Setting the pace for PVF industry leadership
BY MORRIS R BESCHLOSS
PVF and economic analyst
Although I thoroughly enjoy my monthly q&as with top manufacturers and distributors in the PVF sector, my greatest nostalgia is reserved for those with whom I’ve literally grown in the plumbing-heating-cooling-piping industry.
Usually utilizing The Wholesaler’s December issue for my “walk down memory lane” with those who are still relevant, it gives me pleasure to call special attention to those whom I consider close personal friends, as well as industry shakers and movers.
I’ve had the pleasure of reminiscing in past years with Dave Weiner of Marketing Support; Frank Finkel from Davis & Warshaw; John Pope with F.W. Webb; Bill Arenberg of Columbia Pipe; Gary Cartright with p&e; and John and Michael MacDonald, well-known members of that great industry family.
It’s with special gratification that this year I feature Ernie Coutermarsh, the larger-than-life industrial expert, who has built F.W. Webb’s PVF business into an excess of $150 million annually. This has not only contributed to the company reaching the pinnacle in the nation’s Northeast, but it has also elevated the company’s PVF volume to one of the leading factors in the nation.
Coutermarsh combines the rugged strength of his U.S. Marine background with previous experience in industry at Salisbury, Md.-based Shore Distributors. Since building up F.W. Webb’s massive industrial business for the past 40 years, Coutermarsh has also gained national prominence as the shaker and mover in all matters PVF.
It didn’t take long for Bill Weisberg, ceo of Affiliated Distributors, to determine Coutermarsh’s expertise and put him on the Board of Directors of its PVF Division.
Ernie is a close personal friend and I’m proud to share the following interview with you.
Beschloss: How many years have you been actively involved in our beloved PVF business, and what prompted you to get into it?
Coutermarsh: Ceo John Pope made the decision to expand the focus of F.W. Webb to industrial PVF. In 1969, I started with Webb in Nashua, N.H., and remember making joint calls with John on industrial prospects and at the time New England was dominated by some of the great names in PVF. Over subsequent years they became acquisitions. At that time, they derided us to prospects as being a “bathtub house.” This was historically true, but they did not appreciate John’s commitment to building Webb into the best provider of our core distribution function — and that the function applies to PVF as well as plumbing and heating supplies. The Webb brand had been a household name since 1866 and we were intent on building on its legacy!
Beschloss: Your move to F.W. Webb 40 years ago has turned into a positive circumstance for you, the organization and the industry. What were the fortunate factors that brought this about?
Coutermarsh: My entry into distribution began in 1966. After my discharge from the usmc, I joined Shore Distributors in Salisbury, Md. Frank Morris was the ceo at the time, and he inspired me with his passion for the industry. I owe him a lot for this. In 1969, I returned to my home state of New Hampshire, applied for an outside sales position at F.W. Webb and was hired. Here I met John Pope, who possessed a combination of passion, vision and leadership. The Webb company’s history, tradition, pride and reputation were key ingredients that attracted me. John provided an entrepreneurial environment that made it possible for all of us to realize true opportunity and career satisfaction.
Beschloss: Knowing John Pope’s modus operandi, I know he gave you free rein to build up Webb’s industrial infrastructure, including several propitious acquisitions. Would you elaborate on these, please?
Coutermarsh: John gave me the freedom to develop a game plan and supported the vital action steps with investment, people and marketing. He let me make some mistakes, which are a natural part of the learning curve. He also gave his own time and energy to help make it happen. John personally worked with me to acquire key product lines, to make calls on the industries that we targeted. He was my chief mentor and asked the hard questions that helped keep the proper focus.
Webb evolved into an aggressive PVF force, and customers and competition started to respect what we were accomplishing. The supreme compliment was that many of these competitors and their people gravitated to the Webb industrial PVF team. Over the years Webb acquired Atlantic Pipe, Braman Dow Company founded in 1848, Kennebec Supply, Kentrol control valve and instrumentation house, Sevco safety relief valve pressure management center, International Supply, W.L. Blake, Babbitt Steam, Utilities Supply usco engineered plastic PVF piping and valving, and our most recent, Burns Supply in Syracuse, N.Y.
Beschloss: Despite the de-industrialization of your trading area (the Northeast as well as upstate New York) Webb built one of the strongest PVF distribution centers in the U.S. How was this accomplished?
Coutermarsh: New England and New York still have a lot of industry. We pay attention to what customers say they want from the supply chain. Mro and oem customers need a supplier that can be the most effective and lowest-cost producer of the function of distribution. We are that supplier in New England and New York. F.W. Webb has 71 locations supported by a 10-acre, under-roof distribution center. In addition, we have a pipe and sprinkler fabrication shop, a pipe distribution center, Webb Bio-Pharm division, Webb Piping Products division, Webb Pump industrial and commercial pumps & repair, and cd Sales master distribution of PVF. Also, Webb’s Integrated Supply/vmi team are expert in taking cost out of the equation, utilizing technology and sharing our expertise at managing just in time, lean and green solutions.
Beschloss: It’s well known that the greater Houston-based industrial business and exports are the leading movers of the PVF boom that our sector is enjoying currently. Which end-use industries and what type of contractor establishments are you involved with in your trading area?
Coutermarsh: Power, Chemical, Pulp & Paper, oems, mro, Biotech, Pharmaceutical, Institutions, Industrial plants, Mechanical Contractors, Export.
Beschloss: Is your company planning greater PVF emphasis in the future? If so, in what particular geographical areas?
Coutermarsh: We are a grassroots company and our expansion is most often a result of our entrepreneurial general managers submitting growth plans to Jeff Pope, president of F.W. Webb. If it makes sense and matches our corporate objectives, then we take action. Binghamton, N.Y., and Concord, N.H., are our most recent expansions. 2009 will see Newburgh, N.Y., open, which will give us coverage into northern New Jersey. We expect the economy will provide additional opportunities.
Beschloss: With exports commanding such an increasingly significant segment of PVF products in our industry, is F.W. Webb participating in this arena to any degree?
Coutermarsh: Yes. Many of our priority product lines in one way or another are international companies. Valves come from all over the world; our primary domestic pipe company was bought by the Russians. Customers are seeking low-cost country-sourced products. The world has shrunk and this trend is bigger than all of us. My friends and a-d PVF affiliates and manufacturers are sharing our expertise to ensure that together we have quality standards that protect us and our customers.
Our industry is fortunate that there are some of the most knowledgeable people that willingly share knowledge and help make the American PVF industry the best in the world. Examples are Gary Cartright of Piping & Equipment; Bill Weisberg, ceo of Affiliated Distributors; and Gary Jackson, vice president of a-d’s PVF division; the PVF Roundtable; asa’s Industrial Piping Division; and you, Morrie. I have read the Beschloss Perspective for years, read all of your columns in The Wholesaler, as well as your blog. We live in the information age and to make smart decisions the information must be good.
Beschloss: In your capacity as a national observer of the PVF sector’s progress, please give us your outlook for 2009, both in the Northeast region as well as the greater U.S.
Coutermarsh: I will defer to you on the national perspective. In the Northeast we intend to grow by hunting where the ducks are. The economy obviously will be a test for all of us. Nevertheless, I am optimistic that change creates new opportunities. Industrial customers will desperately seek cost reductions. PVF distributors need to make sure that they understand the customers’ process enough to lead in pointing out where these opportunities exist and capitalize on them.
My confidence comes from the tradition of our company and the excellent people that are F.W. Webb Company. I am a firm believer that customers need to understand why a supplier is relevant to them. In 2009, we will make sure they know why F.W. Webb Company has been in business for 143 years!