga.

2

Lowe’s Mooresville, N.C.

$96,250,000,000

7.4%

3

Builders FirstSource Dallas, Texas

$19,900,000,000

132.4%

4

ABC Supply Beloit, Wisc.

$14,800,000,000

23.3%

5

Menards* Eau Claire, Wisc.

$13,090,000,000

4.7%

6

Ferguson Newport News, Va.

$10,028,480,000

54.7%

Numbers reflect residential showroom, residential trade and residential digital commerce sales in U.S. and Canada. Digital commerce (formerly eBusiness) increased from 8% to 10% of sales.

7

Tractor Supply Brentwood, Tenn.

$12,700,000,0000

19.6%

After acquiring 167-store Orschein in early 2021, the “Life Out Here” retailer opened its 2,000th location (in White House, Tenn.). Building a 900,000 sq. ft. DC in Maumelle, Ark.

8

Sherwin Williams Cleveland, Ohio

$11,169,000,000

7.6%

9

US LBM Holdings Buffalo Grove, Ill.

$9,220,000,000

116.2%

84 Lumber Eighty Four, Pa.

$7,900,000,000

68.1%

10

HBSDealer.com

Pro business continues to be a bright spot. Favorable trends cited include the extension of remote work, millennial household formation and the aging housing stock.

Huge gain reflects BMC merger. Started the year with a bang, announcing the acquisition of Massachusetts-based National Lumber. Technology a focus. (see page 32) Winner of its 16th consecutive Gallup Exceptional Workplace Award for Employee Engagement. More than 800 locations and 15,000 employees.

Close to the vest retail giant seeks to compete against online retailers, through express lanes at the gate canopy and special areas for online pickup.

The Americas Group has 4,859 paint stores. Record sales occurred during a year marred by raw material shortages, inflation and a resurgence of the Covid virus.

Just scored a major acquisition in the Southwest with Foxworth Galbraith and its 28 locations. Acquired 12 locations in the Carolinas with Professional Builders Supply in late 2021. More to come.

Opened first location in the state of Idaho in late 2021. Owner Maggie Hardy Knox oversees a prodealer with 250 locations around the country.

HARDWARE + BUILDING SUPPLY DEALER July/August 2022

19

COVER F E ATUR E

2022 INDUSTRY LEADERBOARD Rank

Company Location of Headquarters

Dollar Sales

Stores

11

Beacon Building Products Herndon, Va.

6,640,000,000

446

12

Harbor Freight Tools* Calabasas, Calif.

6,000,000,000

1,200

13

SRS Distribution McKinney, Texas

5,755,300,000

14

GMS Tucker, Ga.

15

Type of Business

Rank

Company Location of Headquarters

Dollar Sales

Stores

Type of Business Hardware store

SD

34

Westlake Ace Hardware Lenexa, Kan.

603,900,000

151

Hardware store

35

Riverhead Building Supply Calverton, N.Y.

555,000,000

19

595

SD

36

CNRG Collierville, Tenn.

529,200,000

144

Home center

3,636,700,000

337

SD

37

Runnings Tigard, Ore.

506,000,000

57

Farm & ranch

Floor & Decor Holdings Atlanta, Ga.

3,433,533,000

160

Home decor & flooring

38

Atwoods Ranch & Home Enid, Okla.

475,000,000

69

Farm & ranch

16

UFP Industries Grand Rapids, Mich.

2,698,400,000

65

LBM

39

Mead Lumber Columbus, Neb.

462,500,000

48

LBM

17

Foundation Building Materials Tustin, Calif.

2,652,000,000

221

SD

40

Sunpro Corp.

Saint George, Utah

453,000,000

16

LBM

18

Carter Lumber Kent, Ohio

2,565,000,000

168

LBM

41

Shelter Products Portland, Ore.

437,000,000

5

LBM

19

Kodiak Building Partners Denver, Colo.

2,500,000,000

95

LBM

42

Trussway Manufacturing Houston, Texas

400,100,000

7

LBM

20

Northern Tool + Equipment Burnsville, Minn.

1,950,000,000

121

Hardware store

43

R.P. Lumber Edwardsville, Ill.

390,000,000

107

LBM

21

Fleet Farm* Appleton, WIs.

1,980,000,000

48

Farm & ranch

44

Franklin Building Supply Boise, Idaho

371,200,000

14

LBM

22

Rural King Supply Mattoon, Ill.

1,460,000,000

128

Farm & ranch

45

The Tile Shop Plymouth, Minn.

370,700,000

143

23

Sutherland Lumber Kansas City, Mo.

1,450,000,000

50

Home center

46

Hammond Lumber Belgrade, Maine

363,000,000

21

LBM

24

McCoy’s Building Supply San Marcos, Texas

1,423,600,000

92

LBM

47

Mill Creek Lumber & Supply Tulsa, Okla.

361,700,000

26

LBM

25

Lansing Building Products Richmond, Va.

1,326,200,000

114

SD

48

Idaho Pacific Lumber Boise, Idaho

342,800,000

13

LBM

26

Service Partners (TopBuild) Daytona Beach, Fla.

1,272,200,000

155

LBM

49

Drexel Building Supply Campellsport, Wis.

336,200,000

9

LBM

27

PPG Paints* Pittsburgh, Pa.

1,300,000,000

605

Paint store

50

Stine Sulphur, La.

320,000,000

11

28

LL Flooring Toano, Va.

1,152,344,000

424

Home decor & flooring

51

Reliable Wholesale Lumber Huntington Beach, Calif.

310,000,000

2

LBM

29

Parr Lumber Hillsboro, Ore.

990,900,000

43

LBM

52

E.C. Barton Jonesboro, Ark.

296,200,000

112

LBM

30

Contractor’s Warehouse Rosevillle, Calif.

844,800,000

14

LBM

53

Hancock Lumber Co. Casco, Maine

294,500,000

13

LBM

31

Bomgaars Supply Sioux City, Iowa

750,000,000

107

Farm & ranch

54

W.E. Aubuchon Westminster, Mass.

293,000,000

107

32

Matheus Lumber Woodinville, Wash.

750,000,000

10

LBM

55

Curtis Lumber Ballston Spa, N.Y.

290,700,000

23

Home center

33

Ganahl Lumber Co. Anaheim, Calif.

666,700,000

10

LBM

56

Stark Truss Canton, Ohio

279,900,000

14

LBM

20

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

LBM

Home decor & flooring

Home center

Hardware store

HBSDealer.com

COVER F E ATURE

2022 INDUSTRY LEADERBOARD Rank

Company Location of Headquarters

Dollar Sales

Stores

Type of Business

Rank

Company Location of Headquarters

Dollar Sales

Stores

Type of Business

57

Erie Materials Syracuse, N.Y.

268,900,000

10

LBM

79

Great Lakes Ace Farmington, Mich.

172,800,000

59

Hardware store

58

Guy C. Lee Building Materials Smithfield, N.C.

254,000,000

8

LBM

80

Honsador Lumber Kapolei, Hawaii

169,200,000

17

LBM

59

Tibbetts Lumber St. Petersburg, Fla.

243,000,000

7

LBM

81

Timberland Lumber Brazil, Ind.

167,200,000

3

LBM

60

Scherer Brothers Brooklyn Park, Minn.

230,000,000

5

LBM

82

Jerry’s Home Improvement* Eugene, Ore.

163,900,000

2

Home center

61

Great Floors Coeur d'Alene, Idaho

227,000,000

21

Home decor & flooring

83

C-A-L Ranch Stores Idaho Falls, Idaho

161,500,000

28

Farm & ranch

62

Armstrong Garden Centers Glendora, Calif.

226,000,000

49

Lawn & garden store

84

Buccheit* Perryville, Mo.

160,000,000

10

Home center

63

LaValley/Middleton Building Supply Newport, N.H.

225,500,000

14

LBM

85

Central Valley Builders Supply Napa, Calif.

159,000,000

8

LBM

64

The Building Center Pineville, N.C.

221,700,000

7

LBM

86

Belletetes Jaffrey, N.H.

155,500,000

9

LBM

65

Koopman Lumber Whitinsville, Mass.

216,100,000

10

LBM

87

TAL Holdings Vancouver, Wash.

152,500,000

16

LBM

66

Lezzer Lumber Curwensville, Pa.

214,000,000

15

LBM

88

Harbin Lumber Lavonia, Georgia

149,800,000

7

LBM

67

HPM Building Supply Keaau, Hawaii

211,000,000

16

LBM

89

Builders Warehouse Kearney, Neb.

146,800,000

7

LBM

68

Friedman’s Home Improvement Santa Rosa, Calif.

205,000,000

7

Home center

90

T.H. Rogers Lumber Edmond, Okla.

141,000,000

39

LBM

69

Western Building Center Kalispell, Mont.

205,000,000

15

LBM

91

Valu Home Centers Buffalo, N.Y.

140,000,000

36

Home center

70

Keim Lumber Charm, Ohio

204,700,000

2

LBM

92

Costello’s Ace Deer Park, N.Y.

140,000,000

40

Hardware store

71

Bliffert Lumber & Fuel Milwaukee, Wis.

201,100,000

8

LBM

93

Builder's Discount Centers* Rocky Mount, N.C.

140,000,000

11

Home center

72

Star Lumber Wichita, Kan.

191,900,000

7

Home center

94

Mans Lumber & Millwork Trenton, Mich.

137,700,000

5

LBM

73

Spahn & Rose Dubuque, Iowa

190,000,000

25

LBM

95

Jackson Lumber & Millwork Lawrence, Mass.

136,900,000

5

LBM

74

Burton Lumber* Salt Lake City, Utah

189,500,000

10

LBM

96

Russell Do it Centers Alexander City, Ala.

136,000,000

9

Home center

75

Bloedorn Lumber Torrington, Wyo.

185,000,000

25

LBM

97

Avalon Carpet Tile & Flooring Cherry Hill, N.J.

132,500,000

17

76

McCray Lumber & Millwork Overland Park, Kan.

183,600,000

7

LBM

98

Cassity Jones Lumber Longview, Texas

129,300,000

9

LBM

77

Big C Lumber Granger, Ind.

176,800,000

18

LBM

99

Your Building Centers Altoona, Pa.

129,100,000

17

LBM

78

Hayward Lumber Monteray, Calif.

175,000,000

13

LBM

100

O.C. Cluss Lumber Uniontown, Pa.

120,000,000

4

LBM

Home decor & flooring

THERE’S MORE! See the INDUSTRY LEADERBOARD at HBSDealer.com.

22

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

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Market Insights

Momentum builds for Do It For Me

T

he pros are busy. Very busy. Weekend work is common now. There’s a backlog of home fix-up jobs. And that says a lot about 2022.

“If the onset of the pandemic is credited with heightening the do-it-yourself, or DIY, movement, consumers’ growing adjustment to our new normal and a strong housing market indicate that 2022 will be the year of Do It For Me, or DIFM movement,” said Vinny O’Sullivan, senior general manager of U.S. stores and The Home Depot for PPG’s architectural coatings business in the U.S. and Canada.

O’Sullivan has spent more than 20 years of his career in the paint and coatings industry. As a result of the current housing market, he said, homes have never been more valuable, homeowners’ balance sheets have never been healthier, and there are deep backlogs for the services pros offer.

He pointed to stats from the Home Improvement Research Institute showing nearly 50% of homeowners indicate it is a good time to start a home improvement project. Additionally, O’Sullivan said, “per the Cleveland Research Company, around-the-home purchases are seen as the number one priority for incremental spending by U.S. home and property owners who view home improvement as a smart investment given the rise of property values over the last two years.”

From this we can anticipate a higher demand in pro painters, remodelers and other skilled tradesmen, he added, “to assist with DIFM projects this year.”

At The Farnsworth Group, a research company for the home improvement and building supply industries, President Grant Farnsworth said, “Two years ago pro work stopped for COVID safety concerns. Now it’s coming back.

DIY has morphed into DIFM.” Farnsworth said the feeling from homeowners today goes something like this: “I’ve got more equity — I’ll hire a pro. That’s the sentiment.” (See chart.)

O’Sullivan said that, “according to research conducted by HIRI, homeowners typically take on more than one home project a year. In fact, in 2021, the average number of home improvement projects planned per household was three.

Interior painting projects, kitchen remodels, gardening and landscaping, and

Healthy home valuations provide fuel for the DIFM trend.

bathroom remodels are among the most common home projects.”

It seems people have more money to fix up their homes, and that might be a big factor driving this trend.

As house prices have risen consistently over the last few years, he said, “making purchasing a new home too expensive for many, most homeowners have turned their attention to improving their current homes, and as such, home improvement spending continues to be healthy.”

Also, “countless millennials and younger generations entered the hot home buying market earlier than expected. Making up nearly one-third of home purchases, millennials are cashing out of renting in hopes of securing more legroom by buying.”

That’s good news for pros.

“This generation is poised to take on many projects, resulting in greater overall home improvement spending. The generation also happens to account for a large balance of high-cost projects, which drives up their average per-project expenditures,” said O’Sullivan.

Are you planning on hiring a home improvement, service, maintenance or remodeling professional within the next few weeks?

100 90 80

22.1%

22.2%

26.9%

23.5%

21.8%

19.9%

22.9%

23.2%

21.4%

19.9% 25.9%

Probably

70

Not Sure

60 50

Definitely

28.5%

26.7%

29.8%

31.8%

26.7%

28.2%

28.2%

22.3%

20.2%

20.3%

19.1%

23.3%

24.0%

18.3%

16.4%

17.4%

19.5%

17.6%

19.3%

16.2%

15.7%

19.9%

16.4%

18.5%

9.4% 9/21

8.7% 10/21

9.3% 11/21

9.1% 12/21

8.2% 01/22

9.0% 02/22

12.3% 03/22

10.1% 04/22

12.5% 05/22

10.6% 06/22

27.2%

28.9%

29.6%

25.0%

19.9%

19.0%

20.1%

24.2%

Probably Not Definitely Not

40 30 20 10 0

7.5% 8/21

24.7%

Source: The Farnsworth Group/Home Improvement Research Institute.

24

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

We are proud to be a True Partner to our customers.

Thank you for choosing Charlotte Pipe.

We look forward to serving you in 2022 and beyond.

True Value Report

True Value steps up to the challenge CEO CHRIS KEMPA SHARES HIS THOUGHTS ON SOME OF THE BIGGEST ISSUES IN DISTRIBUTION By Ken Clark

S

upply chain. Labor. Inflation. Check, check, check.

In an interview with HBSDealer, True Value CEO Chris Kempa didn’t miss a beat tackling the three big issues facing the business of distribution. The industry veteran – whose resume includes leadership posts with other Chicagoland distribution giants, Grainger and Essendant — fluently described in detail the interconnected (and unprecedented) global challenges facing the industry.

Boiling it all down to brass tacks, he delivered a positive assessment on the state of post-pandemic distribution.

“We just continue on a monthly basis to assess where we’re at,” he said.

“The good news is: we are in a better place.”

More good news from the True Value CEO is based on the health of its customers, as well as its customers’ customers.

“The pandemic drove feet into our customers’ stores, and they keep coming back” Kempa said. “So the independent hardware retailers, and specifically our hardware stores, know how to manage in their markets.

They know how to serve customers. They had a lot of them come back through their doors and they’re keeping up.”

Supply-chain challenge

Kempa listed the challenges facing the business of moving products across land or sea: Closed ports in China, container shortages, truck availability, driver shortages. On top of it all looms the threat of a strike at ports along the U.S. West Coast, where members of the International Longshore and Warehouse Union are working without a contract.

And through it all, “There is no playbook,” he told HBSDealer.

For True Value, rising to the challenge of supply-chain uncertainty begins with its people .

A distributor in the FLOW True Value Company is one of a small number of U.S. companies asked to share their expertise managing the supply chain crisis. The distributor has been working with FLOW, the Freight Logistics Optimization Works program.

Set up by the Department of Transportation, FLOW aims to improve congestion and speed up the movement of goods by establishing a baseline supply chain data infrastructure to significantly improve goods movement coordination. True Value will contribute critical data about the supply

26

“We have over the last couple years, built the best-in-class team that really manages the end-to-end supply chain,” Kempa said. “And so we have gained an advantage based on our team. We are doing everything we can to move and get goods. And from my perspective, our team has done an incredible job.”

That job includes building diverse options into the supply chain, finding dual sources, looking at new countries of origin and preparing for the unexpected.

“And we’ve been doing that from day one,” he said.

Among those leading the charge is Jennifer McNeill, True Value vice president Chris Kempa, CEO, of logistics and one of the True Value driving forces behind the distributor’s participation in the White House FLOW program. That’s the Freight Logistics Optimization Works program, a data-sharing group of distribution leaders created to ease supply chain congestion and share perspectives.

“Our perspective is easy,” Kempa said.

“Please help me get goods so that I can take care of my customers.”

[See sidebar: Distributor in the FLOW]

chain to help give a clearer, real-time picture of the flow of goods and where infrastructure improvements should be focused.

CEO Chris Kempa, who joined a roundtable discussion at the launch of the task force, said it was an honor to participate.

“These have been exceptional times, and I’m very proud of the innovative solutions we employed to help our retailers remain in stock so they could effectively serve their communities during the pandemic,” he said.

True Value’s Vice President of Logistics Jennifer McNeill is spearheading True Value’s role in the high-level program, including

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

The distributor contributes to the Freight Logistics Optimization Works program.

participating in a live discussion with Transportation Secretary Pete Buttigieg.

“By now the confluence of factors is wellknown: raw-material shortages, factory closures, vendor service-level disruptions and allocations, port congestion — the list goes on,” she said. “What we learned in mitigating all of this should prove valuable in helping to plot national strategy moving forward.”

HBSDealer.com

Tapping the value of local e-commerce

Inside the True Value regional distribution center in Wilkes-Barre, Pa.

“We’re also helping leaders understand all the challenges we go through, to try to make this work better,” Kempa added. “Now, things are getting better. But better is not normal.”

Naught without labor

With so many moving parts in the distribution industry, there are even more moving people. People are needed to run warehouses, receive shipments, pick orders, pack orders and drive trucks, to list a few. Filling those positions is similar challenge for the distributor, its customers and the industry as a whole.

Kempa described the labor shortage as the “biggest hangover from the pandemic.” The situation demands looking inward at pay scales, benefits, work environments, and assessing all the little things that lead to retention and recruitment of employees.

“It makes you examine the basics of just god environments, good leadership and good engagement with your teams,” Kempa said. “And so we have put a lot of emphasis on that.”

Inflationary times

Anther unpleasant industry talking point is the “I” word.

“The inflation the end consumers are feeling now is all interconnected to everything we’ve been talking about, and we’ll continue to manage through it,” Kempa sad.

One particularly important area of inflation felt by True Value is the rising price at the pump. “Fuel is applying tremendous cost pressure,” Kempa said, and there’s not a lot of hope for short term relief for fuel or other rising prices.

“As disruptions continue, as the labor shortages continue, as the wage escalation for labor continues, there’s no relief on those in the short term,” he said. “Once consumption and demand start to dry up, normalize, or slow down, then I think you’ll see it start to normalize the rest of it,” said Kempa, who added that his was the view of a distribution industry veteran, not an economist.

“And meanwhile, we’re doing everything we can to absorb costs, and not pass them on,” he said.

From a sales perspective True Value nation has enjoyed the pandemic-induced home improvement spending boom with sales in line with the rest of the industry’s growth in the go-go year of 2021 and continuing into 2022, despite the recent cooling of the economy.

“Do I feel optimistic? Absolutely. We can see a two percent to three percent increase in do-it-yourself improvement projects in 2022, based on the industry reports and Cleveland Research.

“Those stats indicate that there will be consumer demand, which is great,” he said. “We absolutely believe that in the market where we sit, there will be demand.”

HBSDealer.com

Last year, True Value rolled out a new approach to its role as an e-commerce facilitator. It’s called Local Omnichannel eCommerce. And through it, True Value stores can provide customers an improved buying experience by showing them their local store’s available inventory and pricing.

It’s part of a hyper local approach to competing on the web.

Since Oct. 8, 2021 TrueValueCompany. com has no longer supported online ordering, but has continued to serve as a brand and information site directing customers to shop on their store’s local website.

“Today’s shopper is demanding more options and convenience on their path to purchase with the Internet serving as a primary resource for information,” said Jean Niemi, True Value Company SVP of marketing and communications. “The COVID-19 pandemic has significantly accelerated consumers’ reliance on digital and e-commerce for both product information and ordering. To provide consumers with the best possible local shopping experience, our marketing should be centered around driving visits to our retailers’ local sites where they can see their local store’s inventory and pricing.”

Under the new Local eCommerce program, retailers can show their in-stock inventory and pricing on their websites with an additional option to allow for online ordering and buy online, pick up in-store capabilities.

According to True Value Company CEO Chris Kempa, described Local Omnichannel eCommerce as “one of the most successful initiatives we’ve had.” More than 1,000 customers have signed on.

The key consideration is to what extend does the customer in their market want to participate, and the most important ingredient is inventory availability, real time,” Kempa added.

From there, the independent retailers’ decisions revolve around search, BOPIS, shipping, drive up — The customer determines how much of that they want to do.

And then we have a solution, and we can help you with that.”

“It is a local eCommerce model to allow that brick and mortar store to enable what elements of the omnichannel experience they want to offer in their market,” Kempa said.

HARDWARE + BUILDING SUPPLY DEALER July/August 2022

27

Products

The drive to remodel continues to push Windows and Doors

By Andy Carlo

R

esidential window and door shipments increased in 2021 despite supply chain issues and labor shortages.

The Window & Door Manufacturers Association (WDMA) reported that residential unit shipments, including windows, patio, and entry doors, were up 3.8% or 2.5 million units last year compared to 2020.

While remodeling is expected to grow in 2022 and 2023, the forecast calls for a slower pace. The WDMA has pinpointed growth at 1% to 2% in the coming years.

Yet, increased home values should be solid drivers for large-scale remodeling projects, the WDMA adds.The Home Improvement Research Institute said it expects overall consumer market sales to increase by 2.8% in 2023 to $382.5

billion. But inflation and reduced disposable income could hold spending back more than expected in 2022.

Manufacturers remain optimistic while introducing new products that meet the needs of the market.

For example, Jeld-Wen has launched its Auraline composite windows and patio doors.

“Auraline by JELD-WEN fills a critical gap in the product offering for dealers, home builders, and homeowners across the country,” said Daniel Castillo, executive vice president and president, North America at JELD-WEN. “We estimate that about 40% of dealers today do not have composite windows in their product lineups, yet demand for contemporary, sustainable, and durable windows and patio doors is high.”

Earlier this year, Simpson Door expanded its Redi-Prime painted interior door collection to include Clipped Corner Doors for unique spaces.

“Given the heightened emphasis on home improvement, it’s no surprise that customers are more carefully considering the finishing touches of every room throughout the house,” said Brad Loveless, marketing and product development manager for Simpson Door Company. “Our latest addition to the Redi-Prime lineup of interior painted doors makes it easy to bring a high-end, finished look to any living space—no matter the shape or size of the doorway.”

Here’s a roundup of some of the latest products in the windows-and-doors category:

The Masonite Performance Door System features the manufacturer’s 4-Point Performance Seal, which includes Premium Square Edge Fiberglass Doors, Endura Products’ ZArticulating Cap Sill, PE650 Weatherstripping, Simple Solution Corner Pads, and FrameSaver rot-proof door frame. Optional upgrades include Endura’s award-winning PanoLock or Trilenniummultipoint locks and FusionFrame. The System is offered with all Masonite exterior fiberglass doors, which are available in a variety of styles, colors, and finishes, including multiple glass options. Masonite.com

The Marvin Awaken Skylight was built to harness light and air in new ways and is now available in select markets. This smart skylight window is the first to offer built-in, tunable lighting that mimics the ideal color temperature of natural light to provide the right light at the right time. The skylights open on all four sides for faster and more efficient air circulation and include a hidden perimeter screen that keeps insects and debris out without obscuring the view. Other features include dimmable LED lights, integrated room darkening or light filtering shades, and integrated sensors that close the skylight when rain is detected. Awaken is compatible with Amazon Alexa, Google Assistant, and Samsung SmartThings. Marvin.com

28

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

Jeld-Wen has launched its new line of Auraline composite windows and patio doors. Designed to meet a key gap in the market for home building products, the launch of Auraline is an important component of meeting Jeld-Wen’s stated growth goals, the company said. Addressing the rapidly growing demand for more design-focused, sustainable building material options, Auraline provides an innovative solution for an expanding market. Auraline windows and patio doors blend a structural fiber, such as wood fiber, with synthetic polymers and a co-extruded color layer to create a highly durable and energy-efficient composite material that has the beauty of luxury wood windows and patio doors in a durable, sustainable package. Jeld-Wen.com

Kolbe Windows & Doors offers Entrance Door Systems that are historical, traditional, or modern. Kolbe offers one-of-a-kind doors for both residential and commercial projects with various configurations, functionality, and options, including wood species, divided lites, glass, hardware, finishes, and more. Kolbe’s offering of custom inswing and outswing doors also includes pivot doors within the Ultra Series and VistaLuxe Collection. Koble says today’s homeowners are more in tune with their living space than ever before, they want it to reflect their personality. Selecting an entry door that is mostly glass, a bold color or intricate wood detail helps express their individual style and sets the tone for the rest of the home. Kolbewindows.com

Andersen Windows has expanded its legacy 400 Series casement to include a contemporary profile option, offering clean, simple profiles to accommodate the latest in modern design trends and providing customers with even more customization options.

The casement has been improved over time with continual innovation, the new contemporary stop being Andersen’s latest design improvement. Created from wood with customizable sizes, hardware, finishes, and grille patterns, 400 Series windows blend performance and style. The new contemporary stop option features an updated contemporary stop, grille profile and hardware design. Andersenwindows.com

Simpson Redi-Prime has extended its product line to include Clipped Corner Doors for unique spaces within a home. As many continue to make renovations to accommodate the ever-evolving functions of a home, the top corner of a Redi-Prime Clipped Corner Door ships pre-cut at an angle for a custom fit. Redi-Prime doors pair the Simpson wood door method of construction with MDF veneers on classic stile and rail surfaces. Combined with solid MDF panels and a premium priming process, the final product is an architecturally beautiful, long-lasting interior painted door. By cutting off the top of the interior door to accommodate uniquely shaped spaces, the style will maintain design consistency with other interior doors in the home without sacrificing a precise fit. Redi-Prime Clipped Corner Doors are available in virtually any width or height to meet any interior door design need. The clipped corner can be customized to accommodate exact project specifications. Simpson-door.com

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER July/August 2022

29

SAVE THE DATE: HBSDealer’s Top Women in Hardware & Building Supply gala is slated for Nov. 8-9 in Chicago.

Top Women Profile Series LP’S ROBIN E VERHART TALKS CORPOR ATE TR ANSFORMATION, DIVERSIT Y, AND EQUIT Y.

By Andy Carlo

R

obin Everhart joined LP Building Solutions (Louisiana-Pacific Corporation) in 2019 when the company was undergoing a transformation from a traditional building products company to a technology-driven building solutions provider.

In her role as LP’s senior vice president, chief human resources and transformation officer, Everhart has been responsible for leading LP’s global people strategy while driving organizational effectiveness and transformational change to create a high-performance business culture. The senior vice president also leads leadership development, diversity, equity and inclusion (DEI), employee education, corporate communications, and benefits among other roles at the building solutions provider.

“DEI has become a ‘buzz’ term for so many companies, but it’s truly our belief that improving those areas of our business will be a cornerstone of LP’s future success and growth,” Everhart told HBSDealer.

Prior to joining LP, Everhart served in leadership roles at Cintas, Winn-Dixie Stores and The Home Depot. Today, she says she is most proud of creating better connective tissue between people and performance at LP. “The business transformation strategy was in place, but any strategy requires employee buy-in for it to be effective,” Everhart explains. “People need to feel like they have a stake in the business to drive performance.”

To do this, LP created a performance framework — Think and Act Like Owners— as a driving motivator to improve productivity, hold employees accountable, and instill confidence and pride in the company.

"Empowering our team with ownership encourages all of us to stay curious, show up authentically and have a bias for action,” she said.

As co-executive sponsor of LP’s DEI Task Force, Everhart worked alongside LP’s Chair and CEO Brad Southern and the task force members to create LP’s DEI Pledge for Action and associated action plans. The Nasvhville, Tenn.-based company wanted to ensure that

30

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

every voice was heard while creating a happy, working environment.

“With our pledge and plans complete, we’re now partnering across the organization to lead the execution of DEI plans,” Everheart says. “An inclusive environment where all employees are welcome, want to work, want to stay, and want to recommend as a good place to work is critical to success, especially in today’s labor market.”

Transformation at LP has not been without hurdles.

In addition to competition for labor, the company works to ensure that there is an increase in talent pools and representation, to keep up with market demands, and to move forward when it comes to innovation.

“As an individual, I’ve certainly faced challenges and bouts of impostor syndrome while often being one, if not the only, female in leadership,” Everhart notes. “If anyone tells you they haven’t experienced this, they are lying. The best advice I can give is to remember that you’re the best version of yourself out there. You have a better chance of being truly successful when you embrace your own authentic qualities and strengths versus emulating someone else’s.”

Everhart is also passionate about cultivating future generations of leaders and community development.

She assists area nonprofits with pro bono mentoring and support on HR challenges and DEI initiatives, along with serving with the Executive Strategic Alliance Advisory and the Land Trust for Tennessee Board of Directors. She also volunteers at the local chapters of Habitat for Humanity and Urban League.

“The business transformation strategy was in place, but any strategy requires employee buy-in for it to be effective.

People need to feel like they have a stake in the business to drive performance.”

—Robin Everhart, Senior Vice President, Chief Human Resources and Transformation Officer, LP Building Solutions

Looking ahead at LP, she says she wants the company’s approach to DEI to continue evolving while creating an environment of inclusivity where every employee feels like they are a valued member of the team and company’s success.

“Everyone deserves good role models,” she says. “And I’d like to establish a workforce where every employee has that person they can look up to.”

HBSDealer.com

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November 8-9, 2022 Fairmont Hotel, Chicago CHECK OUT OUR 2022 AGENDA TUESDAY, 11/8 4:00pm: Afternoon Tea: Mix, Mingle & Mentorship 5:30pm: Welcome Cocktail Reception 7:00pm: Dinner 7:30pm: Awards Ceremony

WEDNESDAY, 11/9 7:30am: Breakfast 8:00am: Keynote Speaker 9:00am: SWOT Panel 9:45am: NextUp with Sarah Alter 10:45am: Allies & Advancement Panel 11:30am: Rising Stars Panel

THANK YOU TO OUR CURRENT 2022 SPONSORS!

For more information including sponsorship opportunities, please contact: Amy Grant 773.294.8598 agrant@ensembleiq.com

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One on One

with Mike Farmer of Builders FirstSource

Taking truss-shop automation to the next level

A

plan to expand Builders FirstSource’s fully-automated robotic manufacturing systems was announced recently—a move that will bring the technology to eight more locations by the end of 2023. The high-tech workings of robots in truss plants—already in place at two BFS operations—represent more than just a triumph of engineering; they mesh with the nation’s largest prodealer’s investments in the future of the lumber industry.

Mike Farmer, president of commercial operations for Dallas-based Builders FirstSource shared thoughts with HBSDealer on robots, their impact on humans, and the role of technology in the LBM industry.

On the big idea behind plans to expand automation in BFS plants: “Simply put, it’s an effort to find ways to improve on quality, speed and cost in our industry. We asked ourselves, ‘How can we make things faster for our builders, more repeatable and higher quality and look for ways to reduce cost?’ By improving the technology side through our design solutions and improving our ability to produce more in our plants with robotic type solutions, we believe we can help make the dream of home ownership more obtainable for people.”

On the impact of automation on human jobs: “This technology requires less labor, but it’s in a business that we’ve traditionally struggled to obtain labor for a very, very long time. A real benefit of this technology is that it allows us to run multiple shifts in a simpler format as well. Instead of running one shift and struggling to find enough labor to fill it, now with the robotics we can run two and a half shifts with due to the lower labor needs.

“Another piece that’s a big value of these systems is safety. I don’t know if you’ve ever picked up a truss plate, but they’re pretty sharp. In a truss plant, there’s a lot of moving up and down on a table.

These robotics help a lot from a safety perspective. Our team members who are out working in a truss plant around these robotic lines are taking on different responsibilities that require less safety risks.”

On how technology investments are working together: “We’ve invested quite a bit since last year’s acquisition of Paradigm [a digital platform that helps customers build more efficiently], and we’ve got a whole team that’s working to speed up and improve takeoffs through automation and through AI,

32

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

Builders FirstSource plans to bring high-tech automation to eight more locations in 2023.

and looking for ways to help speed up the builders’ process around understanding what their costs are going to be and creating a digital twin for a house.

Making changes to house plans is much easier to do than it has been in the past, which streamlines the process through design and construction phases.”

On comparing the BFS robotic system from Idaho-based House of Design to other cutting-edge manufacturing systems in the LBM industry: “House of Design is the only US automated robotics that we’re aware of with this kind of scale. That’s one of the reasons we chose to partner with them — to make a larger investment in their capacity to produce for our plants. We’ve got very good partners in the other parts of our business, but from a robotics perspective, they’re the furthest along that we’re aware of in this category.”

On the rise of off-site manufacturing in general: “We’ve seen continued adoption of off-site manufacturing, especially in truss plants. When you look at wall panels and READY-FRAME [the BFS precision, precut framing package that’s delivered to the job site ready to assemble], that’s another area that’s started to grow pretty nicely. Getting labor on the job sites is not easy. Where we can find ways to use technology and automation to remove the need for labor on the job site, it’s proven to be very helpful.”

On the environmental impact of precision automation: “We all know the cycle time value of offsite manufacturing, along with the consistency and the quality it yields.

But there also is an environmental impact of the waste savings, and the amount of trees that Mike Farmer, needs to go into a house. We actually have Builders FirstSource a tree counter on our website that tracks how many trees we have saved—our calculations show since 2019 about 3.7 million trees were saved by using components and READY-FRAME to build a house versus traditional stick framing.

There’s a pretty significant impact.”

HBSDealer.com

People In The News San Diego-based WD-40 Company announced it will appoint Sara Hyzer as vice president, finance, treasurer and chief financial officer as of Nov. 1. She currently serves as Hyzer the company’s vice president, global finance strategy.

Robert G. Jenson has been named the director of e-commerce of STIHL. Jenson joins STIHL after eight years at Whirlpool Corporation, most recently as Jenson the director of direct-to-consumer and digital properties.

Koppers Inc., the treated wood products provider, appointed Kevin Washington as vice president of external affairs.

Washington most recently served as Washington head of government affairs at Illinois Tool Works Inc.

Steve Swinney, CEO of Denver-based Kodiak Building Partners was selected by a panel of judges as the Mountain West Award winner in the annual Ernst & Young EntrepreSwinney neur of the Year program. The award recognizes entrepreneurial spirit, purpose, growth, and impact, among other attributes.

Luis Pedro has been hired as Rocky’s Ace Hardware’s COO. He brings more than 25 years of experience to the role, in which he will. work closely with Steve Poulin, who Pedro has been promoted to vice president of store operations, and John Falcone, who has been promoted to director of merchandising.

Do it Best Corp.’s Jean Fahy is taking on a new position: LBM Division Manager of Business Development. In this role, she will be executing on key Fahy LBM member recruitment initiatives while expanding the company’s engagement with existing LBM members.

Epicor for Retail solutions equip your team with intuitive tools that streamline operations and drive more revenue and profitability.

That’s working with you, for you.

HBSDealer.com

HARDWARE + BUILDING SUPPLY DEALER July/August 2022

33

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) May: 1,549,000

NAICS 44413

(sales in $ billions)

50

1800

1500

46.3

46.2

46.5

44.5

43.0

40

1600

4

50.4

1700

3

3.44

3.25

3.19

30

1400

(sales in $ billions)

3.48

2.63

2.41 2

1300

20

1200 1100

1

10

1000

0

900

M

J

J

A

S

O

N

D

J

F

M

A

MARCH

M

SOURCE: COMMERCE DEPARTMENT

2021

Single-family starts

APRIL

0

MAY

FEBRUARY 2021

2022

MARCH

APRIL

2022

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

(in thousands, SAAR) May: 1,051,000 1400

HBSDealer Stock Roundup

1300

the percent-change performance of stocks based on Jul. 7 prices

1200 1100 1000

50

900

40

800

30

600

M

J

J

A

S

O

N

D

J

F

M

A

ANNUAL CHANGE

700

M

SOURCE: COMMERCE DEPARTMENT

Existing-home sales (in millions, SAAR) May: 5,410,000 7

BLDR

20 WY

10

LOW

-10

DE

-30

6

HD

SHW

-20

6.5

TSCO

BECN

0

DJI

-40

5.5

SWK

-50 -20

5

-15

-10

-5

0

5

4.5

MONTHLY CHANGE

4 3.5

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

M

J

J

A

S

O

N

D

J

F

M

A

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

12.0

4.0

80

34

Current Prior month

120

Prior year

16.0

3.6%

18.0

June 0.0

$4.00 $3.00

14.0

6.0

2.0

100

20.0

60

98.7

$4.75

June

Jul. 7

July/August 2022 HARDWARE + BUILDING SUPPLY DEALER

140

$2.00

$5.00

SOURCES: LABOR DEPARTMENT, THE CONFERENCE BOARD, AAA

HBSDealer.com

21 MAY 20

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