Distribution Trends News Roundup
Read the latest briefs in today's distribution news
APR Supply Co. Hosts Congressman Dan Meuser
LEBANON, Penn. — APR Supply Co. recently hosted U.S. Rep. Dan Meuser of Pennsylvania’s Ninth District. The Congressman addressed APR Supply Co. leaders on trending issues: health care and infrastructure. Afterwards, a lively discussion ensued regarding the challenges faced by businesses and industry-specific regulations.
APR Supply Co. employees gave the Congressman and his team a full tour of their 270,000-square-foot central distribution center, along with some behind-the-scenes insights on how the company strives to be innovative in applying best practices to better serve its customers each day.
HARDI Launches COVID-19 Resource
Columbus, Ohio — On March 16, Heating Air-conditioning & Refrigeration Distributors International (HARDI) launched a new online resource to assist HVAC distributors in dealing with the COVID-19 crisis.
Its Economy & Market section includes a video with HARDI team leader of market intelligence Tim Fisher, discussing impacts on HVAC supply and demand. Brian Loftus also contributes a post titled “Your Economy and COVID-19.”
Regarding distributors’ own operations, HARDI has posted three videos for owners and managers. The policy and procedure discussions talk about counter employee; sick employees and proper cleaning; and working remotely and PTO. Visitors can also follow external links including workplace checklists and other prevention and control information.
Other video conversations addressed best practices regarding the Family Medical Leave Act and other miscellaneous workplace concerns pertaining to the virus. Associated links in that section provide additional input about workers compensation in the COVID-19 environment, and timely guidance on other medical issues such as HIPAA and telehealth.
As of mid-March, HARDI had postponed its annual Congressional Fly-In event, with no rescheduled date announced. The association had not announced any change regarding its Focus conference, scheduled for June 3-5 in St. Louis. Members can check the HARDI website for updated resources and events news.
Winsupply Acquires Morgan Brothers Supply
DAYTON, Ohio — Winsupply Inc. has closed on the purchase of Morgan Brothers Supply Inc. Details of the asset purchase were not disclosed.
Morgan Brothers Supply was founded in 1980 and has grown to seven locations and nearly 120 employees to serve plumbing contractors and general contractors, developers, homeowners, and correctional institutions. The company has six plumbing showrooms. The founders of the company, Russell and Peter Morgan, sold their interest in the company to Winsupply.
Arnold Hardy, previously sales manager at Morgan Brothers, became president of the company, which will continue to do business as Morgan Brothers Supply. Hardy has 36 years of experience in the plumbing wholesale industry, including his last 25 years at Morgan Brothers. He plans to purchase equity in the newly acquired company and share ownership with Winsupply Inc., the majority owner.
“Morgan Brothers Supply has delivered sales growth that has easily exceeded the pace of overall economic growth in the highly attractive Florida market,” said Monte Salsman, president of Winsupply Acquisitions Group. “The credit goes to the staff under Arnold, who are highly trained, knowledgeable, and solutions-oriented people providing high levels of customer service. The leaders at each of their locations in Ocala, Daytona Beach, Melbourne, Gainesville, Crystal River, Jacksonville, and Orange City average nearly 20 years’ experience each.”
The company’s legal name becomes Winsupply of Daytona Beach, FL Co., but will continue to do business as Morgan Brothers Supply.
HARDI Distributors Report Slight Growth In Sales and DSO
COLUMBUS, Ohio – Heating, Air-conditioning & Refrigeration Distributors International’s (HARDI’s) monthly TRENDS report indicated that the average January 2020 sales performance by HARDI distributors was an increase of 0.7 percent.
The average annual sales growth for the 12 months through January 2020 is 5.5 percent.
“Heating degree days were below normal in 47 of the 48 states,” said HARDI Market Research & Benchmarking Analyst Brian Loftus. “The average sales growth for the month was about flat to start the new year, while the dollar-weighted growth was 2.5 percent. The average annual growth rate ticked up a bit to 5.5 percent.”
The Days Sales Outstanding (DSO), a measure of how quickly customers pay their bills, is near 51 days.
“The DSO was a bit higher than the recent Decembers,” said Loftus. “This is the third consecutive month that the DSO has been about a day or more higher than the prior year.”
“The economy has been growing in the 2 percent area. The consensus expectation before the impact of COVID-19 was for that pace to ease in the new year,” said Loftus. “The financial markets seem to be indicating those expectations need to be trimmed further. The economic data will begin to reflect our interconnected world, like increasing delivery times and inventory shortages.”
Click chart to enlarge
CURRENT GROWTH: HARDI reported that the annual sales growth for the 12 months through January 2020 is 5.5 percent.
USG Earns Honeywell Building Control Systems 2019 Distributor of the Year Award
HAWTHORNE, N.J. — Universal Supply Group, based in Hawthorne, has earned the 2019 Honeywell Building Control Systems Distributor of the Year award. The annual award is based on Honeywell’s Authorized System Distributor (ASD) buying volume, sales growth, and value added services, among other criteria. The top 10 ASDs whose performance achieved the highest scores were also awarded the Diamond Distributor distinction for 2020.
“It’s a proud moment to be named 2019 Distributor of the Year as well as a Diamond Distributor again for 2020,” said Pete Gasiewicz, CEO, CCOM Group. “Our team has been committed to Honeywell for decades. The strategic relationship between Honeywell and CCOM Group allows us to provide the highest level of service to our contractors.”
Universal Supply Group has distributed Honeywell products since its inception in 1940 and started working with the commercial controls division in 1978, when Universal Energy Products (UEP) was founded, supporting commercial jobs and fabricating control panels in house in Hawthorne. USG has received the Diamond Distributor award every year for the last six years and more than a dozen times in total.
This award follows that of CCOM Group, USG’s parent company, receiving the Harold V Goodman award in 2019 for its performance in 2018.
Belimo Names ICD Building Automation Platinum Distributor for 2020
PITTSBURGH — ICD Building Automation earned Platinum Distributor status for 2020 from Belimo.
Belimo’s Platinum Distributor program recognizes distributors that are proven to provide superior controls expertise, application knowledge, and overall customer service.
“ICD Building Automation is proud to continue representing Belimo as a Platinum Distributor,” said Jim Semler, director of ICD Building Automation.
“Belimo is recognized worldwide for developing and manufacturing industry-leading sensors, control valves, and damper actuators. Our longstanding partnership with Belimo benefits ICD Building Automation customers, who rely on our trusted product knowledge, technical support, warranty service, and training sessions to improve their commercial buildings’ energy efficiency, reliability, and safety.”
Winsupply Opens Tri State Winsupply in Dubuque, Iowa
DAYTON, Ohio — Winsupply Inc. has opened Tri State Winsupply in Dubuque, Iowa, serving plumbing, heating and air conditioning, water well, and septic contractors in northeast Iowa and southwest Wisconsin.
Ronald Slaats is the president of Tri State Winsupply. Slaats has 29 years’ experience in the industry, almost entirely in outside sales.
“Ronald has an excellent reputation among his customers as a knowledgeable expert,” said Rob Ferguson, president of Winsupply Local Company Group.
“After being an outside salesman for over 25 years and seeing what customers expect of their distributors, I plan on treating them with the utmost respect, with integrity and honesty,” Slaats said. “I also plan on presenting a positive work environment and will encourage personal and business growth, community involvement, and keeping the important decisions local. This will not only help my business grow but also that of my employees and, most importantly, my customers.”
Slaats, along with two other employees, invested in minority ownership of the new company along with majority owner Winsupply Inc. With this co-ownership model, local company presidents have the autonomy and flexibility to decide how best to meet the needs of the customers in their markets. They also share uncapped financial rewards and risks of ownership.
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