Supply House February 2012

Official Publication of the American Supply Association

FEBRUARY 2012

TO THE RESCUE

Master distributors gain influence

Bob Cooper, president of PVF master distributor Smith-Cooper International

> ASA Roundtable Interview: Part 2 PLUMBING – PVF – HYDRONICS – HVAC WWW.SUPPLYHT.COM

> Ferguson Recovers From Tornado

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FEBRUARY12 Volume 54, No. 12

COLUMNS > LETTER FROM THE ASA PRESIDENT ....... 30 Scott Weaver

> HYDRONICS TALK .. 36 Dan Holohan

> SHOWROOM

24

STRATEGIES ............. 40 Hank Darlington

12 To the rescue Master distributors continue to gain industry influence. .......................

Product Preview..........

10

Fast forward, part 2

12 10

Leading PHCP wholesalers talk about customer relationships, social media and health care reform in the second of a two-part series .....................

Knocked down, but hardly out Leadership and resourcefulness help Ferguson’s Raleigh, N.C., location rebound from tornado damage. .......................

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WINNER

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SUPPLYHOUSE TIMES

FEBRUARY 2012

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DEPARTMENTS > Down The Pipe ....... 6 Industry News, Bath & Kitchen, HVAC/R & Hydronics, Technology See www.supplyht.com for extended coverage of news.

> The PVF Beat..............8 > ASA News.............. 32 > Classifieds ............ 44 > Ad Index............... 46 > In Closing ............. 48 Mike Miazga

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ON THE COVER Bob Cooper, president of industrial PVF master distributor Smith-Cooper International. Photo courtesy of Smith-Cooper International.

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Walton Company's "REPS", heavy-duty Pipe, Stud and Screw Extractors, do the job that makeshift methods can't. Broken pipe fittings can be removed quickly and easily to save mating fittings from costly damage. The tool makes a strong, four-point grip without hammering or pounding, and it releases instantly. Walton's "REPS" easily remove all classes of pipe sizes from 1/8" to 2" and stud and screw sizes from 3/8" to 3 1/2". These handy tools are available as individual pieces or in 4 standard sets, each packed in a sturdy plastic case.

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FEBRUARY 2011

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PEOPLE ON THE MOVE American Supply Association Education Foundation hired Doug Dillon as its director of professional development. Dillon will be responsible for formalizing the new education and training advisory model for the Foundation, as well as overseeing the Branch Manager CertificaDillon tion Program. Affiliated Distributors promoted Jack Templin to president of its industrial supply division and hired Jeffrey S. Beall for the new position of president of PHCP divisions. The National Kitchen & Bath Templin Association appointed Alan W. Zielinski to president. Zielinski currenly serves as president and CEO of Niles, Ill.-based Better Kitchens. Knoxville, Tenn.based Modern Zielinski Supply hired Rob McInturff as its Johnson City, Tenn., branch manager. Madison, Wis.-based First Supply named Ted Meyer general manager McInturff of the company’s facilities in Dubuque and Cedar Rapids, Iowa, and Platteville, Wis. LA-CO Industries/Markal Co. named George Bowman its new president. PVF distributor Deacon Industrial Supply Meyer hired Shawn DeLuca as an industrial account executive. He will develop Deacon’s presence and build new and existing customer relationships in the Marcellus Shale region. BrassCraft promoted George Werner to vice president of retail sales. Werner began his career with the Masco Corp. family of companies in 1994 as a sales manager at Alsons Corp. Bradley Corp. appointed Bryan, Erik and Christopher Mullett to the company’s board of directors. It’s the fifth generation of the Mullett family to have board roles with Bradley. Bryan Mullet is the president of Bradley Fixtures; Erik Mullett is vice president of Division 10 sales; and Christopher Mullett is regional sales manager of Division 22.

OBITUARIES Mike Bales, president of Salem, Ore.based Prier Pipe and Supply, died Jan. 3 at the age of 58. Former A. O. Smith chairman and CEO Thomas I. Dolan died Dec. 25 at the age of 84. Edward R. Hardison, the former president of Canadian Institute of Plumbing and Heating, died Dec. 15.

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SUPPLYHOUSE TIMES

Compiled by John McNally

Dolan

FEBRUARY 2012

American Standard names Gould president and CEO >

American Standard Brands’ growth phase includes a change at the top of its management structure. The company recently named Jay D. Gould its new president and CEO. Gould replaces Don Devine, who left to pursue other opportunities. Gould most recently was president of the Home & Family Group of Newell Rubbermaid and previously held senior executive roles with The Campbell Soup Co., Coca-Cola and General Mills. “American Standard successfully weathered the challenging business environment over the past several years, Gould emerging as an even stronger business and now prepares for a more assertive growth agenda,” Gould said. American Standard Brands Chairman of the Board Tom Taylor praised Devine’s work, which included successful mergers of American Standard, Crane Plumbing, Eljer Plumbing, Safety Tubs and Decorative Panels International. “While Don has done an outstanding job in building and repositioning the company, Jay will lead the next phase of the company’s development, which will focus on growth,” Taylor said.

Briggs is purchased by its own management

>

Bob Robison and other U.S. executives with Briggs

Plumbing Products saw the opening and seized it. Six months later, the management team completed a deal with Santiago, Chile-based Cisa to purchase Briggs Plumbing, making it a fully American-owned company. “We realized there was a huge opportunity and we started to pursue it,” Robison told Supply House Times. Robison, Briggs’ vice president of sales and marketing, said it was a “constant struggle” over the last 14 years with Briggs being owned by a foreign company. Briggs’ success Dockery and market share was at the mercy of the South American market, he noted. “The biggest (problem) was when business in South America was going well, they weren’t going to give us as much product,” Robison said. “That limited us many times.” Briggs plans a major new product launch, a freedom Robison and President/CEO and co-owner Chuck Dockery said they find refreshing. “We truly are a new company focused on new products, quality and service,” Dockery said. Robison

PVF BEAT

N E W S , I N S I G H T S A N D B A C K G R O U N D I N F O R M AT I O N O F I N T E R E S T T O P V F P E O P L E

Compiled by John McNally [email protected]

Service center shipments growing at slower rates

>

Service center shipments in November 2011 grew at slower rates compared to October 2011 numbers, the Metals Service Center Institute reports. Centers shipped 3,301 thousand tons of steel products in November, a 10.6% increase from the same time a year earlier. Last year, 37,753 thousand tons were shipped, a 15% increase over 2010. Steel inventories were at 8,100 thousand tons in November 2011, an increase of 11.3% over November 2010, but a 3.3% decrease compared to October 2011 numbers. At the current shipping rate, there is 2 1/2 months of supply on hand, a 9.7% increase over 2010. The World Steel Association reports the United States produced 7.2 million metric tons of crude steel in November, an increase of 11.8% compared to November 2010. World crude steel production in November 2011 for the 64 countries reporting to WSA was 116 million metric tons, which represents a 1.1% increase over November 2010 data.

McJunkin Red Man taking stock public

>

MRC Global Inc., formerly McJunkin Red Man Holding Corp., recently announced it has filed a registration statement with the Securities and Exchange Commission related to a proposed initial public offering of its common stock. The number of shares to be offered and the price range for the offering have yet to be determined, however a story in the Charleston (W. Va.) Daily Mail notes the registration statement estimates the proposed maximum aggregate offering will be $100 million. An application will be made to list the common stock on the New York Stock Exchange under the symbol “MRC.” In other MRC news, the company recently signed an agreement to acquire the operations and assets of Australian-based OneSteel Piping Systems. The transaction is expected to close in the first quarter of this year and carries an acquisition price of AUD $67 million. Effective as of closing, OPS will operate as MRC Piping Systems Australia. The Sydney-based acquisition follows the acquisition of Melbourne-based MRC Transmark Australia in October 2009, and Perth-based MRC SPF in June 2011.

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Send new product information and photos to Suzette Rubio at [email protected].

Potable water mixing valve Taco’s 5120 Series domestic water mixing valves meet new California and Vermont codes requiring low lead in all potable water pipes and components. Taco’s lowlead series mixing valves are available as a sweat union connection in 1/2”, 3/4” and 1” sizes. The NSF 61-certified valves, designed for installation at the water heater, have a snapon protective cover and require no maintenance. The high-flow, low-head loss valves permit domestic water storage at temperatures high enough to kill harmful bacteria and will mix-down delivery temperatures to a safe 120° F or less.

1

1

Taco. www.taco-hvac.com

2

Trapezoidal bathtub The trapezoidal Paiova Monolith bathtub by Austrian design firm EOOS has been updated as a seamless block with clean, continuous lines. An apron leads from the tub’s interior all the way down to the floor, removing the need for paneling and rim and providing ample space for bathroom items and tap fittings. Features include air and water jets to full spectrum LED lights and waterproof speakers, which all can be operated with a practical floating remote control.

2

Duravit. www.duravit.us

Instant hot water dispenser InSinkErator’s instant hot water dispenser, Indulge Modern, is designed to represent today’s pure, minimalist décor. Modern is available now for wholesale, but will be available to consumers starting summer 2012 in both hot/cool and hot-only water models. The dispenser provides additional efficiency for consumers by releasing both hot and cool water from a single handle. Its unique Stay-on feature also allows the faucet to remain open for easy dispensing of cool water, making it an ideal addition to any kitchen sink or wet bar. Available in chrome and satin nickel.

3

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InSinkErator. www.insinkerator.com

4

Video inspection system with SD/USB adapter The Gen-Eye SD video pipe inspection/location system from General Pipe Cleaners now includes both an SD card reader and a SD/USB adapter to quickly transfer video files to a laptop computer in the field. The Command Module features an SD card reader to store video or still images, an 8” LCD color monitor and a full keyboard for on-screen titling. All are safely contained in a padded 10-lb. package. Other added features: a builtin voice over microphone and switch, LED dimmer control, camera test port, video- and audio-out connections for external recording device, AC and DC power cords, and a storage compartment for power cords, camera tool and remote controls.

4

General Pipe Cleaners. www.drainbrain.com

Dezincification-resistant brass ball valve Jomar Valve, a division of the Jomar Group, has engineered and developed a dezincification-resistant brass ball valve, T-100NGDZ. In water supply systems with high levels of O2 and CO2, a corrosive process called dezincification leaves forged brass ball valves at risk to leakage due to a chemical interaction that selectively removes the zinc found in most brass alloys. The T-100NGDZ offers the traditional benefits of forged brass without dezincification compromising the body of the valve over time.

5

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Jomar Valve. www.jomar.com Continued on page 38.

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The economy has played a big role in wholesalers turning more and more to master distributors to fill orders. Photo courtesy of Your “other” Warehouse

Master distributors continue to gain industry influence. By Mike Miazga [email protected]

D

ennis Holden was in a major jam. Holden, the owner of Las Vegas-based Ideal Supply, had a customer with an urgent need for valves and fittings used in conjunction with pumping chocolate syrup at a granola bar factory in New Mexico. Holden did not have the valves and fittings in stock. This was Friday afternoon and the items had to be on-site the next morning. “They lose $50,000 an hour if they aren’t pumping,” Holden states. Holden quickly turned to Los Angeles-based master distributor Industrial Valco. The valves and fittings left Industrial Valco’s warehouse Friday night and arrived at the factory Saturday morning at 7:30. Crisis averted. Smiles abounded. This type of success story has become a familiar refrain with PHCP wholesalers. As the economy continues its arduous climb out of a deep financial sinkhole, master distributors — by definition distributors who only or mainly sell to other wholesalers — are gaining influence by not only stocking those hard-to-find items, but by presenting a customer service package that ensures both the wholesaler and end user walk away satisfied.

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FEBRUARY 2012

Filling in the blanks It’s no secret why the importance of master distributors is more profound in current times. Look no further than the recent economic downturn, which has resulted in widespread inventory reductions. “Due to the recent recession, pressure was put on the entire PVF industry to decrease inventory levels,” states Bob Cooper, president of Commerce, Calif.-based industrial PVF master distributor Smith-Cooper International. “The same applies to master distribution, but it added another level of expectations by our customers. With low inventories at the wholesale level, master distributors were expected to have inventory available at all times.” Chip Devine, vice president of multi-channel business services at The Stock Market, sees lower wholesale inventories as one key factor, but also is noticing a trend where wholesalers are exploring new frontiers and thus relying more heavily upon master distributors to help with the transition. “Many distributors are now diversifying and entering new businesses they were not involved in the past,” he states. “The access to other products through master distribution has made these transitions easier.”

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Master distributors thrive by stocking hard-to-find items. The Distribution Point Customized Service Representative Kelli Wales displays Saniflo’s Sanishower water pump.

In other instances, wholesalers may encounter vendors who require certain minimums on items. “What if the distributor doesn’t need all that merchandise or has cut back on quantities?” asks Dale Landy, owner of Great Neck, N.Y.based Kolson, a master distributor of decorative hardware and bath fittings. “A vendor could be out of stock and it gets back ordered. Ordering from a master distributor is a good idea. Foremost, you want to satisfy the customer. You want happy customers and you want repeat customers.” David Spence, an inside salesman at Roanoke, Va.-based CMC Supply, ran into the vendor back order dilemma recently with a customer in dire need of a faucet. “I couldn’t find it anywhere and the manufacturer was out of it. There was a long lead time of four to six weeks,” he says. Spence turned to Moody, Ala.-based master distributor The Distribution Point. “They had the faucet in stock, shipped it out that day and the customer had it in two days,” he adds. “Master distributors make us look great.”

New-age customer service Just like retailers, many master distributors are developing e-commerce programs designed to provide another way to connect with their customers and provide an added outlet to place orders. “As long as master distributors are participating in e-commerce distribution and fulfillment, they are going to enjoy growth,” states Mike Hogenmiller, general manager of Baton Rouge, La.-based master distributor Your “other” Warehouse. “It’s all about how the Internet is going to grow and everybody is betting it is going to continue to grow.” Foxborough, Mass.-based Metropac Industries, like a growing number of master distributors, has a special web portal for customers where an ID and password are required to access line quantities and place orders. “It’s accounting for more than 50% of our sales,” Metropac Vice President Bryan Cosentino states. “Our Web order-entry system gives our customers another option to utilize in order to conduct business with us. It allows them to access our real-time inventories, pricing and images, cross-reference information and place orders. When our customers use the Web order-entry system, we pass along extra discounts. It’s a win-win situation for everyone.”

Mollie Donohue, The Distribution Point’s director of marketing, says while e-commerce sites are helping tremendously, traditional ordering methods cannot be ignored. “There is still the strong need for people to call and have that one-to-one contact,” she notes. “We’re customizing those different services and needs. Our job is to get info to the customers and help them the best way possible.” Landy, whose Long Island facility features two 5,000-sq.-ft.-showrooms, falls into that traditional customer contact category. Not a fan of e-commerce sites, she feels there is no substitute for human interaction with well-trained staff in a brick-and-mortar showroom environment. “The human contact aspect is still very important. They can walk in here and comfortably select their merchandise,” she says. “If a problem ensues afterward, we are here to help. People will remember how well you solve their problems.” Solving customers’ problems includes having a wide variety of lines available through master distribution channels. “Master distributors are expected to have it in stock for immediate shipment. Our customers are supply houses. They usually have the A and B items, not many C’s and no D’s,” says Ernie Coutermarsh, senior vice president at Amherst, N.H.-based CD Sales. “As a master distributor, it is our business to stock A through D. We actually get more calls for D items. If you tout yourself as a master distributor and someone calls and asks for C’s and D’s and you don’t have them, they will say, ‘You are no better than me. We both don’t have it.’”

Need it yesterday Part of conquering the customer-service Rubik’s Cube for master distributors is getting orders to customers in as short a time frame as possible, which entails providing competitive and efficient shipping programs. “We had a plumber come in with specs for an American Standard flushvalve toilet,” states Judy Newman, owner of Covenant Plumbing Supply in Fayetteville, Ga. “They needed to get an inspection done and needed that toilet ASAP. We’re not an American Standard dealer. We ordered it from The Distribution Point. These are the times for us that are most important. You don’t want to send them somewhere else. If we are their supplier, they expect us to supply. Hopefully, our customers remember we went the extra mile.” Photo courtesy of The Stock Market/Ferguson

Photo courtesy of The Distribution Point

Master distributors

In an extremely competitive environment, master distributors are constantly looking for ways to increase order-fulfillment efficiencies. Continued on page 18.

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SUPPLYHOUSE TIMES

FEBRUARY 2012

Impatience is a beautiful thing.

INTRODUCING THE NEW INSINKERATOR® INDULGE™ MODERN HOT WATER DISPENSER. At first glance, you might think it’s just another pretty faucet. But you’d only be half right. Its dual-function handle gives you hot (200ºF) or cool, filtered water instantly. Perfect for tea. Cooking. Cleaning. And people who aren’t fond of waiting. To learn more about our latest designs, visit insinkerator.com/modern.

©2012 InSinkErator, a business unit of Emerson Electric Co. All Rights Reserved.

Master distributors Continued from page 14.

Demand increases for PVF master distributors energy prices will continue to be a driving Merit Brass Executive Vice President Alan force in the industrial PVF market, we hope that Lipp says look no further than metal prices metal prices stabilize. If recent years are any to understand why industrial PVF master indication, I would anticipate increases in the distributors are essential players in the industry. future.” “Intense price volatility, particularly in Lipp adds: “High oil prices continue to drive the stainless-steel side of our business, is the industrial PVF sector’s demand growth. the primary reason why many distributors Epic political dysfunction notwithstanding, the continue to reduce their physical inventories,” election year 2012 should prove to at least he states. “This general aversion to risk has maintain healthy demand levels of the last been a catalyst for increased dependence on couple of years. If $100-plus oil prices persist, master distributors.” it would not surprise me to see nickel prices That means having a comprehensive menu defy most prognosticators’ forecasts and beat of inventory available to wholesale customers. last year’s average price ($10.38/lb.).” “The just-in-time inventories necessitate lower With demand fluid, industrial PVF master investment dollars, but it highly commoditizes inventory,” notes Rob Raban, president of Los Metal, oil and natural gas prices are helping drive distributors are making sure they are seizing business to industrial PVF master distributors. the opportunity with superior customer service. Angeles-based Industrial Valco. Photo courtesy of Smith-Cooper International “With the enhanced importance of master “When inventory is commoditized, it creates distributors have also come increased service shortages on C and D items that are not able to be tabs on the swings in natural gas and oil prices. “We would all like to see oil stabilize, but it’s expectations throughout the PVF distributor stocked to meet demand swings. Those demand swings, which happen every day, create the my belief that the oil industry is going to be a community,” Lipp states. Raban adds: “It’s our job to be prepared to very volatile industry for many years to come,” opportunity for master distributors to exist.” In addition to keeping an eye on metal prices, states Bob Cooper, president of Commerce, do business the way our customers want to do industrial PVF master distributors keep constant Calif.-based Smith-Cooper International. “While business.” Spence adds: “When there is a customer sitting in front of you asking when can I have it here, it’s nice to know you can tell them you should have it for them tomorrow. It’s a great benefit for that guy on the commercial job that has his back against the wall and needs something really fast.”

Masters of the future

Master distributors are investing in their work forces. “You can’t have a great company without investing in your people,” The Stock Market’s Chip Devine states.

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Photo courtesy of The Stock Market/Ferguson

Most in the industry see more small glimmers of light at the end of the recessionary tunnel. As the economy continues its recovery, wholesale inventories figure to remain lean, leading to a continued reliance on master distribution.

“We work with big and small companies with different needs that are still dealing with this economy,” Donohue says. “We’re looking to develop stronger relationships with them and find their needs and provide them what they need as quickly and as effortlessly as possible so they can win a sale for themselves.” In a day and age where solutions are expected yesterday, master distributors also are staying ahead of the curve by heavily investing in their work forces. “Our employees are our main priority,” states Charlie Roche, vice president of sales at Worcester, Mass.-based industrial PVF master distributor NAPAC. “We have a small group, but we have a very good group. We have the same core of people that have been here the last 10 years. There’s familiarity. Customers know the person they are talking with. They know that same person is going to go out to the warehouse and follow up on their order.” Devine feels employee investment should never have a qualifier attached to it. “It’s not just important to invest in your employees in these times,” he says. “It’s important to always invest in your employees all of the time. You can’t have a great company without investing in your people.” Newman recalls a recent customer who came in with a broken plumbing fixture purchased at her supply house. Through her master distributor relationship, the problem was solved quickly and satisfactorily. “You can’t let a customer stand there with something broken,” she says. “They paid for something and it broke three months later. Our job is to see they are satisfied and taken care of. That is where your master distributors are priceless. I wonder how we get by without them?” <<

PHCP wholesalers (from left) David Finkel, Rick Schwartz, Reggie Hickman, Patrick Hughes, John Strong and Joe Poehling were part of a special roundtable discussion at the Bellagio Hotel in Las Vegas in September.

Leading PHCP wholesalers talk about customer relationships, social media and health care reform in the second of a two-part series. By Bob Miodonski [email protected] Photos by David Cherkis Photography

I

f the worst of the recession is a thing of the past, so is doing business as usual. Wholesalers realize they must continue to adapt their companies to changing conditions. In part 1 of this article, a panel of leading distributors addressed issues ranging from rapidly evolving computer technology to improving relationships with industry manufacturers. The wholesalers met during NetworkASA 2011, the American Supply Association’s annual convention, last September in Las Vegas. The group that gathered Sept. 15 consisted of: David Finkel, president and CEO, Davis & Warshow, New York; Reggie Hickman, president and COO, Brock-McVey, Lexington, Ky.; Patrick Hughes, vice president of purchasing, Jabo Supply, Huntington, W. Va.; Joe Poehling, president, First Supply, Madison, Wis.; Rick Schwartz, CEO and chairman, WinWholesale, Dayton, Ohio; and John Strong, president, Economy Plumbing Supply, Indianapolis. In part 2, topics range from what keeps wholesalers awake at night to social media to changes coming in the next five years, including health care reform.

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Topic: What daily business issues keep you awake at night? Issues that worry wholesalers mostly can be divided into external and internal categories. The government falls into the first group and employees into the second. “Government’s inability to lead is one of my issues,” Strong said. “And it’s all governments, not just one of them. That results in uncertainty, and that uncertainty affects everything. It affects our inability to borrow money.” The uncertainty creates a ripple effect, Schwartz said. It influences the sentiment of WinWholesale’s contractor customers and that, in turn, has an impact on the attitude of end users. Other panelists had more specific complaints about governmental agencies. Hughes sees regulations from DOT, EPA and OSHA increasing their presence in the distribution market “with no checks and balances with which to ‘regulate them.’”

ASA Roundtable Part 2 “Effective leadership and the future management of our industry is one of the biggest problems we face, and I lose a lot of sleep over it,” Schwartz added. “This is a really respectable and fun industry, and it’s a great place to make a career. But our career path is almost invisible. People just don’t look at our industry as challenging or sexy.” Strong told a personal story about his 23-year-old son who received his undergraduate degree and got a job in environmental science. “He does not find our industry sexy, and I encouraged him to do what he wants to do,” Strong said. “Now he is in grad school and all his classes are wastewater management and fluid dynamics of waste. I tell him: ‘You’re doing all you can to get away from our industry and you’re still coming back to it.’”

Topic: How have the Internet and social media affected your business? Jabo Supply’s Patrick Hughes (middle, in light shirt) shares a laugh with fellow PHCP wholesalers. Hughes is concerned with increased governmental regulation in the distribution market.

“The EPA is still hammering the coal market, and that’s something we’re watching closely,” he said. “Hiring and finding highly qualified people is another issue,” Hughes added. Finkel called people a company’s most important asset. Finding, hiring and training quality people to become the next generation of wholesale distribution employees is his biggest issue.

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While wholesalers worry about the distribution industry’s future leaders, they see the younger generation stepping into leadership positions at their customers’ businesses. These new leaders are driving the industry’s use of the Internet and social media, Schwartz said. “Just like we have an instant need to respond to our customers, they have an instant need for information,” he explained. WinWholesale recently conducted focus groups for its customers who are plumbing, HVAC and electrical contractors. The wholesaler was surprised by how many of its customers are using the Internet specifically as a business tool. “We were underestimating how much they were using it,” Schwartz said.

Hughes added: “The Internet has become a vital part of searching and researching products and services for ourselves and our customers.” Both First Supply and Davis & Warshow maintain separate areas on their websites for their showroom customers and trade customers. Poehling said the wholesaler needs to vary the conversation depending on who the audience is. Davis & Warshow, however, is rethinking its strategy of keeping the areas separate. “I’m leaning toward the side of keeping the site unified,” Finkel said. “I want to let the customer know that behind the beautiful showroom storefront location there’s a huge organization that’s an industrial company, which can deliver product and has hundreds of employees. We’re an employee-owned company, and we’re also trying to convey that message.” A website that Schwartz recommends distributors visit is www.plumbingzone.com. It’s a forum for plumbing contractors. “You can find out what your customers think of you because they blog each other, and ask each other what they think of this or that supply house,” Schwartz said. “A contractor will go into a city to do a job and get a review of the different supply houses in town. You read it and say, ‘Wow, that’s a pretty frank comparison.’” Blogs are just a part of it. Ready or not, social media is taking hold in the wholesaling business, the panelists agreed. “We see it happening,” Schwartz said. “It’s really gaining steam, and we’re doing a lot in all the social media areas: Facebook, Twitter and some YouTube videos to explain our organization. We’re using LinkedIn to get people connected. “It’s interesting to see the momentum building. One of our key manufacturers, Charlotte Pipe, has a Facebook page. Who would think a piping manufacturer could drive interest on Facebook?” WinWholesale assigns employees to tend to its social media sites, Schwartz said. They get what he calls “critical feedback” from customers and can respond instantly as needed. “We do the same thing at our company,” Finkel said. “It was a long-term process to engage in Facebook and Twitter. Until we had someone who was going to monitor it and actually use it, we didn’t want any part of it.” While Finkel said social media may not affect his business significantly in the short term, he does believe companies need to establish a foothold. “You have to control the message that’s going out there,” he said. “You just can’t have a bunch of employees posting and tweeting things that don’t follow your corporate policy. You have to have a unified set of goals and use these tools to meet them.” Panelists see other uses for social media. Hickman said social media may be a good way to communicate with employees. Although Brock-McVey is not using it for this purpose today, the company will look at ways to do it. Strong sees social media as a competitive tool. “You ‘Friend’ your competitor on Facebook and find out what’s going on and who their best employees are,” he said.

Topic: What issues do you see coming down the road in the next five years? Technology will continue to change the way wholesalers interact with their customers in the next five years. “The relationships we created and fostered in the past are going to be

different with the next generation of contractors,” Schwartz said. “We have to make sure we stay on top of that change. We’re going to manage those relationships differently with technology, and we can’t do it the way we’ve always done it. It will be very important that we prioritize our investments in technology correctly to address that change, or we’ll have a problem managing those relationships.” Having the right Davis & Warshow President and CEO David people in place is the Finkel believes the use of social media websites is becoming more prevalent in the key to managing change, PCHP industry. Finkel said. He already can see relationships developing between younger contractors and Davis & Warshow’s younger employees. “These new customers are texting their orders — forget email because emailing takes too long,” he said. “These are the types of things our people need to be prepared for. You can deal with it in training but the most important thing is to get people who can handle change and people who can keep up with it.” For wholesalers to realize true efficiencies, they’ll have to find a way to integrate that texting technology directly into their operating systems, Poehling said. All the technology changes will increase the need for education and certification. ASA U — the association’s educational program — will help wholesalers accomplish these goals, he noted. Finkel foresees a day in the near future when contractors will use apps on their smartphones and tablets to get product information. “Our manufacturers have to be forward thinking,” he said. “Our customers will gravitate toward the manufacturers and wholesalers who can support those apps and technology.” Jabo Supply is preparing for the growing demand for oil, coal and gas products, Hughes said. This demand is in the forefront of the PVF distributor’s focus and business plans. “The energy markets will be the dominant factor for years to come,” he said. “Coal and natural gas, specifically the Marcellus shale gas reserves, are having a huge impact in our region.”

Topic: How far along are you in planning for health care reform? Health care reform is another issue coming down the road, although none of the panelists knows exactly what the program will eventually require. “It’s wait and see,” Hickman said. “Even when we find someone who we think can give us trusted information, that person says at the end of the Continued on page 26.

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track the changes and do what it needs to do to maintain its grandfather status. “Economy Plumbing Supply is very small and would fall under the 50-employee category,” Strong said. “So, it’s really wide open what they will require of us. We’ve historically maintained our benefits but they have declined, unfortunately, with our contributions and such. You have to

conversation, ‘Here are Options 1, 2 and 3, but the truth is we don’t know.’” Hughes agreed: “There remain way too many uncertainties. We will be in a ‘wait and see’ mode until things really start to heat up beginning in 2014.” Poehling expects numerous legal challenges and changes to the health care reform act before it goes into effect. First Supply will continue to

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monitor it because the final beast is going to be so much different than it is today.” Strong believes new requirements will increase his company’s health care costs. “The government is mandating that private insurers provide this package, and they have to be able to make money,” he said. “The cost will rise with all the additional insured people on their books who perhaps were not on there before. You’re taking on all the uninsurable people with pre-existing conditions and putting them on there.” Finkel took a different view. Companies will no longer be able to opt out of providing health care coverage for their employees. This could have the dual benefit of stabilizing Davis & Warshow’s health care costs as well as leveling the playing field with some of its competitors, he said. “Every September, and the two months prior to, we’re waiting to see how much the health care insurance company is going to hike our rates,” Finkel said. “I looked back and costs for family coverage have tripled in the past decade. That’s unsustainable. This whole process, whatever comes out of it, will slow down that escalation.” One area where all the panelists found common ground is the value of providing preventive health care to their employees. Finkel and others believe wellness programs could make the biggest impact on lowering their costs. “We need to get on the proactive side of health care,” Schwartz said. “I think the younger generation likes that, and it’s a good return on our investment.” First Supply began its wellness program Jan. 1, and it is mandatory for all employees, Poehling said. Jabo Supply has had its wellness program for a couple years, Hughes said. “We’re seeing benefits as far as people quitting smoking, losing weight and taking better care of themselves,” he said. “Employees are buying into that. They really are.” NetworkASA 2012 will take place Oct. 17-20 in Orlando. With the next presidential election just three weeks later, wholesalers will have more to talk about what lies ahead. <<

MISSED PART 1? Log on to www.supplyht.com to access the first part of the ASA roundtable discussion. Vertical installation with Skyline termination

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Knocked down,

but hardly out

The roof at Ferguson’s warehouse and showroom in Raleigh, N.C., collapsed and sustained major damage after a tornado ripped through the city April 16, 2011.

Leadership and resourcefulness help Ferguson’s Raleigh, N.C., location rebound from tornado damage. By John McNally [email protected] Photos courtesy of Ferguson

S

haron Cooper was in the woods searching for her golf ball at a charity tournament in Charlotte, N.C., as her cell phone was silently receiving phone calls. By the time Cooper was able to look at her phone she had missed eight calls. Something big had happened. Back in her hometown of Raleigh, N.C., a mile-wide tornado ripped through town on April 16, 2011, with wind speeds reaching 150 miles per hour. The roof on the Ferguson warehouse and showroom location — where Cooper is the general manager — collapsed. Cooper quickly raced back to Raleigh to assess the damage and start a plan of action. She wrote down four key points of action: s!SSUREALLASSOCIATESARESAFE s3ECURETHEFACILITY s"UILDAPLANTOSERVICETHEMARKETFROMEIGHTOTHERSTORESBY!PRILAND s #OMMUNICATE THE PLAN TO INTERNAL AND EXTERNAL INDIVIDUALS AS SOON AS possible.

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“I had three hours to think about it,” Cooper says of her ride back to Raleigh. Thankfully, the people inside the building when the twister struck at 4:30 p.m. found shelter in a store bathroom and nobody was injured. When the tornado hit, 12 people were in the facility, but Operations Manager Mike Cassidy was able to get everyone into a bathroom to ride out the situation safely. Cooper arrived back on-site at 7 p.m. and met with her management staff. 4HENEXTFEWHOURSWEREINTENSE3OMEPEOPLEBEGANLOOTINGINTHERAVAGED area and Cooper knew that Ferguson would be a prime target with its large copper supply among other valuables. “Copper is like cash,” she says. “We had to secure the facility. Looters were all over the street.” !RMED GUARDS WERE HIRED TO PROTECT THE FACILITY THAT NIGHT .EXT ON THE list was to inform all associates at the Raleigh location that the workforce temporarily would be delegated to other Ferguson locations in Chapel Hill (an hour from Raleigh) and Wake Forest (30 minutes away). Day-to-day

to the roof damage, the piping, electrical and HVAC systems were unusable. It took six weeks — or approximately 3,000 man hours — just for cleanup. It was another four months for the rebuilding effort.

Moving forward

This photo shows the extensive damage created from the tornado’s 150-mph winds.

operations would run from the eight surrounding facilities. “That allowed us to open Monday like normal,” Cooper states. Cooper and her staff also wanted to make sure Ferguson was a steady hand in the immediate chaos of Raleigh. “It was a chance to show the market that we could still service customers,” she says. Ferguson Director of Facilities Kirk Wall was on-site in Raleigh to assess the damage, and Ferguson’s real estate team helped Cooper find a suitable temporary location for her branch. Their search started at 2 p.m., and by 5 p.m. they had identified a new location. Finding a place for showroom materials took some creative thinking. The showroom at the damaged Raleigh location was 10,000-sq. ft., but it was agreed to create a 3,000-sq.-ft. Preview Center in a shopping center in Raleigh. The Preview Center was fully functional at the end of June. It is slated to remain open until construction on the new showroom wraps up this month. Cooper worked with Ferguson’s IT department to create kiosks for the Preview Center so customers could look online at the available kitchen and bathroom products. “It was a quick way to think of how to service the showroom customer,” Cooper states. Cooper was very pleased with how much support Ferguson’s corporate headquarters in Newport News, Va., provided in the immediate aftermath of the tornado and through the rebuilding/reopening process. “They were very available and dedicated the resources needed,” she says. At 3 p.m. the day after the disaster, the city of Raleigh condemned the original Ferguson building and workers had one hour to grab their personal belongings that survived the tornado. Cooper was impressed with how everyone handled the situation in an orderly fashion. Cars were backed up to the building and people moved quickly. Wall then started the plan on how to salvage what remained. In addition

Despite the challenges and hardships, Wall, Cooper and Ferguson seized the opportunity to find ways to improve the Raleigh location. The building hadn’t been updated since 1993, and this was as close to a blank canvas as they could get. “This allowed us to look at all the facets of our operations,” Wall says. First, the counter was expanded and redesigned and the office area was enlarged. “We completely opened that area up,” Wall states. Next, the showroom was reconfigured because lighting and builder products had been added over time. Cooper, Wall and Ferguson’s Facilities Department were able to create a better space to showcase everything at the same time. “We brought all those products together,” Wall says. “This way, we’ve grown and made some improvements.” Cooper adds: “Everything is very different. We’re going to better showcase our entire business and display plumbing, lighting, appliances and cabinets.” There also is a new training room, conference area and lunchroom for employees to enjoy. “It will allow us to prepare for our future growth over the next 15 years,” Cooper notes. Cooper says without the help of her management staff — Keith Radcliffe, Brian Maglione, Christine Tingin, Mike Cassidy and Mark Collier — during the initial chaos, things wouldn’t have gone so smoothly. She says having that support staff is the best advice she can give to colleagues who may encounter an emergency situation. “Make sure you surround yourself with five or six managers who know how to execute,” Cooper states. “It will make any disaster easier to navigate.” <<

Ferguson’s Raleigh location, which now features an expanded counter area, reopened Dec. 12, 2011.

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In my January letter, I indicated that ASA has taken great strides in improving upon all four of its key strate■ By Scott Weaver, gic initiatives (BenchAPR Supply Co. marking, Networking, Advocacy and Education) during these past few years of tremendous growth. With that in mind, Benchmarking is the key initiative that we would like to see ASA expand upon most in the new year, with a keen interest specifically in the area of forecasting. Our leadership specifically visualizes developing ASA’s benchmarking tools into a forwardlooking forecasting model in 2012. Most of us know that ASA does a great job of providing information on what is currently happening in our industry. Those members who participate in and take advantage of ASA’s valuable Benchmarking tools such as the Monthly Sales Report, Operating Performance Report, IPD Commodity Report, Materials Market Digest and others can attest to that statement. Because of the positive feedback that we have received as a result of offering these tools, a strong Forecasting Task Force has been put into place to give us the opportunity to provide knowledge on what is about to happen. Forecasting has always been an important part of any business model. Traditionally, the concept has been based on face-to-face meetings and common-sense thinking coupled with analysis of trends within an industry. In recent years, however, the concept has developed into a much more

scientific endeavor, with a host of methods and techniques designed specifically for forecasting certain types of data. With the development of information technology and the Internet, many companies have invested an abundance of time and money in adopting sophisticated software and technologies into their own forecasting models, many times, at the end of the day with the question, “Will this work?” One of the driving purposes of our newly formed Forecasting Task Force is to allow you and your company to avoid the headache, expense and uncertainty of having to do all of this work yourself. With the pool of resources that ASA has available, it only makes sense that we provide regular industry forecasting reports just as we have done with the Benchmarking reports. How do we do this? The system is already in place and working quickly. Our first task force meeting took place in the fall at NetworkASA 2011. Specifically, we have set out to parse data by industry segment including PVF, Plumbing, Hydronics, etc. The next step will be to create a prediction model, as mentioned above, that will allow ASA to become the industry forecasting expert. We can do this by collaborating with each other, sharing information and exhausting all of the resources that we have available. Moving forward, this will involve: a.) generating interest and participation; b.) making our reporting customizable; and c.) ultimately, making the reports accurate and indispensable. We know that our Forecasting Task Force has set ambitious goals. We also know that this is an ambitious time for ASA and our industry, so the timing is perfect. What better time to reemerge as indispensable? Let’s get to work and keep the ball rolling! <<

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ASA Legislative Update ASA Legislative Fly-In May 15-16, 2012 Capital Hilton Hotel Washington, D.C. Please visit www.asa.net for more event details, including registration information.

When a Gang Isn’t Just a Gang By Dan Hilton, ASA Director of Government Affairs Society views gangs through the prism of violence.Webster’s Dictionary defines a gang as “a group of persons working together.” The United States Senate is many things; the world’s most deliberative body or, the world’s most exclusive club (more exclusive than Augusta National when you think about it). Rarely is the U.S. Senate ever referred to as “just another gang.” More often than not, however,“inside the beltway” is precisely what it is. Gangs form in the Senate every few years, and always in even numbers. They form as the result of such lack of progress that Senators worry about the institution they so love. The term “Gang of 12” or “Gang of Six” has become so widely accepted that you can find it in the transcripts of White House press briefings and in the official blog of the Speaker of the House. These gangs were given new life in 2005 during a crucial point in judicial nominations in the Senate. Ten of President Bush’s nominees were filibustered by the minority, resulting in the threatened “nuclear option” to be used by the Republican majority. The theory behind this was that the Senate had the right to determine its own rules, and they could be determined on the basis of a majority vote. Democrats resisted, arguing that the Senate’s rules could not be changed without a 2/3 vote as stated in the Senate rules themselves. Republicans responded that the Senate’s power to govern itself was founded in the U.S. Constitution, and internal Senate rules could not deny that power. The “Gang of 14” was the result of seven members of each party, along the ideological center, in search of an agreement that would end the stalled process. Of the 10 nominees, five were granted a vote and three withdrew their names prior to the gang’s formation. Of the remaining two, one

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was approved over the opposition of his home state senators; the other withdrew his name. One of the highest profile names during this process was Miguel Estrada. Supporters of then President George W. Bush have argued that this instance was used to thwart the GOP’s attempt to seat the first Hispanic Supreme Court Justice. If confirmed, Estrada was to have been appointed to the U.S. Court of Appeals for the District of Columbia, often viewed as a stepping stone to the Supreme Court. Past alumni of that court include John Roberts, Antonin Scalia, Clarence Thomas and Ruth Bader Ginsburg. When we find ourselves fiercely advocating for the presidential or Senate candidate of our choosing, rarely is the judiciary viewed as such a battleground; but in actuality, it is. There are few things as powerful as a lifetime appointment to the federal bench. Think about the money Americans will spend to get their candidates elected, and they will justifiably hold them accountable. Federal judges never have to reapply for their jobs, and they shouldn’t hold themselves accountable to their party or political patron. Thus, their seats may be worth fighting over. In addition, as we know, both sides love to fight. Whether you support or oppose things such as the Affordable Care Act, an aggressive EPA or burdensome NLRB, who you vote for matters more than you would think. At the end of the day, whoever is placed on the federal bench will have a big say in the future of our republic. For more information on ASA’s advocacy efforts and what you can do to promote positive change in Washington, please contact ASA’s Director of Government Affairs, Dan Hilton, at 703/328.5234 or at [email protected].

Indispensable to achieving prosperity in our industry...business success...educated industry...unified voice...social responsibility...capacity to serve...

New Members Advocacy. Benchmarking. Education. Networking. It is in these areas that ASA strives to be indispensable to achieving prosperity in the PHCP and PVF industry and why growth-minded companies lend their annual membership support and participation. ASA is proud to welcome the association’s newest members: >> Bakersfield Pipe & Supply, Inc. Bakersfield, Calif. www.onlinepipe.com >> CIB Corporation San Juan, P.R. www.cibcorp.com >> Dellon Sales Roslyn, N.Y. www.dellonsales.com >> Empire Plumbing Supply Broken Arrow, Okla. www.epsupply.com >> General Plumbing Supply, Inc. Edison, N.J. www.generalplumbingsupply.net >> Hydrologic Distribution Company Pinellas Park, Fla. www.hydrologicdistribution.com >> Main Line Supply Co. Dayton, Ohio www.mainlinesupply.com >> Marshall-Rodeno Associated Denver, Colo. www.marshallrodeno.com >> Ohio Pipe Valves & Fittings, Inc. Cleveland, Ohio http://ohpipe.com/ >> Uponor Inc. Apple Valley, Minn. www.uponor.ca To join ASA, please contact Chris Murin, Executive Director, at [email protected] or 630/467.0000, ext. 204.

ASA NEWS

ASA Unveils New Logo, Branding As mentioned in our “Still Here and Looking Forward” article in the January 2012 ASA News, the Executive Committee of ASA recently commissioned the development of a new logo, look and “brand” for ASA. This new “brand” mirrors the vibrant new ASA that has emerged over the past few years. Our goal is to provide a fresher and bolder look to the industry that accurately reflects ASA’s reemergence as a leading association. Please take note of our new look at www.asa.net, in ASA News, ASA Insights and in all of ASA’s marketing materials as we move further into 2012.

ASAEF Welcomes Doug Dillon as Director of Professional Development The American Supply Association Education Foundation (ASAEF) recently announced the hiring of Doug Dillon as Director of Professional Development. In this role, he will be responsible for formalizing the new education and training advisory model for the Foundation, as well as overseeing the development and implementation of the Branch Manager Certification Program, including the related content, requirements and assessments. Prior to joining ASAEF, Dillon served as the Director of Global Learning for the Kohler Co., Kohler, Wis., where he was responsible for the expansion of executive sales development, coaching and leadership training for the 30,000-employee global organization. In addition to the launching of an organization-wide Learning Management System and Sales Academy, Dillon created a comprehensive management development process and curriculum to identify and train top potential talent. Doug is no stranger to the ASAEF, having served as a volunteer Trustee since 2007. During this period, Doug helped guide the organization toward the establishment of the University Model, creation of online content, and was the first Dean of the College of Sales. “We are extremely excited to have Doug on board with his strong expertise to help with the growth of the association’s educational offerings. This addition will greatly benefit all ASA members,” said Amy Black, executive director for the ASAEF. “Doug is an accomplished, MBAcredentialed professional with a deep understanding of our members’ operations which will enable the Foundation to enhance our value.” For more information on the ASAEF, please contact Amy Black, Executive Director, at [email protected] or 630/467.0000, ext. 202.

www.supplyht.com

33

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SAFETY RESOURCES in the PHCP & PVF industry

Toolbox Talks Rack Storage – Fitness Throughout the Lifecycle By: Dave Olson, President – Rack Manufacturers Institute (RMI), and John Nofsinger, Managing Director – RMI Storage racks have long been a workhorse solution A complimentary FAQ section on the RMI website speaks to to achieving order and efficiency in manufacturing, most of these issues and many others. You can view these warehousing and distribution operations. With regular care FAQ’s at www.mhia.org/industrygroups/rmi/faq. and maintenance, these ubiquitous structures have proven The lifecycle of a rack installation begins with the planto perform as intended for a long and productive lifecycle. ning phase and the recognition that racks are actually one of many subsystems that come together to form a fully inThe purpose of this article is twofold: a. To expose the reader to some of the characteristics of tegrated operating system. These subsystems will include, a planned, properly installed and well- managed, well- but are not limited to: • The building itself maintained installation. b. To set the tone for a webinar scheduled for March 14, • The flooring and sub-soil 2012 at 2 p.m. Eastern that will go into a bit more detail • The racking itself on the subject. Please see webinar article below for • The anchorage scheme • The load platform (pallets, etc.) more information. • Decking, load support and fall protection options To begin, racks are highly engineered structures designed • Handling equipment for a very specific purpose and range of use. The current • Load containment and confinement protocols and highly regarded National Standard for selective pallet • Guarding of workers and the rack structure racks, RMI/ANSI MH16.1-2008 (soon to be replaced by a • Load notices and safety labeling 2011 edition), has evolved over the past 50 years to where • Lighting and HVAC issues it has become the definitive design default document in • Fire-safety protocols the International Building Code. While primarily a design • Inspection and maintenance document, MH16.1 also contains reference to certain • Worker training installation and operational factors.The document speaks to • And, certainly others. anchoring, installation tolerances, clearances, signage (load notices) and damage, as well as load application and rack A complete version of this article and a corresponding configuration drawings that show permissible arrangement Toolbox Talk to use with your employees can be found by of components — something very important to getting the clicking on “Safety Articles” in the Safety Resources section of most advantage from these very adaptable structures. www.asa.net.

March 14 ASA Safety Webinar to Focus on Storage Rack Installation and Maintenance ASA’s Safety Committee will be offering a FREE webinar on the topic of proper storage rack installation and maintenance on Wednesday, March 14 at 2 p.m. (EST). Conducting this informational webinar will be John Nofsinger, managing director of the Rack Manufacturers Institute (RMI) and Dave Olson, president of RMI. The webinar will cover the entire lifecycle of a storage rack installation including the

34

SUPPLYHOUSE TIMES

FEBRUARY 2012

planning process and subsystems such as anchoring, material handling equipment, lighting and HVAC issues, fire safety protocols, inspection and maintenance, worker training and much more. Please contact Ben Stephens at [email protected] or 630/467.0000, ext. 203 for more webinar details or visit ASA’s homepage at www.asa.net to register online.

ASA NEWS

TRUST IN RESEARCH

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HYDRONICS TALK

The nature of

diverter tees >

■ by Dan Holohan [email protected]

When I think hydronics, I think traffic. I can’t help it. The two are so similar. Here, imagine you’re the water in a main heating pipe. You’re driving down the pipe when you notice an accident up ahead. There’s a lane or two closed up there, so you hop on the service road. But you’ll only do that if you’re a local and you know that the service road doesn’t involve a 100-mile detour. If you knew that, you’d probably stay on the highway, wouldn’t you? Sure you would, and so would I. This is why there sometimes is no heat in that radiator up on the second floor — the one that the diverter tee and its partner, the standard tee down in the basement, are supposed to take care of. Sure, it looks like an air problem, but it’s a flow-balance problem. You prove this by bleeding the radiator. You don’t get any air, which means it ain’t an air problem.

Flow in a closed system

is always about traffic. Time to stop bleeding. Flow in a closed system is always about traffic. These diverter tees, which are on so many older systems, don’t “scoop” water. They just direct the traffic. If it’s too congested on this main road, the water will get off and take that other road, but only if the detour isn’t that long. The difference in pressure between the different ports of the tees decides where the traffic goes. Can you see it in your mind’s eye? Can you feel it? Good. Most diverter tees come with a ring that’s cast into one side of the tee’s run. When you see these tees on a job, the rings should always be between the two pipes that run out to the radiator that the tees serve. Sometimes we use just one tee, but often it takes two tees to get the job done. Preventing a traffic jam Here are the rules of thumb: 1 If the radiator is on the floor directly above the main, one tee should do the trick. That tee should be on the return pipe (coming from the radiator), with the ring on the inboard side of the pipes that feed the radiator.

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SUPPLYHOUSE TIMES

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Photo courtesy of Taco

2 If the radiator is on the second floor, you’ll need two tees, and the pipe leading to the radiator should be one size larger than what you would normally use. For instance, 1/2” for the first floor becomes 3/4” if the radiator is on the second floor. This is to keep the pressure drop to and from the radiator to a minimum. Think like water. 3 The tees should ideally be the width of the radiator apart. When these tees were popular, so were freestanding, cast-iron radiators and convectors. These radiators and convectors were typically about three feet wide, and that’s why you’ll often see the tees placed at that distance apart on the main. 4 If you remove a freestanding radiator or convector and replace it with lots of linear feet of baseboard radiation, don’t be surprised if the water decides to stay in the main. You just increased the resistance to flow by increasing the length of the detour. You made the side road longer. 5 If the radiators are below the main, use a diverter tee on both the supply and the return, be certain that the rings on the tees are between the pipes that go to the radiator (meaning that the tees will face in opposite directions), and make sure the tees are as wide apart as the radiator is long. 6 If you remove a radiator and you’re not going to replace it, connect the bulls of the two tees with a 1/2” pipe so that water has a place to go. Otherwise, you’re leaving two major accidents on the main road, and closing the service road at the same time. That’s going to slow the flow of traffic to the whole system. 7 One more thing: Staggering the tees (supply/return/ supply/return) will increase the resistance to flow along the main and encourage more water to flow to the radiators. That’s an old-timer’s trick.

HYDRONICS TALK

Thermostatic radiator valves While I have you thinking about the difference in pressure and how it can make or break a job with diverter tees, let’s consider thermostatic radiator valves. These nonelectric zone valves seem like naturals for zoning a one-pipe, diverter-tee system, and I like them a lot for that, but you have to be very careful when you choose them. These valves, even when they’re wide open, offer a resistance to the flow of water through the radiator, and that resistance might be enough to stop the water altogether. The TRV has two parts. The part that attaches to the pipe is a normally open, spring-loaded valve. You’ll attach to this the other part of the TRV, which is an operator that contains either a fluid or a wax that is very sensitive to changes in room-air temperature. As the temperature rises or falls, the fluid or the wax inside the operator will expand and contract, moving the spring-loaded valve open or closed. Control the flow and you’ll control the heat. You can adjust a TRV to whatever temperature you’d like in the room it serves, typically between 50° and 90° F. What you need to watch out for, though, is the TRV’s pressure drop. You can see this in the valve manufacturer’s literature. They show it as Cv. That’s an engineering term that always appears as a number. You’ll see something like this: Cv = 2.5. That 2.5 is gallons per minute. Any number that appears after the = in the Cv equation will always be gpm, and what the equation is saying is that when, in this case, 2.5 gpm flows across that particular valve, there will be a corresponding drop in pressure from one side of the valve to the other of 1 psi. Cv always relates to a difference in pressure of 1 psi. If you look at two valves, one where the Cv = 2.5, and the other where the Cv = 3.0, the latter valve will have less of a pressure drop. Think it through. With the first valve, you get a 1-psi drop in pressure with just 2.5 gpm flowing. The second valve can flow a full 3 gpm before the water suffers that same 1-psi pressure drop. So, if I were choosing between those two TRVs for my diverter-tee system, I’d probably choose the second valve because it has a higher Cv number, which means it offers less resistance to flow. I don’t want the valve, when fully open and just sitting there, to present my flow with so much resistance that flow just stops because, where there is no flow, there is no heat. That would be one major traffic jam. << Dan Holohan operates HeaingHelp.com. You can reach him at [email protected]. He loves hearing from you!

Continued from page 10.

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Noritz. www.noritz.com Continued on page 42.

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SUPPLYHOUSE TIMES

FEBRUARY 2012

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SHOWROOM STRATEGIES

A few forms can reap

big benefits >

■ by Hank Darlington darlingtonconsulting@ gmail.com

I’ve been reluctant to write on this subject because, quite frankly, I really don’t like a lot of “forms.” However, when I reflected on how much they helped my business become more professional and proficient, and how they’ve helped dozens of my consulting clients, I decided to plunge ahead. The key is to find the happy medium on what forms to use and how many to create. I’ve seen too many businesses with not enough — and several that flat-out went overboard! I strongly believe that creating and utilizing the right forms will help make your business run better. They bring consistency to the business. They help garner information that will help you increase sales, productivity, efficiency and even morale. Many (probably most) of you now use a variety of forms in your business. I would urge you to take a long, hard look at each and every one of them. Are they still pertinent? Do they create a benefit? Are they repetitious? Do the benefits outweigh the time and energy required to complete them? One of the very best-run kitchen and bath dealers I ever worked with had the best forms I had ever seen. But, because the owner saw the many benefits from the

Gathering the proper information

will increase sales, productivity, efficiency and morale. forms he had instituted, he kept adding more forms. Productivity started to fall off, employee morale suffered and when he dug into the problems he discovered that he had seriously “over-formed” the business. He did an in-depth analysis and cut back to a smaller, solid core of forms. Productivity and morale improved almost immediately. Get your team together and analyze your forms. I’ll bet some might go away, others might be improved and you might find a need for one or two new ones. This is an exercise you should do every two or three years. Times change, circumstances change — and your forms also should change. Plus, what used to be mainly paper can likely now go digital.

40 SUPPLYHOUSE TIMES FEBRUARY 2012

Here are a few forms I used in my business that I have shared with my business management workshops and when I go on consulting jobs. Customer sign-in form: This is a professionally done registration form. You ask your clients to please sign in, giving their name, why they are there and how they heard about you. Addresses, phone numbers and email addresses are optional. This will allow you to wait on clients in the order that they came in and it will give you a “heads up” as to why they are there. Learning how they heard about you will give you good marketing information. Customer information form: I encourage all showroom salespeople to use one of these. After you have introduced yourself and greeted the potential client, you will need to ask a series of questions to find out who the customer is, what project they are working on, where the project is and do they have a builder and/or plumber, etc. You should have a nice binder or clipboard with the form attached. After you have started to build rapport with the prospect and possibly offered them a refreshment, ask if they would mind if you made some important notes from your conversation with them. Explain that it will help you help them! This form should include all of the qualifying questions that you need to ask and also provide room for other information that will make you look and act professional. This is the beginning of the information gathering system. Of course, if your business is in the “techie” age, then you may be using a digital notebook or tablet.

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SHOWROOM STRATEGIES Quote/takeoff form: After you have qualified the client and determined what the project is and that it will be worth your time and their time to work together, you will begin looking at and identifying products that the prospect is interested in. This form (paper or digital) lists every possible product that you could sell them. At our business, we had a bath form, a kitchen form (that included the wet bar and laundry room) and a door and cabinet hardware form. It reminds salespeople to include every item you sell — and once again makes you look professional. In addition, it organizes the information. Monthly sales and gross profit form: As I’ve said in past articles, I believe every salesperson should have monthly sales and profit (dollars and percentage) goals. The above form tells your people what their monthly sales and profit numbers are. There should be space for the “boss” to make appropriate comments. People like to know how they’re performing. This gives it to them. Job description form: Every employee deserves to know exactly what their job involves. This form spells it out in detail. A series of bullet points, usually on one page, tells the employee exactly what they are expected to do. Job performance evaluation form: Just like everyone deserves to know what’s expected of them, they also need to know exactly how they are performing in their job. A once- or twice-a-year “sit down” with their supervisor and a formal evaluation of the employee’s performance will improve performance, productivity and morale. I used two very similar forms for this: one form the supervisor used to evaluate the employee and the other form the employee used to evaluate themselves. I realize that the

above two forms fall into the realm of human resources, but I feel so strongly about this that I included it here. Vendor analysis form: This form is designed to help you evaluate each of your main vendor partners. It’s all-inclusive and allows you to evaluate quality of product, service, pricing, reps, et al. My experience told me that the consistency of quality, delivery, service and representation can change pretty dramatically – and you need to be proactive in addressing the areas of concern. The form is also a great vehicle to help you remove duplicate and/or underperforming vendors. If you represent more than six or eight faucet lines, in my opinion that is too many. You won’t really be important to any of them. Use this form to help determine who the keepers and losers might be. I would also encourage you to have your vendors evaluate you. What’s good for one should be good for the other. Develop a form for your vendors and ask them to complete it and return it to you. I’ll bet you’ll learn a lot of things – many of you will want to improve to make you better than you are. Competitor mystery shopping form: I found out early on that the more I knew about my competition the better I could make my business. The best way to learn about your competitors is to shop them. Do it yourself, if you can. If that’s not feasible, hire someone (a designer, architect or even a friend) and ask them to visit each of your competitors. Use a form to do it so that all the evaluations are consistent. This form should be all-inclusive: their location, the physical property, parking, the entrance, windows, inside the showroom and everything about the showroom layout, the products and the staff. I have used this

form dozens of times, both when I owned my own business and as a consultant doing mystery shopping at my clients’ competitors. It’s amazing how much you learn. You’ll see some very good things – which you might want to incorporate into your operation — and you’ll see some things that are pretty darned poor! Be careful not to take up a lot of a competitor’s sales consultant’s time — you wouldn’t want them “wasting” your sales team’s time! I have several funny and a few embarrassing stories I could tell about my “mystery shopping” experiences, but space won’t allow me to go into detail. Suffice it to say that on several occasions I was pretending to be a prospective client and was quickly identified as Hank Darlington who writes articles and presents workshops. Pretty much, they wanted to know why in the heck I was in their showroom. Honesty always got me off the hook! There are lots more forms we could talk about, but these are the important ones that I believe will help you grow sales, profitability and improve productivity and morale. Good luck! I hope they help you as much as they’ve helped me! << Hank Darlington, owner of Darlington Consulting, writes several monthly articles for magazines, teaches seminars, and offers a full range of small business consulting services to kitchen and bath dealers, distributors and manufacturers. Darlington was inducted into the Hall of Fame by the National Kitchen & Bath Association in April 2004. He can be reached at 2010 Granite Bar Way, Gold River, Calif. 95670. Phone: 916/852-6855, fax: 916/852-8866, email: darlingtonconsulting@ gmail.com.

Continued from page 38.

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RathGibson

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www.rathgibson.com

27

Smith-Cooper International

(800) 766-0076

www.smithcooper.com

3

Stock Market, The

(800) 467-8625

www.the-stockmarket.com

5

Ta Chen

(800) 364-4389

www.tachen.com

1

Texas Pipe & Supply Co.

(713) 799-9235

www.texaspipe.com

11

The Distribution Point

(866) 837-2550

www.thedistributionpoint.com

IBC

Walton Company

(860) 523-5231

www.waltontools.com

4

Watts

(978) 688-1811

www.wattswater.com

30-31

Weldbend Corp.

(708) 594-1700

www.weldbend.com

24-25

Welding Outlet

(888) 610-0777

www.woihouston.com

41

Your “other” Warehouse

(800) 947-7000

www.yourotherwarehouse.com

IFC

Zoeller Pumps

(800) 928-7867

www.zoellerpumps.com

47

PLUMBING MAGAZINE FAMILY: Visit our plumbing Web sites. www.PMmag.com

www.pmengineer.com

&e-news www.ReevesJournal.com

46

SUPPLYHOUSE TIMES

www.drilleronline.com

FEBRUARY 2012

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IN CLOSING

A really big show >

■ By Mike Miazga [email protected]

Hanging from the ceiling in the middle of the trade-show floor at the recent 2012 AHR Expo in Chicago was a large ceiling fan. I heard more than one person walk by the company’s booth and say, “Look at that big fan,” as they pointed upward. It probably makes sense that a company called Big Ass Fans would display a gigantic ceiling fan at a trade show. It almost looked like an amusement park ride. The name of that fan company fit right into the vibe going around the three-day show that featured nearly 10 acres worth of exhibits (an AHR record, according to ASHRAE’s Show Daily newspaper distributed at the event). A near-record 1,976 exhibitors showcased a plethora of new air-conditioning, heating, and refrigeration-related products and technologies. Show organizers were expecting a crowd of 50,000 for the event (attendees and exhibitors combined). Traffic was impressive the first day of the show. Just after lunch, it took me nearly 10 minutes to get from the beginning of an aisle to the end of it. That type of gridlock was commonplace throughout much of the first day and during parts of the following morning and afternoon.

Record-breaking 2012 AHR Expo

provides reason for optimism. The hustle and bustle generated a positive buzz regarding what that kind of traffic could mean in terms of industry forecasting for the coming year. The Show Daily printed results of a survey it conducted with 162 of the 2012 AHR exhibitors. The survey reveals 70% of exhibitors believe 2012 will be an excellent or good year for business, while 60% say it will be much better or better than 2011. Not surprisingly, energy efficiency was a major theme in Chicago. ASHRAE’s survey reveals 76% of exhibitors planned to introduce a new product at the show, while 87% of the new products intend to improve energy efficiency. I don’t think I visited one booth where green wasn’t in the conversation or dominating it. We all know green isn’t exiting stage left anytime soon. However, I noticed a green movement at the show with a different twist. Manufacturers are no longer rolling out a product and simply calling it energy efficient. I was introduced to many different new products and

48

SUPPLYHOUSE TIMES

FEBRUARY 2012

technologies aimed at providing end users with tools to increase energy efficiency and ramp up returns on investment even further. These include energy management systems allowing the end user to set a zone temperature from a laptop computer or iPhone. Several companies displayed computer-based technology that relays product trouble signals directly to service contractors. How cool would it be to punch specs into your smartphone, and the screen from the manufacturer’s website tells you exactly how much pipe you need for a particular project? It’s out there now. New products with touch-screen components also were abundant. “We’re providing another level of service to the customer” was a familiar refrain I heard from manufacturers. That may be the answer to the “Where does green go next?” question – providing the end user with capabilities to make a product even more energy efficient and cost effective. We’ll have complete AHR Expo coverage in our March issue, while AHR videos can be found at www.supplyht.com. If you were a wholesaler at the show, drop me a line at [email protected]. I’d love to hear your thoughts on what you saw. If the enthusiasm at AHR Expo is any indication, 2012’s outlook may be even brighter than originally anticipated. Food for thought Supply House Times sister publication PM Engineer has a story in its February issue about a health consortium solving water-quality and sanitation issues in remote Alaska villages. With these villages being in extremely rural areas, the prices of goods and services are substantially higher than those in the lower 48 states. How much higher? A gallon of gas in Nome: $6.75; a 1-lb. can of coffee: $22.50; a 6-oz. steak at a local village store: $72; a single load of laundry: $7; and two cases of bottled water: $100 each. Talk about some jaw-dropping numbers. The consortium is doing yeoman’s work to provide villagers with clean water through the building of water infrastructure and public washaterias. Some of the products it uses on the projects are likely sitting in your supply house today. These products are contributing to a better and much healthier way of life for the residents of these villages. If you have a second, check out the story at www.pmengineer.com. <<

20 1 2 wrapped up Let us wrap up this year for you now. We have everything you need to make it a success! You deserve only the best in 2012: √ Live Online Tracking √ Same Day Shipping √ Email ConÛrmation with Every Order √ Special Offers √ All the top brands And most of all…service like no other! We deliver on our promises, and Customized Service is our specialty. Let us make your year great! You deserve TDP.

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