Ferguson acquires Davis & Warshow

92 Pages·2012·24.49 MB·English

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Find us on Facebook & Twitter NOVEMBER 2012
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VOL 67, NO. 11
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News of Plumbing • Heating • Cooling • Industrial Piping Distribution
The owners of C&C Industries — Dale Lutz, left, and K.C. Chin —stock roughly $20 million in inventory
at their new 116,000-square-foot facility in Houston. C&C records an average of five turns a year and
ships about $300,000 of primarily commodity valves and fittings daily. Their success stems from a very
customer-centric approach and a team of knowledgeable employees. See feature article on page 54.
Transaction marks entry into NY market
Ferguson acquires Davis & Warshow
and seven showroom locations.
It will continue to conduct busi-
NEWpOrT NEWS, Va. — Ferguson Enter- Warshow, Inc., one of metro New York’s ness under the Davis & Warshow name with
prises, Inc., the largest wholesale plumbing leading residential and commercial plumbing the existing management team remaining in
distributor in the U.S., has acquired Davis & suppliers, in a stock transaction. The 87-year- place. The addition signals Ferguson’s entry
old company is headquar- into the highly competitive New York market
tered in Maspeth, N.Y., and where Davis & Warshow has enjoyed a solid
operates eight wholesale foothold since opening its original Lower East
Side storefront.
Scan with your “Ferguson and Davis & Warshow share the
smart phone or
same primary focus — providing outstand-
visit online at
qr.qg.com/9W7iRR ing service and creating loyal customers,”
to renew your
said Davis & Warshow CEO Frank Finkel.
subscription to
The Wholesaler! (Turn to Acquisition... page 49.)
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See contact information on page 86
tw11_12_pgs_01_05_Layout 1 10/24/12 1:56 PM Page 3
See contact information on page 90
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I N
NDUSTRY EWS
4• •THE WHOLESALER®— NOVEMBER 2012
Niagara Conservation
Modern Supply hosts counter day in Chattanooga
partners with Green
Plumbers USA
FoRtWoRth, texaS— niagara Con-
servation® has partnered with Green
Plumbers uSa®, an innovative or-
ganization with an accredited training
program that helps plumbers under-
stand their evolving role in improving
the environment and public health.
the two organizations will work to-
gether to customize water and energy
efficiency projects for the nation’s
leading utilities, using eco-friendly
niagara products and certified Green
Plumber contractors.
KnoxVille, tenn.— a breeze blew across the dock as the the Green Plumbers program began
smell of burgers and hotdogs filled the air. august 23 de- in australia in 2000 as a result of the
livered perfect weather for Modern Supply’s Chattanooga,
tenn., Counter Day — an event for vendors to display and
demonstrate products, mingle and enjoy lunch. More than
300 customers, employees and vendors attended with more “Niagara Conservation will be the only
than 30 product lines represented, including liberty water- and energy-saving product provider
Pumps, american Standard, american Water heater,
endorsed by Green Plumbers USA.”
oatey, Sioux Chief Delta, J.P lamborn and Rheem.
“We were pleased at the customer turnout and level of country’s severe drought and then ex-
participation from our vendors,” said Pace Robinson, Mod- panded internationally to teach
ern Supply owner & Ceo. “our customers always look plumbers the benefits of using water
forward to a counter day. it gives them a great opportunity and energy saving products to combat
to talk directly with vendor reps over lunch.” climate change. the training to be-
Visit www.modernsupplyshowroom.com. come a Green Plumber consists of a
five-course, 32-hour accreditation in
environmental and technical courses,
Anvil acquires North Alabama Pipe
ing north american manufacturer and including climate care, solar hot water
marketer of products and services that and water efficient technology.
PoRtSMouth, n.h. — anvil interna- its fabrication equipment to markets are used in the transmission, distribu- Green Plumbers partnered with ni-
tional has acquired substantially all of other than fire protection.” said Dean tion and measurement of water. anvil agara because of the company’s focus
the assets of north alabama Pipe Cor- taylor, vice president of sales and international is one of the largest and on sustainable products throughout
poration (naP), a leading provider of marketing for anvil international. most complete manufacturers of pipe its more than 35 years in business, as
headquartered in Guntersville, fittings, pipe hangers and piping sup- well as its innovations in water and
ala., with 23 employees, naP first port systems in the world. the com- energy saving products. For example,
made a name for itself when it devel- pany offers expertise and product niagara Conservation’s single flush
oped the innovative “hole System” solutions for a wide range of applica- ultra high-efficiency 0.8 gpf Stealth
pipe fabrication equipment and fire that allows a plasma cutter to make tions, from plumbing and mechanical, toilet can save the average family up
protection fabrication equipment. this holes in pipe — a process that has be- hVaC, industrial and fire protection, to 18,000 gallons of water a year and
acquisition enhances anvil interna- come an industry standard. to mining and oil and gas. up to $120 annually in utility bills.
tional’s product lines to offer state-of- anvil international is a division of Visit www.anvilintl.com or www Both Green Plumbers and niagara
the-art fabrication equipment. Mueller Water Products, inc., a lead- .nalapipe.com. Conservation have proven expertise
“the acquisition of naP strength- in planning, developing and manag-
WinWholesale adds new locations
ens anvil’s product offerings,” said ing water and energy efficiency pro-
tom Fish, president of anvil interna- grams. Since niagara often provides
tional. “We look forward to providing Dayton, ohio— WinWholesale has plumbing customers in a five-county installation and project management
opened two Winsupply locations and area. Rob Seiffert, who was president
our customers with a single-source services for its efficiency programs,
acquired a company that reopened as of Rochester Plumbing Supply and a
solution for pipe joining products and the company plans to leverage its
a Windustrial to expand its operations fifth-generation member of the
pipe fabrication equipment.” partnership to utilize trained Green
in Florida, Maine and new york. founding family, continues as presi-
Founded in 1983, naP is a manu- Plumbers in future installs.
Rockledge Winsupply opened in dent of Windustrial.
facturer of fire sprinkler fabrication “We were impressed with niagara
Rockledge, Fla., to serve the natural “these companies represent two of
equipment, including automatic Conservation’s reputation in the in-
gas, water heating and leisure mar- the ways WinWholesale opens loca-
welders, plasma cut-off equipment, dustry and their long history of sus-
kets on the Central Florida coast. in tions — by acquisitions or startups by
hole cutting equipment, make-on ma- tainable business practices, so
Brewer, Maine, Bangor Winsupply current Win location presidents or
chines and pipe threaders. naP also pursuing a partnership seemed natu-
serves plumbing, heating, ventilation other employees,” said Monte Sals-
manufactures outlets for the fire ral,” said Jonathan Cruz, Green
and air conditioning contractors in man, WinWholesale chief operating
sprinkler market. Plumbers uSa executive vice presi-
northern and eastern Maine officer. “Many times a smaller acqui-
“Customers will continue to re- dent. “We are excited to share that,
in new york, WinWholesale ac- sition like Rochester Plumbing Supply
ceive the highest level of quality through our new partnership, niagara
quired Rochester Plumbing Supply, a is an ideal way for the founders to con-
products and customer service they Conservation will be the only water-
family owned business founded more tinue, expand or exit that business
have come to expect from anvil and and energy-saving product provider
than 100 years ago. the company re- while maintaining the legacy built
north alabama Pipe. this acquisition endorsed by Green Plumbers uSa.”
opened as Rochester Windustrial, over the years.”
will allow naP, which will continue Visit www.niagaraconservation.com
serving industrial and commercial Visit www.winwholesale.com.
to operate under that name, to offer or www.greenplumbersusa.com.
• Be sure to visit www.thewholesaler.comfor web exclusive articles and videos!•
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See contact information on page 86
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I
N THIS
6
•
NOVEMBER
I
SSUE 2012
The Front Page
Dale lutz and K.c. chin, owners of
c&c Industries, tour their new
116,000-square-foot facility in houston
that stocks $20 million in inventory.
c&c ships about $300,000 of primarily
commodity valves and fittings each day
and averages five turns a year. their
customer-centric approach and know -
ledgeable employees have been crucial
to the company’s success. Page 54.
In the News
See contact information on page 90 Anvil inks deal for north Alabama Pipe.....................4
Southern Pipe wins “best workplace”award............10
Solarsoft goes to Epicor............................................15
Anti-dumping support for Elkay................................18
hARDI distributors enjoy good August numbers......26
Ferguson up 10% over 2011.....................................30
Survey: Unclean restrooms kill business...................50
PVF Special Report:
c&c Industries stocks what customers need........54
Shelton Winnelson: train, train, train some more....64
InnoVEX 3-piece bath system makes a splash........74
taco buys hydroflo...................................................78
Retrofitting for low-flow ‘green’ faucets...................80
WinWholesale in ‘top 500’ for 5th year in a row......84
Product review....................................................70, 72
Mary Jo Martin
DDI System
Editorial Director Mary Jo Martin
interviews Adam Waller, president of software
developer DDI System, and learns about the
company’s exciting new applications on the
launching pad and in the pipeline .................60
Columns
RIchSchMItt: Get those resolutions in early..........8
JASonBADER: Make your buyers savvy investors...24
MoRRISBESchloSS: china behemoth slowing........34
DonMcnEElEy: our legacy..................................40
AnDREWSchoR: Are you doing less with more?.....86
Next Month
We present the PVF Roundtable as our honoree of the year!
See contact information on page 90
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S M
MART ANAGEMENT
8• •THE WHOLESALER®— NOVEMBER 2012
Start your New Year’s resolutions today!
I
’ve been traveling to user group the last six weeks of the year, you am even more concerned about their
meetings and association meet- will be eating some of their lunch, future. For years, we have suggested,
ings over the last months. The maybe a little of their dinner and, unscientifically, that things start to
travel is grueling but they offer a hopefully, a nice helping of their mar- smooth out at about $20M in sales.
great opportunity to catch up with in- ket share. I know I may sound like Not that wholesaling ever seems to
dustry friends and acquaintances. the Grinch, but from where I sit, in get easy, but at $20M there is a criti-
Normally, my column has a central 2013 most growth will be at a com- cal mass that seems to make the com-
theme. This month I have two main petitor’s expense not because the in- pany more stable and a little less
topics: to discuss your 2013 resolu- dustry is growing significantly. In the vulnerable to swings in the economy. BY RICH SCHMITT
tions and then some reports from the remainder of the column I want to There is enough mass to hire some Management specialist
meetings I attended. propose topics that may provide ideas professional managers and staff for a
for your “2013 Act Now” list. few of the key positions thus making choices are more interesting but if
Your 2013 resolutions
1. Delaying your actions has a the company less dependent on the you have a good reputation and
I am always amused as people talk cost: If Dakota Meyer had simply owner’s ongoing 80 hour work week. brand, there will often be companies
about their New Year’s resolutions. seen the problem and resolved to save a. Plan and act to grow:If you in- interested in your business and your
They use the January 1 date as their his team after the first of the year, the tend to be the same, nothing is re- team. Be prepared to tell prospective
target date to stop doing a dumb thing outcome would have been sadly, dis- quired. This will definitely be the buyers who will run the business after
or as their starting date for doing astrously different. (I saw Dakota at easy course for the short term but you are gone. Bluntly, the long-term
something that they should. They prescription for most businesses is to
I’ll bet we would all be surprised at the amount
then give themselves a “free pass” grow or sell. Short term to focus on
until that date to continue doing or of business Grainger quietly does with our customers making money. One guy told me,
not doing the subject of the resolu- “I’m personally writing checks.” His
through their catalog, their webstore and their mobile app.
tion. This year, I suggest that you and voice indicated that he was very con-
your company build your resolutions I know we would also be stunned at the margin they cerned. This is a way of saying that
list today and then give yourself a make from our customers by managing pricing and making he was writing checks from his per-
generous “free pass” until tomorrow sonal savings to keep the company
it really EASY to find and buy products from them.
morning. In other words, get your list afloat. In small companies, in tough
together now and act on it now. For times, this may be required. Some
most of you, this will get you started ASA; I’ll tell his story at the end of maybe the defining moment for your small, and large, companies have no
well ahead of most of your competi- the column.) Add an entry on your company's future. For a reprint of a padding to help them through down
tors. So while they are relaxing for Act Now list to make sure you con- column on ways to grow, e-mail me: times and the padding available is
sider the contribution returning vet- [email protected] from the owner’s personal assets.
• Growth at expense
erans can make to your company as b. Plan and act to join a buying 3. Get a top notch webstore in
of competitors in 2013 you hire people into your company. group: Most companies of any size operation: Having an average web-
• Grow or sell 2. Small wholesalers face greater can benefit from membership in a store that uses the average to crappy
• Call on suppliers when struggles than ever before so act buying group. It may provide better unsearchable data in your main com-
now to change the situation: The pricing and often good networking puter just won’t cut it anymore. One
you need help
single-location or smaller wholesaler opportunities. I have heard that huge wholesaler told me, “My customers
• ‘Truth” not always true
will continue to struggle going for- companies, who assumed they were don’t care about the internet.” Re-
• Hire a veteran!
ward. As I talked to owners of one- being offered the maximum dis- spectfully, I said, “That’s probably
location or two-location companies, I counts, have discovered that they because the customers who did want
were not buying as well as they to use the Internet are gone. They’re
could. While you might think every buying from a competitor or from
wholesaler is already a member of a Grainger.” I’ll bet we would all be
buying group, this does not seem to surprised at the amount of business
be the case. Each buying group seems Grainger quietly does with our cus-
to have a different personality, differ- tomers through their catalog, their
ent requirements and mode of opera- webstore and their mobile app. I
tion so take a little time to understand know we would also be stunned at
the differences before you commit. If the margin they make from our cus-
your current buying group no longer tomers by managing pricing and
serves your interests, consider chang- making it really EASY to find and
ing to one that will. buy products from them. (We can
c. Plan and act to define your help with this one. [email protected] )
niche: The challenge here is to not 4. Manage your pricing:(I know
kid yourself. A niche is where your I’m a repeating myself.) Good, well-
product and service offering is so managed pricing makes you more
specialized that people will go out of competitive and more money. Also if
their way to find you and buy from you are at or above $20M, I think you
you then pay a premium for the priv- can and should afford a full-time
ilege of buying from you. (Friendly pricing manager.
service is great but that does not cre- 5. Tell your manufacturers you
ate a defensible niche.) Narrowly- need their help: I find it stunning
niched wholesalers may be viable for that in this world of information,
a while but even they are under pres- some manufacturers are actually
sure from large or at least larger local moving away from helping their
or internet competition. wholesalers to access and use product
d. Plan and act to find a buyer: information and images.
When you are making money your (Turn to It’s time... page 84.)
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I N V E N T O R Y C A S H
See contact information on page 90
Always a
1-800-752-2082 Human
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I N
NDUSTRY EWS
10• •THE WHOLESALER®— NOVEMBER 2012
Southern Pipe honored as ‘best place to work’ MESTEK purchases
DADANCO-MESTEK JV
JacKSon, MiSS. — Southern Pipe & ticipating companies. the survey in the rewards for their hard work,”
Supply, headquartered in Meridian, gathered employee feedback in the said Jay davidson, president/cEo. WEStFiELd, MaSS.— MEStEK inc.
took top honors in the large-company areas of culture and values, common Founded in 1938 in Meridian by has acquired 100% ownership of
purpose, learning and development, russian immigrant Louis davidson, dadanco- MEStEK JV by con-
communication and recognition. Southern Pipe & Supply is one of the cluding an agreement to buy the shares
“We are gratified that our family nation’s largest privately held, inde- previously owned by dadanco Pty
members feel Southern Pipe & Sup- pendent wholesalers of plumbing, Ltd. together with the acquisition of
ply is a great place to work in Missis- heating, air conditioning, water, remaining interest, MEStEK has ac-
sippi,” said Marty davidson, sewer and industrial products. the quired critical intellectual property, in-
chairman of the Board. now it its company also operates Southern Sup- cluding dadanco nozzle
fourth generation as a family owned ply branches featuring hVac prod- tech nology. this investment is a signif-
and operated business, Southern Pipe uct lines, as well as Southern Bath & icant step in maintaining dadan -
& Supply refers to all employees as Kitchen designer showrooms across co’s dominant position in providing
“family members.” the Southeast. low-energy hVac solutions and
Southern Pipe & Supply has more Southern Pipe & Supply operates MEStEK’s continued expansion of its
category in the 2012 Mississippi than 670 family members in 95 loca- 25 locations in Mississippi: green product portfolio.
Business Journal’s “Best Places to tions across the Southeast; of these, Batesville, Brookhaven, clarksdale, MEStEK is a manufacturing con-
Work” competition. this was the fifth 240 family members work in Missis- columbus, corinth, Greenville, cern headquartered in Westfield,
year Southern Pipe & Supply has sippi. “our goal at Southern Pipe & Greenwood, Grenada, Gulfport, hat- Mass., with annual sales of approxi-
been selected as a “Best Places to Supply is to create a great workplace tiesburg, horn Lake, Jackson, Laurel, mately $375 million and 2,000 em-
Work” honoree. that allows our family members to Mccomb, Meridian, natchez, new ployees worldwide. MEStEK’s
the Mississippi Business Journal enjoy their work, contribute to the albany, oxford, Pascagoula, principal activities include hVac, ar-
partnered with Southern research success of the company, grow per- Picayune, Starkville, tupelo, Vicks- chitectural products and metal-form-
Group to survey employees from par- sonally and professionally and share burg, Waveland and Wiggins. ing machinery.
dadanco is also headquartered
ASA reaches net membership
in Westfield, Mass.; its principal ac-
has been rewarded with impressive tivities include manufacturing of ac-
growth for first time in decades
membership numbers,” noted adelizzi. tive chilled beams, induction units
“in the process, through our visits, we and induction diffusers.
itaSca, iLL.— after dealing with in- storm. aSa has invested in new, more have been able to gain a real perspec- With its current management in
dustry consolidation for more than 10 relevant programs that directly benefit tive of the day-to-day issues that our place, dadanco is a valuable ad-
years, as well as one of the worst members, and has members are going dition to the Mestek family of com-
economies in more than half a cen- developed and im- through. although panies with strong product focus on
tury, the american Supply associa- plemented a long- membership growth sustainability, including rBi and hy-
tion reached net membership growth range focus to guide has exceeded our drotherm condensing boilers,
in 2012. this is a milestone that has future investments. wildest expectations airtherm EcM fan coils and Mestex
not been seen in decades. this has allowed the association to this past year, we still have a long way evaporative air handling units.
“People are talking about the new emerge stronger and more focused, to go. 2013 promises to be an even to mark the acquisition of
relevance of aSa and that certainly and the industry is certainly taking no- more involved travel year for us.” dadanco-MEStEK JV as a
has made it easier to convince owners tice. Membership retention is much Visit www.asa.net. wholly owned subsidiary of
to join us,” said aSa executive vice higher than usual, and overall recruit- MEStEK inc, an agreement has been
Giant Factories and
president Michael adelizzi. “they ment is well beyond the goal set for the reached for the major refurbishment
see us doing some really remarkable organization by its leadership. Rinnai in partnership of offices to house dadanco along
things, including the rapid expansion “this past year, we have made the with new construction of comprehen-
of our educational programming and effort to personally get out and meet MontrEaL — Giant Factories and sive demonstration and scenario test
our efforts fighting for them in Wash- with both members and prospects in rinnai america corporation have facilities, all to be based in Westfield.
ington. Joining aSa is viewed as an their offices to talk one-on-one about formed a partnership to market and de- Visit www.dadanco.com.
excellent investment.” new developments at aSa. all the velop new energy-efficient products.
While the economy has been at its printed material, articles and advertise- Corr/Guard catalog available
lowest point in decades, the association ments in the world do not substitute for
has steadily reduced its overhead in- the fact that this is a face-to-face, rela- Wichita, Kan. ― Metal-Fab inc.’s
stead of retrenching to ride out the tionship-based industry. our hard work corr/Guard® catalog features 3", 4"
and 5" diameter SPEciaL gas vents,
Victaulic acquires MTS desalination business “the Giant name has long been both single wall and double wall. the
synonymous with quality products detailed catalog describes the unique
EaSton, Pa. — Victaulic has ac- water treatment for power. and energy efficiency,” said Phil features of the new vent, such as the
quired MtS Valves & technology's as Victaulic provides grooved cou- Weeks, general manager and chief special snap-lock tabs that “click” into
desalination business, which manu- plings, fittings and valves for high-pres- operating officer at rinnai america locked position when the pipe is
factures and designs valves such as sure desalination and reverse-osmosis corporation. “We look forward to pushed together ... no tools needed;
the MtS Plug Valve for the desalina- working with them closely to bring a “gold seal” gasket that is molded rather
tion market. a high-pressure valve new level of energy-efficient tech- than extruded and precision tolerances
for control in seawater reverse-osmo- nologies to the canadian market.” that provide watertight fit and prevent
sis applications, the MtS Plug Valve “We are delighted to work with sagging on long horizontal runs.
is also used in other high-pressure rinnai as our partnership will lead to the flue is constructed of superfer-
membrane treatment applications in applications, the acquisition of the an even greater energy-efficient prod- ritic stainless steel, and corr/Guard is
highly corrosive environments such MtS desalination business will enable uct offering for our customers and the tested and labeled to UL1738 for cat-
as offshore oil and gas sulfate re- the company to offer a wide product industry as a whole,” said Jean- egory ii, iii and iV gas-burning ap-
moval systems, water processing for portfolio for piping systems for the de- claude Lesage, vice president of pliances. the vent comes with a
mining, industrial water reclamation salination industry. Giant Factories. limited lifetime warranty.
and reuse facilities and high-purity Visit www.victaulic.com. Visit www.giantinc.com. Visit www.metal-fabinc.com.
• Be sure to visit www.thewholesaler.comfor web exclusive articles and videos!•