Morrison Supply acquired by Advent

100 Pages·2011·14.71 MB·English

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JANUARY 2012
twitter.com/wholesalermag
facebook.com/WholesalerMag VOL 67, NO. 1
News of Plumbing • Heating • Cooling • Industrial Piping Distribution
Winnelson
opens 3rd
ND location
DAyton, oHIo— WinWholesale Inc.
opened Minot Winnelson Co., its third
location in north Dakota, to provide
plumbing contractors with a complete
line of equipment, parts and acces-
sories. Bob Rodgers, president of the
new distribution company, also opened
Fargo Winnelson in september 2010.
(Turn to Minot... page 61.)
Georg Fischer
acquires
Harvel Plastics
EAston, PA. — Georg Fischer has
agreed to acquire 100% of the issued
and outstanding shares of Harvel
Plastics Inc. in Easton, Pa., for about
$50 million in cash. the company is
a leading supplier in the north Amer-
Jamie Milliken (left) of Shallotte Electric, and former NASCAR great Ward Burton, who drove the State
ican market of polyvinyl (PVC) and
Water Heaters-sponsored car in his last NASCAR season. Burton continues to partner with State on
chlorinated polyvinyl (CPVC) pipes
special marketing programs, including driving events at racetracks around the country. Milliken logged
for industrial applications.
the fastest time during an event at Charlotte Motor Speedway. See feature on page 64. (Turn to Major... page 61.)
Hornsby to serve as CEO
Morrison Supply acquired by Advent
Boston– Advent International, the global strong expertise in the industrial sector to
private equity firm, has closed a significant expand its presence in the $60-billion U.s.
majority investment in Morrison supply plumbing and HVAC supply market and menting on the transaction, Hornsby noted,
Company, one of the largest distributors of enhance its leadership position in the “Morrison’s core strength is the quality of
plumbing and HVAC supplies in the U.s. southwestern U.s. its people. And we believe this transaction
Morrison supply will utilize Advent’s Advent operating Partner Chip Hornsby will be very positive for our employees, as
will join the company as the company’s expansion should lead to
CEo and will lead Morri- new and exciting opportunities for our peo-
son in the next phase of its ple and their families. Equally, our vendor
expansion. Hornsby is the partners and customers stand to gain from
former CEo of Wolseley our growth and financial strength.”
plc, the largest building scott sangalli, Morrison’s former CEo
products distributor in the and principal owner for the past 25 years,
world with over $20 bil- will continue as an investor in the company.
lion in global sales. Com- (Turn to Advent buys... page 89.)
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See contact information on page 98
tw01_12_pgs_01_05_Layout 1 12/27/11 9:49 AM Page 3
FFittingggg soluutionss.
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NEW YORK • TTooll Free: 800-431-2082 • Fax: 845-278-9056
WEB: www.matco-norca.com • EMAIL: mail@@matco-norca.com
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I N
NDUSTRY EWS
4
• •THE WHOLESALER® — JANUARY 2012
Keidel Supply opens new showroom
shower environments and a bathroom
suite dedicated to aging-in-place.
Keidel Supply encourages all
CINCINNATI— Keidel Supply, one of pand product offering through the ac- added convenience of a single loca- Cincinnati-area homeowners and
Greater Cincinnati’s premier plumb- quisition of Mason-based Central tion. As one of Cincinnati’s premier contractors to stop by the new
ing, cabinetry, lighting and appliance light. In addition to our new lighting plumbing wholesalers, a counter showroom.
distributors, has opened a new department, all positions from our sales/will-call area attached to the Visit www.keidel.com.
15,000-square- Paddock Hills
foot showroom showroom
Harrington
at the corner of b r i n g s
Paddock road plumbers and Industrial Plastics
and Tennessee contractors the
expands into Guam
Avenue. All benefits of a
product groups centrally-lo-
are represented cated distribu- CHINO, CAlIF. — Harrington Indus-
in the show- tion point. trial Plastics has expanded its busi-
room and, as of located just ness into Guam with the opening of a
summer 2011, south of the new 10,000-square-foot facility in
the plumbing Norwood lat- Tamuning. This key location is an ex-
sales counter eral, the newest tension of the company’s continued
and warehouse also relocated to the Kenwood and Norwood branches Keidel showroom offers the products expansion and provides local inven-
Paddock Hills site. have relocated to the new facility.” and services Cincinnatians have tories, deliveries and technical appli-
“It’s no secret that the Cincinnati This new showroom is a dramatic trusted for 100 years. It also high- cation specialists.
Building Products Industry has been change from Keidel’s well-known lights Keidel’s commitment to inno- The current relocation of U.S.
very turbulent the past few years,” Norwood and Kenwood locations, vation and design through several forces from Okinawa to Guam is re-
CEO Mike Barton said. “During but not everything has changed. With exciting features, including interac- quiring a major expansion of the mil-
these times of uncertainty, Keidel has a century of expertise under its belt, tive kitchen and bathroom displays, itary and civilian facilities and
seized the opportunity to upgrade fa- Keidel will provide the same quality functional faucets, iPad-activated infrastructure. This relocation is
cilities, increase employment and ex- service it has for years, with the showerheads, digitally-controlled being supported by both the U.S. and
Japanese governments with multi-bil-
Northeastern recognized by chamber of commerce
lion-dollar investments.
While on the island in support of
BAlTIMOrE— recognized for its de- Industrial Award for their three facili- caring and its position for the future. our troops during World War II, Bob
votion to the community, its cus- ties located in Harford County, Md. Now with 32 branches in five states,
tomers, its employees and the From its humble beginnings 66 Northeastern was praised for its
environment, Northeastern Supply years ago, Northeastern has become growth, which includes its new state-
was rewarded for its actions by the one of the Mid-Atlantic’s fastest-grow- of-the art central distribution center
Harford Chamber of Commerce ing plumbing, HVAC and water sys- (CDC) in Aberdeen, Md. In a promo-
Award Committee with the 2011 Har- tems distribution businesses and was tional video produced by the Harford
ford Award. Northeastern received the honored for its history, its continual Chamber of Commerce, they acknowl-
edge that “It is the attention to the needs Hope once joked, “In God we trust,
of its customers that distinguishes on Guam we rust.” Corrosive envi-
Northeastern from its competition; all ronments and fluids are the chal-
of its sophisticated, cutting-edge re- lenges from which Harrington was
sources are designed to meet some very founded. With corrosion-resistant
basic customer needs.” fiberglass, plastic and lined steel pip-
Northeastern has also maintained ing systems, Harrington’s presence
its commitment to the environment. will make a valued contribution.
Steve Coppage, Northeastern vice Harrington’s strength in these mar-
president-business development, kets is made possible by the knowl-
said, “We offer products that save edge and experience of its
water and electricity. We offer solar employees, the quality and support of
products, tankless water heaters and its suppliers and the loyalty of its cus-
Northeastern Supply president and CEO Steve Cook accpets the 2011 Harford high-efficiency air conditioners that tomers. As Harrington expands its ge-
Award from the Harford Chamber of Commerce. save on electricity and create less of ographic reach and product offerings,
a carbon footprint in the environ- they enhance the value and commit-
Speakman Cooling sells
ment. Now we are challenged with ment to their customer.
new laws; we have to provide lead- Harrington has grown from a re-
evaporative cooling business
free products, make that happen in gional distributorship to one of the
thousands of products in 32 locations largest distributors of engineered
NEWCASTlEDEl.— Speakman Com- ergy Corp. of las Vegas, Nev., which and roll it out properly.” plastic piping systems in the U.S.
pany sold its Speakman Cooling busi- may be contacted at 702/463-2642. With deep roots in Harford County, Harrington began in 1959 with the
ness, which consists of two individual In 2010, Speakman Cooling Northeastern sends out the message purpose of servicing customers that
product lines, the OASys and the launched the Air2O™, a unique and that they are here to stay; that is a handle corrosive environments and
Air2O lines, which have been sold to sustainable line of indirect/direct main reason they chose to keep their has expanded its offerings to include
two separate interested parties. evaporative coolers. This product line CDC in Harford County. products for customers with high pu-
Speakman Cooling started its busi- was purchased by Green Air Com- Northeastern president and CEO rity and corrosion resistant needs.
ness in 2005 with the introduction of pany. AirMax Industries llC of Steve Cook said, “Though we serve Companies that require corrosion re-
OASys, an advanced indirect/direct Fresno, Calif., is the U.S. distribution the entire Mid-Atlantic, we recognize sistant solutions find Harrington an
evaporative cooling technology. The arm of Green Air. Contact www.Air- that our roots are here, and we sup- indispensable resource for their de-
OASys IDEC product line was pur- max-Solutions.com. port many local charities.” manding processes.
chased by Practical renewable En- Visit speakmancompany.com. Visit www.northeastern.com. Visit www.harringtonplastics.com.
• Be sure to visit www.thewholesaler.comfor web exclusive articles and videos!•
tw01_12_pgs_01_05_Layout 1 12/27/11 9:49 AM Page 5
Your source
for quality
stainless
steel
products.
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I
N THIS
6
•
JANUARY
I
SSUE 2012
The Front Page
Ward Burton, former naSCaR driver,
Daytona 500 winner and conserva-
tionist, now partners with State Water
Heaters on its special marketing pro-
grams, especially driving events at
racetracks nationwide, where guests
have the opportunity to ride with Bur-
ton at 180 mph on the high banks, and
to drive 600-hp stockers as part of the
Richard Petty Driving experience.
Story on page 64.
In the News
Speakman Cooling sells off evap cooling lines...........4
SSi, Caroma in license agreement............................10
ePa program reaches energy conscious customers..14
DDi offers software for smaller distributors.............18
Gerber supports homes for injured troops................26
Mansion in Florida goes seriously geothermal........28
Briggs®bought by american management...............40
Industry forecasts
PVF 2012: Ready for launch...................................43
Plumbing trends going mainstream........................48
Hydronics leaders speak their minds.......................54
Boogity, boogity, boogity! State goes racing!...........64
easyflex committed to U.S. market...........................72
Laars offers state-of-the-art training........................78
Photo essays: aD north america; PVF Roundtable...92
Product review...................................................80– 86
Martin’s Corner
MDM Supply
John Martin interviews Craig Skinn and Lou
Dumas, co-founders/owners of MDM Supply,
based in Helena, Mont., which was founded in
1990 when the men bought the companies they
worked for and struck out on their own...........32
Columns
RiCHSCHMitt: What is “normal”?..........................8
JaSonBaDeR: Yes, oSHa canbe your friend!.......24
teRRYBRoCk: What to keep and discard for ’12....76
PeteRSCHoR: Reasons for optimism in 2012.........56
Next Month
Watch our February issue for the industrial PVF Report!
See contact information on page 98
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S M
MART ANAGEMENT
8
• •THE WHOLESALER® — JANUARY 2012
Are we ‘normal’ or just accustomed to
strange ways? Let’s look at the specifics
H
aving just finished the holi- family and becoming desensitized to 4. Financial portion of the transac-
days, we are all probably re- the drama creators, I began to won- tion — providing credit to the in-
minded that our family is a der, “What is normal in hard-goods staller, billing the installer, collecting
great part of our lives and that we all distribution?” Are we on course or from the installer
need to spend more time with them. have we just become accustomed to 5. Support — technical & war-
As they say, “Life is too short and a goofy existence? In a previous col- ranty support to the installer BY RICH SCHMITT
then you die.” Maybe it is just me but umn, I discussed the “Economic While there are many ways to ac- Management specialist
it seemed like we lost a lot of good New Normal” that we are operating complish each function, seemingly
people from our industry in 2011 and, in but I am thinking about the basics all functions must be performed by 10,000 out of the warehouse so there
I know that I didn’t do a good job of and the fundamentals of what we do. someone. Much of the product is room for the next product on their
thanking them for their contribution With apologies to the industry aca- moved in our industry is through production schedule.
to my life. In 2012, one of my per- demics, this will be a Rich’s Busi- wholesalers or distributors so the ex- The manufacturer typically has two
sonal resolutions is to take a little ness 101 version of how I ecution of these required functions is options:
time to thank those who were so gen- understand it to work. typically shared between the manu- 1. Sell direct — therefore taking
erous with their time and knowledge There are specific functions or facturer and the wholesaler. responsibility for all functions in the
in my career. tasks that must be performed in order channel. This does not involve a
Manufacturers
Through the holiday gatherings, to sell products to the installer. Those wholesaler. In our industry some
many of us are also reminded that functions can be provided in a vari- Often shown at the top of the manufacturers seem to cycle between
some of our families (of course, not ety of ways but seemingly they can- channel diagram. In most cases, the performing these functions and using
mine or yours) are more like the I sometimes wonder if Jerry Springer and wholesalers. They get frustrated with
Simpsons than the “Leave-it-to- their wholesaler’s performance and
Beaver” Cleavers. Using the word reality TV are shaping the new norm for how their (the manufacturer’s) lack of
dysfunctional may be an understate- control. (Plus some have the mis-
families act and relate or don’t relate. Or maybe
ment. I sometimes wonder if Jerry guided view that wholesaling is
Springer and reality TV are shaping it is just showing us who we really are without easy.) So after 4-5 years they cycle
the new norm for how families act back out of distribution having redis-
all the politically correct filtering.
and relate or don’t relate. Or maybe covered that wholesaling is a diffi-
it is just showing us who we really cult, messy, complex business.
are without all the politically correct not be eliminated without causing a manufacturers produce goods in one a. Inventory — All product is
filtering. As I discussed reducing the hitch in the process. Typically the or more locations. Often manufac- stored in their St. Louis warehouse or
drama in our lives last month it also functions are: turing operations must be config- manufacturers build or lease regional
occurred to me that we may have be- 1. Manufacturing — making the ured specifically to produce certain warehouses to move product closer to
come desensitized to the drama cre- product products. (As the state of the art Part of the wholesaler’s
ators. (Maybe to the point that we just 2. Marketing/Selling to the in- evolves, factories are designed to be
obligation to the
assume that they are normal and that staller — promoting/soliciting busi- more flexible but in hard-goods, a
nothing can or should be done.) ness for the products to be sold production line is often configured manufacturer is to actively
With the questions in the back of 3. Getting the product to the in- to make a single product or family
sell the lines that he is
my head about what is a normal staller — Inventorying and delivering of products that have relatively
small differences.) Since this pro- given...It is critical that the
duction line reconfiguration is often
wholesaler periodically
quite involved and requires that the
operation or sometimes the entire assess each item on the
factory be shut down while a prod-
stocking list very carefully.
uct changeover is done, the factory
does large runs of products for the
sake of efficiency. the customer. Since most installers do
Some factories may build a spe- not have room to inventory much
cific product only once or a couple product, the manufacturer is forced to
times per year. If they do one run, have warehouse space for their entire
they need to produce a full year’s inventory.
supply of the product during that b.Delivery —
run. So if the forecast demand for • All product is shipped directly to
the product is 10,000, the factory the installer: Most manufacturers are
will build 10,000 items then recon- configured to ship truckloads of prod-
figure the line or factory to build the uct not a single toilet to Bob the
next product on their production Plumber in Portland, Maine or Tom
schedule. If the factory is located in the Plumber in Portland, Oregon. The
St. Louis, the manufacturer has a infrastructure required to ship single
warehouse full of the product in St. products is expensive and very labor
Louis. If this product is to be sold intensive.
nationally, it is centrally located but • Local/regional warehouses could
far from customers on both coasts. be used — while this might work in
Most manufacturers cannot afford a major metro area, few manufactur-
warehousing to store a full year’s in- ers have sufficient volume in smaller
ventory of all their products. Thus markets to warehouse product there.
they need to move most of the (Turn to Do you... page 90.)
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tw01_12_pgs_08_15_Layout 1 12/27/11 10:50 AM Page 9
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I N
NDUSTRY EWS
10
• •THE WHOLESALER® — JANUARY 2012
SSi enters license SunGard links
the world’s most valuable resource –
water. Combining quality, water sav-
to Billtrust’s
agreement with Caroma ing innovations, aesthetic appeal and
superior customer service, Caroma
CompleteBilling
has been chosen by businesses and
households worldwide for excep-
service
VANCoUVer, B.C. – Caroma® and as innovators and leaders of high ef-
Sustainable Solutions International ficiency toilets. The SSi family and
(SSi™) have entered into a long-term team have been fans for years and in NewYork— Corporations are com-
license agreement to distribute the fact one of our own founding partners monly challenged by the high costs, in-
Caroma brand and its products in introduced Caroma to North America tional performance and stylish de- efficiencies and inaccuracies
North America, including Caroma’s in 1993,” said Doug Sproule, Coo of signs. Visit www.caromausa.com. associated with the billing process.
revolutionary dual-flush toilet tech- SSi. Sustainable Solutions International These difficulties can be overcome by
nology. SSi will be the exclusive dis- “our new partnership agreement (SSi™) is a U.S.-based green prod- leveraging an integrated order-to-cash
tributor and marketer of the Caroma confirms our commitment to our loyal ucts manufacturer and distributor platform, yet many companies are un-
brand, strengthening the brand and customer base in the US, Canada and with offices in Los Angeles and Van- able to achieve a straight-through
expanding sales in the U.S. Mexico and it enables us to provide couver. This revolutionary company process due to disparate systems. Sun-
Caroma’s North total environmentally boasts a lineup of some of the best gard helps mitigate this challenge by
America operations responsible building and most sustainable building prod- providing linkage between their billing
will be absorbed into solutions. For Car- ucts on the planet. For over a decade service (Billtrust CompleteBilling) di-
SSi, with distribution oma, they get the ben- they have supplied solution-based rectly into their core collections system
continuing from facil- efit of our deep roots green products to North America’s (AvantGard GeTPAID).
ities in Los Angeles in the industry – sustainable building industry and res- This offering delivers businesses a
County, Vancouver knowing what the idential markets that exceed codes solution from invoice creation and
and wisconsin. SSi market demands are, and client expectations. SSi believes delivery to automated credit, collec-
will also continue to and being able to react in conservation without compromise,
work with Armco and respond,” Sproule which they define as the confluence
Agencies of ontario continued. of nature, design and technology.
Canada and Alterna Founded in 1941, Their clients rely on their staff’s ex-
based in Miami. SSi will have direct Caroma® remains a world leader in pert knowledge of products and ap-
access to Caroma’s product design quality and innovative bathroom plication, and their ability to conserve
and r & D departments as well as products. In 1982, Caroma revolu- both resources and time. They have tions and dispute resolution to elec-
production facilities. SSi and Caroma tionized bathroom water conserva- earned a reputation as being respon- tronic invoice presentment and
have agreed to work in collaboration tion by introducing the first sive, reliable and adaptable. SSi is the payment (eIPP), including auto-cash
regarding new product development dual-flush toilet system to the world. parent company of fluid™ and the processing. with the dramatic growth
with Caroma continuing to provide By leading the industry with 47 wa- exclusive North American distributor of electronic billing, the linkage with
on-going technical support. terSense®certified toilets, more than of Caroma® fluid is comprised of Billtrust’s eIPP portal to AvantGard
“we’ve been a distributor of the any company in the market, and pro- eight full bathroom fixture collec- GeTPAID helps accounts receivable
Caroma brand for quite some time; viding water conserving toilet and tions which showcase the best in de- managers obtain real-time access to
we know the products, understand the urinal solutions to residential and sign, functionality, and green important invoice transaction infor-
North American marketplace and re- commercial markets, the award-win- performance. mation, including payments made
spect their well-deserved reputation ning Caroma products help preserve Visit www.sustainablesolutions.com. and transactions disputed.
Billtrust Ceo and president Flint
American Standard Brands joins HSPC Lane said, “we are pleased to work
with SunGard to offer a seamless so-
lution that enhances collections and
PISCATAwAY, N.J. — American Stan- have a substantial impact on the guest comfort, health and well-being. settlement. Putting a billing strategy
dard Brands has joined the Hospitality experience and the environmental American Standard, along with into place that integrates the present-
Sustainable Purchasing Consortium as footprint of a hotel. other Consortium members, will help ment and payment of bills with a
a Founding Member. A leader in cre- Twenty-five organizations are now establish criteria for creation of the web-based collection system like
part of the Consortium, including HSP Index, which will include meas- AvantGard GeTPAID is a great op-
more than a dozen industry-leading ures of corporate social responsibil- tion for corporations that are looking
suppliers, brands, architects, design- ity, environmental and product for ways to help reduce bad debt and
ers, purchasing firms and sustainabil- sustainability. Product categories drive down operational costs.”
ating high-quality bathroom products ity consultants. covered include furnishings, fixtures Jim Mangano, senior vice presi-
for the hospitality industry, American The Consortium, created and led and equipment and operating sup- dent of receivables solutions, Sun-
Standard’s membership furthers the by MindClick SGM™, is a collabo- plies and equipment. Gard’s AvantGard business unit,
Consortium’s goals of establishing the rative organization to help hotel own- Visit www.americanstandard.com, added, “SunGard’s ability to connect
Hospitality Sustainable Purchasing ers purchase products that both twitter.com/amercanstandard or to Billtrust is part of a larger strategy
Index (HSP Index) as the de facto per- reduce their properties’ environmen- www.facebook.com/AmericanStan- to offer connectivity across the trade
formance measurement solution for tal impact and contribute to guest dardPlumbing. receivables ecosystem, consisting of
the industry. credit data providers, agencies, banks
Precision Plumbing Products partners with REVIT software
with more than 4.5 million hotel and customers. This link helps elimi-
rooms in the U.S., the products that PorTLAND, ore. — Precision Plumb- library of its products. The library in- nate the time and costs associated
American Standard produces – in- ing Products (PPP) has implemented a cludes accurate three-dimensional with collections staff performing ad-
cluding faucets, shower systems, fur- program incorporat- drawings, complete submittal date, ministrative tasks, such as answering
niture, vitreous china fixtures, ing the reVIT 3D all applicable product certifications, account inquiries or having to go out-
kitchen sinks, bath tubs and other design software now plus much more. side of the core credit and collections
plumbing products and accessories – utilized on more con- To get access to the SmartBIM/ system to retrieve copies of an origi-
are major investments for all hotels, struction projects. reVIT file, call Chuck Lott at nal invoice.”
brands and owners. As an element of The company has partnered with 503/256-4010 or e-mail chuckl Visit www.billtrust.com or www
in-room bathroom design, they also SmartBIM in compiling a complete @pppinc.net. .sungard.com/ avantgard.
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