Ferguson fiscal year results: 9% growth
Newport News, Va. — Ferguson’s parent company, Wolseley plc, announced its financial results for the 2011 fiscal year.
Despite sluggish market conditions, Ferguson ended the year with revenues of $8.8 billion, a 9% increase in like-for-like sales over last year. This marks 16 consecutive months of positive like-for-like sales, which measures growth through Ferguson’s existing stores or branches that have been open for at least one year.
It does not include the impact of new locations, acquisitions or closures. All major business units generated growth due to resilience in the repair, maintenance, installation sector and commercial and industrial markets.
“Our success this year was a testament to the hard work of our associates,” explained Ferguson CEO Frank Roach. “The last two years prove that we can adapt to any market conditions if we continue to be agile as a company and focus on providing world-class customer service to our customers.”
Ferguson’s blended branches, which service residential and commercial customers, showed solid revenue and market share growth throughout the year. The industrial PVF and HVAC businesses also made great strides during the year and continued to perform very well. The industrial business, in particular, benefited from a buoyant oil and gas sector. The waterworks business was resilient despite a fall in state and municipal funded projects. The build.com consumer Internet business grew strongly at margins consistent with the rest of the U.S. business.
In the first half of the year, Ferguson completed a small waterworks acquisition in Alabama. Since the year-end, Ferguson has also completed two further acquisitions, including a PVF business in Louisiana and a plumbing business in Chicago. The company’s trading margin was 5.7%, up from 4.6% in 2010.
Johnstone Supply Inc. hosts conference with key vendor partners
Portland, Ore. — The 2011 Johnstone Supplier Partner Conference communicated the cooperative’s current and future plans for growth and profitability, worked to strengthen relationships and to provide direct access to top company executives and collected attendees’ input and ideas to enhance the cooperative’s vendor relationships and overall performance.
The meeting was well attended, with 84 representatives from 54 top manufacturers. The theme of the conference, “Partnering For Success,” was reflected in the emphasis on vendor participation and open dialogue, backed by formal surveys to assess needs and identify opportunities for improvement.
Held over three days, the agenda focused on communicating Johnstone’s plans for the future and getting feedback from the suppliers on how to best succeed in reaching common goals. Presentation topics covered the state of the Johnstone Cooperative, an industry and economic outlook, and an overview of Johnstone’s strategic plan and top priorities for driving profitable growth, which include strong investments in inventory management, technology, distribution center infrastructure, new stores and employee talent.
Based on attendee feedback, Johnstone followed up the meeting by providing additional information and updates on marketing and training opportunities, data exchange information and additional information on vendor store support. Vendor suggestions that the company is already working on include strong investments in existing markets, further expanding and diversifying product categories, enhancing staff and contractor product training, continuing to move into new geographical markets and strategically expanding store product offerings.
Current strengths noted by meeting attendees included the company’s national distribution model (geographical footprint and number of stores and national distribution centers), the breadth of product offering (featuring strong national brands and high quality of lines), its cooperative model and store level service (including local stores’ entrepreneurial spirit and autonomy, local market knowledge and excellent customer service).
Rheem opens new R&D lab
Indianapolis —In September, Rheem opened a new research and development facility focused on developing integrated solutions for the company’s heating, cooling, water heating and pool/spa heating product lines. Located just north of Indianapolis, the lab is the newest addition to Rheem’s Advanced Technology integration (ATI) organization.
The ATI organization was created in October 2010 with a mission to facilitate and lead the development and implementation of advanced technologies and systems solutions across the company’s product divisions. More specifically, the team is developing new, hybrid solutions that further integrate HVAC and water heating that can help homes and businesses reduce energy consumption while increasing comfort.
The ATI laboratory in Indiana is the newest addition to the existing labs in Alabama, Arkansas and Mexico, and significantly expands the electronic controls development and testing capabilities of the organization.
“We are excited to continue our investment in advanced technologies that will allow us to expand our capabilities and improve our speed to market with innovative, energy efficient product solutions,” said Chris Peel, senior vice president and COO for Rheem. “The Advanced Technology Integration lab in Indiana will substantially increase our capabilities in the areas of electronic controls and integrated systems development, which is critical to our long-term growth strategy.”
The ATI organization is led by Mike Branson, director, advanced technology integration for Rheem. “Rheem’s vision of integrated systems can be paralleled to recent developments in consumer electronics, automotive electronics and medical devices. Indiana is a center of development for these industries and a natural location to attract cross-industry experience and talent. Additionally, the Midwest has numerous engineering and research universities which will be a further resource for ATI initiatives,” said Branson.
Visit www.rheem.com.
Taco tops off new Innovation & Development Center
Cranston, R.I. —Taco marked an important milestone in the construction of its new Innovation & Development Center, the centerpiece of its $18-million expansion project, with beam raising and topping off ceremonies last week.
Company president & CEO John Hazen White Jr. was joined by family members, Taco employees and the crew of Ajax Construction of Harrisville, R.I., as the center’s structural steel frame was completed and the final “topping off” beam, which was signed by all of Taco’s employees, was laid in place.
The Taco Innovation & Development Center will consist of a 24,037-square-foot addition to the current building. It will be a state-of-the-art learning and training environment, complete with new classroom spaces, conference rooms, a business center and functional labs for testing and teaching.
Taco’s existing building will undergo extensive renovation to advance the comfort, functionality and productivity of its reception area, employee cafeteria and office areas. All renovations will include new energy efficient lighting, natural light and the very best in indoor comfort. The Center will utilize, display and provide a hands-on learning environment for the best equipment and systems that today’s HVAC industry offers for comfort, efficiency and sustainability. The HVAC products and systems will be visible throughout the entire facility, forming “Living Laboratories” that allow for close-up viewing, hands-on learning and teaching.
The LEED project, slated for completion during the fall of 2012, will provide the space Taco needs to grow and remain competitive while remaining in Rhode Island, where the company has been operating since 1942.
Visit www.taco-hvac.com.
Gerber launches blog
Woodridge, Ill. —Gerber Plumbing Fixtures LLC’s new blog, “Professional Performance,” is dedicated to providing useful information pertinent to the plumbing community, including water tips, product news and successful ways to grow your business. The blog is also listed on the Trades Hub website, which is sponsored by Mike Rowe, host of Dirty Jobs, under “Mike’s Friends.”
Gerber will feature guest posts from plumbers and will frequently post live from various conventions and tradeshows the company attends.
Visit www.professionalperformance.com.
Blackman hosts trade show
Bayport, N.Y. — Blackman Plumbing Supply, a leading distributor of plumbing, heating and cooling supplies since 1921, reported that the company’s 2011 trade show was an overwhelming success. Held at Blackman’s corporate headquarters in Bayport, N.Y., on September 14, the event promised terrific bargains on some of the industry’s most desirable products, plus plenty of fun and food for all, and it didn’t disappoint. Nearly 2,000 attendees took full advantage of special show pricing on plumbing, heating and HVAC supplies on display in 117 booths from more than 60 vendors.
“We’re proud to celebrate our 90th anniversary with our customers, vendors and employees,” said Robert Mannheimer, Blackman CEO and president. “Everyone shared an evening of fun, food and friends. Of course, we were even more pleased to pass on excellent savings from the industry’s leading manufacturers.”
Blackman’s sprawling corporate headquarters were transformed into quite a spectacle with several massive tents; the vendor display tent alone was over 15,000 square feet. Some lucky attendees walked off with an exciting array of door prizes, including flat screen TVs, iPads, camcorders, cameras, blu-rays, coffee makers, iPods, all-in-one-printers, tools, T-shirts, sweatshirts and more. Games included golf, basketball, roulette and even a dunk tank. Attendees were also able to visit numerous venues outside the vendor tent, including manufacturers’ mobile marketing vehicles and displays.
Customers could take tours that showcased Blackman Plumbing Supply's 200,000-square-foot state-of-the-art distribution center that includes RF (radio frequency) technology.
Visit www.blackman.com.