The Answer Line launches website for plumbing industry
The Answer Line is a new online resource for information on every imaginable specialty plumbing part.
The website is the brainchild of J.P. Shields, a Long Island licensed plumbing contractor with 30 years of specialty plumbing experience, as well as a master’s in business administration. Shields and a team of experts created www.TheAnswerLine.com as a full-service resource with up-to-date information about toilet parts and repair from 1930 to the present — information that is hard to find anywhere else.
“I’d always considered the answers to the questions that I was getting from customers about toilet seats and parts common knowledge, and, in reality, they weren’t,” Shields said. “I thought the information I’d been putting together over all these years for my own reference was being collected by others in the industry, but that wasn’t the case.”
Shields realized that the internet was the key to giving people support worldwide, 24-7, and to allowing complete, easy access to large volumes of information. “I believe there is a need for a specific knowledge base for all business, which the internet can provide and that will be more refined and dynamic in all areas of commerce,” he said. “ We’re on the cutting edge of that transformation.”
Shields and his staff compiled all the valuable knowledge he’d accumulated about specialty plumbing parts over three decades into a simple to search, dynamic database — a straightforward, one-stop resource, whether someone is a trade professional, a wholesaler, a homeowner or an interior designer.
The Answer Line’s database is cross-referenced between product catalogs, parts sheets, roughing sheets and alternate manufacturers. It allows an individual to quickly search for accurate information on vintage and contemporary toilets and related products by picture, number, description, manufacturer or any combination of these features.
Membership privileges allow people to post and read helpful information and to build a network of resources for all their specialty plumbing needs. There are three flexible, affordable levels of membership: Basic, Advanced and Unlimited. This allows a homeowner to find one part or for a supply house to use the website as its first-and-foremost ongoing source of plumbing parts and repair information.
To date, The Answer Line has three major china manufacturers on board —American Standard, Kohler and Toto — and expects to have all fixture manufacturers on the site in the near future.
“We started with toilets because the toilet is the most repaired fixture in the house,” Shields noted, “and everyone has at least one. We’re planning to expand within the next year into shower fixtures and to keep expanding as the most comprehensive specialty part reference source available anywhere.”
Danfoss acquires Aztec Energy Partners
Effective December 18, 2006, Danfoss acquired Aztec Energy Partners, a U.S. market leader within energy management services to the food retail industry. The company, established in 2003, is based in Conyers, Ga., near Atlanta, and has 33 employees. Aztec Energy management solutions include project management, consulting, energy consumption and exception reporting, analysis, and corrective action services.
The market for energy management services is growing at a strong rate and is expected to top $6 billion in the coming year. Energy is a leading operating cost for supermarkets and other food retailers who feel the impact of rising energy prices and, therefore, seek methods for getting more out of their energy management programs and systems.
“Aztec Energy is a respected and fast-growing provider of energy management services to food retailers in North America,” said James Boyle, vice president for Danfoss Food Retail. “Danfoss is already a leading player in the market for energy management controls, and Aztec Energy possesses the ability to sell energy management know-how and real savings to retailers. Based on that, we believe that this acquisition will make a substantial impact on the market in the coming years and are excited about the opportunities the company brings to Danfoss.”
The current president of Aztec Energy Partners, Anthony Tippins, will continue to head the company.
For more information, visit www.danfoss.com/NorthAmerica.
Wolseley/Ferguson make acquisitions
Ferguson, a company of Wolseley plc, recently announced four acquisitions: Onda-Lay Pipe & Rental Inc., TNT Sales Inc., Cal-Steam Supply, and Guntersville Fabrication & Sprinkler/Guntersville Pipe & Supply.
Onda-Lay Pipe & Rental Inc. operates from three locations — Midland, Texas; Hobbs, N.M., and Damascus, Ark. The company distributes polyethylene and fiberglass pipe products and provides installation services. In fiscal 2005, Onda-Lay recorded revenues of $38.3 million.
TNT Sales Inc., trading as Pages Appliances, is an independent appliance dealer operating in Albuquerque and Santa Fe, N.M. In fiscal 2006, Pages had revenues of $10.3 million.
Cal-Steam Supply Inc. and affiliated corporations were acquired from Stuart D. Corvin, Dana A. Corvin and Adele K. Corvin. Cal-Stream is a distributor of plumbing products with 10 locations, primarily in the San Francisco Bay area. This acquisition will add to Wolseley’s established strength in the residential and commercial plumbing segment and will benefit from Wolseley’s new Stockton, Calif., distribution center due to be completed later this year. In the year ended December 31, 2005, Cal-Stream had revenue of $148.6 million and gross assets of $21.9 million.
Guntersville Fabrication and Sprinkler Co., Inc. and Guntersville Pipe and Supplywere acquired from Tim Bice. Guntersville is a distributor and fabricator of fire protection systems with three locations in the southeastern region of the U.S. serving Ohio Valley, Florida, Georgia and Louisiana. This acquisition supports Wolseley’s strategy of expanding its presence in the distribution and fabrication of fire protection systems market. In the year ended October 31, 2006, Guntersville had revenue of $31.5 million and gross assets of $6.7 million.
Wolseley Canada also recently acquired Hudson Plumbing Supplies Limited. Hudson is a distributor of plumbing parts with three locations in the Greater Toronto area. In the year ended Dec. 31, 2005, Hudson had revenues of C$6.7 million.
Michigan wholesaler sells to Hajoca
The owner of one of Grand Rapids’ oldest plumbing and heating supply companies recently told The Grand Rapids Press that his firm’s sale to a national wholesaler will ensure the business’s continuity. Tom Evert, CEO of Richards Plumbing, Heating & Industrial Supplies, announced that the company was sold to Hajoca Corp., based in Ardmore, Pa.
In addition to is headquarters in Grand Rapids, Richards also has showrooms in Holland and Kalamazoo. Richards Plumbing’s sites are the first Michigan locations for Hajoca, which operates in 32 other states.
According to the article, Evert will remain as a consultant with Richards Plumbing for at least a year. He and his sons, Steven and Randy, decided to sell because of growing competition in the market.
“The big wholesalers that do millions and millions of dollars of business are moving into Grand Rapids,” Evert told the Press. “To compete with (the bigger companies), we felt like we had to get bigger.” He noted that Ferguson Enterprises, the nation’s largest privately held plumbing and heating supply wholesaler, started operating in Grand Rapids last year. Hajoca is the nation’s fourth-largest plumbing and heating wholesaler. Richards Plumbing had annual revenues of about $25 million.
Steve Evert will serve as manager of Richards’ 20,000-square-foot store in Kalamazoo. Randy Evert will be the manager of the 40,000-square-foot Grand Rapids location.
Intuit Eclipse helps 3 Pa. wholesalers unite in one branch location
Three wholesaling companies — APR Supply (plumbing and HVAC) of Lebanon, Pa., Industrial Piping Systems (PVF) of York, Pa., and Schaedler Yesco Distribution (electrical) of Harrisburg, Pa. — use distribution management solutions from Intuit Eclipse to help run their businesses. That turned out to be a key enabler for the November opening of a new, shared location under one roof in Chambersburg, Pa. (See original article on the cover of the October 2006 issue of The Wholesaler.)
The three distributors, none of whom previously had a physical presence in the Chambersburg area, can now offer their customers the wide variety of products they need in one place.
“It’s an area where we’re all well-known and where we all wanted to set up a branch,” said Jim Hoffman, who spent 38 years with Schaedler Yesco and now serves as a management advisor to all three companies. “We saw this as a great way to break into a market for one-third the cost. We’re pretty sure that the business model is the first of its kind in central Pennsylvania.”
To customers entering the 13,000-square-foot building, it looks like one company. The 3,000-square-foot counter area is manned by three salespeople — one from each distributor — who each have their own computer terminals, linked to their individual companies’ Intuit Eclipse systems. Customers can easily walk just a few feet from one distributor to another to get what they need.
“We all have the same work ethic and the same level of profit consciousness, but it’s the shared trust and technology that’s making this work,” said Hoffman.
Nardelli resigns as Home Depot CEO
Home Depot chief executive Bob Nardelli abruptly resigned in early January. While his six-year tenure at the helm proved profitable for the company itself, investors had not been pleased by Home Depot’s poor stock performance.
His separation agreement is valued at about $210 million, including a cash severance payment of $20 million.
Nardelli’s sudden resignation was viewed as a stunning move, considering the fact that he told The Associated Press as recently as September 1 that he had no intention of leaving. In addition, a key director had also said that the board was pleased with Nardelli despite the uproar created by some investors.
Home Depot said Nardelli’s decision to resign was by mutual agreement with the Atlanta-based company.
“We are very grateful to Bob for his strong leadership of The Home Depot over the past six years. Under Bob’s tenure, the company made significant and necessary investments that greatly improved the company’s infrastructure and operations, expanded our markets to include wholesale distribution and new geographies, and undertook key strategic initiatives to strengthen the company’s foundation for the future,” Home Depot’s board said in a statement.
The board also announced that chief financial officer Carol Tome and executive vice president-Home Depot Supply Joe DeAngelo will be assuming additional responsibilities. Tome will take on responsibility for mergers and acquisitions, credit services and additional strategic responsibilities. DeAngelo was named to the newly created position of chief operating officer.
Nardelli and Home Depot agreed to terms of a separation agreement that would provide for payment of the amounts he is entitled to receive under his pre-existing employment contract entered into in 2000. The package includes a cash severance payment of $20 million, the acceleration of unvested deferred stock awards currently valued at approximately $77 million and unvested options with an intrinsic value of approximately $7 million. It also includes payments of earned bonuses and long-term incentive awards of approximately $9 million, account balances under the company’s 401(k) plan and other benefit programs currently valued at approximately $2 million, previously earned and vested deferred shares with an approximate value of $44 million, the present value of retirement benefits currently valued at approximately $32 million and $18 million for other entitlements under his contract which will be paid over a four-year period and will be forfeited if he does not honor his contractual obligations.
Nardelli has also agreed not to compete with the company for one year, and not to solicit employees or customers of the company for four years.
New leader announced
Following Nardelli’s resignation, Home Depot announced that he will be replaced by Frank Blake, the current vice chairman, effective immediately.
Many on Wall Street were surprised by the immediate choice of Blake as the new chief executive officer. Observers thought that a selection of a permanent/long-term replacement would take time and that Blake’s promotion would be more of a caretaker role in an interim capacity.
Home Depot, however, stressed that Blake was their choice for the future. “Blake is the CEO, period,” Jerry Shields, senior public relations manager at Home Depot, told The Associated Press.
Blake holds a law degree and has never held the top executive position at any company — and he has limited retail experience. In fact, Blake’s background bears a strong resemblance to Nardelli’s. He’s a former General Electric executive with strong strategic skills but limited retail experience.
“Retail is not just about getting the right product on the shelves at the right price, but you have to have that merchandising touch and sensitivity to serving what customers want,” Wendy Liebmann, president at New York retail consultant WSL Strategic Retail, told The Associated Press. “That’s something you gain only with experience, and running a major retail corporation is going to be hugely complex.”
Matthew Fassler, an analyst at Goldman Sachs, added, “This is the second-largest retailer in the nation, and [Blake] has never run a company, or one of Home Depot’s major operating businesses. As a result, further changes are possible at Home Depot.”
People close to Blake feel that he has what it takes to move Home Depot forward. In fact, while Blake has not been CEO of a company, many of his previous jobs were in leadership roles. He was general counsel for the Environmental Protection Agency and, as deputy secretary for the Department of Energy, he is said to have managed a budget of $19 billion. At GE, Blake made the unusual leap from the general counsel’s office into a purely business role and secured a top executive’s job of heading corporate business development at the conglomerate. His job there was to lead business development efforts, including worldwide mergers and acquisitions.
NAW, Pembroke announce new wholesale distribution report
The National Association of Wholesaler-Distributors Distribution Research and Education Foundation and Pembroke Consulting announced that the eighth edition of the acclaimed wholesale distribution strategy report, titled Facing the Forces of Change®: Lead the Way in the Supply Chain, will be released in March 2007.
The all-new report provides wholesaler-distributors, manufacturers, suppliers and their customers with strategic insights into the key business and economic trends affecting the wholesale distribution supply chain through 2012. The report also describes innovative strategies and tactics that wholesaler-distributors can use in response to these trends.
“The Facing the Forces of Change series remains the only major research study to analyze the future of wholesale distribution within multiple supply chains,” said DREF executive director Ron Schreibman. “This brand-new edition builds upon a 25-year tradition of excellence by providing unprecedented research to benefit wholesale distribution executives in all lines of trade.”
The report was researched and written by Pembroke Consulting president and DREF fellow Adam J. Fein, Ph.D.
“Future success in wholesale distribution will come from understanding how to profit from crucial external business trends, followed by appropriate strategy execution to deliver results,” said Fein. “Our report will help executives position their companies to lead the supply chain by combining an understanding of their customers’ purchasing priorities with a realistic perspective on their best suppliers’ business requirements.”
The report draws upon a broad set of data, including in-depth interviews with senior distribution executives, manufacturers, customers, analysts, professors and association executives. It also includes survey responses from nearly 1,000 wholesale distribution executives and approximately 300 manufacturing executives. This is the first report in the 25-year history of the series that reviews comparative data from a previous report and provides a fresh assessment of past predictions.
Pricing and ordering information are available at www.naw.org/ftf07 or by calling Vicky Walsh at 202/872-0885.
Oatey Co. acquires Wm. H. Harvey
Oatey Company, a leader in the plumbing industry since 1916, has acquired the William H. Harvey Co. of Omaha, Neb., a manufacturer and distributor of plumbing specialty products sold throughout North and South America, which will become a wholly owned subsidiary of Oatey. The sale includes Harvey’s headquarters and manufacturing facility in Omaha. Both companies are privately held.
“This is a combination of two strong family owned companies with complementary business models, values and motivations,” said Oatey CEO Gary Oatey. “With the addition of the William H. Harvey Co., Oatey will strengthen its position in the rough-in plumbing products business. Our goal is to provide a broad line of the highest quality products to maximize overall value to our customers.”
No immediate changes are planned in the way either company serves its customers. “We want to make this transition as smooth as possible to the customers of both companies to ensure that they continue to receive the excellent service they have come to expect,” said Oatey.
Terms of the transaction were not disclosed.
Swanstone offers customer vanity program
Now your customers can explore the limitless design options of Swanstone Custom Vanity Tops and Bowls to create a stunning dream bath. And you can have the peace of mind that everything will be precisely custom-fabricated at the factory by the experts at Swanstone. Worried about delivery time? Swanstone offers free delivery in three weeks.
Gorgeous bathroom design starts with the elegance of a Swanstone reinforced solid surface top in lengths up to 122 inches. The customer can then choose from a variety of bowl and mounting options, such as a seamless undermount granite or solid surface bowl in a matching or contrasting color. A variety of drop-in and unique vessel bowl options also are available, and the bowl can be placed anywhere your customer desires.
Integral coved backsplash, a variety of sculpted decorative edges and a choice of 30 vanity top and 33 bowl colors make Swanstone Custom Vanity Tops and Bowls the ultimate choice in style at a great price.
Swanstone’s durability is excellent. It is reinforced solid surface, compression-molded for strength. It will not crack or craze like cast solid surface or cultured marble. Because Swanstone is reinforced throughout, it is impact and heat resistant. In fact, Swanstone is five times stronger than other cast solid surface products and can withstand heat of up to 450°F. It is also impervious to damage from acetone and colored beverages.
Custom Vanity Tops and Bowls carry a Swanstone limited 10-year warranty.
For more information, visit www.swanstone.com.
WinWholesale opens companies in five states
WinWholesale Inc., one of the nation’s largest wholesale distributors, has opened five new locations in recent months as it continues to expand the number of locally owned companies. The organization opened 10 new companies in 2006.
The new wholesaling units include four Winnelson companies specializing in plumbing supplies and one Windustrial company offering industrial pipes, valves and fittings.
The new locations are:
- Baton Rouge Winnelson, 5830 McCann Dr., Baton Rouge, La.
- Cottonwood Winnelson, 3405 E. Highway 89A, Ste. B, Cottonwood (Yavapai County), Ariz.
- Eugene Winnelson, 3395 W. 7th Ave., Eugene, Ore.
- Sun City Winnelson, 3000 Durazno Ave., El Paso, Texas
- Los Angeles Windustrial, 2820 Seaboard Ln., Long Beach, Calif.
“WinWholesale continues to expand to meet the needs of our customers,” said Monte Salsman, chief operating officer. “The companies in Cottonwood, Eugene and Long Beach are the first WinWholesale presence in their respective cities. We’re very pleased to bring our product knowledge, product availability and customer service to these new areas as we partner with contractors to help them get their jobs done.”
There are more than 450 WinWholesale locations across the U.S., in addition to more than 100 Noland Company branches, mainly in the Southeast. Noland Company is a wholly owned subsidiary of WinWholesale.
For more information, visit www.winwholesale.com.