By Chris Wood

Transcription

By Chris Wood

By Chris Wood
O
Illustrations by Scott Roberts
74 / ProSales / May 2006
www.prosalesonline.com
ur annual ranking of the
top 100 residential construction suppliers in the
country by pro sales and
the next 25 companies on
the bubble reveal that a lot of changes
are sweeping the industry. The top 10
dealers and distributors are consolidating and reaching ever greater multibillion-dollar sales plateaus, while the
ranks of strong regional independents
of pro dealer tradition are starting to
thin and a new breed of smaller independent firms is growing to fill the
voids left by acquisition. As the residential construction market begins to
soften and The Home Depot makes
bold moves into the pro dealer space,
the independents, the remaining
regional powerhouses, and the consolidating titans at the top are leveraging
their value-added services, fine-tuning
their business focuses, and continuing
to compete for customer loyalty.
May 2006 / ProSales / 75
The ProSales 100
About the Survey
The PROSALES 100 is a ranking of
the nation’s top residential construction suppliers and distributors that participated in the 2006 PROSALES
100 survey. Data collection for the survey commenced in January with an
initial mailing to approximately 300 companies. Firms on the mailing list
had a baseline financial standing of $50 million in gross sales. In total,
PROSALES received 148 forms for consideration. The PROSALES 100 rankings,
beginning on the next page, contain no estimations of gross sales, pro
sales percentage, or any other data. All other chart data reported herein
is inclusive of the PROSALES 100 only, based on the 97 percent of PROSALES
100 companies responding to the survey in full. (Statistics from “The Next
25” listing on page 82, which charts the companies ranking from No. 101
to No. 125, were not calculated as part of the PROSALES 100 charts.) The
2006 PROSALES 100 represent full-line lumberyards, lumberyards with manufacturing capabilities, wholesale distributors, and specialty distributors
that sell a variety of product lines to builders, remodelers, and contractors. If your firm would like to be considered for the 2007 PROSALES 100,
please contact senior editor Chris Wood at [email protected].
Primary Business Emphasis
of the ProSales 100
Lumberyard with
manufacturing capabilities
Lumberyard without
manufacturing capabilities
7% Wholesale distributor
74%
16%
3% Specialty distributor
SURVEY BASE: PROSALES 100
— Fenton Hord, CEO,
Stock Building Supply
For the first time in years, the
PROSALES 100 is seeing some big
changes as pro dealer independents that
traditionally rank throughout the list of
the nation’s largest construction suppliers are beginning to vanish. In 2005,
Kennesaw, Ga.–based Leeds Building
Products, Winterhaven, Fla.–based
Adams Building Materials, Suwanee,
Ga.–based Williams Bros., and
Indianapolis-based Carter Lee Lumber,
among others, succumbed to a wave of
industry consolidation that seemingly
grows more powerful with each passing month. Already, even this year’s
PROSALES 100—which represents
companies doing business throughout
the course of 2005—will hardly resemble next year’s list, with Redmond,
Wash.–based Lanoga Corp. and South
Plainfield, N.J.–based The Strober
Organization merging into a single ProBuild entity and even more dyed-inthe-wool independents like Yorkville,
Ill.–based F.E. Wheaton and Saginaw,
Product Categories Sold by the ProSales 100
Lumber– engineered
Lumber– treated
Lumber– dimensional
Decking
Housewrap
Siding
Doors – exterior
Doors – interior
Locksets/hardware
Molding/millwork
Windows
Insulation
Roofing
Tools
Drywall
Cabinetry
Flooring
Lumber–FSC- or SFI-certified
97%
97%
95%
94%
94%
94%
93%
93%
92%
92%
92%
85%
84%
81%
77%
68%
63%
57%
ILLUSTRATION: SCOTT ROBERTS / WWW.ROBERTSART.COM
“We think we have
a pretty good
model and a good
footprint, and
we’re going to
expand that. I
think some of the
other guys have a
pretty good
model, too, and
we’ll meet at the
post and see who
comes away as
the winner.”
Total
Total
Percent
number of
2005 As percent
2005
2004
change
Total
number of
Primary
locations
number of
outside
business pro sales of total total sales total sales (2005 vs.
emphasis* (millions) 2005 sales (millions) (millions)
2004) 2005 2004 employees salespeople
1
Stock Building Supply, Raleigh, NC
M
$4,413.5
97% $4,550.0 $3,600.0
26.4% 279
254
15,500
1,134
2
84 Lumber Co., Eighty Four, PA
M
3,724.0
95
3,920.0
13.3
476
8,962
2,613
3
BMHC, San Francisco, CA
M
2,912.0
100
2,912.0
2,091.0
39.3
157
137
21,000
400
4
ABC Supply Co., Beloit, WI
W
2,571.0
99
2,597.0
2,042.0
27.2
313
280
5,367
506
5
Lanoga Corp., Redmond, WA
M
2,542.0
82
3,100.0
2,750.0
12.7
356
340
10,121
906
6
Builders FirstSource, Dallas, TX
M
2,291.2
98
2,338.0
2,058.0
13.6
115
112
6,600
605
7
Bradco Supply Corp., Avenel, NJ
W
1,722.7
97
1,776.0
1,344.0
32.1
142
132
3,200
290
8
The Strober Organization, South Plainfield, NJ
M
1,509.2
98
1,540.0
1,300.0
18.5
89
91
3,150
354
9
3,460.0
529
Allied Building Products Corp., East Rutherford, NJ W
1,425.0
100
1,425.0
1,250.0
14.0
154
130
3,000
230
10
Beacon Roofing Supply, Peabody, MA
W
1,105.8
95
1,164.0
851.0
36.8
145
84
1,800
500
11
Hope Lumber & Supply Co., Broken Arrow, OK
M
1,015.3
98
1,036.0
766.0
35.2
61
56
2,131
202
12
Foxworth-Galbraith Lumber Co., Dallas, TX
M
763.5
91
839.0
712.0
17.8
64
65
2,600
180
13
The Carter Lumber Co., Kent, OH
M
516.0
75
688.0
675.0
1.9
230
241
3,000
250
14
Harvey Industries, Waltham, MA
W
475.0
100
475.0
420.0
13.1
33
33
1,600
80
15
Golden State Lumber, American Canyon, CA
M
444.0
100
444.0
433.0
2.5
5
5
507
28
16
Lyman Lumber Co., Excelsior, MN
M
432.9
90
481.0
461.0
4.3
13
13
1,658
86
17
Meek Lumber Co., Sacramento, CA
M
389.6
80
487.0
467.0
4.3
53
53
1,700
95
18
McCoy’s Building Supply, San Marcos, TX
L
375.2
70
536.0
485.0
10.5
86
87
2,101
67
19
Parr Lumber Co., Hillsboro, OR
M
366.9
88
416.9
341.1
22.2
31
26
742
67
20
Pacific Coast Supply, No. Highlands, CA
M
360.8
80
451.0
467.0
-3.4
39
39
1,200
61
21
Cox Lumber Co., St. Petersburg, FL
M
352.0
88
400.0
301.0
32.9
31
30
n/a
n/a
22
Bison Building Materials, Houston, TX
M
324.0
100
324.0
258.0
25.6
13
11
1,050
18
23
ORCO Construction Supply, Livermore, CA
S
319.0
100
319.0
282.0
13.1
23
21
705
66
24
Ply Mart, Norcross, GA
L
297.1
99
300.1
267.1
12.4
34
31
1,001
170
25
Ganahl Lumber Co., Anaheim, CA
M
250.2
90
278.0
250.0
11.2
8
8
800
15
26
Edward Hines Lumber Co., Buffalo Grove, IL
M
247.0
95
260.0
260.0
0.0
21
19
850
80
27
Raymond Building Supply Corp., North Ft. Myers, FL
M
243.0
98
248.0
192.0
29.2
5
5
900
41
28
Wheeler’s, Rome, GA
M
230.0
100
230.0
188.0
22.3
21
17
785
70
29
National Home Centers, Springdale, AR
M
218.7
81
270.0
221.5
21.9
13
12
930
91
30
Lampert Yards, St. Paul, MN
L
214.8
88
244.1
245.5
-0.6
39
39
668
106
31
Scherer Bros. Lumber Co., Brooklyn Park, MN
M
201.8
97
208.0
226.0
-8.0
8
9
594
50
32
National Lumber Co., Mansfield, MA
M
191.0
95
201.0
185.0
8.6
7
5
495
29
33
A.C. Houston Lumber Co., North Las Vegas, NV
M
190.8
90
212.0
212.0
0.0
11
11
700
20
34
Alpine Lumber Co., Westminster, CO
M
179.6
95
189.0
168.0
12.5
17
17
450
42
35
Franklin Building Supply Co., Boise, ID
M
175.1
80
218.9
175.1
25.0
14
14
1,000
65
36
Ridout Lumber Co., Searcy, AR
M
172.0
95
181.0
160.0
13.1
14
14
500
n/a
37
Guy C. Lee Building Materials, Smithfield, NC
M
171.5
99
173.2
129.7
33.5
8
8
246
37
37
The Wolf Organization, York, PA
M
171.5
98
175.0
166.0
5.4
20
20
340
36
39
Alexander Lumber Co., Aurora, IL
M
170.5
88
193.8
194.9
-0.6
44
44
461
35
40
Burton Lumber & Hardware Co., Salt Lake City, UT M
166.6
98
170.0
157.8
7.7
6
6
425
34
41
Riverhead Building Supply Corp., Riverhead, NY
M
163.5
75
218.0
194.0
12.4
12
10
460
20
42
McCray Lumber Co., Overland Park, KS
M
162.0
100
162.0
138.0
17.4
11
11
400
55
43
VNS Corp., Vidalia, GA
M
159.3
98
162.5
126.0
29.0
12
10
440
36
44
Idaho Pacific Lumber Co., Boise, ID
S
155.8
100
155.8
153.8
1.3
9
6
66
19
45
Manning Building Supplies, Jacksonville, FL
M
152.0
95
160.0
125.0
28.0
13
13
500
48
46
Mill Creek Lumber & Supply Co., Tulsa, OK
M
150.7
76
198.3
181.6
9.2
28
28
454
28
47
TW Perry, Gaithersburg, MD
M
148.0
100
148.0
120.0
23.3
5
4
400
50
48
M.G. Building Materials, San Antonio, TX
M
144.0
90
160.0
143.0
11.9
8
8
350
10
48
Shelter Products, Portland, OR
W
144.0
100
144.0
135.0
6.7
3
3
80
32
50
Hayward Lumber Co., Monterey, CA
M
143.6
97
148.0
155.0
-4.5
6
6
430
38
* L = PROFESSIONAL DEALER/LUMBERYARD WITHOUT MANUFACTURING; M = PROFESSIONAL DEALER/LUMBERYARD WITH MANUFACTURING; S = SPECIALTY DISTRIBUTOR; W= WHOLESALE DISTRIBUTOR
N /A = NOT AVAILABLE
Total
Total
Percent
number of
2005 As percent
2005
2004
change
Total
number of
Primary
locations
number of
outside
business pro sales of total total sales total sales (2005 vs.
2004) 2005 2004 employees salespeople
51
Wolohan Lumber Co., Saginaw, MI
M
$140.4
$180.0
$193.0
-6.7%
20
23
500
60
52
Hancock Lumber Co., Casco, ME
M
138.9
90
154.3
141.5
9.0
14
17
600
40
53
R.P. Lumber Co., Edwardsville, IL
L
134.4
80
168.0
152.0
10.5
42
31
610
60
54
Kuiken Bros. Co., Fair Lawn, NJ
L
132.7
90
147.4
129.9
13.5
7
7
290
15
55
Robert Bowden, Marietta, GA
M
128.8
100
128.8
119.7
7.6
3
3
365
25
56
K&A Lumber, Homestead, FL
M
127.7
99
129.0
87.0
48.3
1
1
225
3
57
Honsador Lumber, Kapolei, HI
M
127.0
90
141.1
123.4
14.3
9
9
240
15
58
E.C. Barton & Co., Jonesboro, AR
L
125.5
77
163.0
143.0
14.0
66
60
480
66
59
Stevenson Group, Stevenson, CT
M
125.4
95
132.0
124.0
6.5
3
3
320
44
60
The Building Center, Pineville, NC
M
123.6
98
126.1
110.7
13.9
6
5
280
23
61
Bailey Lumber & Supply Co., Gulfport, MS
M
123.5
95
130.0
117.0
11.1
10
9
465
32
62
Roper Bros. Lumber Co., Colonial Heights, VA
M
118.7
99
119.9
86.6
38.5
5
4
385
26
63
Kentucky-Indiana Lumber Co., Louisville, KY
M
117.0
90
130.0
125.0
4.0
10
10
375
50
64
O.C. Cluss Lumber Co., Uniontown, PA
M
114.0
95
120.0
115.0
4.3
11
11
342
28
64
Shelly Enterprises, Perkasie, PA
M
114.0
95
120.0
125.0
-4.0
10
10
350
20
66
F.E. Wheaton & Co., Yorkville, IL
M
113.0
100
113.0
105.0
7.6
3
2
275
17
67
Matheus Lumber Co., Woodinville, WA
W
112.9
99
114.0
85.0
34.1
3
3
49
0
68
Livonia Group, Livonia, MI
S
108.3
95
114.0
118.0
-3.4
18
19
260
7
69
Woodhaven Lumber & Millwork, Lakewood, NJ
M
104.5
95
110.0
110.0
0.0
3
3
230
18
70
Gilcrest/Jewett Lumber Co., Waukee, IA
L
100.9
98
103.0
111.0
-7.2
4
4
205
35
70
Oso Lumber, Arlington, WA
M
100.9
98
103.0
93.0
10.8
8
6
415
20
72
Builders Supply Co., Omaha, NE
M
100.7
95
106.0
106.0
0.0
1
1
250
14
73
Central Valley Builders Supply, St. Helena, CA
M
99.0
90
110.0
99.5
10.6
4
3
260
12
73
Mead Clark Lumber & Truss Co., Santa Rosa, CA
M
99.0
90
110.0
92.0
19.6
4
4
200
8
75
Rowley Building Products Corp., Middletown, NY
M
98.8
95
104.0
104.0
0.0
11
12
245
21
76
Curtis Lumber Co., Ballston Spa, NY
L
97.5
65
150.0
120.0
25.0
18
18
600
20
77
Star Lumber & Supply Co., Wichita, KS
M
97.0
81
119.7
114.8
4.3
6
6
500
30
78
Lezzer Lumber Co., Curwensville, PA
M
94.6
92
102.8
97.0
6.0
12
13
400
30
79
Causeway Lumber Co., Fort Lauderdale, FL
M
94.1
96
98.0
78.0
25.6
3
3
366
24
80
Home Lumber Co., San Bernardino, CA
L
92.0
100
92.0
81.0
13.6
3
3
120
5
81
Samuel Feldman Lumber Co., Brooklyn, NY
L
90.7
95
95.5
86.0
11.0
2
2
150
6
82
Warren Lumber & Millwork, Washington, NJ
M
87.1
100
87.1
81.2
7.3
5
5
202
18
83
Barr Lumber Co., San Bernardino, CA
M
86.7
85
102.0
90.0
13.3
6
6
320
n/a
84
Hammond Lumber Co., Belgrade, ME
M
86.4
90
96.0
91.0
5.5
7
7
315
25
85
Millard Lumber, Omaha, NE
M
85.4
97
88.0
94.0
-6.4
3
3
325
26
86
National Lumber Co., Warren, MI
M
85.0
100
85.0
105.0 -19.0
3
3
200
24
87
Smitty’s Building Supply, Alexandria, VA
L
84.9
99
85.8
78.1
9.9
3
2
160
8
88
Spahn & Rose Lumber Co., Dubuque, IA
M
76.6
75
102.1
95.5
6.9
26
26
300
38
89
Florence Corp., Huntington, NY
L
76.0
95
80.0
77.0
3.9
5
5
173
n/a
90
Zarsky Lumber Co., Victoria, TX
M
75.2
90
83.5
82.0
1.8
10
10
280
10
91
Moynihan North Reading Lumber Co., North Reading, MA M
74.4
80
93.0
93.0
0.0
3
3
220
n/a
92
Beisser Lumber, Grimes, IA
M
74.0
98
75.5
63.2
19.5
3
3
120
18
93
N.A. Mans Lumber & Millwork, Trenton, MI
M
72.9
90
81.0
84.0
-3.6
5
5
180
23
94
Cassity Jones Lumber and Hardware, Longview, TX
M
72.7
95
76.5
65.9
16.1
9
9
207
n/a
95
Jaeger Lumber, Union, NJ
L
72.5
90
80.6
68.7
17.3
7
6
163
8
96
John H. Myers & Son, York, PA
L
71.3
95
75.0
68.0
10.3
6
6
n/a
26
97
Cape Cod Lumber Co., Abington, MA
M
70.2
90
78.0
80.0
-2.5
2
2
165
11
98
DuBell Lumber Co., Medford, NJ
M
69.8
95
73.5
66.5
10.5
6
5
170
11
Zeeland Lumber and Supply Co., Zeeland, MI
L
69.4
95
73.0
78.0
-6.4
2
2
109
15
William M. Young, New Castle, DE
L
69.3
90
77.0
76.0
1.3
3
3
146
6
99
100
78%
* L = PROFESSIONAL DEALER/LUMBERYARD WITHOUT MANUFACTURING; M = PROFESSIONAL DEALER/LUMBERYARD WITH MANUFACTURING; S = SPECIALTY DISTRIBUTOR; W= WHOLESALE DISTRIBUTOR
The ProSales 100
The ProSales 100
Alphabetical Listing
Rank Company
2
4
33
39
9
34
61
83
10
92
22
3
7
6
72
40
97
94
79
73
21
76
98
58
26
66
89
12
35
25
70
15
37
84
52
14
50
80
57
11
44
95
96
56
63
54
30
5
84 Lumber Co.
ABC Supply Co.
A.C. Houston Lumber Co.
Alexander Lumber Co.
Allied Building Products Corp.
Alpine Lumber Co.
Bailey Lumber & Supply Co.
Barr Lumber Co.
Beacon Roofing Supply
Beisser Lumber
Bison Building Materials
BMHC
Bradco Supply Corp.
Builders FirstSource
Builders Supply Co.
Burton Lumber & Hardware Co.
Cape Cod Lumber Co.
Cassity Jones Lumber and Hardware
Causeway Lumber Co.
Central Valley Builders Supply
Cox Lumber Co.
Curtis Lumber Co.
DuBell Lumber Co.
E.C. Barton & Co.
Edward Hines Lumber Co.
F.E. Wheaton & Co.
Florence Corp.
Foxworth-Galbraith Lumber Co.
Franklin Building Supply Co.
Ganahl Lumber Co.
Gilcrest /Jewett Lumber Co.
Golden State Lumber
Guy C. Lee Building Materials
Hammond Lumber Co.
Hancock Lumber Co.
Harvey Industries
Hayward Lumber Co.
Home Lumber Co.
Honsador Lumber
Hope Lumber & Supply Co.
Idaho Pacific Lumber Co.
Jaeger Lumber
John H. Myers & Son
K&A Lumber
Kentucky-Indiana Lumber Co.
Kuiken Bros. Co.
Lampert Yards
Lanoga Corp.
Rank Company
78
68
16
45
67
18
42
73
17
48
46
85
91
93
29
32
86
64
23
70
20
19
24
53
27
36
41
55
62
75
81
31
64
48
87
88
77
59
1
60
13
8
37
47
43
82
28
100
51
69
90
99
Lezzer Lumber Co.
Livonia Group
Lyman Lumber Co.
Manning Building Supplies
Matheus Lumber Co.
McCoy’s Building Supply
McCray Lumber Co.
Mead Clark Lumber & Truss Co.
Meek Lumber Co.
M.G. Building Materials
Mill Creek Lumber & Supply Co.
Millard Lumber
Moynihan North Reading Lumber Co.
N.A. Mans Lumber & Millwork
National Home Centers
National Lumber Co. ( Mansfield, MA)
National Lumber Co. ( Warren, MI )
O.C. Cluss Lumber Co.
ORCO Construction Supply
Oso Lumber
Pacific Coast Supply
Parr Lumber Co.
Ply Mart
R.P. Lumber Co.
Raymond Building Supply Corp.
Ridout Lumber Co.
Riverhead Building Supply Corp.
Robert Bowden
Roper Bros. Lumber Co.
Rowley Building Products Corp.
Samuel Feldman Lumber Co.
Scherer Bros. Lumber Co.
Shelly Enterprises
Shelter Products
Smitty’s Building Supply
Spahn & Rose Lumber Co.
Star Lumber & Supply Co.
Stevenson Group
Stock Building Supply
The Building Center
The Carter Lumber Co.
The Strober Organization
The Wolf Organization
TW Perry
VNS Corp.
Warren Lumber & Millwork
Wheeler’s
William M. Young
Wolohan Lumber Co.
Woodhaven Lumber & Millwork
Zarsky Lumber Co.
Zeeland Lumber and Supply Co.
Mich.–based Wolohan Lumber joining
the fold of the larger, consolidating
dealers in the industry.
To the dealers at the top, consolidation is part of a growth strategy leading
to national market coverage, increased
scale, and the possibility of matching
up with the country’s largest highvolume production builders. And while
remaining independents in the middle
market don’t begrudge their need for
growth, they bemoan the drain of locality, entrepreneurship, and relationship
building that has long been the heart
and soul of residential construction
supply. Regardless of their size or
focus, virtually all dealers and specialty
distributors agree that the character and
composition of the industry is on the
precipice of permanent change.
“The independents are becoming
extinct,” says Harold West, president
of New Castle, Del.–based William
Young Lumber (No. 100). “We’re being
gobbled up by these guys until ultimately everyone in the top 100 is simply
going to be part of one of the companies
in the top five.” According to West,
acquisitive companies are contacting
his fourth-generation, three-yard operation on a “daily” basis. “It would be
very easy to take the EBITDA multiple
and put a lot of money in our pocket and
retire happily ever after,” he says. “But
we’re never selling out to these guys.”
To smaller independents like
Young, the influx of large acquisitive
chains is inexorably changing the competitive conditions in the local marketplace. When asked about expansion
plans, 12 percent of the 2006 PROSALES
100 responded that they intended to
expand nationally over the next five
years, and 47 percent responded they
will attempt to expand into a new geographic region. “We certainly don’t
have any intention of backing off or
backing down,” says Fenton Hord,
CEO of Raleigh, N.C.–based Stock
Building Supply, which once again
lands in the No. 1 spot. “We think we
have a pretty good model and a good
footprint, and we’re going to expand
that. I think some of the other guys
The 25 Fastest-Growing Companies
in the ProSales 100
Rank
56
3
62
10
11
67
37
21
7
27
43
45
4
1
22
79
76
35
47
28
19
29
73
92
8
Company
Roper Bros. Lumber Co., Colonial Heights, VA
Beacon Roofing Supply, Peabody, MA
Hope Lumber & Supply Co., Broken Arrow, OK
Matheus Lumber Co., Woodinville, WA
Guy C. Lee Building Materials, Smithfield, NC
Cox Lumber Co., St. Petersburg, FL
Bradco Supply Corp., Avenel, NJ
Raymond Building Supply Corp., North Ft. Myers, FL
VNS Corp., Vidalia, GA
Manning Building Supplies, Jacksonville, FL
ABC Supply Co., Beloit, WI
Stock Building Supply, Raleigh, NC
Causeway Lumber Co., Fort Lauderdale, FL
Curtis Lumber Co., Ballston Spa, NY
Franklin Building Supply Co., Boise, ID
TW Perry, Gaithersburg, MD
Wheeler’s, Rome, GA
Parr Lumber Co., Hillsboro, OR
National Home Centers, Springdale, AR
Beisser Lumber, Grimes, IA
The Strober Organization, South Plainfield, NJ
Primary
business
emphasis*
2005
pro sales
(millions)
As percent
of total
2005 sales
2005
total sales
(millions)
2004
total sales
(millions)
M
M
M
W
M
W
M
M
W
M
M
M
W
M
M
M
L
M
M
M
M
M
M
M
M
$127.7
2,912.0
118.7
1,105.8
1,015.3
112.9
171.5
352.0
1,722.7
243.0
159.3
152.0
2,571.0
4,413.5
324.0
94.1
97.5
175.1
148.0
230.0
366.9
218.7
99.0
74.0
1,509.2
99%
100
99
95
98
99
99
88
97
98
98
95
99
97
100
96
65
80
100
100
88
81
90
98
98
$129.0
2,912.0
119.9
1,164.0
1,036.0
114.0
173.2
400.0
1,776.0
248.0
162.5
160.0
2,597.0
4,550.0
324.0
98.0
150.0
218.9
148.0
230.0
416.9
270.0
110.0
75.5
1,540.0
$87.0
2,091.0
86.6
851.0
766.0
85.0
129.7
301.0
1,344.0
192.0
126.0
125.0
2,042.0
3,600.0
258.0
78.0
120.0
175.1
120.0
188.0
341.1
221.5
92.0
63.2
1,300.0
The Top 20 ProSales 100 Companies Ranked by Pro
2005 total
Sales Per Outside Salesperson Primary
2005
number of
Rank
Company
56
80
22
25
15
68
81
48
73
100
87
33
95
54
57
73
44
41
90
3
Home Lumber Co., San Bernardino, CA
Ganahl Lumber Co., Anaheim, CA
Golden State Lumber, American Canyon, CA
Livonia Group, Livonia, MI
Samuel Feldman Lumber Co., Brooklyn, NY
M.G. Building Materials, San Antonio, TX
William M. Young, New Castle, DE
Smitty’s Building Supply, Alexandria, VA
A.C. Houston Lumber Co., North Las Vegas, NV
Jaeger Lumber, Union, NJ
Kuiken Bros. Co., Fair Lawn, NJ
Honsador Lumber, Kapolei, HI
Central Valley Builders Supply, St. Helena, CA
Idaho Pacific Lumber Co., Boise, ID
Riverhead Building Supply Corp., Riverhead, NY
Zarsky Lumber Co., Victoria, TX
business
emphasis*
pro sales
(millions)
outside
salespeople
M
L
M
M
M
S
L
M
M
L
L
M
L
L
M
M
S
M
M
M
$127.7
92.0
324.0
250.2
444.0
108.3
90.7
144.0
99.0
69.3
84.9
190.8
72.5
132.7
127.0
99.0
155.8
163.5
75.2
2,912.0
3
5
18
15
28
7
6
10
8
6
8
20
8
15
15
12
19
20
10
400
$42,566,666
18,400,000
18,000,000
16,680,000
15,857,142
15,471,428
15,116,666
14,400,000
12,375,000
11,550,000
10,612,500
9,540,000
9,062,500
8,846,666
8,466,666
8,250,000
8,200,000
8,175,000
7,520,000
7,280,000
* L = PROFESSIONAL DEALER / LUMBERYARD WITHOUT MANUFACTURING; M = PROFESSIONAL DEALER / LUMBERYARD WITH MANUFACTURING; S = SPECIALTY DISTRIBUTOR;
W = WHOLESALE DISTRIBUTOR
2005 pro
sales per
outside
salesperson
Percent
change
(2005 vs.
2004)
Total number
of locations
48.3%
39.3
38.5
36.8
35.2
34.1
33.5
32.9
32.1
29.2
29.0
28.0
27.2
26.4
25.6
25.6
25.0
25.0
23.3
22.3
22.2
21.9
19.6
19.5
18.5
2005
2004
1
157
5
145
61
3
8
31
142
5
12
13
313
279
13
3
18
14
5
21
31
13
4
3
89
1
137
4
84
56
3
8
30
132
5
10
13
280
254
11
3
18
14
4
17
26
12
4
3
91
50%
of companies in
the 2006 PROSALES
100 promote and
sell “green” or
sustainable
building materials.
28.8%
Average 2005
growth rate
of the 25
fastest-growing
companies in
the 2006
PROSALES 100.
The ProSales 100
The Next 25
Percent
2005
As percent
2005
2004
change
Primary
of total total sales total sales (2005 vs.
business pro sales
2004)
88%
-3.8%
Total number
of locations
2005 2004
Total
Total
number of
number of
outside
employees salespeople
101
Your Building Centers, Altoona, PA
M
$67.8
$77.0
$80.0
16
15
371
102
Crenshaw Lumber Co., Gardena, CA
M
66.5
95
70.0
58.0
20.7
1
1
70
9
103
Consolidated Lumber Co., Stillwater, MN
L
65.7
90
73.0
78.5
-7.0
13
13
198
38
104
Arnold Lumber Co., West Kingston, RI
M
63.6
97
65.6
64.7
1.4
3
3
215
21
105
Keith Brown Building Materials, Salem, OR
M
61.5
88
69.9
61.3
14.0
14
13
210
18
106
Tindell’s, Knoxville, TN
M
61.4
97
63.3
51.2
23.6
9
8
240
14
107
Hundman Lumber, Bloomington, IL
M
60.6
90
67.3
64.7
4.0
12
11
295
35
108
Jackson Lumber & Millwork Co., Lawrence, MA
M
57.3
78
73.5
68.0
8.1
3
3
175
16
109
Simonson Lumber Co., St. Cloud, MN
L
56.1
90
62.3
56.8
9.7
8
8
175
8
110
Louis J. Grasmick Lumber Co., Baltimore, MD
M
55.5
92
60.3
50.4
19.6
1
1
60
3
111
Arlington Coal & Lumber Co., Arlington, MA
L
54.3
95
57.2
58.8
-2.7
4
4
80
12
112
JT’s Lumber, Middletown, RI
L
54.2
95
57.0
53.0
7.5
3
3
180
14
113
Lummus Supply Co., Atlanta, GA
M
54.0
90
60.0
61.0
-1.6
7
8
152
16
114
Kimal Lumber Co., Nokomis, FL
M
53.3
96
55.5
42.7
30.0
5
4
230
9
115
Shone Lumber, Stanton, DE
M
52.7
93
56.7
53.7
5.6
3
3
141
9
116
Kleet Lumber Co., Huntington, NY
M
52.5
95
55.3
43.8
26.3
1
1
102
8
117
Herrman Lumber Co., Springfield, MO
M
52.2
90
58.0
51.0
13.7
12
13
250
21
118
Riemeier Lumber, Cincinnati, OH
M
52.1
90
57.9
55.0
5.3
1
1
n/a
14
119
Knecht Home Center, Rapid City, SD
M
51.5
75
68.6
60.0
14.3
9
9
350
20
120
Haynes Bros. Lumber Co., Murfreesboro, TN
M
51.1
87
58.7
50.1
17.2
2
2
110
6
121
Concord Lumber Corp., Littleton, MA
M
49.9
86
58.0
58.0
0.0
4
4
137
23
122
Lyon & Billard Lumber Co., Meriden, CT
L
49.7
70
71.0
70.0
1.4
6
6
165
8
123
Dartmouth Building Supply, North Dartmouth, MA M
47.1
95
49.6
47.2
5.1
1
1
117
12
123
Dolan Building Materials Co., Sacramento, CA
M
47.1
98
48.1
56.4
-14.7
1
1
250
2
125
Western Building Center, Kalispell, MT
L
45.5
65
70.0
63.5
10.2
11
11
200
5
* L = PROFESSIONAL DEALER/LUMBERYARD WITHOUT MANUFACTURING; M = PROFESSIONAL DEALER/LUMBERYARD WITH MANUFACTURING; S = SPECIALTY DISTRIBUTOR; W = WHOLESALE DISTRIBUTOR
“It would be very
easy to take the
EBITDA multiple
and put a lot of
money in our
pocket and retire
happily ever after.
But we’re never
selling out to
these guys.”
— Harold West,
president, William
Young Lumber
have a pretty good model, too, and
we’ll meet at the post and see who
comes away as the winner.”
Stock has been keeping the pace
against other acquisitive companies
with purchases that add not only scale
but also skill to the company’s product
and service mix. In particular, the
March 9, 2006, acquisition of
Homestead, Fla.–based K&A Lumber
(No. 56) brings 2005’s fastest-growing
top 100 lumberyard into the Stock family. Riding an extremely hot Florida
housing market, K&A boosted sales
48.3 percent to $129 million before
selling to Stock (see “The 25 FastestGrowing Companies in the PROSALES
100,” page 81).
With K&A absent in 2006 via
acquisition, San Francisco–based
BMHC (No. 3) will be left to defend its
position at the top of the growth leaders’ board by leveraging what has thus
far been a successful mix of construc-
tion services and traditional material
distribution. Powered by significant
growth from both its BMC
Construction services division and its
BMC West distribution division, in
2005 BMHC combined acquisitions of
large framing contractors and construction service providers with solid organic growth to push overall sales up 39.3
percent to $2.9 billion.
While dealer acquisitions of contractors don’t directly affect supplier
consolidation, dealers are still forced to
readjust when BMHC purchases one of
their customers. “Consolidation is
changing the industry rapidly,” attests
Milton Johnson, president of Home
Lumber (No. 80) in San Bernardino,
Calif. “We have framing contractors
that are being purchased by BMHC,
and of course they’ll look first to their
own distribution channels. We haven’t
seen too much of direct dealer-to-dealer acquisitions in our market yet, but it
25
is on its way; it is going to happen.” A
true testament to the current nature of
the industry, soon after our conversation that prediction hit close to home
when Stock Building Supply announced
April 4 it will acquire Home Lumber
(see related story, page 46).
Bucking the M&A trend is Eighty
Four, Pa.–based 84 Lumber (No. 2),
which has been expanding organically
at a rate approximately equal to its colleagues at the top of the rankings. Even
as 84 begins to pull out of rural markets (see related story, page 34), the
company still plans to add to its current
unit count of 529 this year and should
again lead the industry in number of
locations. Even the 468 aggregate unit
count of the now combined Lanoga
(No. 5) and Strober (No. 8), which
includes Lanoga’s recent acquisitions
of Wolohan Lumber (No. 51) and F.E.
Wheaton (No. 66), likely won’t surpass 84 Lumber’s geographic growth
$3.1
billion
Difference in pro
sales of 2006
PROSALES 100
leader Stock
Building Supply
( $4.414 billion)
versus 1996’s list
topper Payless
Cashways
( $1.35 billion).
$25.3
billion
Combined gross
sales of the
top 10 dealers
in the 2006
PROSALES 100.
without an additional large-scale
acquisition.
“[Organic growth] is still our MO,”
says 84 COO Bill Myrick. “So you’ll
see us building lots of stores in the
South, in the West, in Texas, predominantly anywhere where there are lots of
housing starts where we do not have
stores today. Our competitors have a
plan that involves acquiring others, and
we seem to have a plan that works for
us in terms of building our own stores.
But as things get competitive, whatever
you do, whether you acquire or
whether you do green field and build
your own stores, whatever it is, you just
have to be good at it.”
Independent Advantages
Myrick’s philosophy is a common
refrain among stalwart independents
content to stay the course and lock
Average Customer Base
of the ProSales 100 by
Market Segment
10%
10%
8%
6%
1%
Multifamily builders
Residential remodelers
Commercial builders
Consumers/homeowners
Building material dealers/
lumberyards
1% Other
NUMBERS DO NOT ADD UP TO 100% DUE TO ROUNDING
horns with national pro dealers as more
and more regional and local companies
are acquired. Doug Kuiken, president
of Fair Lawn, N.J.–based Kuiken Bros.
Co. (No. 54) is adamant that independents with a good eye for niche business opportunities and a strong work
ethic backing up traditional contractor
services will be successful players in
any competitive environment. “There’s
no doubt that things are changing, and
where it leads is anybody’s guess,”
Kuiken says. “But regardless of what
happens, there will always be room for
highly efficient, highly tuned operators
in our industry.”
For example, while Stock Building
Supply solidified its presence in New
Jersey with the Feb. 8, 2006, acquisition of Hammonton, N.J.–based
Universal Supply, Kuiken Bros. was
increasing its focus on commercial
Single-family
production
builders
28%
Single-family
custom
builders
37%
contractors with its Elmwood Supply
division. Kuiken Bros. also is nearing
completion of its fourth KB Concepts
showroom, riding a trend in the industry that has seen a full 90 percent of
PROSALES 100 companies offering
showrooms in addition to other valueadded contractor services like blueprint
takeoffs and same-day delivery (see
“Contractor Services Offered by the
PROSALES 100,” right). On the efficiency end, Kuiken Bros. raked in
$8,847,000 per outside sales rep, the
14th-highest OSR efficiency rating
among the PROSALES 100 (see “Top 20
PROSALES 100 Companies Ranked by
Pro Sales Per Outside Salesperson,”
page 81). “We’ve identified commercial sales and showrooms as some of
our competitive opportunities,” Kuiken
says. “But obviously it’s never going to
get easier. The business still takes hard
work, and it takes good people.”
Though Ganahl Lumber Co. (No.
25) landed at No. 4 on the OSR efficiency ranking, executives at the Anaheim,
Calif.–based dealer still tip their hats to
other L.A. Basin suppliers that can pull
in huge sales, particularly with production builder accounts, using small outside
sales staffs, and caution that there is more
behind the numbers than just great sales
teams. “We’ll never have as high of a
sales efficiency as some of the production-only yards,” says company CFO
Peter Ganahl. “To them, $250,000 is a
small sale. For us, over half of our sales
can come from walk-in traffic. You have
to dig into those numbers, because gross
profit percentage is just as important as
sales volume.”
Other independents are leveraging
their locality to build new customer relationships and increase the purchasing
loyalty with the contractors they already
serve. Among the PROSALES 100, managers/purchasing staff rank highest (88
percent) as the job functions within customer companies that have the most
influence on purchasing decisions, followed by company presidents, owners,
and CEOs collectively, and independent
pros are working to solidify their standing with these decision makers as consolidation puts the competition in flux.
The ProSales 100
“Acquisitions in our market have come
in and restructured and reorganized their
management and sales teams,” says Ed
Wyche, sales manager for Gardena,
Calif.–based Crenshaw Lumber Co.
(No. 102), an independent among the
next 25 largest companies in the industry that stand to land on the PROSALES
100 in the future as consolidation thins
the ranks (see “The Next 25,” page 82).
“Some of their loyal accounts are out
looking to the long-standing independents in the San Fernando Valley—there
are builders actually out in the market
looking for relationships.”
Jeff Leyes, marketing manager for
Zeeland, Mich.–based Zeeland Lumber
and Supply Co. (No. 99), reports that
consolidation and a softening construction economy are necessitating a similar strategy in his market. “West
Michigan we have always thought to be
unique in that the local guys support the
local supply houses. But we are seeing
definite consolidation, with Wolohan
being bought by [Lanoga division]
UBC and Stock buying a portion of
Hamilton Lumber,” Leyes says. “We
are trying to use that consolidation as a
way to say to our customers that we are
still local, that the money is staying
here, but we also feel the pressure that
you have to go big or go home.”
Fine Focus
Leyes’ take on the need for an aggressive approach to market competition is
well shared among the PROSALES 100,
especially as the decade-long sizzle of
new construction begins to simmer
down. “Our goal is to gain market share
in a down market by increasing service
levels and enhancing customer relationships,” says John Waldron, senior vice
president of operations for Excelsior,
Minn.–based Lyman Lumber Co. (No.
16). “Our outlook for the year in housing pretty much agrees with the
forecast from the NAHB—we are definitely off the peak.”
After record housing starts in 2004
pushed single-family production builders
closer to custom home builders as the
PROSALES 100 dealers’ contractor of
choice (at 30 percent and 35 percent,
Contractor Services Offered by the ProSales 100 and
Future Plans to Expand Into New Areas
Contractor service
Already offer
94%
90%
88%
84%
74%
62%
61%
61%
Blueprint takeoffs
Showrooms
Same-day delivery
Volume discounts
Installed sales
Co-op advertising
Training programs
Rebates
Financing programs
Whole-house engineering
Whole-house design
46%
33%
25%
Future plans to offer
2%
4%
4%
1%
10%
5%
18%
4%
10%
21%
20%
Buying Group and/or Co-op Membership Affiliations
Among the ProSales 100
Buying group/co-op
Percent of respondents affiliated
37%
Orgill
32%
31%
Lumbermens Merchandising Corp. ( LMC )
Builder Marts of America ( BMA )
23%
Do it Best Corp.
13%
12%
Other
ENAP
True Value
Ace
Progressive Affiliated Lumbermen ( PAL)
Distribution America (DA )
8%
6%
4%
3%
SURVEY BASE: PROSALES 100. MULTIPLE ANSWERS ALLOWED
respectively), 2005 saw custom builders
gain back lost ground, accounting for
an average customer share of 37 percent compared to 28 percent for
single-family production builders,
while residential remodelers and multifamily builders held steady at 10
percent each (see “Average Customer
Base of the PROSALES 100 by Market
Segment,” left).
For many in the PROSALES 100,
recent acquisitions by The Home Depot
are raising additional questions that
compound the uncertainty of pro dealer
consolidation and the waning strength
of the housing market. In particular, the
Atlanta-based retailer’s purchase of
Williams Bros. last June raised a permanent red flag that The Home Depot
is intent on occupying a space in pro
supply.
For suppliers with a higher consumer and cash-and-carry business, big
box organic expansion also continues
to aggravate sales. “Lowe’s and Depot
have been expanding aggressively with
additional stores, and the consolidation
on the pro side is getting like the megamergers in the banking industry,” says
Brent Hanby, executive vice president
and CFO of Springdale, Ark.–based
National Home Centers (No. 29),
which counts on consumer dollars for
approximately 19 percent of sales.
“There’s no doubt
that things are
changing, and
where it leads is
anybody’s guess.
But regardless of
what happens,
there will always
be room for
highly efficient,
highly tuned
operators in our
industry.”
— Doug Kuiken,
president, Kuiken
Bros. Co.
The ProSales 100
11
“Then you’ll have the independents
come out and offer something different,
and they grow, and the cycle repeats
itself—that’s what is happening in our
industry right now.”
Indeed, not a single market in the
country seems exempt from the growing forces shaping the new era of competition in the arena of pro sales.
Whether matching up with production
builders, trying to establish a national
or regional sales presence, muscling it
Number of
PROSALES 100
companies
reaching more
than $1 billion in
sales in 2005.
out with the boxes, or looking for niche
business opportunities, success in 2006
and beyond will clearly come down to
a focus on the value-added components
of construction supply that dealers can
offer to their customers.
“You can’t look back,” says Kevin
Kuchova, who rubs shoulders with
Kuiken Bros. and now Stock Building
Supply as president of Washington,
N.J.–based Warren Lumber &
Millwork (No. 82). “Consolidation and
all of these forces are definitely changing the industry, and I expect them to
continue. You have to stay focused on
your own business and your own customers as priorities. You cannot be
looking over your shoulder. Looking
back slows you down.”
For more coverage of how
Kuchova and others will keep up the
pace in the new pro sales era with manufacturing, installed sales, and technology, read on. —C.W.
Dealers large and small continue to
embrace product manufacturing and
installation as key competitive strategies
in the quest for sales growth.
A
fter dealing building
materials for 50 years, it
may seem strange that
Eighty Four, Pa.–based
84 Lumber has spent
most of its existence without a focus
on single-family production builders.
Founded by company co-owner Joe
Hardy in 1956 as a cash-and-carry lum-
ber business, the company saw phenomenal growth for the next 40 years
catering to small custom home builders,
remodeling contractors, and consumers.
By the mid-’90s, however, the proliferation of big boxes had impacted the
retail business, and by the time the company opened its 400th store in 1997, 84
Lumber had turned almost exclusively
to the pro side of the business as it
reached for new growth.
A decade later, that pro push
now includes a focus on production builders and an investment in
services—particularly installed
sales and component manufacturing—that the high-volume market
requires. “Business with the top
20 home builders is going to be a
major focus of this company beginning now, which it has not been up to
this point in time,” says company
COO Bill Myrick. “Our commitment
to selling production builders is going
to lead to us having more component
manufacturing facilities and is going
to lead us to doing a significant
amount more of installed business
Value-Added Vanguards
The ProSales 100
Installed Sales Programs Offered by the ProSales 100
and Future Plans to Expand Into New Categories
Installed sales program
Windows
Cabinetry
Entry doors
Interior doors
Molding/millwork
Insulation
Locksets/hardware
Framing
Shelving
Siding
Roof trusses
Stairs
Wall panels
Floor trusses
Decking
Mirrors
Roofing
Already offer
53%
47%
7%
47%
39%
12%
38%
11%
37%
10%
37%
14%
34%
7%
28%
6%
28%
13%
27%
12%
27%
10%
26%
16%
23%
8%
21%
12%
19%
8%
16%
6%
9%
13%
“Our commitment
to selling
production
builders is going
to lead to us
having more
component
manufacturing
facilities and is
going to lead us
to doing a
significant
amount more of
installed business
than what we do
today.”
— Bill Myrick, COO,
84 Lumber
than what we do today. All three of
those fit together.”
On the installation side, 84
Lumber currently has programs with
five of the top 10 most popular
installed products among the
PROSALES 100, including windows,
which leads all other product categories with 53 percent of the PROSALES
100 reporting a program and another
9 percent indicating future plans
to develop one (see “Installed Sales
Programs Offered by the PROSALES
100,” above). 84 has additional
installed offerings in molding and millwork, insulation, siding, and roofing,
as well as framing, which is supplied
in part by the company’s 19 component plants.
With competition for customers
intensifying among regional and local
independents as the industry consolidates, investment in value-added
services like manufacturing and
installation among the PROSALES 100
has not been restricted to 84 Lumber
and
other
large
companies.
Approximately one-quarter of the
PROSALES 100 see their installation
and manufacturing services rapidly
expanding over the next five years,
and half at least see gradual expansion
in both value-added service sectors.
“We purchased a components plant in
the past year, and no doubt there is a
learning curve, but the previous management has stayed on, and I think it
will do really well for us,” says Bob
Plumber, president of Edwardsville,
Ill.–based R.P. Lumber Co. (No. 53).
“We’ve been really pleased so far
and are already planning on expand-
ing capacity and making some
improvements.”
And while truss and panel plants get
most of the attention in the industry,
they’re not the only product line, nor the
most popular product line, being manufactured by dealers and distributors as a
way to add value to the construction
supply chain. Pre-hung doors lead all
other manufactured components currently offered by the PROSALES 100,
with 68 percent of suppliers already
offering the service to their contractors
and another 6 percent planning to offer
pre-hung doors in the future (see
“Manufactured Product Lines Produced
by the PROSALES 100,” below).
There’s little doubt that manufactured services and installation will
continue to gain ground in the industry as competition begins to reach a
critical mass. At Salt Lake City–based
Burton Lumber & Hardware (No. 40),
company executives are leveraging
the full gamut of manufactured product lines (other than pre-hung windows) along with installation as they
plan a strategic service program rollout for 2007. “We don’t want to
divulge [the intricacies of the plan] to
our competition right now,” says
Burton Lumber vice president of
operations Steve Hawkes, “[but] we
do feel that manufacturing plays a
strong role in our plan to move forward, including trusses and panels,
and I can tell you that installed services will continue to play a bigger
role in our future.”—C.W.
Manufactured Product Lines Produced
by the ProSales 100 and Future Plans to
Add Manufacturing Capacity
Manufactured product line
Pre-hung doors
Roof trusses
Floor trusses
Wall panels
Pre-hung windows
Pre-built stairs
Assembled railings
Already offer
68%
57%
50%
38%
34%
8%
20%
18%
14%
9%
6%
13%
14%
25%
The ProSales 100
Slowly but smartly, the
ProSales 100 continue
to invest in technologies
that facilitate services,
increase efficiencies,
and offer more
computing power to
their customers.
ike many pro suppliers,
Washington, N.J.–based
Warren
Lumber
&
Millwork wasn’t the
quickest company in the
world to grab developing information
technology (IT) over the past decade
and leverage it into the business of
building materials distribution. But as
competition in the New Jersey market
continues to heat up, the five-unit pro
dealer is reconsidering IT as a possible
channel for new growth and is making
investments to get wired while times
are still good. “It’s like that expression,
you fix the roof when the sun is out,”
says company president Kevin
Kuchova. “Now is the time to make
investments, and frankly we’re behind
on the technology aspect of business,
so it will be a major area of focus for
us. We see it as a tremendous customer
service opportunity.”
While gains have been slow, there
has been an upward trend in spending
on IT products and services. In 2004,
48 percent of the PROSALES 100
planned to spend less than .25 percent
of sales on IT products and services.
By last year, that number had
decreased to 44 percent, and minor 1
percent gains were seen in the number
of dealers that were spending either
Percentage of Sales the
ProSales 100 Plan to
Spend on IT Products
and Services During
the Next Year
12% .51 to .75%
12% .76 to 1%
3%
.51 percent to .75 percent of sales or
.76 percent to 1 percent of sales on IT
(see “Percentage of Sales the
PROSALES 100 Plan to Spend on IT
Products and Services During the
Next Year,” below). At Warren Lumber
& Millwork, the vast majority of IT
spending in 2006 will likely be on
what Kuchova calls “business system
implementation.” “We’re looking at
how our builders can get online, drill
down into our inventory, drill down
into their accounts, and make purchase
orders,” he says. “Technology will just
be a huge component of what we can
offer to our customers moving
forward.”
Industry consolidation and big
builder demands are pushing Zeeland,
Mich.–based Zeeland Lumber and
Supply Co. further into the tech arena,
a place where it has already felt some
comfort as a market leader, according
to company marketing manager Jeff
Leyes. “Making the contractor base see
that we have more to offer than just
price is the challenge right now,” says
Leyes. “We view IT as one of the ways
that we can set ourselves apart from the
rest of our local competitors, and we
have always viewed it as something we
want to be on the cutting edge with.”
Zeeland upgraded from aging
.25% to
.50%
30%
less than
.25%
44%
more than 1%
System Checks
L
The ProSales 100
“IT can make for
more accurate
orders, but it
ultimately
creates greater
customer
loyalty.”
— Jeff Leyes,
marketing manager,
Zeeland Lumber
hardware and software platforms to
Activant’s Falcon system in the second
half of 2005, and is poised now to
begin offering online pricing, ordering,
and payment to its contractor
customers.
Those types of e-commerce capabilities will definitely place the pro
dealer in a minority among the
PROSALES 100. While 29 percent of the
ranked suppliers offer account access,
the categories of online pricing, purchase orders, and payment are still at a
low 21 percent, 14 percent, and 10 percent, respectively (see “Online/ECommerce Services Offered by the
PROSALES 100,” right). Still, all of
those offerings are on the uptick compared with last year’s PROSALES 100
data, especially online payment, which
saw a 7 percent increase.
At Zeeland, the investments are
paying off in efficiencies for the back
office and greater customer loyalty as
national dealers like Lanoga Corp. and
Online/E-Commerce Services Offered
by the ProSales 100 and Future Plans
to Expand Offerings
Service
Already offer
Customer account access
Electronic data interchange
Online inventory/pricing
Online invoicing
Order tracking
Online purchase orders
Online payment
90%
Corporate Web site
29%
29%
21%
19%
18%
14%
10%
5%
46%
43%
41%
41%
51%
50%
46%
Stock buy up larger independents in its
market, and Leyes suggests that suppliers facing similar challenges do
likewise. “If we have a system that can
mesh with our builders’ systems, we
become more efficient on our side. We
convert the information, print the pull
ticket, and load the materials, and there
aren’t people still in the back rekeying
information,” he says. “IT can make
for more accurate orders, but it ultimately creates greater customer loyalty. As you succeed, it makes it all the
more difficult for a customer to pull
away from you and start all over again
with new systems.” ■

By Chris Wood

Transcription

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