A new focus for the future
BY MARY JO MARTIN
Editorial director
Plumbing manufacturer Swan Corporation, long known for its innovative product design and features, is forging into the future with a renewed sense of purpose -- and with new leadership.
Peter Warren, son-in-law of company founder Jack Moore, stepped down as president of Swan in MONTH, which led to the appointment of his successor Steve Anderson. Warren, who still holds a seat on the board of directors, worked with the board for months beforehand to ensure a smooth transition.
With a 20-year background in the building materials business, Anderson previously served as ceo and president of Enkeboll Designs, Innovative Home Products and Krause’s Furniture. He was also the president of Stanley Door Systems.
In describing his leadership strategy, Anderson said, “I am an idea guy. I see my job as building on the talents that exist within the business and making sure that everything starts with the customer and works its way back into the company. I believe in focus and being very good at a few things at a time. But it all starts with people and getting people involved.”
A new vision
Anderson’s vision and philosophy have led to a new corporate plan of action within Swan. Earlier this year, the company launched Focus 20/10, a three-year plan that is designed to strategically position Swan for the future.
“Focus 20/10 will transform us from a fixture manufacturer into the leader in high-performance surfacing products for the bath in both residential remodel and commercial applications, offering a total solution for our customers, contractors and consumers from researching materials to installation,” said Anderson. “Now, that’s a mouthful, so let me give you some examples of how we are carrying out our plan.
“Focus 20/10 means focusing on our core. That’s core products, core material systems, core competencies, customers, markets, etc. Having a good definition of the areas that we can be the best is key. Knowing what not to do is key also. For example, we recently resigned a stocking program with a large retail home improvement center brand because, no matter how much business it was, it was pulling attention and resources away from our most important core products.
“One more example: This year we launched four new products. All of them were Swanstone, our core material system, shower products, our core products.
Swan’s core products are bath remodeling fixtures for residential remodel and commercial applications. According to Anderson, among its strongest core products are:
- Swanstone glue-up tub and shower walls, shower floors and accessories
- Veritek and high-gloss walls
- Vanity tops
- Kitchen sinks
- Fabricated surfaces.
To better concentrate on these core products, Swan recently rationalized a handful of under-performing products and Swanstone colors.
“Our focus right now is on our core products and customers,” Anderson emphasized. “We aren’t planning to discontinue any products at this moment, but we are continuing to evaluate how well our variety of products reinforces our core.”
Today, Swan’s products are available through 10,000 plumbing wholesaler locations, k&b dealer showrooms and retail home centers. They are also regularly used in housing authority, university and military housing bathrooms and kitchens. Approximately 70% of Swan’s total business goes through distributor channels, with about half of its total business from plumbing wholesalers.
For wholesalers, Swan’s new strategy is designed to promote a stronger supply chain relationships.
“Plumbing wholesalers are vital to our business,” explained Anderson. “They were our original customers, and we have around 4,000 of them that buy from us today. Over the last few years, we have made many changes that provide advantage to wholesalers. For example, after discussing our sales programs with wholesalers, we began offering hundreds of skus as a single item with freight prepaid. That cuts down on their inventories but helps them get the products they need fast and at the right price.
“Our goal is for wholesalers to see us not just as a vendor, but as a partner that they can rely on. They should not be surprised when they see us introduce innovative products, revise programs to make them easier, or cut costs. Those are all part of our plan. They can look for us to make it easier for them to offer customization and installation. We will help them capture commercial jobs with a green Swanstone offering. Look for these changes to come.
An innovative history
Swan was founded in 1964 by Jack Moore when he acquired the rights and tooling to a molded fiberglass, doorless shower called the Shell Shower from a man named Dewey Swan. Jack expanded Swan’s product offering when he invented the market’s first non-ceramic tile tub wall, the rm-58, which is still sold today. He later added a number of molded tub and shower walls, including the innovative SwanTile walls, plus a variety of commodity products. In 1987, Moore invented the Swanstone material system -- a reinforced, high-performance solid surface material -- and introduced it in the form of vanity tops. When he launched Swanstone kitchen sinks, their durable, easy-to-clean material and innovative features like deep bowls and offset drains quickly made them popular with consumers. Of course, Swanstone tub and shower walls, shower floors and accessories are the company’s biggest product line.
With headquarters in downtown St. Louis, Swan still manufactures the vast majority of its products at its Centralia, Ill., plant. In total, Swan Corp. employs approximately 300. “We are one of America’s leading compression molders, either inside or outside of the plumbing fixture industry,” Anderson noted. “Our large manufacturing facility houses our presses and tooling, packing, warehousing, shipping and r&d. We are backward integrated, meaning we manufacture our own molding compound and aggregate chips. With the exception of our granite kitchen sinks, all of our products can proudly bear the title ‘Made in usa.’”
With such a storied history of innovation, Swan is known for its R&D efforts, which remain a central focus within the company.
“Our product development team includes members of marketing, manufacturing and customer service departments,” noted Anderson. “We encourage ideas to bubble up from customers and sales reps, and we survey key customers for feedback during product development. In 2005, we also began working with an outside industrial design firm on our second generation of granite kitchen sinks. That collaboration produced the innovative Ascend kitchen sink that blurs the line between large single bowl sinks and double bowl sinks, giving the user all the benefits of both. It was the only sink of its kind and quickly became one of our most successful product launches.”
Like many others involved in the plumbing industry Swan has been affected by the current state of the housing market.
“Being an American manufacturer in the home remodeling sector is definitely a challenge,” Anderson noted. “However, we are the leader in our niche of high-performance bath remodeling surfaces, so we are not as exposed in a housing market downturn as we might otherwise be. Remodeling has not been as hard hit as new home construction, and our blend of commercial and residential markets has allowed things to be a little more even-keel for us. Our sales are down somewhat from last year, but they are at plan for our fy2008. We are definitely not having the experience that you read about everyday in the trade journals. But we also know that status quo is not an option and we have to continuously improve.”
Anderson is bullish on the future for Swan because of its renewed focus and commitment - and its history of producing high-quality, innovative products.
“There are two things that set us apart,” he described. “First, our core material system, Swanstone, is unmatched in its durability. I believe that no other solid surface can match Swanstone’s impact, heat and chemical resistance. As our tagline says, ‘There is nothing like Swanstone.’
“The second thing that sets us apart is our glue-up tub and shower wall offering. We have what we believe is the most diverse, most flexible line of walls and accessories available from coast to coast, under one brand. We have fiberglass and solid surface, tub walls and shower walls, solid and aggregate, smooth panels and decorative textures. We have a shower wall solution for any budget, any application. In total, that’s an unbeatable combination.”
For more information, visit www.swanstone.com.