HBSD - 11/12 2019 by ensembleiq

NOVEMBER/DECEMBER 2019

Vol. 45 No. 10

TOP

T O U R F I RS EVER

WOMEN IN HARDWARE AND BUILDING SUPPLY Recognizing the impact of women in a male-dominated industry

HBSDEALER HARDWARE + BUILDING SUPPLY

MARKET INSIGHTS 16 Special Report: The industry gets serious about recruiting U.S. military veterans.

26 The ProDealer Industry

Summit hits the high notes. A three-day event promotes the interests of dealers everywhere.

27 The NLBMDA

names names. Two Chairman’s Awards, plus a Distinguished Service designation.

COVER STORY Top Women in Hardware & Building Supply

28 Acceptance speech mastery at ProDealer of the Year dinner.

Here’s our effort to recognize some of the amazing women who are making contributions to their business, their industry and their communities.

Highlights from Epicor Insights LBM 2019.

the Network of Executive Women: 24 From A new generation, and new ways of thinking.

FROM THE EDITOR 8 Swinging for the Fences

Linda Alvarado’s unconventional keynote.

NEWS & ANALYSIS 10 Readers respond to

minimum wage laws

10 12

Keeping track of tariffs

Higginbotham Brothers’ border crossing

The NAHB weighs in on growth

Home Depot’s take on innovation

IN EVERY ISSUE 12 News Map 14 Product Knowledge 32 People in the News 34 Quikrete Industry Dashboard

Hardware + Building Supply Dealer (ISSN 2376-5852) is published monthly, except for July/August and November/December, which are double issues, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631. Subscription rate: $119 per year in the United States; $139 in Canada and Mexico; $279 in all other countries (air mail only). Periodical postage paid at Chicago,IL, and additional mailing offices. POSTMASTER: Please send address changes to HBSD, Circulation Fulfillment Director, P.O. Box 3200, Northbrook, IL 60065-3200. Subscription changes also may be emailed to hbsdealer@omeda.com, or call 847-564-1468. Canada Post: Publications Mail Agreement #40612608. Canada Returns to be sent to Bleuchip International, P.O. Box 25542, London, ON N6C 6B2. For change of address, six weeks notice to Hardware+Building Supply Dealer, P.O. Box 3200, Northbrook, IL 60065-3200 is requested. Give old and new address and zip code. If possible, enclose address portion from cover on previous issue. Vol. 45, No. 3, March 2019. Copyright © 2019 by EnsembleIQ. All rights reserved.

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

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HERE’S WHAT’S ONLINE

@HBSDealer

Tweet Central

Highlights from the Convention Floor HBSDealer.com is the source for news, analysis, videos and commentary – including coverage of the upcoming 2020 International Builders’ Show in Las Vegas. Don’t miss the trends, the stories and the new products. Sign up for the HBSDealer Daily newsletter at HBSDealer.com

Stats of the Week The Principia “Stat of the Week” available at HBSDealer.com and the Wednesday edition of the HBSDealer Daily newsletter, reveals the following: 38%: Percentage of homeowners who reported replacing 40% or fewer of their windows in one project. 1: The rank of “Ease of Installation” among top drivers for builders and contractors selecting insulation material 28%: Percentage of national demand volume among siding materials of vinyl, the market leader. For more, visit HBSDealer.com

Poll Results

What are the salesfriendly features of a house? After more than 400 votes, here are the results:

1% 2% 1%

7% 36% 8%

Open floor plan, 36% Curb appeal, 24% Outdoor living spaces, 12% Energy efficiency, 8%

12%

Walk-in closets, 7% Three-car garage, 6%

24%

High ceilings, 2%

Big lawn, 1% Media room, 1%

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

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

HBSDealer.com

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FROM THE EDITOR

Swinging for the fences

Linda Alvarado, the barrier-breaking co-owner of the Colorado Rockies and CEO of Alvarado Construction, stepped up to the plate during the ProDealer Industry Summit, and took some big swings: “Had I listened to conventional thinking, I would not be doing what I’m doing today.” “Commercial construction is highly competitive, and today it’s brains, not brawn, that drive the business.” “I thought I was selling construction services. I wasn’t. I was selling credibility.” “You’ll never get to second base if you leave your foot safely on first.”

Alvarado, center, flanked by James Hardie’s Sean Patel, left, and Randy Saunoris.

These were some highlights from a keynote presentation that touched on Branch Rickey’s integration of baseball, childhood memories of helping her father pour concrete, and Napoleon Bonaparte’s difficult crossing of the Alps. Alvarado also described her early career challenges of harassment, misperceptions and loan rejections. And today, she can say that her

company has built and managed hundreds of millions of dollars in construction projects throughout the U.S. and Latin America. She made history as the first Hispanic owner of a Major League Baseball franchise. As an owner of the Colorado Rockies, her role is also significant as it marked the first time that any woman was involved in a bid for ownership of a Major League Baseball team. She encouraged the LBM industry attendees to participate in the pursuit of education, and take full advantage of events like the ProDealer Industry Summit (coming to San Antonio, Texas, Oct. 7-9, 2020). “I think this group gets it. You’re here to learn and use the information,” she said. “Look at what you do. You’re building strong foundations for America’s future. The important thing is what you do when you leave here.” And continuing the metaphor of business and baseball, she pointed to the dramatic impact of technology on the game — replays, cameras, data and metrics. Business plays in the same ballpark. “It’s either transformation in business or fossilization,” she said. “And I’m sure you don’t want to be in the Smithsonian.” Alvarado’s swing-for-the-fences success story is pitch perfect for HBSDealer’s first ever Top Women in Hardware & Building Supply issue. Our cover story begins on page 20. And we’re still in the first inning of our crusade to recognize and encourage the positive impact of women in the industry. And we encourage your help. HBSD

HBSDEALER HARDWARE + BUILDING SUPPLY

Hardware + Building Supply Dealer An EnsembleIQ Publication 8550 W. Bryn Mawr Ave., Suite 200, Chicago, IL 60631 hbsdealer.com HBSDealer On The Web • HBSDealer Info Services SENIOR VICE PRESIDENT (HBSDealer, Drug Store News, Chain Store Age) John Kenlon, jkenlon@ensembleiq.com, 212-756-5238 EDITOR IN CHIEF Ken Clark kclark@ensembleiq.com, 212-756-5139 LBM EDITOR Andy Carlo acarlo@ensembleiq.com, 845-891-5108 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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VICE PRESIDENT, PRODUCTION Derek Estey destey@ensembleiq.com, 877-687-7321 DIRECTOR OF PRODUCTION Michael Kimpton mkimpton@ensembleiq.com, 647-557-5075 CREATIVE DIRECTOR Colette Magliaro cmagliaro@ensembleiq.com ART DIRECTOR Bill Antkowiak bantkowiak@ensembleiq.com PRODEALER INDUSTRY SUMMIT OCT. 8TH TO 10TH, COLORADO SPRINGS, COLO. WWW.PRODEALER.COM IN PARTNERSHIP WITH THE NLBMDA, WWW.DEALER.ORG CONTACT: AMY PLATTER GRANT agrant@ensembleiq.com, PDIS DIRECTOR OF SPONSORSHIPS PUBLISHER OF HARDWARE + BUILDING SUPPLY DEALER, DRUG STORE NEWS, CHAIN STORE AGE. CIRCULATION LIST MANAGER: ELIZABETH JACKSON, MERITDIRECT (847) 492-1350 X318. PERMISSIONS: MATERIALS IN THIS PUBLICATION MAY NOT BE REPRODUCED WITHOUT WRITTEN PERMISSION. TO ORDER REPRINTS CALL PARS INTERNATIONAL AT (212) 221-9595, EXT. 435, OR EMAIL LF-REPRINTS@PARSINTL.COM. CONTACT COPYRIGHT CLEARANCE CENTER, 222 ROSEWOOD DRIVE, DANVERS, MA 01923, (978) 646-2600 OR (855) 239-3415, OR ON THE WEB AT COPYRIGHT.COM FOR IMMEDIATE AUTHORIZATION TO PHOTOCOPY FROM HARDWARE + BUILDING SUPPLY DEALER (ISSN 2376-5852).

Corporate Officers CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF INNOVATION OFFICER Tanner Van Dusen CHIEF HUMAN RESOURCES OFFICER Ann Jadown EXECUTIVE VICE PRESIDENT, EVENTS & CONFERENCES Ed Several

connect with us

Ken Clark Editor in Chief

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

NEWS + ANALYSIS

Readers respond to Minimum Wage laws An article in HBSDealer.com concerning potential changes to minimum wage laws generated the following responses:

, Mass. We are re in Stoneham True Value sto Boston. The gle of sin rth a No t run l jus “We 18, suburban spraw 29,000. In 20 n $5 sto is Bo am the eh Ston within g the top for a home in on ice am pr ed me rat ho s median . er from us, wa t the universe next town ov d States if no Melrose, the be at $15 s in the Unite de to d co te zip sla st s five hotte um wage i usetts minim “The Massach d by the verely impacte by 2023. ess will be se sin um wage is bu nim all mi at d ndate “I think th e, but the ma ag us increases w vio um ob nim s and les mandated mi re damaging mo . In e fits Th ne ry. d be part of the sto s are mandate more doing busines Act (for 50 or e av Le ly to the cost of mi Fa onal , we have the paid sick/pers d ate nd ma Massachusetts urs of hourly wage on we have 40 ho al ), rm es no ye e plo th em times her than e laws (now 1.4 tion day), hig days, the blu s like Evacua mpathetic state holiday sy d ry an s ve a ay to nd Su es due favor an’s comp rat ck the deck in normal workm laws that sta e hidden, host of other th a y, d rit an , pa of ary judici the issue m goes up, . Then there is n the minimu of employees alation: Whe sc e e …. ll ag we g w as damagin a bump up iven by our e will look for e has been dr su everybody els is ge wa m mu wealth. Our ini on e m th mm “I think in the Co islature here g of the leg d din lle an tro rst union-con ection or unde ions.” ve little conn th their emot wi y legislators ha inl ma rld, and think business wo

“Last min imum wag e job I ha I had to w d was ju ork two ho st over $3 to buy a urs in orde per hour. movie tic r take ho ke t. me enou My son w gh money orks for $7 hours to .50 per ho take hom ur. He ha e enough s to work “Nothing m oney to bu two has chan y a movie ged.” ticket.” — Brian Ferguson

— Bill Round re Value Hardwa Round’s True

A tariff-ic quote of the Month A recent HBSDealer poll found “tariffs” to be the leading vote getter for top storyline of the year. There were very few hardware conventions in 2019 during which the topic failed to raise to a discussion point. It rose again in Indianapolis, at the Do it Best Fall Market. During a press conference, Dent Johnson, executive VP of merchandise, was asked to comment on the practice of vendors pointing to tariffs as a way to push through price increases.

“We actually have a pretty detailed process when those things happen. SKU by SKU, we validate the HTS code and make sure that it is, in fact, impacted by the tariffs. And so, we have a pretty rigorous process. We have seen some (unjustified price increases). We’ve refuted them in each case, and we won in each case. It doesn’t stop people from asking for price increases — there’s nothing new about that in our industry.” — Dent Johnson, Executive VP of merchandise

A new kind of Lowe’s? Adidas, Coach and Victoria’s Secret have outlet stores. Why not Lowe’s? It’s a trick question. Lowe’s opened its first outlet store in October in Monrovia, Calif. The concept operates in a 31,000 sq. ft. building selling slightly used, scratched or dinged appliances at discounts of 25% to 70%. The building was previously the site of an Orchard Supply Hardware Store – one of the 99 stores in the OSH chain that Lowe’s closed in 2018. Replying to an HBSDealer query, a Lowe’s spokesman said: “For now, Lowe’s is focused on piloting the outlet in Monrovia only.”

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

NEWS + ANALYSIS

An Innovation Celebration in Atlanta Atlanta — Home Depot’s top vendors descended on Atlanta last month for a series of presentations that included the unveiling of the retailer’s Innovation Award winners: Topping that list was Cub Cadet’s Ultima series of zero-turn radius lawn mowers. Executive VP of Merchandising Ted Decker hosted the awards presentation, which embraced the idea of both technological innovation and marketing creativity. Ten companies were pre-selected as finalists, but Decker directed appreciation and raw enthusiasm to all the vendors. “Your partnership gives us the power to sell the best products, best brands

Cub Cadet’s Ultima riding mower.

and best assortments,” he said. “Let’s rock on and go kick some ass.” Here’s what the retailer said about the overall winner Cub Cadet: “The ergonomic fit and high-accuracy cutting

power of the Cub Cadet Ultima Series ZT1 50 FAB Zero-Turn Riding Mower by MTD raises the bar for durability without sacrificing operator comfort.” And here’s how MTD’s marketing representative described the product: “It looks really cool.” First runner-up went to American Woodmark for its easily swappable soft-close vanity doors and drawers. Second runner-up went to Globe for its tool-free recessed lighting installation kit. The theme of time savings for both the pro customer and the home owner figured prominently in discussions of product benefits.

News Map: Independent Small Business Edition The ninth annual “Independent Small Business of the Year Award” winner was announced Nov. 25 — just in time for Small Business Saturday, but too late for this print edition. However, here are five notable quarterfinalists that represent hom improvement. kentucky

Taylorsville

Taylorsville Hardware A third-generation ownership Main Street hardware store, Taylorsville Hardware has made a splash with its River Run kayak float, and other special events. Inside the store, the slogan is: “if we don’t have it, you don’t need it.”

new jersey

Pennsauken

ABC Discount Appliances In a hyper-competitive market, ABC has outlasted the competition since 1949, and has seen big-box competition come and go — Silo, Circuit City among them. The thirdgeneration retailer prides itself on reinvesting in its showroom and its customer outreach.

iowa

Indianola

McCoy True Value This hardware store has been serving its community for more than 130 years. A recent project has painted the town all kinds of fresh colors, through a paint-grant program for local businesses. florida

Beverly Hills

pennsylvania

Wellsboro

Dunham’s Department Store Ann Dunham Rawson and her husband Joe Rawson run a full-blown Do-it Center hardware store as part of this unique retail experience that attracts customers from all over the Northeast. Slogan “There’s Something About Dunhams!”

Beacon Services & Appliances “Striving for excellence,” is the slogan that sets the tone for the company culture. Great customer service begins with the attitude of employees, who have coined the term “lifers,” for those who don’t want to work anywhere else.

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

NEWS + ANALYSIS

Higginbotham Brothers crosses the border Higginbotham Brothers & Company (HBC) agreed to acquire White’s Ace Building Center with locations in Shawnee and Seminole, Ok. HBC operates around 40 hardware stores, lumberyards, and building centers spread throughout the state of Texas. This will be the first time HBC has operated stores outside of the Lone Star State. But HBC noted that Oklahoma is a logical choice for expansion and the two locations in Oklahoma are a perfect fit to join the HBC family. Terms of the deal were not disclosed. HBC has been in an expansion mode over the past few years and

“In a further sign of solid demand, this is the fourth consecutive month where at least half of all builders surveyed have reported positive buyer traffic conditions.” — Greg Ugalde, NAHB Chairman

Product: Multi-Position Pro Ladder Manufacturer: Werner Ladder

is looking forward to continuing the growth of their organization with future acquisitions, as well as ground-up ventures in new underserved markets. Higginbotham Brothers was founded in 1880 when J.M. Higginbotham and his family moved from Mississippi to Texas, and was later joined by his brothers.

Foundations for growth Builder confidence slipped a single point in November. But confidence for the last two months hit new highs for 2019. The National Association of Home Builders reported that the NAHB/ Wells Fargo Housing Market Index for November dropped one point lower to 70. The HMI index gauging current sales conditions fell two points to 76 and the measure charting traffic of prospective buyers dropped one point to 53. The component measuring sales expectations in the next six months rose one point to 77.

Product Knowledge

Knowledge: The number onecomplaint of most multi-position ladders: they’re too heavy. But this new Multi-Position Pro Ladder was designed with Powerlite rails to decrease the weight — it’s the lightest multi-position ladder in Werner’s fleet. Appropriate for pros (It carries a Type IAA 375 lb. rating per side), as well as guttercleaning, tree-trimming DIYers. This 14’ version sells for about $125. Fun fact: Everyone knows that Werner is the official net-cuttingceremony ladder for NCAA basketball championships. But it’s also the official ladder of Recycled Percussion, a glitzy Las Vegas drum show.

“Single-family builders are currently reporting ongoing positive conditions, spurred in part by low mortgage rates and continued job growth,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. “In a further sign of solid demand, this is the fourth consecutive month where at least half of all builders surveyed have reported positive buyer traffic conditions.”

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

HBSDealer.com

PROFILE

Building the ‘Spirit of Life’ Brad Paulsen, president of HD Supply Facilities Maintenance, will accept the 2020 “Spirit of Life Award” at the Jan. 20 City of Hope Hardware/ Homebuilding Industry’s fundraising gala in Las Vegas. It’s the highest honor that City of Hope, the world-famous disease treatment and research center, bestows upon its supporters. Paulsen, a West Point graduate whose career path made stops at the U.S. Army, Toys R Us, and The Home Depot, spoke to HBSDealer about the intersection of industry and charity. Here’s the edited conversation: HBSDealer: How did you get involved with City of Hope? Paulsen: I have been involved with City of Hope for nearly 10 years and have always been a huge supporter of the organization because of the incredible work they do -- both for their patients and the surrounding communities. HBSDealer: When you got the call, what was your reaction? Paulsen: I received the call from [Continental Sales & Marketing founder] Steven Scheiner. He has been an incredible City of Hope supporter and a role model for me over the years. He shared the news, and any time you get a call like that you feel like you certainly do not deserve the recognition. That being said, I am more than excited to work with City of Hope and the Hardware and Home Improvement Industry to lead our 2020 fundraising efforts. HBSDealer: How does your role with HD Supply align with your role as Spirit of Life honoree? Paulsen: My role as the Spirit of Life Honoree aligns perfectly with my role at HD Supply as

HBSDealer.com

Brad Paulsen, president of HD Supply Facilities Maintenance: “You can see and feel the positive energy on the campus.”

both organizations are focused on giving back to our communities in whatever manner possible. At HD Supply, we feel strongly that giving back to your community is often the most fulfilling and rewarding thing that you can do as an individual or team.

Paulsen: It was just incredible. You meet the patients, you meet a team that is 100% dedicated to solving and curing many lifethreatening diseases and you cannot help but walk away feeling that you just witnessed something incredibly special.

HBSDealer: The City of Hope hardware/homebuilding industry group has raised more than $155 million in its 37 years. Do you feel pressure to keep up that pace? Paulsen: Definitely, but it is absolutely a team effort. There are many people that are heavily vested in this organization, and I will be one of many leading the charge in the next year.

HBSDealer: We know you’re not a doctor, but did you get the feeling we’re getting closer to cures for terrible diseases? Paulsen: I do. Not only because of what you hear from the medical professionals. But, also, you can see and feel the positive energy on the campus. It is tangible. You feel like there is hope for every patient treated or impacted by City of Hope’s team and research. For more on City of Hope, visit cityofhope.org.

HBSDealer: You recently toured the City of Hope facility in Duarte, Calif. What was your take?

HARDWARE + BUILDING SUPPLY DEALER NOVEMBER/DECEMBER 2019

SPECIAL REPORT

Veterans Wanted The industry is serious about recruiting and hiring U.S. military veterans. By Andy Carlo

n conjunction with the 2019 observance of Veterans Day, ABC Supply announced that it has hired more than 1,000 U.S. military veterans since 2017. The Beloit, Wis.-based roofing materials and building products distributor has made an effort of partnering with a number of organizations, including Military.com and RecruitMilitary.com, to actively pursue veteran job candidates. ABC’s strategy is just one shining example of a hardware and building supply company recruiting and embracing veterans. With a labor shortage and unfilled construction jobs still making noise in the building industry, many companies who service builders with products and solutions have turned to veterans in recent years to help fill their ranks. At the same time, these companies are learning that veterans make excellent hires. “Veterans are making a huge impact at ABC Supply,” said Matt Cooper, VP of ABC Supply’s West Region and a U.S. Marine Corps veteran. “They are wanted at ABC Supply because of what they bring to the table and the leadership

skills they learned in the military.” BMC, the Raleigh, N.C.-based pro dealer and building solutions provider, has traditionally hired veterans. But the company’s strategy has been ramped up since Dave Flitman joined BMC as CEO and president in the second half of 2018. At the recent ProDealer Industry Summit, held at Colorado Springs, Colo., Flitman described veterans as a natural source of talent for the industy. Generally, these employees stand out

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

because they are “disciplined, extremely loyal and hard working. They are thankful to have a career,” Flitman said. And the connection hits close to home for Flitman — his son Josh is a 4th Infantry Cav Scout stationed at Fort Carson, which is just a short drive from where the summit was held. BMC has built partnerships with a number of military organizations, including transition assistance program offices, HireMilitary, the Foundation for Women Warriors, and the Honor Foundation, among others. On its career page, BMC also created a micro site to showcase how veterans have seen their careers thrive at BMC. Within the organization, BMC is providing training about how to better understand the emotional and physical challenges that veterans face when transitioning to civilian life. In the New Year, BMC will begin developing apprenticeship and significant mentorship programs for not only transitioning veterans but for their spouses and families, too. “We want to attract those who desire to develop their career in a military friendly company,” says Elaine Gallagher,

HBSDealer.com

For over a century, we have insured the lumber and building material industries. A long time has passed since we first started insuring the unique risks of wood-based businesses in 1895, but our core values remain the same – we are committed to bringing our policyholders the most comprehensive and current coverages along with sophisticated risk management practices to keep their businesses safe and prosperous. Put our time in the wood industry on your side. Contact us or your broker for a competitive quote. It’s about time you moved your insurance to PLM.

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SPECIAL REPORT senior director of talent acquisition at BMC. “We have recognized the continuing comradery of the military blending well with BMC’s core values and deeply permeating our nonmilitary workforce in a meaningful and sustaining manner. Our military hires have generated new ideas where we have gained a unique perspective from complex problem solvers.” Lowe’s Home Improvement employs nearly 20,000 associates from the military community, including more than 650 active duty personnel. In the first quarter of 2019, Lowe’s expanded a program that gave veterans the option of wearing a special camo vest that features a badge denoting their service. “From the sales floor to our executive leadership, we know military associates are critical thinkers and strong communicators who bring a high level of integrity to our organization,” Mike Piper, Lowe’s associate veteran recruiter says. “We recognize veterans as a valuable source of talent — not only for our company but within the home improvement industry at large,” Piper explained. Lowe’s partners with a variety of organizations including the USO, AMVETS, Service the Academy Careers Conference and the Military Spouse Employment Program. “These organizations have been an outstanding resource to help Lowe’s identify, develop and recruit military talent,” Piper says. Lowe’s also offers differential pay to associates during service, veteran parking and a 10% military discount every day on eligible purchases. The Home Depot has been a source of veteran opportunities for some time. The company currently employs more than 35,000 veterans and its philanthropic arm, The Home Depot Foundation, has committed about $500 million to veterans’ causes through 2025. “The Home Depot has been a supporter and employer of veterans from the start — it was a focus of our

Military intelligence When hiring, what best describes your opinion of a military background on a job candidate’s resume?

24% 53%

23% It’s an advantage for the candidate, if all else is equal. 53% It’s a big advantage for the candidate. 23% It’s not an advantage. What matters is relevant experience and qualifications. 24%. n=180

How many military veterans work at your company?

12% 17%

53%

19% A few: 53% Many, and we actively recruit them: 19% Many: 17% None yet: 12% n=78

Source: HBSDealer.com poll.

founders,” explained Erin Porter Izen, director of workforce development and military relations at The Home Depot. “It goes beyond just hiring. There has always been a U.S. flag flying over every store. And in 2011, when veterans homelessness was at its peak, The Home Depot stepped in to address the

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

issue through our Foundation,” According to Izen, veterans remain a key thread in the fabric of The Home Depot’s culture. “Veterans have service at their core, which aligns perfectly to our company’s core values, inverted pyramid leadership style, and focus on our customers and communities,” she says. Organizations that The Home Depot partners with include Hiring our Heroes, Hirepurpose, Military-Transition. org, RecruitRooster/Military.com, Victory, Military Spouse Employment Partnership, The Honor Foundation, American Corporate Partners, and RecruitMilitary. The company also runs targeted programs and direct campaigns for service members. 84 Lumber has hired more than 300 veterans in the past three years with nearly 6% of its total workforce being veterans. Looking to expand its efforts, the pro dealer created a position within the company last year with the sole focus of building strategic partnerships with veterans groups, schools and community programs. “84 Lumber has found that veterans make terrific hires and fit in very well with our culture. Veterans often bring an understanding and experience that align with the core competencies of our company,” said Amy Smiley, vice president of marketing at 84 Lumber. “This includes a strong work ethic, leadership skills, teamwork, integrity, and a safety-first mentality,” Smiley also noted that 84 Lumber provides a work environment that is ideal for veterans, with skills and experiences gained in the military transferring well to a successful civilian career. “This is something that has always been on our radar,” she said. “Our commitment to the military began with our founder, Joe Hardy, who proudly served in World War II. Since then our country’s service members have always been a big part of who we are and what makes the 84 Lumber family so special and successful.”

HBSDealer.com

YOU CAN’T BEAT THE SYSTEM.®

COVER FEATURE

TOP

WOMEN IN HARDWARE AND BUILDING SUPPLY Recognizing the impact of women in a male-dominated industry. By HBSDealer Staff The convincing case has been made: women are underrepresented in positions of power in Corporate America. And based on the eye test — from years of visiting job sites, trade shows and corner office suites — the high-testosterone, heavy-lifting hardware and building supply industry offers a particularly challenging road to advancement for women. The male-dominated nature of this business is changing. But we think it can change faster. And embracing diversity is more than just a noble cause. It’s good for business, and it’s good for the industry. That’s the spirit that guides our first-ever Top Women in Hardware and Building Supply Awards program. It’s our effort to recognize professionals who are making contributions to their businesses and communities. The honorees who appear on the following pages represent a months-long nomination process carried out in the digital pages of HBSDealer.com. Two categories were called into play: Business Excellence Award — Recognizes a woman who has demonstrated achievement, growth and success in the hardware and home improvement industry. She knows the importance of innovative ideas, education, decision-making, mentoring and community service. Rising Stars Award — Recognizes a woman considered to be an up-and-coming star in her profession. She has also had significant accomplishments or achieved notable success Here are some of the remarkable women of the hardware & building supply industry.

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

Jean Fahy

Business Excellence Division manager, building materials Do it Best Corp. Fort Wayne, Ind.

Erica McCorkle

building materials product category, purchasing and sales. Big Brothers and Big Sisters is just one of her charitable ventures beyond the industry.

Business Excellence General manager Havasu Do it Best Hardware Lake Havasu, Ariz.

ahy plays a prominent and visible role in the leadership of Do it Best Corp.’s LBM team. At least twice a year, she takes the stage of the LBM Industry Update event to deliver trends and buying patterns designed to boost profitability (or avoid loss) for the co-op’s members. Her work behind the scenes is equally valuable, and led to her recent promotion to the head of the building materials division, where she has national oversight of the

Sunny Bowman

Business Excellence Owner Dakota County Lumber Co. Farmington, Minn. 2019 Northwestern Lumber Association Minnesota Dealer of the Year.

ix years ago, Bowman returned to the family business — Dakota County

HBSDealer.com

Wendy Stine

Business Excellence Merchandising director Stine Lumber Sulphur, La.

A Lumber — while starting a family and teaching yoga. In 2019, she guided DCL to recognition as the 2019 Northwestern Lumber Association (NLA) Minnesota Dealer of the Year. “Sunny believes in what our industry provides, what it is about and will stop at nothing to ensure there is an LBM industry (and viable careers) for years to come,” reads the nomination. She’s active with the (NLA), the Builders Club and the Builders Association of the Twin Cities (BATC), where she is heavily involved in Project Build — a local crusade to develop future lumberyard employees, contractors and industry professionals. She continues to teach yoga.

third-generation leader of Stine Lumber, she has worked in the business since high school, starting at the age of 15. Among her too-many-to-mention accomplishments, Stine is a former duchess of the DeRidder Mardi Gras and the recipient of the 1999 Women of the Year for Beauregard Parish. After years of managing a store and 60 employees, she moved to the corporate office as a buyer, and then on to her current role. Among other responsibilities, she is in charge of the purchase side of the company’s Hurricane Preparedness Plan. During the Baton Rouge flood of August 2016 she mobilized approximately $40 million dollars of emergency supplies to the area. She is a mother of three, a 7-year member of the Ace Paint Retail Input Team and her nomination reads: “She motivates and never expects anything from anyone that she couldn’t or wouldn’t do herself. She is a true leader.”

cCorkle’s nomination reads: “She has learned to expertly balance her aggressive, jump-in-with both feet retail approach with the practicality of a seasoned business owner.” Representing, the third-generation of family ownership, she started in the business as a 12-yearold, running the register and cleaning. In 2007, she took on the role of assistant manager, leading a complete interior and exterior remodel of the store. Thanks to careful margin management and overall business acumen, McCorkle’s business reached record sales in 2018, in the face of big box competition (four) and other independents (three) in her market. You can follow her style taste on Pinterest, as many of her customers do — a fact that helped expand the store’s hobby paint offering.

HARDWARE + BUILDING SUPPLY DEALER NOVEMBER/DECEMBER 2019

COVER FEATURE

Elizabeth Civiletti

Rising Star General manager Mazzone Ace Hardwaare Brooklyn, N.Y.

emember in 2016 when Mazzone Ace Hardware was deemed the Ace All Star Retailer for its support of Children’s Miracle Network Hospitals? That honor was largely a result of the retailer’s highly successful program — spearheaded by Civiletti — to promote the sale of World’s Finest Chocolate Bars to benefit CMN. The delicious program went national — and today raises more than $500,000 for the kids every year. Civiletti is a six-year hardware industry veteran and mother of four who rose up the ranks from cashier to general manager overseeing two New York City locations. Under her management, the company’s Rockaway Park location became the first Ace store in the city to achieve Pinnacle status, an Ace designation for high performance.

Martha O’Rourke

Business Excellence Commercial and residential hardware category specialist Lumbermens Merchandising Corp. Wayne, Pa.

Denene Williams Rising Star Marketing manager MAX USA Corp. Plainview, N.Y.

ince coming on board three years ago, Williams has been responsible for a complete overhaul of all of the activity of the manufacturer’s marketing department. In addition to implementing best practices and ROI improvement, her body of work includes a diversityfriendly campaign titled: “What are you waiting for?”

Virginia MacFawn Business Excellence General manager Rangeley Lakes Builders Supply Rangeley, Maine

acFawn displayed her business savvy during the nadir of the housing recession in 2008. That’s when she led a

hardware industry veteran for more than 35 years, O’Rourke’s career began in the prison hardware business, a field in which there was a total of six women. (She could count them.) Today, O’Rourke is a commercial and residential hardware sales specialist for Lumberman’s Merchandising Corp. In addition to bringing a tireless work ethic to her position, the official nomination reads: “She influences profitability, obtaining sales, working extremely well with colleagues and customers.”

In it, a young girl dressed as a construction worker, curls flowing out from her hard hat, explains the features and benefits of the heavy-duty pneumatic nailing tools in the company’s arsenal.

deep dive into every cost-saving aspect of the business — a process that led to spending accountability, overhead reduction and a system that more efficiently tracked credits, damages and errors. From her nomination: “Virginia is the epitome of a small business owner, wearing many hats.” Among them: building an

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

Amy Smiley

Business Excellence VP of marketing 84 Lumber Company Eighty Four, Pa.

miley generated a huge worldwide buzz in 2017 spearheading her company’s first-ever Super Bowl commercial, doubling the company’s social audience in three days. On a more intimate scale, she spoke recently at her alma mater’s Young Women’s Leadership Conference that empowers young women to continue to grow as leaders in their schools and communities. Day to day, she works hand-inhand with 22 area managers, 250 store managers and 4 divisional VPs, managing a multi-milliondollar budget that includes partnerships with the Pittsburgh Steelers and Penguins. She also oversees the philanthropic initiatives for 84 Lumber, which donates more than $1 million each year to various causes.

interiors division that has grown to be one of the dealer’s most successful ventures.

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Cortnie Gurno

Rising Star Director of marketing and human resources Randall Lumber and Hardware Taos, New Mexico

urno’s growing list of responsibilities include working with local media outlets and organizing community events to drive store traffic. She began working at the pro-focused lumber yard as a teenager working as a cashier. “Back then, there weren’t many females either working here or shopping here,” she said. “Now, both of those sides of the business are seeing more women.” Among her colleagues are her two younger sisters. “A majority of our team is women,” she said. “I really believe that helps, We bring something different to offer.”

Maria Arhontoulis Rising Star Director of marketing World and Main Cranbury, N.J.

marketing role and added her expertise in graphic design, communication and organization to best fulfill the needs of the company.”

t World and Main, Arhontoulis is directly responsible for the marketing activities across 16 brands and 22 product categories in a variety of sales channels. As such, she’s an ambassador for both her business and the home-improvement industry. From her nomination: “She has taken the traditional

Courtney Bynum

Rising Star Customer experience manager Cameron Ashley Building Products Greer, S.C.

Samantha Post

Rising Star Marketing & HR Manager T&M Hardware & Rental Ellwood City, Pa.

P is what really matters.” She is also a founding member of the National Association of Women in Roofing serving on the National Education Committee and launching the Carolina’s Chapter of NWIR.

n an “all-encompassing” role at Cameron Ashley Building Products, Bynum acts as a customer advocate, representing their needs to optimize the customer experience. In her role, she has earned a reputation as a go-to source for manufacturers seeking insights on product development. From her nomination: “She has a passion to do what is right for our customers, knowing that

Jillian Krauser

Rising Star Merchandise manager Busy Beaver Building Centers Pittsburgh, Pa.

tarting her Busy Beaver career right out of high school, Krauser was recognized as an overachiever

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early on. She has been promoted by the company many times over her 14 years and today is responsible for category management, program implementation, sales and margin management, and inventory management. One recent success story: a rejuvenated paint department, both in terms of the stores’

ost has taken charge of three key facets of her family business: digital presence and in-store promotions; employee behavior and performance; and the continued success of the company’s Bellevue location, which she manages. She led the company’s move to high-tech digital advertising, and also introduced an incentive plan to boost wordof-mouth publicity. Among her numerous community activities: she is a member of the Perrysville Business Association, the Small Business Saturday Neighborhood Champion and she has been a Make a Wish Foundation volunteer, granting wishes for children fighting cancer.

product assortment and the staff’s product knowledge. Elswhere, Krauser has launched a series of training initiatives aimed at developing other employees. She brings “a natural ability to mentor and educate others” to her daily performance, and she “operates with a people first mentality.”

HARDWARE + BUILDING SUPPLY DEALER NOVEMBER/DECEMBER 2019

COVER FEATURE

What we can learn from Gen Z Here comes the next wave of professionals, and new ways of thinking. By Sarah Alter

whole new generation has arrived and is entering the workforce; let’s get to know Gen Z. By the numbers, they make up 23.4% of the US population and a third of the world population. It’s undeniable that they’re going to make a huge impact on the world, the economy, and the workplace. Anticipating this, Network of Executive Women, in collaboration with Deloitte, recently released its Generation Z Report. Based on data from more than 1,500 Gen Z respondents, the report separates the myths about Gen Zers from the facts and takes a deep dive into how members of this generation will impact our workplaces. What Do We Know About Generation Z? Most of us aren’t total strangers to this rising generation. Many of us have—or until recently had—Gen Zers in our homes. In fact, my own children are Gen Zers and that’s one of the reasons why I’ve found this generation so fascinating: the world they know is vastly different from the one that I came up in. They grew up totally immersed in technology, they watched their parents struggle financially during the most devasting points of the 2008 recession, and as they’ve grown, they’ve been cognizant of the rising cost of living and higher education. What I love about the findings presented in this report is that they give a three-dimensional and nuanced look at who Gen Zers are and how they think about the world of work. Here are some of the key findings, in a nutshell:

Gen Zers don’t want to be put into a box: One key difference between Gen Zers and past generations is that while they’re willing to sacrifice some level of personal fulfillment for financial stability, they aren’t interested in a job that puts them into a box. They want to expand their skills and actively seek opportunities to do so. Gen Zers are diverse…and they care about diversity: Gen Z is the most ethnically and racially diverse generation in history, but they’re also diverse in their sexual orientation and gender identity and expression. They prioritize diversity and look at it as more than just a box to be checked and expect diversity in marketing, and business, as well. Gen Zers care about education: Gen Zers consider a traditional four-year college education highly important and are quickly becoming the most educated generation (and indebted) generation in history. One of the most interesting findings, to me, is that Gen Zers are the generation most likely to demand a shift in the power dynamic between employees and employers. The report predicts that shrinking talent pools, combined with the need for next generation skills, will put incoming employees into a position to ask for the things they want out of the workplace. Gen Z is different from previous generations. Gen Zers don’t want to start their own businesses or work from home like the millennials who preceded them. What they do want is to lend their skills to companies that will offer them flexibility and the chance to act entrepreneurially in personalized, rather than cookie-cutter roles. These young people are attracted to opportunities that will keep them interested while allowing them to continue developing their skills. Many Gen Zers look to tech as an industry where they can attain these things. Out of the 1,500 surveyed, 51% of respondents ranked tech as a top industry to work in.

Interestingly, only 34% of Gen Z females seek technology roles, compared to 73% of Gen Z males. This will certainly have implications for tech companies aiming to bolster diversity among their ranks. Organizations who want to attract young talent are going to need to change their approaches to hiring, developing, and retaining their workforce. They’ll also need to focus on creating diverse and inclusive workplaces and considering their reputation with Gen Zers before they try to attract them. They may even need to create latticed career paths with multiple work formats or introduce internal marketplaces to match projects to needed skills sets. This sounds like drastic change, and if you know me, you also know that I’m not afraid of change. Businesses should be prepared to make changes to create workplaces that attract all kinds of employees and keep them happy, too. What Can We Learn from Generation Z? As I’ve toured the country and discussed this groundbreaking report, I’ve thought a lot about the impact that Gen Zers are making on the world of work. There’s something very admirable, to me, about following one’s interests, staying true to one’s beliefs, and asking for what one wants in life. At work, too. Those are the hallmarks of this new generation and I couldn’t be more excited to see what they’ll bring to the workplace. I can’t help thinking that we, as women, can learn a lot from this generation! There’s something so powerful about being confident in your needs and being brave enough to voice them in your workplace. Asking for what we want could be the key to attaining gender parity. Without speaking truth to power and demanding what we want, drastic change won’t come. To read more about our findings and suggested tactical actions for employers, download the full Gen Z report at HBSDealer.com. HBSD

Sarah Alter is president and CEO of the Network of Executive Women, a learning and leadership community representing 12,400 members in 22 regional groups in the United States and Canada. Learn more at newonline.org.

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

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SUMMIT RECAP

A Summit for a changing world The ProDealer Industry Summit hit several high notes in Colorado By HBSDealer Staff

umber industry leaders aren’t the kind of people to back off of big topics. And at the recent ProDealer Industry Summit in Colorado Springs, Colo., the business discussions hit on some of the biggest. Disruption, technology, competition, growth and a little company called Amazon.com, were on the menu. And so was a look into the near future of the housing industry. Throughout the three-day conference, there were recurring themes of the need for adapting to a new world, and responsibility for leading the change. Among the many presentations delivered here at the historic Broadmoor resort, a “Dealers and Disruption” panel included a graphic of Amazon.com’s sales growth, its $230 billion in annual revenues and a bullet point explaining that more than 50% of dealers consider Amazon a threat. Levi Smith, president of Boise, Idaho-based Franklin Building Supply, said that percentage should be higher — like 100%. “I think one of the things that makes them such a formidable competitor is they are changing customer expectations almost singlehandedly,” he said. “This is really serious. Amazon’s doing stuff that no company has thought about doing before. They don’t lack resources and they are changing a lot of industries.” The impact is real. “Today, we often equate service with speed,” he added. “We used to think service meant

NLBMDA Chair Bob Sanford, left, recognized the industry contributions of Clarence Wilkerson, Weyerhaeuser.

the ability to come in and talk to somebody…. As we work with young builders, they’re expecting different things from us.” The panel also tackled the growth of Katerra and other high-tech companies that have an eye on construction efficiencies and directto-jobsite models. One powerful slide shared Katerra’s vision of the elimination of dealers/retailers and distributors. To which, Stine Lumber’s Jeremy Stine responded: “distribution matters.” It’s still too early to measure the level of threat from a Katerra-like business, especially in the single-family market. But it’s wise to keep them on the radar, and it doesn’t hurt to take any and all threats seriously, the panel felt.

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

Focused on industry talent, a panel of Dave Flitman, BMC; Steve Swinney, Kodiak Building Partners; and Matt Ogden, Building Industry Partners, was led by Tony Misura.

The event was sponsored by the NLBMDA and HBSDealer, and it hammered on the idea that success begins with people. “We wanted to build a place that we would love working at,” said Kodiak Building Partners CEO Steve Swinney, during a panel discussion on recruiting talent. The panel also featured BMC CEO Davd Flitman and Building Industry Partners

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Sen. Cory Gardner, (center) the Colorado Republican, paid a surprise visit during an evening reception.

offsite framing continues to surge in popularity among builders. Also, home buyers are shifting toward smaller, more efficient homes closer to schools and jobs. Amid the disruptions and changes, Builders FirstSource’s Dave Snyder offered a recap and a plan of action: “Clearly define your strategy and your value proposition to be the absolute best at what you do.”

The Broadmoor resort set the stage for the 2019 PDIS.

NLBMDA pays tribute to leaders The Alexander Lumber team with Susan Cho, of Pennsylvania Lumbermens Mutual.

Managing Partner Matt Ogden. Their message: Creating a healthy company culture that results in strong recruiting and solid retention starts with company leadership. Also, the use and embrace of technology can be an important recruiting tool to attract the best and the brightest. “We are not Apple, we are not Google, but we are an innovator,” Flitman said. “We have

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tried to convey to candidates that we are using technology and you can have a nice career at BMC,” he said. On the forecasting front, the Summit did not run away from the “R”-word — recession. Real estate expert John Burns of John Burns Real Estate Consulting told the attendees in Colorado Springs that he expects the economy to hit a recession toward the end of 2020 or early in 2021. He noted that many of his clients are not actually budgeting for a recession next year, but they are balancing their books with a recession in mind. “If we have a recession it will feel like the 2001 recession, which we got through just fine,” Burns noted. While the housing market is on “solid ground,” Burns has forecast flat single-family growth for 2019 and a 5% decline for 2020. On the home building side, Burns expects more homes to be built offsite with better technology as

The National Lumber and Building Material Dealers Assocation surprised three long-time industry supporters with high praise and honors during the event’s opening ceremony. Here are the award winners, along with comments from NLBMDA Chairman Bob Sanford: Clarence Wilkerson, Weyerhaeuser, East division manager Chairman’s award “When he has been called upon on many occasions for his leadership and support, he has never once hesitated to volunteer.” Scott Engquist, Engquist Lumber Co. Chairman’s award “For over twenty-five years, Scott has done more than his part to ensure that the future of the LBM industry is bright.” Max Guetz, VP of Alpine Lumber Co. Distinguished service award “Max has been a strong voice in Washington D.C. on behalf of NLBMDA and has dedicated his life to serving others.”

HARDWARE + BUILDING SUPPLY DEALER NOVEMBER/DECEMBER 2019

SUMMIT RECAP

How to give an acceptance speech By Ken Clark

ttendees of the 2019 ProDealer Industry Summit learned a lot of things, even some things that weren’t on the agenda. For instance, they learned how to give a state-of-the-art acceptance speech. Karen Sandbeck and Craig Bradshaw each took the podium as HBSDealer ProDealer of the Year Award winners — Sandbeck on behalf of single-unit honoree BLDS Supply & Home Center of Trinidad, Colo.; and Bradshaw on behalf of Columbus, Neb.-based Mead Lumber, the multiunit honoree. Between the two of them, the acceptance-speech best practices were flying from the stage. For instance: Start off with a little humor and a little humility: Bradshaw: “So, we’re a 119-year old company, which I thought was really good until everybody else who has been up here is from a company that has been around longer than that.” Talk about what you mean to the community: Sandbeck: “We have undergone a real marketing effort to do a name a change and fuse some new ideas and new knowledge new opportunities into the business to make it more exciting to our community, and they’re thrilled for us. And they have participated in supporting us like we’ve never seen before.”

Accepting the 2019 ProDealer of the Year Awards: Karen Sandbeck (left) of BLDRS Supply & Home Center, and Craig Bradshaw of Mead Lumber. Joan Sandlin, mother of Karen, received a shout out.

Thank the vendors, especially the ones at your table: Sandbeck: “I also want to thank all of our vendors who work so very hard for us. Gary from Cameron Ashley is here with us at our table. It’s wonderful to get to have relationships with all of you in the industry to help us become better at what we do.” And thank your team: Bradshaw: “We have a lot of great people in our company. Their leadership and dedication to Mead Lumber is really the engine that drives our company.” Respect the old timers, keep their colorful personalities alive: Sandbeck: “I can remember my dad bringing Larry Bujaci home from Boise Cascade, He’s someone you might remember — the coolest guy, he is just a great guy to deal with and had a very strong relationship with my father. And we want that too, we want relationships with all of those who help us to be better in business.” Bradshaw: “I really can’t accept an award without recognizing Bob Mead. He’s the person who talked me into joining the company. If you know Bob, you know he lives and

NOVEMBER/DECEMBER 2019 HARDWARE + BUILDING SUPPLY DEALER

dies Mead Lumber. When he was 70, he thought maybe he ought to think about retiring. So he hired me. And he really only gave me one instruction: ‘Grow the company.’ “Well, in 13 years we went from 21 stores to 44 stores, we nearly tripled our business, and Bob Mead was not satisfied. He came in one day and says, ‘Craig, what are you working on?’ He’s 83 years old and he sold the company to us five years earlier. He says, ‘What are you working on? Who we going to acquire?’ “I said, ‘Bob we just don’t have anything out right now.’ “He says, ‘Get out there and get to work.’ “That’s the kind of passion that our former owner has for our company and that’s the kind of passion that we try and carry through.” And if you have a relative who is turning 88 on the day of your speech, by all means bring her along: Sandbeck: “In closing I just want to ask you to wish my mom a happy 88th birthday, for her incredible support. It’s been an incredible run, we’ve been very, very blessed. Thank you all very much.” Cue the applause.

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