Ferguson buys major Calif. waterworks distributor
Newport News, Va. –Ferguson Enterprises Inc. announces the acquisition of Groeniger & Company in an asset transaction completed November 7. At the present time, the company will continue to operate under its existing name and be led by Groeniger’s current executive vice president, Dick Alexander.
Groeniger was founded in 1949 by W.C. “Bill” Groeniger and is now a leading waterworks distributor in northern and central California. The company has eight sales branches, one administrative office and one pipe yard. Groeniger distributes pipe and other equipment for waterworks, fire protection, sewer, reclaimed water, irrigation and storm drainage projects. They are recognized as one of California’s leading pipeline materials suppliers for residential, commercial and public works sectors.
“It is clear that Groeniger and Ferguson share the same culture of taking care of the customer, respecting our vendors and taking care of our employees,” commented Alexander. “We will continue to believe ‘Family Is Our Tradition, Our People Are Our Strength and Service Is Our Reputation.’ This union will provide our customers with a combination of resources and talent that will benefit them now and for many years to come.”
Ferguson CEO Frank Roach added, “Groeniger is a flagship waterworks distributor in California. We are happy to welcome them to the Ferguson family and look forward to the synergies that arise as two industry leaders come together.”
Ferguson has been in the waterworks business since the mid-1980s, supplying utility contractors, municipalities, water and sewer treatment plants, land developers and others with a variety of waterworks products. Ferguson’s commitment to technical training, personnel development and relationship building gives the company a strategic advantage in the highly specialized utility industry.
Ferguson is the largest wholesale distributor of residential and commercial plumbing supplies and pipe, valves and fittings in the U.S. The company is also a major distributor of HVAC/R equipment, waterworks and industrial products and services. Founded in 1953 and headquartered in Newport News, Va., Ferguson has sales of $8.8 billion and approximately 17,500 associates in 1,300 service centers located throughout the U.S., Puerto Rico, Mexico and the Caribbean. Ferguson is part of Wolseley plc.
Visit www.ferguson.com
Contractors Pipe & Supply buys assets of A&S Supply
Farmington Hills, Mich. — Contractors Pipe & Supply Corp. has purchased the assets of plumbing and heating distributor A&S Supply, which is based in Flint, Mich., and has been doing business in Flint and the surrounding area for 62 years. Until the recession took its toll, they were a dominant player in the marketplace.
Contractors Pipe & Supply is a 47-year-old family company that operates in the Detroit metropolitan area. The companies share an unparalled commitment to serving the contractor. Both have a reputation for providing outstanding customer service and are staffed with knowledgeable employees. They have a similar business culture and many common product lines.
According to vice president Steve Weiss, “We want A&S Supply to keep the same personality that has evolved from their 62-year heritage in the Flint market. They will benefit from our purchasing power, the depth of our inventory and the strength of our administrative staff. This will allow them to focus their efforts on what they do best, which are sales and service.”
Epicor hosts panel on future of wholesaling
Yardley, Pa. — An audience representing 60+ wholesale distribution companies was treated to an unprecedented gathering of industry thought leaders as they recently discussed enterprise resource planning (ERP) and the technology-enabled distributor of the future. The expert panel at the annual Distribution Executive Forum hosted by Epicor Software Corporation, a global leader in business software solutions for manufacturing, distribution, retail and services organizations, included:
• Kevin Roach, executive vice president and general manager, ERP Americas for Epicor
• Guy Blissett, researcher at IBM and fellow of the NAW Institute for Distribution Excellence
• Tom Gale, president, Gale Media/Industrial Market Information, and publisher of Modern Distribution Management
• Dr. Barry Lawrence, director of Texas A&M’s Industrial Distribution Program
• Mike Marks, managing partner of Indian River Consulting Group
• Jon Schreibfeder, president of Effective Inventory Management Inc.
The theme of this year’s Executive Forum, held in Napa, Calif., was “Distribution 2.0,” an exploration of the form and format of the next-generation wholesale distributor, focusing on technology, industry trends, business models, and organizational culture.
“Technology is the linchpin of Distribution 2.0,” said Kevin Roach. “Distributors need to have a defined strategy around this key aspect of their business. Technology can and will make a real difference in how you compete in the market.”
During the panel discussion, the experts observed that most distributors are currently using only 20% to 30% of the technical functionality in the ERP systems they have bought and paid for; and today’s consultative selling model requires more than just product knowledge, but a more technically competent and adept sales force, as well.
In looking at the future of wholesale distributing, the panelists also suggested that instead of serving merely as an inventory storage house, companies should focus on becoming the “intellectual controller” of the supply chain, introducing reliability into the processes between supplier and customer as a true value-add. The experts encouraged distributors to “analyze the value dynamic among you, your vendors and your customers, to create meaningful differentiation.” Other topics covered by the group included strategies for directing field sales; the use of customer stratification, predictive analytics and central warehousing; and the role of buying groups and master distributors.
A post-event survey of attendees indicated they received tremendous value from this year’s Executive Forum, giving it an average rating of 9.16 out of 10. “It is great to get rejuvenated with some of the most knowledgeable speakers in regards to distribution and profitability, and to hear the direction that Epicor is taking to continue to improve my business,” commented Greg Domino, president, Anderson Pump & Process, of Brookfield, Wis. Plans are currently under way for the next Distribution Executive Forum in fall 2012.
Visit distribution.epicor.com
ThermaSol heats up DPHA conference with new ‘Letting Off Steam’ booth
San Jose, Calif. — ThermaSol® generated a lot of attention at the Decorative Plumbing and Hardware Association conference October 14–16. In collaboration with Napoleon at Home Interior Design and artist Susan Marie Bacchi, ThermaSol unveiled its much anticipated “Letting Off Steam” booth to great fanfare.
“We wanted to break the mold with our booth and create something unlike anything that’s been seen at DPHA,” said Mike Straw, regional sales manager for ThermaSol. “It’s one thing to display and debut our latest products but quite another to give our industry an opportunity to enjoy the ThermaSol spa experience firsthand. We wanted to give everyone a taste of ‘A Day at the Spa’ in true ThermaSol fashion, and we succeeded.”
The collaboration between ThermaSol, Bacchi and Napoleon at Home Interior Design served as a three- dimensional example of how ThermaSol’s innovative steam technology complements and enhances contemporary spa environments. A serene oasis amidst the hectic pace of the trade show, the “Letting Off Steam” booth created an elegant spa-like space with neutral colors, tranquil lighting and an underwater sealife theme, complete with custom artwork by Bacchi. Nearly every guest who took respite at the booth raved about the spa-like setting, taking full advantage of the opportunity to kick up their feet and relax.
“We wanted attendees to feel as if they had been transported to their favorite day spa, where they could sit back and enjoy a refreshing beverage amidst the soothing lights, colors and music of ThermaSol’s Serenity light & music system,” said Bacchi. “We used the system in a creative way, by focusing the lights and colors on the painted canvases to immerse attendees in our underwater haven.”
ThermaSol’s booth also engaged guests by unveiling the interactive Bluetooth Zone®. This demonstration tool allowed any attendee to walk into the booth and wirelessly sync up their portable music players with the Serenity light & music system, which helped create an even more serene ambiance. ThermaSol representatives were on hand to present the company’s new Modern Collection, which consists of sleek steam shower controls, steamheads and designs that match most popular modern and minimalist plumbing fixtures and decorative trim sets.
Michael Ardente of Water Spot was announced as the grand prize winner of ThermaSol’s Missing Sol Contest, originally launched on the company’s Facebook page in early October. Ardente found the Golden Sol hiding at the show underneath a water fountain. As the lucky winner, he took home an iPad®2.
Visit www.thermasol.com
Rheem honors General Plumbing Supply
Edison, N.J. — General Plumbing Supply, a plumbing wholesaler with 13 locations in New Jersey, recently earned special recognition from Rheem as a “Partner in Growth.” The award honors GPS for more than 100 years of business excellence and its seven years of distributing Rheem residential and commercial water heating products to the New Jersey market, as well as parts of Pennsylvania and New York.
“Rheem has had a great working relationship with General Plumbing Supply for the last seven years,” said Dennis Ryan, eastern region sales manager for Rheem. “Between 2009 and 2010, General Plumbing Supply’s sales of Rheem water heaters were up 21.6% despite the difficult economy. What’s more, the outlook for 2011 is tracking to be another 10% to 15% increase for Rheem tank-type water heaters and a 20% increase for the company’s tankless water heaters.”
Founded in Bayonne, N.J., in 1910, GPS experienced initial growth in the 1980s when it expanded to two locations and relocated its headquarters to Edison. The current structure is the result of acquisitions and organic growth over the last decade. With the most recent addition of a trade location in Lakewood in June, GPS now has 13 total locations, including 12 office-warehouse facilities, five of which have showrooms, and one stand-alone showroom.
“We’re experiencing tremendous growth right now because we’re moving into new markets,” said Justin Freedman, marketing director for GPS. “In the last five years, we’ve created a stronger presence in northern New Jersey with the opening of our Ridgefield branch a few years ago and our more recent openings in Tenafly and Bergenfield.”
Part of the strategy that GPS has used when opening new locations is to leverage the strength of the Rheem brand. GPS actively promotes Rheem in the company’s marketing efforts, such as direct mailings and giveaways, or dinners that reward customers as part of Rheem-sponsored customer loyalty programs.
“When we move into a new location, we understand the importance of promoting the Rheem brand and leveraging its success,” said Freedman. “For example, because we believe the Rheem name is so strong, we marketed ourselves using the Rheem brand, logo and products in print advertising when we entered Tenafly in October 2010.”
Advancements in water heater technology have also been a driving factor behind the increase in Rheem sales, according to Freedman. GPS has actively assisted its customers in moving to higher-efficiency residential products, such as power direct vent and induced draft tank-type water heaters, and tankless water heaters, including the new Rheem Prestige™ Series Condensing Tankless Water Heaters, which operate at 94% efficiency.
“Rheem has a much more competitive offering of tankless water heaters, both in terms of the units themselves and their pricing, especially with the introduction of the Prestige units,” stated Freedman. “Residential customers are definitely trending toward tankless, whether these units are specified by the builder or an added value that plumbing and heating contractors are able to up-sell to their end users.”
Although Freedman attributes a majority of GPS’ growth of Rheem sales to residential water heating products, he also added that the company’s commercial products have helped reach customers’ needs. In particular, the new SPIDERfire® series of gas commercial water heaters from Rheem have been popular with GPS’ customers. Operating at 95% thermal efficiency, the SPIDERfire water heater can deliver 460 gallons of hot water in one hour.
“Our recent success with GPS is a definitive case where the Rheem brand has helped generate more sales for a wholesaler,” said Rheem’s Ryan. “At the same time, the wholesaler’s long-standing history in a local market has helped Rheem expand its footprint in the New Jersey area.”
Visit www.rheem.com