Matco-Norca records impressive growth
with quality imports

BY MARY JO MARTIN

Editorial director

The energy and enthusiasm of Matco-Norca’s leadership is quite evident. It takes just a few minutes of talking with them to appreciate their loyalty and commitment to the distribution channel — and to the company’s continued growth. The Brewster, N.Y.-based company takes very seriously its responsibility of importing quality PVF, plumbing and decorative lines.

“Our biggest concern is and has always been quality,” said president Dov Matz. “We source only the best products from around the globe. Our in-house purchasing team is backed by our quality control inspection office in China, which constantly audits the manufacturing process and inspects the finished products. Our ability to source from our global network of vendors allows us to find and work with high-quality vendors who specialize in the manufacturing of our products, and who are also always looking for cost efficiencies in the manufacturing process.”

Matco-Norca president Dov Matz (center), executive VP Michael Matz (second from right) and quality control manager Richard Porter (second from left) with the company's partner butterfly valve manufacturers from Shanghai, China.

In addition to the inspection office in mainland China which audits the company’s Pacific Rim suppliers, there are also inspectors working full-time in selected factories to make sure that quality is always maintained. It has taken 35 years of dialogue for Matco-Norca to develop strong relationships with these factories, which has provided them with greater control in attaining the standards and quality they strive for.

“We have been working with many of these factories since the company’s early days,” said Michael Matz, executive vice president. “A top-selling ball valve of ours still comes from the same family-owned manufacturer that my grandfather bought valves from 40 years ago.

“When choosing a factory to work with, quality comes first. Unlike the retail side where products are sold by the piece to a consumer, we are selling exclusively to the wholesalers. Our products end up in the hands of, and are installed by, contactors and other plumbing professionals. We can’t afford to sell a bad product and risk tarnishing not only our name but also the name of our wholesaler customers.”

The Matco-Norca management team also visits factories on a regular basis to ensure that these operations have a sincere concern for the health and safety of their employees -- something that is sometimes lacking in countries that do not have strong labor laws. In fact, nearly all of the factories affiliated with Matco-Norca are certified to the iso-9002 quality system standard and are using state-of-the-art, highly automated equipment on the production lines.

A history of quality

Matco’s roots go back to 1952, when entrepreneur Mr. Lazar Matz began importing gate valves from Italy.  Over the next 40 years, the company grew its offering to include a variety of valves, faucets and plumbing specialty products imported from all over the world. Today, second- and third-generation members of the Matz family are leading the company -- president Dov Matz, his son, executive vice president Michael Matz, and his daughter, faucet product manager Melissa Kraus.

In 1992, Matco merged with Norca, a competitor in the New York area. The new Matco-Norca benefited from strong financial backing and innovative marketing management that dramatically spurred the newly formed company’s growth. It was at this time that the company began partnering with factories in Asia to further expand its sourcing.

Among Matco-Norca’s current product offerings are:

• Malleable fittings - 150# and 300#
• Steel nipples - welded and seamless
• Forged steel and merchant steel fittings
• Valves - water works, irrigation, plumbing and industrial
• Brass fittings and nipples
• Copper fittings
• Decorative faucets and plumbing specialties
• No-hub pipe and fittings
  
  

“One product that had escaped globalization until recently, is cast iron soil pipe and fittings,” said Vic Chrystowski, vice president-sales. “As little as 50 years ago, this industry had more than 40 different domestic manufacturers vying for the DWV market. Suffice it to say, the industry has changed as the number of domestic manufacturers has dramatically reduced to three. Another big change has been the development of a variety of ‘consensus standards’ for soil pipe products and accessories. This term refers to standards formed by societies that have open membership -- anyone can join the organization and contribute their ideas, become members and eventually gain voting status.

“Matco-Norca is a market leader in imported soil pipe and fittings. Our soil pipe products conform to all the requirements contained in the applicable standards, such as ASTM A888 for hubless soil pipe and fittings, ASTM A74 for service weight pipe and fittings, ASTM C1277 for no-hub couplings, and ASTM C1540 for heavy-duty no-hub couplings. We also conform to the two major plumbing codes used in the U.S., namely the Uniform Plumbing Code and the International Plumbing Code.”

Meeting customers’ expectations

The company offers 15,000 SKUs, which requires a massive inventory to be in place across the U.S. Matco-Norca has four distribution centers and six regional warehouses totaling over 400,000 square feet. Distribution centers are located in Brewster, N.Y., Houston, Texas, LaPalma, Calif., and Americus, Ga. Each is supported by its own full customer service and sales office. These branches are responsible for all aspects of the customer experience from sales to order entry to shipping.

As Michael Matz noted, “This gives us the ability to provide faster and more personal response time to each of our customers. All branches are, of course, tied into the same it platform providing real time information at all stages of the order. The DCs receive, rotate and feed inventories between themselves and the other regional warehouses -- located in Baltimore, Chicago, Denver, Dallas, Tampa and Sacramento -- for dependable inventories at each location. We feel that we can supply most of our product lines from one of our regional warehouses in a timely manner, while shipping slower-moving material from any of our main distribution centers. This benefits the customer by allowing us to pass on lower freight costs while having faster shipping times on the majority of customer orders.

“All of our locations boast an office staff trained to consistently help our customers by providing correct information, accurate and efficient order entry and timely follow-up. Our warehouses are capably run by expert managers with years of experience to assure top-flight customer service.”

Matco-Norca’s ability to meet customers’ demands for rapid delivery and trouble-free service has earned them a reputation as a very reliable supplier.

“Over the past few years, customer expectations regarding their orders have changed to more of a just-in-time philosophy,” explained Todd Evans, West Coast sales manager. “Previously our customers were placing larger stock orders once or twice a month; now they seem to have gone to a weekly pattern. Customers have become much more demanding in terms of quality, service and competitive pricing. This is good, because it has forced Matco-Norca to become an even better company. Our primary customers are in a battle with the national chains and we are their ally in the trenches fighting the private labels and the big box retailers that are challenging our customers’ market position.”

The philosophy is working. Matco-Norca has had 10 consecutive years of record-setting sales, and in the last four years alone, sales have doubled. This year, Matco-Norca expects to surpass its highest sales level by more than 25%. The company’s sales are well diversified among residential, industrial, commercial, irrigation and waterworks markets.

Enhancing communications and relationships

Much of Matco-Norca’s success is due to its sales and marketing staff, as well as the talented group of independent rep agencies they use throughout the country.

“We have hired the best and most talented representatives across the U.S.,” said national accounts and buying groups manager Jay Howard. “We attribute a large degree of our success to our team of independent sales reps. It is the sales rep that gets our products in front of the wholesaler. Their knowledge regarding their territories and customer base is invaluable to us. This still very much is, and will continue to be, a people business.

“Almost all of our sales are handled by these representatives through traditional two-step distribution. The remaining sales are to hardware distributors, and we are proud to say that we do not sell to home centers or contractors directly. The rapport, relationships and market knowledge of our independent representatives enable Matco-Norca to respond quickly to our 3,400 wholesaler customers and nimbly react to changes in the market.”

Matco-Norca fully supports its customers and reps, and gives them the tools they need to be successful. These include:

• Connectivity to the company’s Eclipse computer system. This enables EDI and many other features that have strengthened customer service and allowed greater efficiency for both Matco-Norca and its customers. Eclipse is a widely used and accepted system in the wholesaler market. It offers excellent inventory control and works well in concert with a report generating system that allows up-to-date reporting on product, unit and customer sales.
• An interactive website allows reps and customers to stay current with new product offerings and pricing. With today’s volatile metals market, there have been many more price changes.  The website is constantly updated with the latest price sheets for easy download in PDF or Excel format. It also offers valuable product information, spec sheets, special announcements and provides customers with easy access to rep contact information.
• Ongoing training provided by the sales and marketing team ensures constant communication with reps and customers through all of the DCs. Matco-Norca’s four regional sales managers spend much of their time on the road with sales reps calling on wholesale customers. The inside salespeople benefit from the knowledge of the regional rep, and the rep benefits from the expertise of inside salespeople on the Matco-Norca product line. They work together doing counter days, and calling on contractors and engineers for pull-through sales to the wholesaler. This information is passed to the regional sales offices and followed up by the marketing team.
• Significant investment in literature, including product catalogs and spec sheets, provide customers with a better understanding of Matco-Norca’s products, which has resulted in more successful sales.
• In addition, Matco-Norca has benefited from its affiliation with four of the major buying groups for the plumbing and PVF industry.

“These buying groups comprise the largest and best wholesalers from around the country,” explained national industrial sales manager Don Ross, one of the newest members of the management team who brings more than 30 years of industrial experience to Matco-Norca. “These independent wholesalers are our main customers, and receive a lot of our marketing attention. Our concentration on the buying groups is a big reason for our recent success.  Many of the wholesalers buy from only group-approved vendors. The annual group meetings put us in front of all the member owners and decision makers. These meetings have proved to be invaluable, and these, along with regular sales calls, solidify our standing with our wholesale customers.”

The phenomenal growth Matco-Norca has generated, along with the strength of its relationships with customers and representatives, leave Dov Matz confident in the company’s future.

“There are very few customers in the market that won’t, at a minimum, look at at least one of our quality lines,” Matz commented. “The main focus for us is to reassure them that Matco-Norca stands behind all of our products 100%. If there is an issue with any product, our customers should feel confident that we will fix the problem to their complete satisfaction.

“We are anticipating major growth in 2007 as we consolidate our gains and venture into new product lines that will further strengthen our position in the market. There is growing acceptance that this is a global market, and that Matco-Norca is the gateway through which wholesalers can prosper in the future.”

For more information, call 800/68-valve for the Matco-Norca corporate office in Brewster, N.Y., 800/935-5456 for the Houston office or 866/532-8306 for the La Palma, Calif. operation, or visit them online at www.matco-norca.com.