February
Transcription
February
FEBRUARY 2009 VOL. 64, NO. 2 News of Plumbing • Heating • Cooling • Industrial Piping Distribution George T. Sanders buys Houston Supply Co. WhEAT riDgE, coLo. — At the end of January 2009, george T. sanders company acquired houston supply company in Wyoming. The two companies signed an agreement under which gTs acquired the assets and operations of houston supply. “We are excited about the opportunity to leverage our past success in colorado into the state of Wyoming, with the ac(Turn to Purchase, page 27.) 2009 Purchasing Survey Begins on page 52. Implementing a Warehouse Management System that provides multiple functionalities can greatly streamline the overall supply chain process by significantly improving current operating procedures and, in the long run enhancing inventory and shipping accuracy, increasing labor productivity, reducing operating costs and boosting overall revenue. Read more about how several companies have benefited from a WMS on page 30. NIBCO expands PEX operations ELkhArT, iND. — Nibco has combined its pEx extrusion operation and post-processing/distribution operations into a new facility in Lebanon, ohio. The 130,000-square-foot facility has ample room for expansion of manufacturing and distribution operations. This location will make Nibco’s DurA-pEx manufacturing operations more efficient. “The move was made in anticipation (Turn to PEX plant, page 27.) Membership urges split ASA, ISH NA end relationship chicAgo — in a letter dated December 15, AsA informed Messe frankfurt that the American supply Association board of directors had voted to withdraw support and involvement from ish North America. “Long and serious consideration was given to this decision, and it included extensive input from our manufacturer members,” said Mike Adelizzi, AsA executive vice president. “While the original concept of ish was to bring the phcp and pvf industries together under one trade show banner, the result weakened the focus on the sponsoring associations. This loss of focus reduced the urgency to attend among people who had traditionally identified with a specific association. Attendance diminished, and ish didn’t realize the potential we all believed in when we joined forces.” in addition, Adelizzi said that many of AsA’s manufacturer members clearly voiced their desire to end the partnership with ish North America. “With the state of the economy the way it is today, a closer working partnership between the manufacturer and wholesaler has an even greater value than in years past,” continued Adelizzi. “AsA is placing a stronger emphasis on providing manufacturers and wholesalers a venue to fortify that working partnership and coupling it with critical information about what the future has in store for our industry. Those are the guiding principles that have led to the development of the agenda for NetworkAsA 2009 and the introduction (Turn to Split, page 27.) Jet-Set ™ Maxi-Rooter ™ Clears Grease Clogs Fast. The J-1450 electric water jet, a compact and portable drain cleaning machine, uses high pressure water to clear drain lines clogged with grease, sand and ice. Comes through for you The Maxi-Rooter packs maximum power and reach with maximum reliability. I Slim 23" profile lets you get the machine through just about any door. Clears 1-1/2" to 4" lines of grease, sand and ice. I I 1-1/2 hp motor drives 1500 psi, 1.7 gpm pump. Big capacity drum holds 125 ft. of 3/4" cable or 150 ft. of 5/8" cable. I I Vibrapulse® helps the hose around tight bends. See-through inner drum cage lets you see how much cable is left in the drum. I Slide-out handle makes it easier to roll to the job. I I Easily removable hose reel to make machine more compact. Call 800-245-6200 or visit www.drainbrain.com. A heavy-duty quiet 3/4 hp motor drives either Flexicore® wire rope center cable or loosewound “SP” type cable. Your Choice! I Call 800-245-6200 or visit www.drainbrain.com. AutoCut ™ Copper Tubing Cutter A great tool to have when you don’t have the swing room to use a conventional tubing cutter. You can cut copper tubing with less than one inch of clearance. I Just snap it on the tube, close the gate and turn – no knobs to twist. I Cutter wheel is spring loaded to provide constant cutting pressure – so you won’t accidentally crimp the tubing. I AutoCut has long lasting hardened steel cutting wheels. I Ratchet turning handle available for extra turning power in tight spaces. I Available in 1/2", 3/4" and 1" sizes. Call 800-245-6200 or visit www.drainbrain.com. Power-Vee ™ Works Great in Tight Spots! When working under sinks or in other awkward places, the Power-Vee is like having a third hand. Just squeeze the feed lever and three offset rollers in the automatic feed grip the cable and drive it into the line. I Handles 1/4" through 3/8" cables without any need for adjustment. I Feeds and retrieves 3/8" cables at 16 feet per minute. I Dyna-Thrust™ bearing system reduces motor wear and extends the life of the tool. I Quick-change cable cartridges make cable changing clean and easy. I Flexicore ® wire rope center cables have unequalled strength and the right amount of flexibility. Call 800-245-6200 or visit www.drainbrain.com. Mini-Rooter XP ™ Clears Clogged Drains From Rooftop to Basement. With 75 ft. of 3/8" cable and a 1/3 hp motor, the Mini-Rooter XP clears clogged kitchen, bath and laundry drains. I Variable speed power cable feed makes feeding and retrieving the cable much easier. I Machine rolls easily to and from the job on 8" semi-pneumatic wheels. I Easy-grip handle folds down to save space and locks as an additional lifting handle. I Roll bar protects motor when moving machine up and down stairs. I Free floating inner drum cage helps prevent cable tangling. A nd there’s lots more; including an AC/DC converter so you can operate just with truck power, built-in voice over unit, an on-screen distance counter, and a date and time stamp. The Gen-Eye GL system gives you all the options you need to inspect lines from 2" through 10", depending on your choice of push rod and reel size. If you’re looking for a more compact monitor to fit a smaller space or budget, we’ve got that, too. All this, and an honest two-year warranty as well. For more information, see your wholesaler or call the Drain Brains® at 800-235-6200 or 412-771-6300, or visit www.drainbrain.com/geneye. Call 800-245-6200 or visit www.drainbrain.com. © General Wire Spring 2008 See contact information on page 70 Winning combinations. Choose any combination of our thousands of SKU’s and you win. We are the nation’s leading supplier of codecompliant, globally sourced plumbing and PVF products for residential, commercial, and industrial applications. Our quality plumbing and PVF products are priced right and we maintain local stocking and reps to serve you. Simlply put, we’re the best in the game. Global sourcing. National compliance. Local service. Brewster NY P: 800-431-2082 F: 800-640-2252 Houston TX P: 800-935-5456 F: 800-683-4247 La Palma CA P: 866-532-8306 F: 866-532-8307 Americus GA P: 800-433-7526 F: 800-533-5134 www.matco-norca.com • mail@matco-norca.com See contact information on page 70 4• •THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS OPW Engineered Systems acquires Hiltap Fittings leBanon, oHio — oPW engineered Systems, a division of oPW Fluid transfer group, announced in early January that it has acquired privately held Hiltap Fittings, a leading supplier of high/low pressure and temperature fittings. the terms of the transaction were not disclosed. Hiltap Fittings ltd., based in Calgary, alberta, is a strategic addition to the full line of quick and dry disconnect couplings offered by oPW engineered Systems and broadens its full line of fluid transfer products. oPW will build upon Hiltap’s reputation as a global leader in high/low temperature and pressure sealing technologies to meet the ever-increasing demands for safe, economical, reliable and both environmentally and operator friendly connections and product recovery systems. “the completion of this acquisition represents a significant strategic step for oPW engineered Systems to accelerate growth in our core quick and dry disconnect business,” said tim Warning, president of oPW Fluid transfer group. “today, we significantly increased the depth and breadth of solutions that we have to solve the many needs of the markets we serve. With our sales channels around the globe, we look to significantly grow this business. “We are now squarely focused on quickly seizing the attractive opportunities this transaction has created for us to increase top-line growth as well as achieving significant cost synergies in a number of areas. With the Hiltap acquisition now complete, oPW engineered Systems is a stronger, more broadly based company than ever before, with increased capacity to reach new customers and the ability to provide current customers with enhanced products.” oPW engineered Systems is a leading manufacturer of systems for the safe and efficient loading and unloading of hazardous materials. they are part of oPW Fluid transfer group. organized in 1998 and part of Dover Corporation, oPW Fluid transfer group is comprised of six market-leading operating companies — each dedicated to designing, manufacturing and distributing world class solutions that assist in the safe handling and transporting of hazardous bulk products. For more information, visit www .opw-es.com or www.hiltap.com. Texas A&M offers course on pricing College Station, texaS — texas a&m University is offering a Pricing optimization course on may 7 and 8. the course is intended for sales managers, branch and regional managers, pricing and purchasing professionals, and distribution management professionals. Pricing is typically market-based but pricing decisions are very complex and, when made in an information vacuum, will sub-optimize gross margins for the firm. the pricing/discounting decision is an information exercise and determines at least half of a firm’s profitability equation. even though most distributors understand to some extent other external drivers of pricing such as competition and market structure, understanding and implementing a holistic approach to pricing has always been difficult. this course will address practical methods to set and manage prices using existing information to maximize profitability. among the learning objectives are: • How to effectively classify/segment the customer base • elements of the “cost to serve” variable. • How to systematically maximize margins • Why and how to link inventory and customer classifications • How to scientifically leverage on existing and readily available information. the cost of the course is $1,750 per participant. Discounts are available for two or more participants. Register online at www.readcenter.tamu.edu or by fax at 979/845-4980. to learn more, contact program director Dr. Barry lawrence at 979/845-1463 or by e-mail at lawrence@entc.tamu.edu. REHAU adds to contractor development program leeSBURg, Va. — at the aHR expo, held in late January in Chicago, ReHaU announced a number of additions to its professional contractor development program, ReHaU eDge. this membership-based program for heating contractors, originally launched at the 2008 aHR expo, encourages all aspects of business and professional growth through training, design services, brand merchandise and local, regional and national events. expanded program options for 2009 will include a tiered bronze-, silver-, goldand platinum-level benefit redemption system and focused team meetings with more direct, one-on-one networking opportunities. ReHaU also displayed a new product and system innovations for the heating industry, including its RaUgeo™ geothermal ground loop system. For more information, log on to www.rehau.com. Baker celebrates 30 years Pictured are Robert and Elsa Baker cutting the ribbon. SliDell, la. — Baker Sales inc., a wholesale steel pipe and fence supply distributor, celebrated their 30th anniversary with the grand opening of a new office and warehouse in Slidell, la. the ribbon cutting ceremony by the east St. tammany Chamber of Commerce was held on December 5. “the devastation brought on by Hurricanes Katrina, Rita and gustav brought many hardships to our company and our employees. However, the recovery and rebuilding of the gulf Coast area has provided an opportunity for us to grow and expand our business. With the addition of our new 20,000-square-foot facility, we plan to greatly increase our products and services. this is our 30th birthday celebration. We feel that we are building for a better tomorrow ... and the best is yet to come,” stated company president Robert a. Baker. For more information, visit www .bakersalespipe.com. Ferguson provides fire suppression solution for Continental Airlines neWPoRt neWS, Va. — Ferguson Fire and Fabrication’s fire protection solutions are bringing the highest standards of performance to a new aircraft hangar for global airline Continental. located at the intercontinental airport in Houston, texas, the hangar measures 268'x250'x 94' high and has been built to house Boeing 777 aircraft for a new inspection regime introduced by the Federal aviation administration. the Hi-expansion foam system installed in the hangar is more environmentally acceptable than many alternatives. it is biodegradable, requires less water and, from a corrosion standpoint, has less of an impact than low expansion foam. all piping and equipment for the foam systems, pre-action systems, sprinkler system and hose reel system were fabricated and supplied by Ferguson Fire and Fabrication. the company provided all of the piping for the manifolds and to tie in the fire pumps and water tanks, as well as providing pump room piping drawings and all of the pipe spool and support drawings. the finished project was tested at night with 20 to 25 knot winds. twelvefoot scaffolds were positioned beneath the generators to gauge the height of the foam. more than 100 Continental employees, risk management personnel, Houston Fire officials and numerous environmental personnel witnessed the test. the project for Continental is just one of Ferguson Fire and Fabrication’s abilities in the special hazards field. “increasingly, our skills are being used in the aircraft industry, where new regulations demand that some aspects of aircraft testing are now carried out inside hangars instead of on the tarmac,” said george Dimatteo, central area manager for Ferguson Fire and Fabrication. “this creates a need for very specialized equipment, which Ferguson Fire and Fabrication is able to provide.” Ferguson Fire and Fabrication is also active in facilities for the new fuels sector, including locations where ethanol is stored and processed. For details, visit www.ferguson.com. Logical Logistical Solutions We thought outside the box to bring you packaging that saves space, time and money. Packages Easily Stack and Ship More Efficient Warehousing Large, Clear Graphics on both Inner and Outer Boxes Color-Coded by Product Category Two-sided Labels for Easy Identification Two-sided Barcodes for Easier Inventory H ere at Smith-Cooper International, it’s hard to put your finger on a single feature that significantly benefits our customers; however, we feel we have only just begun to see the benefits of our new ProPack system. The standardized package size among several commodity lines makes palletizing for shipping and storage very easy while reducing the warehouse space wasted on ‘storing air’. We’ve sized the box to better fit on a pallet and filled it up with fittings instead of air. The packaging benefit is most effectively realized when applied to the products that we market through our Industrial PVF & Fire Protection Division. Everyone knows that cast iron threaded and ductile iron threaded fittings are heavy, however, with the ProPack system the master carton is a more manageable size and weight which is good news for your warehouse staff. The master carton size is exactly right for perfectly cubing out a pallet as demonstrated in this photo. We’ve also color coded the individual product lines so that you can see what you’ve got on a pallet from across the warehouse, which reduces picking errors. Each carton has a comprehensive label on two sides of a corner which makes it convenient to read. Each label has a photograph of the fitting inside the box, further communicating to warehouse staff what’s inside. For warehouses that have automated receiving and shipping, each box has a barcode for standard master packaging, and an industry standard SPIN barcode which allows for fully automated warehouses to take further advantage of ProPack. Our customers agree that commodity items packaged utilizing ProPack are easier to see, easier to find, easier to read, easier to scan, which makes them easier to pick, pack and ship. When time is the most valuable commodity, it’s easy to see how these ProPack features and benefits can work to reduce operating expense. 800-766-0076 www.smithcooper.com See contact information on page 70 When we discuss doing business with a potential customer we refer to what we offer them as their ‘program’. This ‘program’ refers to their pricing, certainly, but additionally it refers to the value added side of doing business with Smith-Cooper International. The program might mean special palletizing for one customer, while it could mean special shipping requirements for another. We don’t ask customers to conform to a set of rigid ‘Terms & Conditions’ which are difficult to meet. We listen to our customers and then adapt to the way they do business. Combine that with our new ProPack system and you’ve got the ingredients to a successful master distributor-wholesaler partnership. We like to think of ourselves as more than a traditional vendor and we foster good working relationships with our customers. If you’ve tried the rest and are ready for change, give us a call and we’ll let our ‘program’ speak for itself. In other words, ‘There’s more in the box’ when you order from Smith-Cooper. 6• •THE WHOLESALER® — FEBRUARY 2009 IN THIS ISSUE The Front Page Warehouse management systems help users implement highly efficient operating procedures for much greater shipping and inventory accuracy. Starting on page 30, we profile several businesses that have seen significant improvements with a WMS. In the News See contact information on page 70 Ferguson helps airline prevent fires in hangars; Baker Sales marks 30 years . . . . . . . . . . . . . . . . .4 Emerson: R-22 phaseout well under way but concerns linger; Stock Building Supply helps veterans . . .12 Elkay builds first “green” pressurized water cooler . . . . . . . .16 ahRi asks EPa to modify proposed ruling on hCFC products . . . . . . .20 tri-State Distributors uses activant .24 WMS on the job . . . . . . . . . . . . . . . . .30 Complying with Robinson-Patman . .34 Product review . . . . . . . . . . . . . .60 – 62 Beschloss Beat Newdell Company Morris Beschloss interviews David Scott, CEO of Newdell Co., which markets Smith, Diamond Gear, Ladish Valves and PK Valves. Newdell sells all its products through the distribution chain. . . . . . . . . . . . . . . . . . . . . .40 Columns RiCh SChMitt: how many trucks do your contractor customers have? . . . . . . . . . . . .8 MORRiS BESChLOSS: PVF still on track . . . . .37 JaSON BaDER: Meeting the challenge of setting the proper price . . . . . . . . . . . . .46 DaN hOLOhaN: Sizing boilers is an art . . . .58 PEtER SChOR: Reducing your own stress . . .51 Next Month See contact information on page 70 Morris Beschloss interviews Rick Mousa of hD Supply. 0IECE&LANGED6ALVES 0IECE"ALL6ALVES Y D A E ? R t U s O e Y et E AR or th f 4RUNNION"ALL6ALVES TAKE THE WARREN VALVE CUSTOMER CARE CHALLENGE SUPPLIER SCORECARD 1UARTER4URN!UTOMATION 'ATE6ALVES 3WING#HECK6ALVES QUALITIES 100% Inspection of all incoming Warren Valve Shipments Routine Positive Material Identification Performed on EVERY Incoming Shipment Routine API 598 Pressure Tests on Incoming Shipments Quality Process at Low Cost Mfg. Source Audited by Company Representative 100% of Material Test Reports are stored electronically for easy access and reference Same Day Service Culture 99% Customer Order Shipment Accuracy Less than 0.25% Product Return Rate WARREN VALVE YOUR BRAND ? ? ? ? ? ? ? ? How well did your valve manufacturer score? &ORGED'ATE'LOBE#HECK6ALVES )NLINE6ERTICAL#HECK6ALVES 90ATTERN3TRAINERS Since 1963 .EEDLE'LOBE6ALVES 45 Years of Superior Service 6ALVESs&ITTINGSs&LANGESs0IPINGs4UBING HOUSTON, TXss&AX HOUSTON TXss&AX ss&AX CHARLOTTE.#ss&AX CHARLOTTE.#ss&AX CINCINNATI, CINCINNATI OH ss&!8 s SALT LAKE CITY,54ss&AX CITY 54ss&AX LAKELAND&,n3HIPPING$EPOT LAKELAND See contact information on page 70 WEB SITE: SITE:WWWWARRENALLOYCOM WWWWARRENALLOYCOM 8• • THE WHOLESALER® — FEBRUARY 2009 SMART MANAGEMENT Finding ways to differentiate your business R ight now, we should all be pretty focused on right-sizing our companies and serving our customers. We should also be looking for ways to differentiate ourselves in an effort to hold our fair share of the business and, ideally, grab a chunk of someone else’s share. One suggestion for an area of focus is service contractors. Most wholesalers tomers. This is certainly understandable. However, I would recommend that you give priority to the “legitimate” service contractor where possible. By “legitimate,” I mean contractors.who are working to operate professional service businesses. The reason is simple, they tend to be better short-term customers and they tend to have a better survival In this economy most wholesalers are being less selective about their customers. This is certainly understandable. However, I would recommend that you give priority to the “legitimate” service contractor where possible. have already determined that service contractors are still working because “stuff happens and things break.” Of course, even service contractors are feeling the effects of the down economy but there is work. Over the years we have assumed that between $50,000 and $60,000 worth of parts flows though each service truck. This number may not be correct in the current economy or in your market, but you can probably develop some “rule-of-thumb” numbers for your situation. There are some new construction contractors who are shifting their focus to grab some of the service work since new construction is down. This is causing problems for some of the legitimate service contractors since, while they share many of the same products, the businesses are run much differently. In this economy most wholesalers are being less selective about their cus- rate than the moonlighters or guys who will be service contractors until new construction picks up. The simplest way to understand service contractors is to determine how many trucks they are running. This is, of course, not foolproof but it is a quick measure using readily available information. One- or two-truck service contractors These guys are always struggling. They are basically a couple techs doing service work. I am not looking down on these guys because all companies start small, but some owners of these companies have already realized their dream and will grow no more. These guys tend to be very high cost to a wholesaler because they depend on the wholesaler for most of their tech support. They never seem to have time for training and often run their business out of their truck with a clipboard and their cell phone. On the flip-side, this size of contractor has its owner in one of the trucks so there is less price negotiation and most are solid honorable people who don’t cause many problems and will pay you on-time as agreed. In addition to building a relationship with the owner, it is good to build relationships with each hired-hand tech since they move around or start their own company. Also they start to bail in their 40s and 50s when their back or knees give out. You can find some of these senior guys wearing orange or blue aprons or maybe working in a supply house. (As an aside, they can be great employees if their people skills are good but if they are arrogant or bitter, their expertise seldom offsets the bad-will that they generate.) I had the occasion to stop at a Big Box recently and was looking for a plumbing part. Since it is almost impossible to find anything, I pressed one of their magic “Page a warm body buttons.” A guy about my age came over in a couple of minutes. His apron indicated that he had real plumbing experience. This differentiated him from the others in the department who, as they were stocking the bins, didn’t realize that ells come in different sizes. He noted that I was wearing the standard “home-owner-honey-do” uniform (recently washed jeans and tee shirt with paint, grease and grass stains from other “should-have-called-a-professional” projects) and said, “How can I help!” in a less-than-friendly tone of voice. I told him what I was looking for and he said, in the same tone possibly with a hint of ‘that’s a stupid request’, “Now why would you want that?” I came to the store for a simple plumbing part and found myself in a plumbing pop-quiz that would have made my heartless high school history teacher proud. Heck, I didn’t need to come all the way to his store to have my masculinity challenged. I could get that kind of treatment right at home. I ended up with the part, but this “pro” had taken an opportunity to build lots of goodwill and turned it into an unpleasant encounter. I only bring this up because that guy could have been working at your supply house and be applying those same “great” people skills to your trade customers. (While I have gone back to that store, many of your trade customers would not tolerate that kind of attitude in your company.) What they want from their wholesaler: • Normal credit terms. They are mostly involved in short service jobs and should be paying you promptly. • Reliable access to the parts they use • Fair pricing • A catalog for their trucks • Tech support as they run into difficult situations • Some will use their wholesaler’s BY RICH SCHMITT Management specialist web site to order parts early or late in the day. Five-truck service contractors At about five trucks it seems that they either get better at running their business or disband and go back to work for someone else. This is where they start to become more viable in the long term. They might have a full-time office person and a part-time bookkeeper. They may have a warehouse or stockroom (Turn to Count trucks... page 00.) Presents: Industry events for 2009 MARCH 17-21 — Embassy Group Meetings, Indian Wells, Calif., www.embassygroupltd.com 23-27 — WIT & Co. Annual Convention, Dallas. www.wit-co.com APRIL 1-4 — PSDA, Indian Wells, Calif. Bob Bluth: 480/991-5703 30-May 3 — K/BIS Show, Atlanta. www.kbis.com MAY 6-9 — AIM/R, Dallas,www.aimr.net 17-21 — NAOHSM Show, Hershey, Penn. www.naohsm.org JUNE 15-16 — NCWA, Ypsilanti, Mich. www.asa4.org 28-30 — SWA Convention, Hilton Head, S.C. www.southernwholesalers.org SEPTEMBER 11 — WIT Meeting, Denver, Colo. www.wit-co.com OCTOBER 14-17 — ASA Convention, Washington, DC, ww.asa.net 31-Nov. 3 — HARDI Convention, Orlando, Fla., www.hardinet.org NOVEMBER 1-4 — A-D North America, Dallas, www.adhq.com 11-13 — GreenBuild, Phoenix, www.greenbuildexpo.org ® Formerly Known Gerlin, Formerly K nown as G erlin,, Inc. Inc. Piping Solutions That Fit TM t5IFHSPXJOHOFFETPGPVSDVTUPNFST t5IFFWFSDIBOHJOHHMPCBMNBSLFUQMBDF t5IFRVBMJUZFYQFDUBUJPOTPGUIFFOEVTFS Offering weld fitting and flange solutions for stainless and alloy piping systems through various brands TM Picor ® Tube Line Stainless Tube Tec weld fittings stainless and alloy pipe flanges stainless and alloy large diameter weld fittings stainless and alloy weld fittings and flanges stainless and alloy Superior Quality. Exceptional Quality. Excellent Quality. Trusted Quality. Best Value. Domestically produced, Picor weld fittings are known for first-class performance in critical applications. Manufactured in a variety of configurations, Picor offers more than just the standard commodities. Custom fittings can be designed to meet or exceed specific needs in process industries such as: Domestically produced, Tube Line stainless and alloy pipe flanges are produced to exceed industry standards. With state-of-the-art machining capabilities various dimensions or tolerances are easily accommodated. From standard to custom orders, excellence is delivered. Domestically produced, Tube Tec large diameter stainless & alloy weld fittings best serve applications such as wastewater, pulp and paper, bio fuels, and grain processing. Globally produced, Brite Line provides customers a value brand of stainless and alloy weld fittings and flanges. These products are manufactured to Core Pipe standards using joint venture facilities or approved global partners. In the competitive global marketplace, Brite Line gives customers the confidence of knowing quality is never compromised. BREWERY QUALITY (BQ) – beverage industry precision tolerances for wall thickness, roundness and finish. Brite Line ® TM CHEM/PHARM – pharmaceutical and chemical industry requirements for inside surfaces to perfectly match up for precise weld penetration. LONG TANGENT/BELLED END – various industries such as pulp and paper, emergency and tanker trucks and other applications requiring special fittings or economical fillet welding techniques. MARINE marine industry requirements for specialized fittings in a variety of materials suited for marine applications. ® 170 TUBEWAY T TUBEW A Y DRIVE / CAROL STREAM, S T REAM, IL 60188 / 630.690.7000 630. 690.7000 / WWW.COREPIPE.COM WWW W. C OREPIPE. C OM See contact information on page 70 ® 10 • •THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS RIM opens fourth location vALLeY COTTAge, N.Y. — RIM Plumbing & Heating Supply Inc. has opened a fourth location in valley Cottage, N.Y. RIM is a full-service wholesaler and retailer selling plumbing, heating, air conditioning and refrigeration supplies. From its four locations in Ossining, Newburgh, Hopewell Junction and valley Cottage N.Y., RIM services New York, New Jersey, Connecticut and Pennsylvania. The Ossining and Newburgh locations feature expansive and modern kitchen and bath showrooms. Hopewell Junction and the new valley Cottage locations also offer kitchen and bath showroom space. For close to 40 years, RIM has served their customers with what they want, when they want it. RIM has made shopping easy and convenient, with access to the RIM website (www.rimsupply.com) 24 hours a day, 7 days a week. Zoeller Company’s Mike Babrowski retires LOuISvILLe, KY. — Zoeller Company announces the retirement of Mike Babrowski, vice president-marketing, effective February 20, 2009, after 26 years with the company. During his tenure, Zoeller Pump Company became an acknowledged leader in the sump and sewage market Mike Babrowski in the u.S. He was an active member of the vendor Member Division and the American Supply Association, as well as other business and professional organizations in Louisville. Taco Inc. makes key acquisition and our continued focus on system selling,” he said. “This is another way in which Taco will create value for our customers, further diversify the Taco product line and continue to move away from the industry’s tendency of simply selling cast iron by the pound. “This acquisition will provide Taco with a technology platform that will incorporate our existing line of pumps, CRANSTON, R.I. — Taco Inc. has announced that the Cranston, R.I., company has acquired the assets of Innovex Technologies, a Lewiston, Maine-based manufacturer of Intelligent Building Systems products. These products include stand alone control devices and accessories that offer a complete control solution for both residential and commercial buildings. Announcement of the acquisition was made by Taco president and CeO John Hazen White Jr. “The addition of the Innovex Technologies product line is consistent with Taco’s strategy to expand its electronics product offering hydronic controls and electronic control products along with our unique LoadMatch single pipe heating and cooling system into a networked controls solution that provides comfort in an energy efficient and environmentally friendly manner. This is a huge opportunity for Taco, its employees and the industry as a whole.” For more information, visit www .taco.com. See contact information on page 70 SHARKBITTEN. ® INTRODUCING CASH ACME VALVES WITH SHARKBITE CONNECTORS. as fast using the simple disconnect tool. So valves can easily It’s an open-and-shut case for plumbing efficiency. The be changed and reused. Valves can even be rotated after SharkBite® Connection System now offers thermostatic, assembly for easier installation in tight spaces. regulator, and ball The SharkBite Connection System, now valves with integral with a wide range of easy-to-install push-fit or union type pushvalves. Just another way Cash Acme takes a fittings, for fast and bite out of your easy installation in installation costs. copper, CPVC or PEX pipe plumbing systems. Just insert the pipe and the stainless steel teeth bite down and grip tight – with no soldering, From thermostatic mixing valves clamps, unions or glue. Disassembly is just to pressure regulators, SharkBite connectors make installation fast. WK$YHQXH6:&XOOPDQ$/FDVKDFPHFRP$'LYLVLRQRI7KH5HOLDQFH:RUOGZLGH&RUSRUDWLRQ See contact information on page 70 12 • •THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS Emerson: More survey results ST. LOuIS — emerson Climate Technologies announced results from the company’s third contractor and distributor survey designed to measure readiness for the 2010 transition away from R-22 equipment. The number of products that will need to be changed over from HCFC to HFC refrigerants represents a significant challenge. In this survey, more contractors are ready, trained and quoting R-410A prod- ucts, with 57% of the participants responding that their technicians and staffs are ready to support R-410A and 14% reporting that they are exclusively quoting R410A. This is a slight 3% increase from the survey sent six months prior. Although the survey shows that the industry continues to prepare for the transition, some contractors and distributors seem to be pushing their conversions closer to the 2010 deadline. Almost onefourth of those residential contractors and distributors who initially planned to convert by 2008 (according to the November 2007 survey) has now pushed their transition out to 2009. Commercial contractors and distributors have pushed their conversions out even further — to 2010. When asked why they recommend R-22 equipment over R-410A, the predominant answer was the current cost associated with R-22 system repair versus replacement with an R-410A system. However, technical issues like line flush requirements, technician inexperience, lack of training with R-410A and retrofitting existing equipment are starting to become a larger concern. “This latest survey tells us that the industry continues to embrace R-410A, but that we need to further address contractor and distributor concerns, including technical issues and technician training, while also continuing to communicate the importance of earlier conversion,” said Brent Schroeder, president of emerson Climate Technologies Air Conditioning Division. “emerson Climate Technologies provides information about HFC refrigerants — including R-410A — on its website and has also published several white papers to educate and address questions surrounding the application of these refrigerants. “This survey shows that over half of those who said that they bought or stocked ahead for the 13 SeeR transition will do the same this time around, primarily for use in normal system replacements. However, 58% of those surveyed also said that they expect to see more repairs of R-22 systems as opposed to R410A system replacement, primarily due to economic reasons. “This causes us particular concern. A significant increase in demand for R-22 during the last half of 2009 could have an unsettling effect on the entire industry. We all remember the shortages, inventory fluctuations and supply chain issues that made the 13 SeeR transition a very tumultuous time for everyone in the industry. At emerson Climate Technologies, we are working with all of our partners to more effectively manage through the R-22 phase-out and ensure that the customer gets the best long-term solution that meets his needs.” Although there are some similarities between the 13 SeeR transition and the upcoming phase-out of R-22, there are also vast differences. Stocking up on 10 SeeR equipment was either necessary or beneficial from a business perspective in some cases. Stockpiling R-22 equipment may be much less ideal because of the expected increase in refrigerant price as the supply diminishes over the next several years. In fact, the latest survey results show that contractors and distributors are definitely noticing that R-22 refrigerant is getting more expensive, collectively reporting an increase of 59% over the past one to two years. Conversely, according to those surveyed, R-410A refrigerant has only increased an average of 4% over the past year. “Due to rapidly increasing R-22 refrigerant prices and issues with slowing inventory, the sooner our industry converts to R-410A, the better off contractors and distributors will be in the long run,” said Karl Zellmer, vice president-sales at emerson Climate Technologies, Air Conditioning Division. “Although we are a bit concerned by the latest results showing the timeline push closer to a 2010 conversion, we are confident that, if we come together as an industry and direct our focus, we can ensure a smooth and successful transition for the industry as a whole.” Despite the showing of a potential delay trend, many contractors are already working aggressively toward this transition goal, the results of which are apparent through customer readiness. According to this latest survey, an average of 16% of the contractors’ and distributors’ customers is requesting R410A equipment. This trend seems to be linked to a positive and expanded evolution of benefits and selling points. Although contractors are still using the economics of R-22 as a selling point when talking to their customers, they are now also speaking to the environmental benefits of R-410A, new technology and the improved comfort level. For more information on R-410A readiness, including emerson Climate Technologies technical white papers, contractor checklists and more, visit emersonClimate.com/refrigerant/ac. ECR donates to Morrisville State College uTICA, N.Y. — eCR International recently donated a boiler and a furnace to Morrisville State College to be used for training HvAC technicians. “eCR strongly believes that training for future HvAC technicians is key to the growth and success of our industry,” said Tim Reed, executive director of the eCR International Foundation. “We think that Morrisville has a great program, and we are excited to be able to have future technicians learn the trade on our equipment.” Morrisville’s ReSCON course focuses on the study of heat transfer in conventional building materials and on construction techniques for reducing energy consumption. Subjects covered also include residential hot water, hot air and steam heating systems, sizing of heating and cooling systems and selection of peripheral components. The eCR International Foundation was established in 2007 to enable eCR to more efficiently and effectively support philanthropic initiatives. For more information, visit www .ecrinternational.com. Stock Building Supply and Operation: Coming Home provide accessible housing to veterans RALeIgH, N.C. — Stock Building Supply, a leading supplier of building materials and construction services to professionals in the u.S., partnered with Operation: Coming Home to donate materials for the construction of a new, accessible residence for Sgt. Joey Bozik, a triple amputee injured serving his country in Iraq. Sgt. Bozik is the first soldier to receive a new home at no cost as part of the project. Stock Building Supply, with the help of building material manufacturers, donated framing lumber, windows, stairs, shingles, interior trim, exterior doors and door hardware. The 2,670-square-foot home is one of many projects that they hope to construct. The home is constructed with heated floors, wide doorways and other features, such as wheelchair accessible cabinets and door levers instead of knob handles. “Our associates recognize the importance of giving back to the community,” said Tracey Hall, Triangle marketing communications specialist for Stock Building Supply. “Projects like Habitat Blitzes, Leukemia Houses and Operation: Coming Home enable us to give back to the community, while building and strengthening our customer relationships with those involved in community service building projects.” For additional information, visit www.stockbuildingsupply.com or www.operationcominghome.org. LOWER INVENTORY. INCREASED TURNS. GREATER PROFITS. At a time when everyone is focused on reducing costs, supplier performance has never been more important. Everyone promises you great products, great service, at a great price. At Legend Valve, it isn’t a promise... it's a guarantee. While others are reducing their commitments to customers, we're increasing ours. • Shipment within 24 hours, so you keep inventories lower and profits higher • Industry-high • Error-free 99%+ fill rate transactions • No restocking fees • No minimum orders Guaranteed. QUALITY AT EVERY TURN™ 1-800-752-2082 www.legendvalve.com © 2008, Legend Valve & Fitting, Inc. All rights reserved. Downstream Thinking is a registered trademark of Legend Valve. It’s All About Performance is a trademark of Legend Valve. See contact information on page 70 14 • • THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS Matrix Total Home System is BuildingGreen Top 10 product BOSTON, MASS. — The Matrix Total Home System from NY Thermal Inc. has been selected as one of Buildinggreen’s 2008 Top 10 green Building Products by the editors of Environmental Building News and GreenSpec®. This seventh annual award recognizes the most innovative and exciting green building products added to the GreenSpec Directory during the past year or covered in Environmental Building News. “Our selections of the Top 10 green building products represent a wide range of product types in many different application areas,” noted GreenSpec co-editor and Buildinggreen president Alex Wilson. “Well represented this year are interior products, including first FCS-certified and formaldehyde-free bamboo flooring, doors made with wheat-straw particleboard, a line of zero-vOC paint, a transparent finish produced from a byproduct of cheese making and a line of organic fabric. Three of the products this year save energy, including a low-cost solar water heating sys- tem; a combination heating, water heating and heat recovery ventilation system and a system for monitoring real-time energy (and water) use in buildings. Water saving products are represented by a line of rainwater storage tanks — the first rainwater storage equipment ever recognized in our Top 10 lists.” More than 200 products were added to the GreenSpec database during the past year. A big driver in the development of green products continues to be the u.S. green Building Council’s LeeD® rating system, which awards points for the use of certain product types or for the energy or water savings that certain green products can achieve. In the online version of GreenSpec, products are organized by LeeD credits. The Matrix Total Home System is an all-in-one system that incorporates a condensing water heater, condensing furnace, condensing boiler and heat recovery ventilator and is pre-wired for air conditioning. All of these functions are contained in one powerful system that requires less energy to operate than competing products. For more information on The Matrix Total Home System, call 800/688-2575 or visit www.nythermal.com. Caroma donations protect the environment HILLSBORO, ORe. — Caroma, a leader in dual flush toilets, urinals and stylish bathroom sinks, has made donations to two very worthy projects. In support of American Forests, the company donated trees to the McNally Reforestation Project, part of the California Wildfire ReLeaf program. The 2002 McNally Fire burned more than 150,000 acres in the Sequoia National Forest, Calif. The McNally Reforestation Project will help supply ground cover to hold back soil from filling streams with sediment and will also provide a shady habitat that is important to many species in the area, including the California spotted owl, the northern goshawk and the Pacific fisher. Caroma is supporting a portion of the replanting of more than 123,000 pine and true fir seedlings that have not naturally regenerated. Caroma also donated more than 450 high efficiency toilets, urinals and sinks to the greensburg greenTown project, the restoration of the town of greensburg, Kan. greensburg was devastated by an eF5 tornado on May 4, 2007. Nearly 95% of the town’s homes and businesses were destroyed by the two-mile wide tornado. The donated toilets are projected to save at least 4,600 gallons of water per per- son per year. American Forests is a world leader in planting trees for environmental restoration, a pioneer in the science and practice of urban forestry and a primary communicator of the benefits of trees and forests. The nonprofit organization helps people plan and implement local actions to restore and maintain healthy ecosystems and communities. greensburg greenTown is a nonprofit organization established to provide residents with resources, information and the support they need to rebuild the city as a model green community. According to Derek Kirkpatrick, Caroma North America general manager, “Protecting the environment has always been important to Caroma. Our business for more than 20 years has been promoting water conservation with high efficiency toilets and urinals. We are extremely pleased to support the greensburg greenTown project and to expand beyond water conservation by continuing our sponsorship of American Forests and their environmental restoration programs.” For more information, call 800/605-4218, e-mail info@caromausa.com or visit www.caromausa.com. GBG opens branch in Syracuse See contact information on page 70 PITTSBuRgH, PA. — gBg Inc., a distributor of HvAC equipment, supplies and accessories to contractors in New York and Pennsylvania, announced the opening of their newest branch at 5823 Widewaters Parkway, east Syracuse, N.Y. Rick Fowler, Syracuse branch manager, a native of utica, N.Y., joined gBg with 23 years experience in management, including seven years directly related HvAC industry management experience. As a one-stop wholesaler, gBg Inc. supplies everything needed to complete any job efficiently and effectively. gBg also offers Rick Fowler superior technical support and industry-focused training classes. To contact the Syracuse branch, phone 315/4499400. For more information, visit www .gbgsupply.com25. GBG Inc.’s newest branch in East Syracuse, N.Y. ALL THE WATER STOPS YOU NEED FOR ALL THE STOPS YOU MAKE. Multi-Turn Series America’s #1 stop for over 60 years. NEW PushConnect As the leading manufacturer of water stops for over 60 years, Just push it on. Compatible with PEX, CPVC and copper. Dual O-rings help provide a secure, watertight connection. BrassCraft has the stop to meet your every need. Made in the USA, each stop is manufactured from heavy-duty brass, forming a solid body, without seams or brazed joints. Every stop provides reliable, leak-free operation and years of durable watertight performance. Better selection. Superior engineering. Exceptional performance. Qualities you’ve come to expect from BrassCraft – the brand that sets the standard for quality and innovation. Ask for it by name. KT Series ¼ - Turn Ball Stop Simply the best stop money can buy. G2 Series ¼ - Turn Stop Leading edge ¼ - turn design. Available with SureConnect ® technology. Committed to Quality, Driven by Innovation. To see the full line of BrassCraft water products visit: www.brasscraft.com WAT E R S T O P S WAT E R C O N N E C T O R S G A S B A L L VA LV E S See contact information on page 70 GAS CONNECTORS 16 • • THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS Elkay pressure water cooler supports LEED credit earnings oAK bRooK, ill. — Elkay Commercial continues its product innovation with the introduction of the vRCgRn pressurized water cooler. As the first GreenSpec listed addition to its family of innovative drinking water solutions, vRCgRn, with its enhanced efficiency and water conscious functionality, has been identified as a water cooler that can assist builders and architects in achieving credits based on lEED rating systems. “As a major manufacturer of pressure water coolers and with the environment as a driving force in our product development, Elkay has dedicated an abundance of time and resources to engineer a water cooler that provides a drinking water solution that satisfies the needs of the end-users, while also minimizing its global impact,” said Jack Krecek, vice president and general manager of Elkay Commercial business unit. Equipped with a completely redesigned If Your Customers Have Entran II Radiant Heating, They Could be Entitled to Cash Payments from a $324 Million Settlement There is a $324 million settlement to pay homeowners for claims related to defective hose used in radiant heating and snow melting systems. The hose, called Entran II, was also known as Twintran, Nytrace, Entran II Trace, Entran II Wire, Entran 2, Entran 2 Trace, and Entran 2 Wire. Claim payments vary depending upon the extent of the property damage and the type of installation, for example, in-slab or staple up. The maximum amount payable to any Claimant will be determined by multiplying the square footage of a floor area heated with a particular type of installation by the predetermined costs per square foot of remediating the system. v Claimants who have or had severe property damage due to leaks in their systems could receive up to 50% or more of their maximum claim. v Claimants who have or had less severe property damages including corrosion or other problems could receive up to 30% or more of their maximum claim. Homeowners who have Entran II hose but have not suffered damage may also file a claim. Contact your customers to notify them of the benefits of this settlement and to assist them with their remediation. The deadline for filing claims is November 19, 2009. Only customers who file a claim by that date can receive a cash payment. For More Information Visit: www.entraniisettlement.com Call: 1-800-254-9222 or Write: Entran II Claims Administrator, P.O. Box 24, Minneapolis, MN 55440-0024 See contact information on page 70 refrigeration system, the vRCgRn model utilizes a greater efficiency compressor, optimizes heat transfer within the evaporator and uses a reduced amount of refrigerant. When tested to CsA standard C-815 Energy-Performance of Drinking-Water Coolers requirements in a ul-recognized test lab, results indicated that the vRCgRn realized a 50% improvement in energy efficiency over comparable models. by incorporating a lower flow bubbler, vRCgRn provides a thirst-quenching stream of drinking water that consumes 40% less water than comparable coolers. With the addition of the optional 1,500-gallon, nsF/Ansi 42- and 53-certified Watersentry® filtration system and glass filler, the vRCgRn equates to saving 12,000, 16-ounce plastic bottles per filter, helping to alleviate the financial and environmental impact associated with bottled water while delivering a clean, green alternative. The extremely durable vRCgRn unit is ideal for education, healthcare, office, hotels or other public facilities. Constructed of 60% recycled content stainless steel and manufactured without using voC-emitting paints/coatings, the vRCgRn water cooler is a top-rated drinking water solution for engineers and architects to specify, plumbers to install and end-users to enjoy. “Receiving greenspec listing on the vRCgRn is just the beginning; we are committed to working diligently to add even more high-performance products to the GreenSpec Directory that can benefit plumbing professionals and specifiers in the ever-growing, ever-changing marketplace,” noted Krecek. For details, visit www.elkayusa.com. Distributors in cold climates fuel strong sales in October Columbus, ohio — in its monthly Targeted and Regional Economic News for Distribution Strategies (TRENDS) report, heating, Air-conditioning and Refrigeration Distributors international announced that national hvACR distributor sales for the month of october 2008 were down -0.8%, just slightly below october 2007. Among the eight hARDi regional reports, four in colder climates reported positive sales, while four reported sales declines for the month. over the previous 12 months, u.s. and Canadian wholesale sales were collectively up +0.2%. best performance for october was experienced in Canada at a positive 9.4%, while the Western region reported the poorest performance at negative 11.1%. only the midwest region reported a decline in inventory level; all others indicated inventories were up. For more information about hARDi’s monthly TRENDS reports, including access to the complete reports and quarterly TRENDS forecasts, contact hARDi’s headquarters or visit www.hardinet.org. See contact information on page 70 18 • • THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS Northeastern Supply selects TCLogic for inventory optimization inDiAnAPolis — TClogic, a leading provider of inventory intelligence and optimization solutions, announced today that northeastern supply, a leader in plumbing and hvAC distribution, has chosen to implement TClogic’s Roi+ inventory intelligence and optimization solution, setting the stage for improving their inventory investment return, while maintaining their high service levels. northeastern supply has a strong presence in the mid-Atlantic region, distributing hvAC, plumbing and hardware materials through a network of 31 branches. They maintain an expansive inventory to support a reputation for high in-stock availability and are one of the largest privately held distributors in the country for their industry. When northeastern began searching for a software tool, they looked for a company that would help realign their inventory throughout their network, while helping them maintain their critically high service levels. According to Tony goncalves, director of supply chain for northeastern, “During our search, it became clear that TClogic understood how inventory impacts business results. They took the time to understand how we run our business.” The financial impact of having excess inventory during a recession cannot be understated. “The right combination of inventory can free up available cash, reduce expenses and help businesses be more successful,” said Tom uhrig, president of TClogic. “inventory intelligence provides insights that enable companies we work with to see reductions in inventory of 10% to 30% and to increase or maintain their service level above 98% with a return of investment within 6 to 12 months.” As a software solution, Roi+ is designed to enhance and supplement existing ERP applications, providing a comprehensive set of tools that build business intelligence and create strategies to improve the performance of inventory, helping businesses make more informed decisions about their inventory and purchasing practices. During implementation, northeastern soon discovered these benefits beyond realigning their network. “We were immediately able to make significant reductions to our surplus inventory by redeploying inventory through our network. We used to make decisions based on distribution folklore with little or no data,” commented goncalves. “That has now all changed; i now have a tool to measure, analyze and create inventory stocking strategies and to support those decisions with inventory intelligence that i didn’t have before.” For more information, visit www.tclogic.com or call 800/945-4877. Meier Supply opens branch in Hanover, Pa. Johnson CiTy, n.y. — meier supply Company inc. has opened its 16th branch location in hanover, Pa. The location features more than 2,000 square feet of showroom space and an additional 7,000 square feet of warehouse space. Joshua summers, a hvACR industry professional with more than 17 years of experience, is the hanover branch manager. Pete snyder is hanover’s in-house refrigeration specialist. meier supply Company carries the industry’s leading lines, such as Tecumseh, sporlan and Copeland. They are the region’s only authorized Ruud See contact information on page 70 distributor. “The warehouse space at our new branch makes it possible to deliver orders directly to customers from the hanover, Pa., location,” said Frank A. meier Jr., president and CEo of meier supply. “We felt that the time was right to offer our product line, backed by our skilled hvAC specialists and our ‘Customer satisfaction guaranteed’ level of service to the hanovergettysburg region.” The hanover branch is located at 290 high street. The phone number is 866/500-7083. For more information, visit www.meiersupply.com. Visit us at AHR Expo Booth #2070 All the hot water heaters in the world with PVC venting that are 98% efficient. Condensing 98 Tankless Water Heater Where technology meets ecology. 800.519.8794 s NavienAmerica.com See contact information on page 70 20 • • THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS AHRI to EPA: modify proposed rule ArlIngTon, VA. — The Air-Conditioning, Heating and refrigeration Institute in early January called on the environmental Protection Agency to modify its proposed rule governing the sale of equipment precharged with HCFC-based refrigerants (r22, r-142b, and their blends). In testimony before the ePA, AHrI vice president-regulatory policy and research Karim Amrane stated that the proposed rule “goes well beyond its original intent,” which was to close a loophole on imported products containing HCFCs, to match the ban on domestic manufacturing of products that use virgin r-22 or r-142b beginning January 1, 2010. while the proposed rule would close this loophole, it also would introduce new problems that could have a devastating effect on U.S. manufacturers. The proposed rule contains an unconventional definition for the “date of manufacture” — one that shifts the meaning from the date the equipment leaves the factory to the date it is installed. left unchanged, this definition would ultimately accelerate the phaseout timeline by six to 12 months because manufacturers would likely immediately stop producing condensing units charged with virgin HCFC refrigerants. Amrane said industry will manufacture an estimated 2 million HCFC condensing units in 2009, and if they were unable by law to be sold, stranded inventory costs could be in excess of $500 million, “enough to bankrupt several manufacturers and suppliers,” he said. on behalf of AHrI, Amrane also forcefully objected to a provision in the proposed rule that would prevent U.S.- based manufacturers of HCFC-charged equipment from exporting it to Article 5 countries where, he said, “it is perfectly legal” to use those refrigerants. Keeping that provision intact would disadvantage and penalize U.S. manufacturers because their foreign competitors would face no such ban in those nations. The net effect, said Amrane, would be “the export of U.S. manufacturing jobs.” Finally, Amrane called on the ePA to modify the rule to exempt pre-charged appliance components, such as thermostatic expansion valves, from the refrig- PMI pushes housing recovery plan rollIng MeADowS, Ill. — The Plumbing Manufacturers Institute has joined Fix Housing First, a coalition formed to push for a housing recovery plan that will revive the economy. Fix Housing First, which consists of more than 600 organizations, home building companies and manufacturers and continues to add new members on a daily basis, is pressing for a major stimulus package to stem the decline in home values, stabilize financial markets and reignite consumer demand. To get the economy moving again, the coalition is urging Congress to support enhancements to the homebuyer tax credit and to provide below-market 30-year fixed-rate mortgages for home purchases. A similar plan worked in 1975, when the nation was also in the midst of a recession. Congress then passed a short-term $2,000 tax credit for all new homes ($12,000 adjusted for today’s median home prices), along with subsidized mortgage rates. The stimulus jump-started the depressed economy, and the effects continued long after the measure expired. The coalition is calling for significant enhancements to the current $7,500 tax credit for first-time homebuyers. Among the improvements: • All primary home purchases between April 9, 2008, and Dec. 31, 2009, would be eligible. • The credit amount would be increased to 10% of the price of the home, capped at 3.5% of FHA loan limits, bringing the credit to a range of roughly between $10,000 and $22,000. • The current recapture provision would be eliminated. repayment would only be required if the home were sold within three years. • The credit would be available at the time of closing, making it easier to be used as a down payment. The second component of the stimulus plan would provide qualified homebuyers with 30-year fixed-rate mortgages at 2.99% on contracts closed until June 30, 2009, and 3.99 percent on closings between June 30 and Dec. 31, 2009. The coalition has also announced its support for continuing foreclosure prevention measures to keep people in their homes. For additional information, go to www.fixhousingfirst.com. CIPH bulletin available online ToronTo — The Canadian Institute of Plumbing and Heating, in conjunction with provincial/territorial plumbing inspectors, feels that it is necessary to provide an industry bulletin on the distribution and installation of plumbing products that do not meet applicable standards. Uncertified products are being inappropriately sold and installed in all jurisdictions of Canada. In many cases, this is creating health and safety issues. The CIPH bulletin covers common ques- ® LA-CO manufactures a wide range of markers, heat protectants, fluxes and thread sealants for the industry applications you require. Your job demands it; we have it. PROVEN EVERY DAY // PROVEN EVERYWHERE® £Óä£Ê*À>ÌÌÊÕiÛ>À`ÊU Elk Grove Village, IL £nääÈÓ£{äÓxÊUÊ£n{ÇxÈÇÈää www.laco.com or www.markal.com See contact information on page 70 erant ban. Failure to do so, he said, would prevent consumers from obtaining needed replacement parts for the installed-base of HCFC equipment. The solution, said Amrane, would be for the ePA to modify the rule to use a more conventional definition of the term “manufacture” to mean “when the product leaves the manufacturer’s final assembly process, is packaged for shipment, and placed into initial inventory”; and to exempt products intended solely for export and pre-charged components from the rule. tions and answers including the following: • Myths and realities about uncertified products • How to determine whether a product is certified • The harm in stocking and selling uncertified fixtures or fittings • The importance of understanding when to remove self-destructing labels • How to verify a questionable mark • The advantages of using certified products. The bulletin is available in both French and english at www.ciph.com/ Your_Industry_Trade_Section/news/Inf ormation_Bulletins.php. Thomas & Betts expands OK to rebuy shares MeMPHIS, Tenn. — Thomas & Betts Cor poration announced that its board of directors has expanded the company’s october 2008 authorization to repurchase shares of Thomas & Betts common stock from three to five million shares. The authorization, which expires in october 2010, gives management discretion in determining conditions under which the shares may be purchased from time to time. Thomas & Betts Corporation (www .tnb.com) is a leading designer and manufacturer of electrical components used in industrial, commercial, communications and utility markets. The company is also a leading producer of commercial heating and ventilation units and highly engineered steel structures used, among other things, for utility transmission. Headquartered in Memphis, Tenn., the company has manufacturing, distribution and office facilities worldwide. In 2007, Thomas & Betts reported net sales of $2.1 billion. The Best Products, The Best Service... As a master distributor of Pipe Fittings, Flanges and Valves for all of your industrial PVF needs, Service Metal has the comprehensive inventory necessary to fulfill your stock orders and everyday needs. Mill test reports available. CS Weld Fittings & Flanges • FS Fittings & Outlets • CI Flanged Fittings • MI Pipe Fittings Merchant Steel Couplings • Pipe Nipples • Bolt Paks • Crane & Williams CS Valves Crane & Fortune CI Valves • Crane Bronze Valves • Smith FS Valves • Fortune Ball Valves ST&H Butterfly Valves • Center Line Butterfly Valves & Check Valves Flowseal High Performance Butterfly Valves • Duo-Chek Valves • Titan Y-Strainers ® ® ® ® ® ® ® ® ® Service Metal Products Co. Service Metal of the Carolinas Serving the Midwest & Western U.S. Serving the Eastern U.S. Toll Free: 800-325-7820 Fax: 314-231-1821 Toll Free: 800-438-6946 Fax: 704-331-0646 www.servicemetal.net See contact information on page 70 ONE CALL GETS IT ALL 22 • • THE WHOLESALER® — FEBRUARY 2009 INDUSTRY NEWS PathGuide WMS rids customers of annual inventory sEATTlE — Pathguide Technologies, a leading provider of warehouse management systems for wholesale and industrial distributors, announced that its customers have reported significant money and timesavings around their year-end inventories as a result of Pathguide’s latitude Wms Cycle Count Planning module. As companies get close to the new year, they often shut down warehouses or have employees work on weekends to conduct their annual physical inventory process. This is a disruptive, expensive and time consuming undertaking, but with Pathguide’s Cycle Count Planning, yearend physical inventories are replaced by routine spot checks and automation. “instead of celebrating the new year, we dreaded the process of calling everyone in for inventory at the end of the year -an absolute necessity with our old paper-based warehouse management system,” said mike bell, executive vice president-operations at Duncan industrial solutions. “in 2006, we upgraded to Pathguide’s latitude Wms with Cycle Count Planning. now our inventory checks of more than 15,000 items are spread out over time in an automated fashion, making those checks more efficient and accurate. The bottom line is that our customers receive the best possible service because they always know what they can get and when they can get it in real time, thanks in a large part to Cycle Count Planning.” Pathguide CEo Eric Allais added, “i specifically hear from our customers that utilize Pathguide’s Cycle Count Planning module this time of year. They are thankful that, as the new year approaches, they don’t have to turn their warehouse operation into an auditing operation, saving them not only a huge headache but, most importantly, cash. That’s something everyone can relate to in these tight economic times.” With Cycle Count Planning, schedules are easily developed to systematically verify that all item quantities are accounted for. by selecting subsets of inventory and counting them on a frequent basis, operations continue as usual and misplaced items are quickly identified. Cycle Count Planning helps satisfy accounting and auditing requirements for inventory control. latitude is a software suite that automates warehousing and distribution to provide real-time online information about inventory. it automates all operations from receiving and order picking to manifesting and truck route/stop management. latitude integrates seamlessly with major ERP business systems from such companies as microsoft, Activant, infor, J.D. Edwards and oracle. Customers — primarily industrial /wholesale distributors serving manufacturers, contractors and retail stores — rely on latitude to increase productivity, improve service and lower labor costs. To learn how distributors of all sizes can benefit from improved warehouse management, visit www.pathguide.com. VAI presents series of webinars See contact information on page 70 RonKonKomA, n.y. — vAi announced a series of webinars they believe you will find informative in relation to your business. The first webinar, “Are you prepared for the economic recovery?” took place on January 27. The topics and schedules for the remaining 2009 webinar series are listed below: • February 24 — outsourcing, outtasking, offshoring and dumbing down of your company • march 31 — ERP vendors and solution providers: the caveats of not knowing who’s who • April 28 — best practices? your best practices, the enemy of better is best • may 26 — With thousands of application sW solutions, how do you pick one for you? • June 30 — When ease of use meets easy to do. To register, go to www.vai.net/events two weeks before each webinar. Factory Tune ups. Tune up your business with FloPro Factory Training. Even the most experienced contractors tell us that Taco FloPro Factory Training helps them work smarter. And with today’s economy, working smarter isn’t an option – it’s essential for profitability. You’re sure to benefit from the expertise and insights only to be found in a small, personal classroom setting. Date Course Description FEB 26-27 The Compleat Boiler Learn to design – and sell – the ultimate boiler room using all Taco products. Lots of hands-on, including wiring and programming Taco controls. MAR 12-13 Strictly Radiant Radiant theory and design; sizing, piping, and control strategies; injection mixing options; in-depth discussion of zoning requirements. MAR 19-20 Hydronic Heat Loss and Design Our 2-day factory training programs are taught by Taco’s own John Barba. Together, you’ll focus on one topic and learn it cold. It’s work, but it doesn’t feel like it. Learn to conduct an accurate heat loss analysis with pencil, paper, and calculator. Learn how to use our state of the art FloPro Design software. Plenty of hands-on. Sure to benefit any experienced hydronics designer. Basic computer skills required. APR 2-3 The Compleat Boiler See above APR 16-17 Strictly Radiant See above APR 23-24 Hydronic Heat Loss/Design See above Sign up now! MAY 7-8 The Compleat Boiler See above JUN 4-5 Strictly Radiant See above JUN 18-19 Hydronic Heat Loss/Design See above JUL 16-17 The Compleat Boiler See above To grow, you have to know. Classes are small, and available to FloPro team members only. Visit www.taco-hvac.com/flopro for all the course information and details. www.taco-hvac.com See contact information on page 70 24 • • THE WHOLESALER® — FEBRUARY 2009 USING TECHNOLOGY Activant Prophet 21 helps HVAC distributor better track inventory YARDleY, PA. — What do I have on hand in my warehouse? how much am I selling of this product, and how much am I making on each sale? how are my expenses stacking up against what we budgeted for the year? For the answers to these and thousands of other questions, distributors rely on computer technology to give them the facts. Activant Prophet 21 took on the chal- “We were looking at better ways of controlling inventory...if I had to make the decision again, I probably would have gone with Prophet 21 to begin with.” — Steve Williams lenge of helping a Royston, Ga.-based hvAc distributor keep better track of its inventory and books. Among the benefits Tri-State Distributors realized after implementing Activant Prophet 21 were: • cut month-end close time 50% • Improved ability to track performance against budgets • Improved ability to track gross margins and forecast sales • Increased inventory turns by two per year. What had Steve Williams, chairman and ceo of Tri-State Distributors all hot and bothered was that his previous solution couldn’t give them to him fast enough or in enough detail. With eight locations, the distributor of heating, cooling and ventilation equipment needed a solution that would allow the com- pany to stay on top of business in a territory that spanned four states. “We were looking at better ways of controlling inventory,” Williams said. The second time’s the charm Williams had looked at Activant Prophet 21 and another software provider’s package several years ago. At the time, he was sold on the other software because they were going to allow downloading of data via the internet overnight. But according to Williams, the program did not work the way he expected. “Instead, it turned out the way the Prophet 21 sales rep said it would — I had to set up land lines to connect my branches and transfer data among them,” he said. “If I had to make that decision again, I probably would have gone with Prophet 21 to begin with.” In 2005, when Tri-State’s existing vendor told the company they were going to a Windows-based interface and that Tri-State would have to absorb the costs, Williams “figured that if we were going to have to pay that much for an upgrade, we might as well go with a new solution instead. I knew about Prophet 21 already, and I guess you could say I was pre-sold on it.” This time around, things have gone much better. Since Tri-State went live with Prophet 21 in 2006, Williams said, he has noticed improvements across the board thanks to Prophet 21’s superior functionality. “Prophet 21 is real-time — when we sell something, it comes out of the inventory immediately and all our records are updated,” he said. “If I had to (Turn to Inventory, page 27.) STANDARD FEATURES LAARS Mighty Therm2 boilers and water heaters for quality and economy • Efficient 10-tube finned heat exchanger available in copper or cupronickel Specifically designed to meet the needs of the replacement market, Mighty Therm2 commercial boilers and water heaters feature straightforward controls with 2-stage firing and convenient modular construction. These versatile and environmentally friendly (NOx emissions below 10 ppm) commercial systems are built for the most demanding indoor and outdoor applications. • Water heater meets the ASHRAE 90.1 standard for efficiency ® Available in 7 sizes from 500 to 2000 MBTU/h, Mighty Therm2 boilers and water heaters deliver efficiency levels up to 85%. Their high-efficiency combustion can cut fuel costs significantly compared to conventional water heating systems.In addition to high efficiency, the Mighty Therm2 saves on installations and start-up costs with the optional factory-mounted pump and simple terminal strip for field wiring connections. You can count on Mighty Therm2 performance and low maintenance to deliver the savings. • Vents horizontally up to 50 feet • Glass-lined cast iron or bronze headers and non-ferrous waterways Built to be the Best™ www.Laars.com 800.900.9276 ©2008, LAARS Heating Systems. All rights reserved. See contact information on page 70 Built to protect your reputation. A DIVISION OF SMITH-COOPER INTERNATIONAL, LLC NORTHLAKE, IL (877) 774-2773 / (708) 562-9221 / (708) 562-0890 FAX COMMERCE, CA (800) 766-0076 / (323) 890-4455 / (323) 890-4456 FAX www.sharpevalves.com See contact information on page 70 See contact information on page 70 • 27 THE WHOLESALER® — FEBRUARY 2009• INDUSTRY NEWS Inventory (Continued from page 24.) make the decision again, I probably would have gone with Prophet 21 to begin with.” Fast facts at your fingertips “I can now look at our inventory, receivables and payables daily and get a good idea of where we are,” Williams noted. “I can also have our cFo run a financial report every day that lets me know where we stand against our budget. The ability to check these things quickly gives me a good feeling.” chief financial officer Janet Jordan feels just as good about the solution. “We looked at several systems, and we liked this one the best,” she said. “of course, when you implement a new system, you find that there are things the old system had that you wish the new one did, but Prophet 21 is so much better than [our previous system]. Prophet 21 got all the big things right. “I like the drill-down ability; I never had that before. our payables person can come in and ask me when something was paid, and I can go back down into the history and see it right there as opposed for having to wait for our system to run a report.” An out at five organization at last Both Williams and Jordan appreciate the power Prophet 21 gives them to know more and do more. or less. “Month end now takes half the time it used to,” said Jordan. “I can now leave at 5. I used to have to stay here and get all the statements, run everything right then, and wait for five or six hours while the statements ran. now I can leave on Friday, and everything Split (Continued from ASA, page 1.) of the Industry Interchange program.” networkASA 2009: power will take place october 14 -17 at the J.W. Marriott hotel in Washington, D.c. The meeting will project a renewed focus on the impact asa has on the industry and on the individual businesses of its members. Attendees will see semi- Purchase (Continued from page 1.) quisition of hSc,” said Gary Sanders, executive chairman of George T. Sanders. “hSc has been in business 50 plus years, and has strong customer and employee loyalty, which are vital ingredients for success.” hSc has two Wyoming store locations, in casper PEX plant (Continued from page 1.) of nIBco’s future growth in the Pex market,” said Randy Doering, nIBco general manager-Pex piping systems. “nIBco has built its success in the Pex business by leveraging the synergies between nIBco’s strong brand recognition and commitment to high service levels and the acquisition of a plumbing products company with strong core manufacturing capabilities.” In May 2006, nIBco announced that it acquired the I need is sitting here waiting for me when I get here Monday morning to do the same processes.” And because looking up facts in Prophet 21 is so much faster and easier, Williams checks them more often, to the benefit of his operation. “We track gross margins a lot more than we used to,” he said. “Inventory and inventory turns are the two biggest things we track, and we get more infor- I used to have to stay here...and wait for five or six hours while the statements ran. Now I can leave on Friday, and everything I need is sitting here waiting for me when I get here Monday morning to do the same processes.” mation on these with Prophet 21 than we did before. We have probably added a couple of inventory turns a year simply by watching our inventory turns reports. “I can go into each of my eight locations and look at what they’re selling in each product line. I can adjust inventory on the fly. I can check inventory by product group, by item, or by Sku. And I can get sales forecast figures from the data.” Williams is also aware that, with a little effort, his company could probably get even more out of Prophet 21. “overall, it has performed in line with my expectations,” he said. “It has a few quirks, but some of those exist because we should probably have someone come in and go over the system with us. I’d say that like most users, we’re probably using about 30% to 40% of what the system can do.” ■ To learn more, visit www.activant.com. nars from prominent speakers co-mingled with intimate workshops that encourage a free-flow sharing of information and best practices. At this meeting, ASA will introduce the Industry Interchange, a distinctive event providing an innovative way for vendors and distributors to connect face-to-face and promote interaction between channel partners. networkASA 2009 is ASA’s annual convention and is not being held in partnership with Phcc-nA or any other industry association. For more information, visit www.asa.net. and cody. They service a broad region of the state from these locations. George T. Sanders is one of the largest independent plumbing wholesale suppliers in colorado, with 12 locations serving the major population centers in the state. hSc will continue to operate as houston Supply company, a division of George T. Sanders. Present hSc personnel will continue the Wyoming operations, reporting to George T. Sanders management. assets of consolidated Plumbing Industries, a manufacturer of cross-linked polyethylene tubing. The acquisition was a strategic move in expanding nIBco’s presence in the Pex water distribution and radiant heating markets. nIBco DuRA-Pex tubing had previously been manufactured at 2775 henkle Drive in lebanon, ohio, which is directly across the street from the new facility. The tubing was then post-processed and shipped from the Franklin, ohio, facility, which is located 15 miles from lebanon. All lebanon and Franklin associates will be relocating to the new lebanon location at 2800 henkle Drive, lebanon, ohio 45036. See contact information on page 70 See contact information on page 70 30 • • THE WHOLESALER® — FEBRUARY 2009 SOFTWARE IN ACTION WMS keeps the bottom line black BY LARRY MURPHY Special to The WholeSaler T he primary goal of any warehouse operation is to ship the right product to the right place at the right time. Sounds simple. For most warehouse operations however, this process would not be possible without a Warehouse Management System, a powerful software solution designed specifically to control the movement and storage of materials and products within a warehouse. It is true that not all warehouse environments require a WMS to function opti- &(&2 7KH &RPPH U F L DO (QDPH O L QJ &RPSDQ\ &D V W , U RQ 6L QNV \RX F D Q F RXQW RQ 3U RYL GL QJ W RS TXD O L W \ SU RGXF W V D QG V H U YL F H W R W KH :KRO H V D O H U V RI $PH U L F D V L QF H 0RV W L W H PV V KL S ZL W KL Q KRXU V 3KRQH ( PD L O F H F RPD W W #KRW PD L O F RP ZZZ F H F RV L QNV F RP See contact information on page 70 Same service. Same people. New name. As a leader in refrigerant supply, Refron, now part of Airgas Refrigerants offers the resources of over 55 years of experience along with the expertise of the largest U.S. distributor of industrial, medical and specialty gases. This combination provides the industry with a total refrigerant supply and reclamation service company. Our customers can expect the same reliable services and quality refrigerant products they have been accustomed to from the same reliable team. Same people, more resources. Any Refrigerant. Any Place. Any Time.® 800-473-3766 See contact information on page 70 items or pallets into one bin. This significantly slowed the inventory replenishing and cycle counting process-ultimately affecting the company’s ability to provide accurate inventory counts and on time product delivery. Today, with vAI’s new integrated WMS solution, BP Industries’ warehouse employees use a software program that allows selective picking, cutting down on missed picks and creating significantly fewer mistakes thanks to the real-time inventory mally, but many do. For these companies, implementing a system that provides multiple functionalities can greatly streamline the overall supply chain process by significantly improving current operating procedures and, in the long run, enhancing inventory and shipping accuracy, increasing labor productivity, reducing operating costs and boosting overall revenue. At its basic level, a WMS should be flexible, and have the ability to integrate additional data collection devices and manage warehouse traffic protocols via defined guidelines for receiving, storing and shipping materials. For BP Industries, a wellknown distributor of home goods, incorporating a WMS into its existing warehouse operations made a substantial difference in staff productivi- with wmS, users often experience inventory precision ty and shipping efficiency. levels greater than 99% so they can maintain optimal The company, which is head- inventory levels without carrying unnecessary stock. quartered in ontario, calif., selected vormittag Associates Inc. data that S2k provides. (www.vai.net) as its WMS solution linda Misquitta, administration manprovider. vAI is a nationally recognized ager at BP Industries, said, “The picking leader in the supply chain and WMS process is so much faster now. Accuracy and efficiency permeate our warehouse operations to include everything from receiving, putting away, picking and processing. Thanks to our comprehensive WMS, any operation we do now takes less than a quarter of the time it used to take prior to having the WMS system in place.” Implementing a WMS can be an overwhelming task, but manufacturers and industry and specializes in enterprise distributors alike recognize that wareResource Planning solutions. vAI’s S2k house operations run more efficiently enterprise for WMS automates the pickwhen processes are fully automated and ing and shipping process so that distribintegrated. In fact, a comprehensive utors can locate and pick items efficientWMS is an important component to attaining and preserving profitability, while accurately monitoring inventory levels is essential to achieving bottom line results. Just ask Java city, which has been using a WMS for over 11 years. This californiabased company is a large volume distributor of specialty coffee and coffee-related products. Before implementing a WMS, Java city used a paper-based tracking system, Deliveries are more accurate and timely with wmS. which greatly slowed its overall warehouse operating ly and accurately. After evaluating variprocesses. company executives knew ous WMS options, BP Industries selected that it needed an automated solution to S2k to stabilize its warehouse environprovide greater precision. ment, handle large volume transactions Today, Java city’s operations are effiand remain scalable for its aggressive cient and effective. With vAI’s S2k WMS future growth initiatives. keeping an electronic trail of materials Before adding a WMS to its current — no guesswork is involved. Since it is operating routine, BP Industries had difcritical to know, in real-time, exactly ficulties with its picking process, due to where specific product is located within the placement of too many disparate (Turn to meet dual goals ... page 32.) Before adding a WMS to its current operating routine, BP Industries had difficulties with its picking process, due to the placement of too many disparate items or pallets into one bin. Press technology... the inside story. Why use Press Fittings over Sweat Fittings? ProPress 1/2" to 2" fittings. In the study below it took 75% less time to install a typical restaurant bathroom with press technology over sweating fittings. This will allow for jobs to be completed quicker, on time or ahead of schedule. EPDM seal Fitting bead Press Fittings vs. Sweat Fittings Sweat Fittings Press Fittings 25.54 6.21 An unpressed connection with the Smart Connect feature allows liquids and/or air to pass by the sealing element during pressure test. MCAA Labor Hours ProPress fitting 0 5 10 15 20 25 30 Note: MCAA labor calculators were utilized in the labor estimate Only Viega ProPress fittings and valves offer the Smart Connect® feature, a quick and easy way to identify connections that need pressing. During pressure testing, water or air flows past the sealing element indicating an unpressed fitting. The Smart Connect feature has assured millions of leak-free connections for water and gas applications. ProPress is approved for potable water, fuel gas, marine and stainless steel applications. Viega ProPress fittings carry a 50-year warranty for copper. For more information see our white paper on back or contact us at 1-800-976-9819. Pressed connection is pressed in front of, on top of, and behind the seal making a gas or water-tight seal. The Smart Connect feature is sealed during pressing. ProPress XL-C 2-1/2" to 4" fittings. Stainless steel grip ring PBT spacer EPDM seal The stainless steel grip ring is pressed, forcing the grip ring teeth against the tube, making a high-strength connection. Fitting bead ProPress XL-C fitting Viega... The global leader in plumbing and heating systems. W W W . V I E G A . C O M 1 - 8 0 0 - 9 7 6 - 9 8 1 9 See contact information on page 70 32 • • THE WHOLESALER® — FEBRUARY 2009 SOFTWARE IN ACTION Meet dual goals of picking accuracy, processing speed with WMS (Continued from page 30.) the warehouse, and to know how much inventory remains on hand, Java City uses radio frequency guns to update inventory levels automatically. With Wms software, once an item is scanned into the system, a warehouse employee can go directly to a computer terminal to make sure the transaction was entered correctly. This new process has greatly diminished the time it takes for materials to reach the warehouse dock. What used to take several hours, now only requires mere minutes. For Java City, or any warehouse operation, shipping the correct products to the right location are key to making customers happy. Experienced warehouse managers understand that “miss picks,” or picking the wrong item, is a common occurrence that can significantly slow the overall product movement process. Prior to its shift to an rF system, Java City averaged approximately 136 miss The software helps sort materials on a conveyor system and moves them to shipping. Orders that once required a day to fulfill are now processed in about an hour. With VAI’s WMS several employees can work on the same order at the same time. picks a month out of 5,000 orders. Now, with the help of a Wms, Java City has improved order accuracy, streamlined operations, and increased shipping speeds. Currently, the company processes about 6,000 orders a month with only about eight miss picks. With s2K, Java City has grown dramatically thanks to increased efficiency and productivity. The Wms solution logs everything, from when it comes out of the truck to when it reaches the customers. The system tells users what inventory was pulled, who picked it, who packed it and which driver delivered it. As mentioned before, not every warehouse requires a Wms, but many times large warehouse facilities can greatly benefit from the feature-rich capabilities this type of software solution offers, which are meant to simplify and streamline the operating processes. For example, Waytek Inc., a wiring materials supply company based in Chanhassen, minn., uses a Wms to improve overall efficiency, enhance inventory access and improve shipping speeds. Waytek uses vAI’s Wms to move orders out to customers in shorter amounts of time. The software helps sort materials on a conveyor system, quickly moving them down to shipping. Orders that used to take more then a day to fulfill are now processed in about an hour. The advantage of vAI’s Wms is that several employees can work on the same Solve your repair parts puzzle. Call BAVCO! • Complete Parts Inventory • Same Day Shipping • Technical Expertise (800) 458-3492 www.bavco.com The Source for All Your Backflow Parts & Accessories See contact information on page 70 Waytek Inc., a wiring materials supply company in Chanhassen, Minn., uses a WMS to move orders out to customers in shorter amounts of time. order at the same time — greatly improving order fulfillment speeds. Bob Lamoreaux, president of Waytek, said, “Our warehouse picking accuracy runs at around 99% and our throughput processing time has increased as well. What used to take about five hours, now takes a little less than an hour.” Implementing a Wms into existing operations is an investment in both time and money. While these powerful solutions can require a lengthy installation period, the return on investment is well worth the time and cost. Again, Wms implementations often yield measurable improvements in inventory control and customer order “Our warehouse picking accuracy runs at around 99% and our throughput processing time has increased as well. What used to take about five hours, now takes a little less than an hour.” — Bob Lamoreaux fulfillment. It is not uncommon to experience inventory precision levels of greater than 99%, enabling companies to maintain optimal inventory levels without incurring the expenses associated with carrying unnecessary stock. A comprehensive Wms can track customer orders in precise detail. The availability of such information enhances quality control and customer service capabilities. Deliveries are more accurate and timely as well. In fact, virtually every aspect of a business can benefit from a Wms implementation including accounting, production, warehousing, distribution and manufacturing. simply, a quality Wms solution can help boost the bottom line-now what business couldn’t benefit from that? ■ For more details, visit www.vai.net. See contact information on page 70 34 • • THE WHOLESALER® — FEBRUARY 2009 LEGAL MATTERS Robinson-Patman Act What it is and how to comply BY DANIEL BEEDERMAN Special to The Wholesaler T he purpose of anti-trust laws is to protect consumers and businesses by promoting, maintaining and protecting competition in the marketplace. Towards these goals, anti-trust laws generally prohibit: • Agreements or conspiracies that unreasonably restrain trade (section 1 of the sherman Anti-Trust Act) • monopolization and attempts to monopolize markets (section 2 of the sherman Act) • mergers and acquisitions that have the tendency to lessen competition (section 7 of the Clayton Act) • Certain forms of price discrimination or pricing control (robinsonPatman Act). This article will briefly discuss the robinson-Patman Act (the “Act”) as it relates to the activities of independent sales representatives and their principals (manufacturers). In that regard, it should be understood that the Act, like all antitrust laws, both on the state and federal level, is a complex and sometimes confusing and almost always controversial piece of legislation that was created in the Great Depression era in an effort to protect small businesses from large chain-store competition. Because of the inherent complexity of the Act, as well as of its various exceptions and defenses, the Act often is difficult to interpret and apply, and it has often been criticized as being “anti-competition,” because of its effect on limiting price competition. In essence, the robinson-Patman Act requires a manu- See contact information on page 70 facturer (and its independent sales representatives) to treat equally each level of customer with respect to prices and price-related terms and services. Towards that end, the Act prohibits sales of like goods at different prices to two or more competing resellers who intend to resell the products or goods in the same geographic area. In addition, the Act prohibits discrimination between competing customers through providing volume discounts that are not available to all, different rebates, promotional allowances and other similar tactics. The Act prohibits a seller from discriminating in price between two or more competing buyers in the sale of commodities (products and goods) of like grade and quality, where the effect of the discrimination — maybe substantially — to: • Lessen competition in any line of commerce (unfavored reseller unable to compete against lower price) • Tend to create a monopoly in any line of commerce • “Injure, destroy, or prevent competition with any person who grants or knowingly receives the benefit of the discrimination, or with the customers of either of them.” [15 U.s.C. 13(a)]. To avoid inadvertently violating the robinson-Patman Act, an independent sales representative should be cautious when: • Charging or offering different prices for “preferred” distributors or resellers • volume discounts that are not proportionately available to all dealers/customers on equal terms • special offers or rates to allow resellers or distributors to establish themselves in the market and eliminate unfavored resellers • Promotional allowances that are not available, on proportionately equal terms and conditions, to all distributors or dealers. Does this mean that all customers and resellers are treated alike? The answer, of course, is no. Certainly, not all customers are alike. For instance, some offer more services to the consumer/customer than others. In such instances, a manufacturer may offer such a reseller/distributor terms that are different than those offered to a reseller or distributor who does not provide such service. However, while such distinctions may offer a defense to a claimed violation of the Act, the rep and its manufacturer ultimately must make certain that the differing terms offered to different reseller/distributors can be justified. As such, it is imperative that the sales rep understand and fully evaluate all pricing, rebate, credit terms and discount programs offered by one of its principals so as to make sure that the same type of programs and benefits are proportionately offered to competitive dealers and distributors. similarly, a case-by-case analysis should be made by the rep whenever one of its principals imposes a minimum price at which one of its resellers or distributors can sell his products. Until last year, such conduct was deemed automatically to be in violation of the Act. However, as discussed in the AIM/R Winter 2007-08 News & Views newslet- ter, 2007, the U.s. supreme Court ruled that the establishment of a minimum retail price would no longer be per se illegal. A per se violation of the anti-trust laws means that there is no defense to the conduct once the conduct is established. The fact that you did not do your homework in school is a violation of the rule that all homework must be done and handed in when due. A per se violation of the “must do your homework rule” would not allow you to explain that the dog ate it. The supreme Court overruled legal precedent dating back to 1911, which had strictly prohibited such conduct as being a “per se violation” of the Act. In so doing, the supreme Court did not hold that minimum prices were legal, but, instead, it eliminated the “no excuse” for “minimum price rule” and replaced it with a “rule of reason” analysis. It is now possible to justify why minimum prices are essential within an industry. However, a case-by-case review is necessary to determine if the establishment of a minimum price constitutes an “unreasonable restraint of trade.” Just as the Court’s review of potential violations of the robinson-Patman Act and the other anti-trust laws is on a case-by-case basis, so should you, as an independent sales The Supreme Court... eliminated the “no excuse” for “minimum price rule” and replaced it with a “rule of reason” analysis representative, be vigilant in monitoring the various terms offered by your principals through you to customers. For instance, whenever one or your principals seek to impose a minimum pricing structure, a special rebate or promotional program or discount, you should inquire as to the reasons and justification for doing so. You should proceed cautiously if it appears that the policy is intended to eliminate competition or otherwise to be a restraint on trade. Finally, as noted in AIm/r’s Winter 200708 newsletter, reps should seek to minimize the financial impact on being involved in anti-trust litigation, by always seeking to include an indemnification provision as part of every sales representative agreement, whereby your principal will indemnify, defend and hold you and your firm harmless from all liabilities and costs related to antitrust claims (as well as for claims for product liability and intellectual property infringement). ■ Daniel E. Beederman is an attorney in Chicago, and a member of Schoenberg, Finkel, Newman & Rosenberg llC. For almost 30 years, Beederman has handled legal matters relating to manufacturers’ sales representatives. He and his firm serve as legal counsel to numerous sales rep associations in various industries, including AIM/R. He also has written many articles published in trade journals and has conducted numerous seminars on manufacturer-rep issues. See contact information on page 70 For reliability... buy Eljer OEM genuine current and obsolete parts from Tapco. Tapco is the exclusive national distributor of Eljer OEM genuine obsolete replacement parts for all discontinued Eljer faucets. All Eljer OEM genuine obsolete parts are made to authentic OEM prints. Tapco also stocks a large selection of Eljer OEM genuine current replacement parts for Eljer Plumbingware for the residential, commercial and institutional markets. Tapco acknowledges Eljer FAX orders promptly by return FAX, complete with your prices. Tapco P. O. Box 2812 Pittsburgh, PA 15230 412-782-4300 See contact information on page 70 • 37 THE WHOLESALER® — FEBRUARY 2009• ON THE PVF PULSE 2009 still looks like solid year for PVF BY MORRIS R. BESCHLOSS PVF and economic analyst W ith all the early year signs pointing to a deepening of the global economic recession, I intensified my efforts to determine whether the pvf sector would continue to maintain its relative strength, as opposed to other elements of the plumbing-heating-cooling-piping industry. Although these interviews were anecdotal rather than scientific, the geographic breadth and the diversity of the manufacturers and distributors contacted convinced me that there is still plenty of momentum as the first quarter of 2009 unfolds. However, the economic components that comprise the strength of this threeyear surge are changing. It’s still uncertain whether the end-use factors, comprising this panorama, will eventually throw a monkey wrench into the ongoing boom. As the year wears on, the question will be answered by whether those factors developing reduction of drilling rigs in the Gulf of Mexico. Also impacting the supply/demand balance will be the upcoming driving season and the rising unemployment which may discourage thousands from driving no matter how low the price at the pump. One thing is certain, the expansion of your business slowing down. With the discovery of the Enron scam earlier in the decade, creating an illusion of power surplus, projects were either mothballed, or put on the shelf. America is now facing a distorted supply shortage, which could result in blackouts and brownouts later this sum(Turn to PVF... page 38.) 1 transformed 1 easy implementation InformKLSP]LYZHOPNOS`[\ULKTHYRL[ZWLJPÄJ ERP solution and data conversion that distributors successfully implement within weeks. One segment relying heavily on pipe-valve-fittings is power generation. This sector is red-hot and indicating no signs of slowing down. which continue to show strength will overcome some aspects of pvf, which are beginning to sputter. Overall, new projects of all types may be restricted by credit availability. But expansion and maintenance of existing facilities — whether power generation, refining, chemical and petrochemical, waterworks, and renewable energy — seem to be in good shape, and show few signs of abating. The most serious concern is the implosion of oil prices, which is endangering new development projects as well as ongoing production of high cost facilities that are depended on to keep crude flowing into refineries and eventually to the tens of thousands of gas stations throughout the countries. Although a glut has developed in America’s main storage depot in Cushing, Okla., this is primarily due to demand destruction, which has reduced driving by America’s 250 million cars and trucks by 5% on a year-to-year comparison with 2007. Since such derivatives as heating oil, jet and diesel fuel, and production of natural gas are also being affected, it will be only a matter of time before a balance between supply and demand is reached. The wild card is the effect of OpEC cutbacks, slowdown of oil sands production in Canada, and the already off-shore drilling and prospective oil shale conversion in the Rocky Mountains will be put on hold until the price of oil per barrel climbs back up to the high double digits. One segment relying heavily on pipevalve-fittings is power generation. This sector is red-hot and indicating no signs of 1 essential tools Advanced CRM, customer pricing, inventory and business intelligence tools keep inform users ahead in today’s economy. 1 uniquely-logical interface Inform’s remarkable windows screens and ^VYRÅV^X\PJRS`[YHUZMVYTZUL^\ZLYZPU[V customer service experts. Inform Demonstration Schedule 1 Check out www.seeinform.com Join other progressive distributors for an interactive web demonstration of inform 2009. Talk to us at 877-599-4334. The Software Solution for PHCP Distributors See contact information on page 70 38 • • THE WHOLESALER® — FEBRUARY 2009 ON THE PVF PULSE PVF sector still hot, should ride out recession (Continued from page 37.) mer. Although nuclear power is limited to one new generating station soon to come on line in America, the 104 operating units are in the process of expanding their existing capacity, which will add anywhere from 10% to 20% additional electric power to this nation’s fastincreasing demands. Natural gas will become even more important in the months ahead as coal power is eschewed by the Obama Another intriguing factor that may benefit PVF is a massive infrastructural component of the trillion-dollar stimulus bill [for] damns, bridges and waterworks facilities. administration, which considers this plentiful resource out of bounds for powering electrical utilities or the possibilities to convert coal to oil or gas. But don’t shed a tear for the coal producers, they’re doing just fine; getting top dollar for all they can mine. Apparently China and others are not that sensitive about putrefying the air. The repetitious answer I get from both distributors and manufacturers when asked where the action is, is one word, “power.” Fabricators are busier than ever, and some mechanical contractors are getting involved with industrial construction, previously the sole purview of turnkey constructors. speaking of mechanical contractors and their activity level, commercial construction is heading toward a standstill. Developers who depend on huge loans from financial institutions are being frozen out by the unavailability of such monies. simultaneously, hotels, motels, shopping malls, and multi-storied apartment buildings are becoming less in demand as debt deleveraging and reduced consumer spending is puncturing the discretionary spending balloon. The commercial subsector will be the main drag on the PvF arena. Another intriguing factor that may benefit PvF is a massive infrastructural component of the trillion-dollar stimulus bill. With damns, bridges, and waterworks facilities benefitting from this influx of liquidity, infrastructure should provide another “shot” in the arm to pipe-valve-fittings. And if exports hold up as I expect, the wide variety of products provided by PvF will, unquestionably, be beneficial. All in all, I’m betting on another big year for the PvF sector, even in a down year for the global economy in general. 2009 economic predictions paint mixed picture Although I have traditionally offered economic predictions at the beginning of See contact information on page 70 each new year, I view 2009 as beset with more imponderables than ever before. But I’m ready to stick my neck out; so here goes: • After a first quarter 2009 low point in U.s. gross domestic product growth and a peak in unemployment, a slowlybuilding recovery will be in place by midyear, worldwide. • A trillion-dollar stimulus plan, passed by Congress early in February, will serve to calm the financial markets and stabilize the gross domestic product of goods and services. U.s. unemployment will crest at 9% during the first three months of the new year. • The U.s. savings rate will move into positive territory and stay there (2% to 3% annually) as the consumer sector shrinks. The deleveraging process will put a further crimp into discretionary spending, thereby impinging on the retail sector. During the first half of 2009, a record number of stores and shopping malls will be shutting down nationwide. • Investment banking activities will reach a 10-year low, with mergers and acquisitions few and far between. The age of private banking institutions is nearing an end, as most have already (Turn to PVF pulse, page 40.) A =< 1=<AB@C1B7 /B 1/ /1@=AA /;3@7 =< @=B/B7 63/2 !$ The Stanley® VIRAX® P20+ cordless pressing tool has 360˚ head rotation and a narrow profile to get into tight spots. It also features a four-second cycle time, jaw stabilization technology, a seriously attractive retail price and an ironclad, full lifetime warranty. Take one for a spin. Call +1 800-827-7558 or visit www.stanleyvirax.com for a free on-site demo and complete warranty details. THE P20+ CORDLESS PRESSING TOOL FOR 1” TO 4” TUBING SERIOUS PLUMBING TOOLS™ See contact information on page 70 © 2008 The Stanley Works A 2 / 3 6 5 < 7 < @ C B E = < B3A 7 40 • •THE WHOLESALER® — FEBRUARY 2009 BESCHLOSS BEAT Q&A with David Scott Newdell cuts wide swath in today’s industrial valve sector BY MORRIS R. BESCHLOSS PVF and economic analyst N ewdell was established in 1999 by valve industry veterans Dave Scott and chuck Hulbert as a manufacturer and wholesaler of industrial valves used in the petrochemical, chemical, and refinery markets. today, Scott and Hulbert work in conDaviD W. Scott, president of the Newdell company, has a long history in the valve industry. He began working at Zidell valve, a division of Zidell Explorations inc., before his 1974 graduation from oregon State University and remained with the company until mid-1999. During his tenure at Zidell, Scott was recognized throughout the industry as an aggressive leader and a pioneer of international sourcing and marketing of industrial valves. He has continued to enhance his professional reputation at the Newdell company, actively overseeing virtually every aspect of the business. PVF pulse (Continued from page 38.) scrambled to become bank holding companies. this allows borrowing at the fed discount window. • With the dollar again weakening versus the euro and the yen, exports will maintain a slightly lessened surge, while imports continue to dwindle. this will shrink the trade deficit to its lowest point in this decade. • china and india, which have taken aggressive stimulative action, will lead One global bright spot may be the warming of relations between mainland China and Taiwan. the international recovery as they rebound from their second half 2008 fall-offs. these world’s largest developing economies will energize an overall global economic rebound. Much of this will come from expansion of their consumer base. • commodity prices will be on the comeback trail, as demand improves. Expect oil prices per barrel to reach $75 to $80 by mid-year. • Expect the stock market to leave the doldrums behind and reach the 10,000 junction with two additional partners and more than 70 employees at a 72,000 square foot facility in Houston, texas. Smith is unquestionably the crown jewel of Newdell’s offerings. it is a trademark brand owned by the Newdell company. However, Smith is just one of the product lines owned and marketed by Newdell. other associations include: • Diamond Gear — a manufacturer of industrial gear boxes used for operating quarter-turn and multi-turn valves. in addition to manufacturing, Diamond Gear is the North american exclusive representative of the air torque line of pneumatic operators for quarter-turn valves. (www.diamond-gear.com) • Ladish Valves — a manufacturer of stainless steel and high-alloy valves for the pulp and paper, chemical, and petrochemical industries. Ladish also offers a complete line of gate, globe, and check valves in a variety of materials including Hastalloy c, monel and nickel. (www.ladishvalves.com) • Pk Valve — a korean valve manufacturer with one of the most extensive product lines available. the Newdell company is the exclusive distributor of pk Dow Jones industrial mark and the 1,000 S&p 500 target by June 30. i’m sure that my rapidly expanding readership will hold me to account for these predictions by mid-year 2009. Barclays believes the current crunch may last for as much as two more years. one global bright spot may be the warming of relations between mainland china and taiwan. a top leader of china’s communist party promised taiwanese president Ma Ying-jeou, a member of once anti-mainland kuomintang, that Beijing will provide whatever financial aid is needed to keep taiwan viable. this is remarkable since china, still the world’s leading growth engine, has experienced its first significant slowdown in 10 years. With the world’s major nations following the United States in severely cutting interest rates, it’s still questionable whether easier access to money will sever the Gordian knot of the global credit squeeze. Be sure to log on to my twice daily updated economic blog, which has become one of the most widely read coverages of the ongoing financial and global economic analyses for the nation’s largest publishing company. You can log in by accessing www.theworldreport.org, and then clicking the yellow band marked “Morrie’s page.” please recommend if you approve. ■ World’s leading nations face grim economic turnaround attempts as the 2008 economic year staggers to an ignominious close, there are no oases to be found in a veritable worldwide landscape of severe recession. Western Europe seems to be the most hard-hit, with industrial superpower Germany leading the pack. Under the guidance of embattled chancellor angela Merkel, Berlin is pledging expanded efforts to confront a financial crisis that has toppled banks and stunted that once mighty export nation’s growth. a massive national stimulus package is under consideration. Japan, caught in the web of a decadelong economic stagnation is hoping that an additional $100-billion cash infusion will finally get this once dominant nation going again. industrialized Belgium is facing a major political crisis as that nation’s parliamentary government has been toppled in a botched attempt to bail out giant multi-national financial group, fortis. Britain’s Barclays Bank has warned that worldwide credit conditions have severely impacted the United kingdom. valves in the western hemisphere inventorying millions of dollars worth of pk valve products for distribution in the U.S., canada and Latin america. (www.pkvalve.co.kr) Smith is one of the most celebrated brand names known to valve industry veterans. founded in the mid-1950s by James DeWolf Smith, it focused from the outset on the production of forged gate, globe and check valves for use primarily in the petrochemical industry. a forged brass ball valve line was added 10 years later. By the mid- 1970s, Smith was acknowledged as one of the leading producers of industrial valves in the oil and petrochemical industries. With son tony taking over at that point, exotic stainless and alloy items were added. this greatly expanded product line was relocated to a new production facility. Unfortunately, the early 1980s recession brought a virtual shutdown to domestic oil production and forced Smith to sell out to a private investment firm. a production interlude in Longview, texas, failed to halt the downward trend. Smith’s assets were Morris R. Beschloss, a 52-year veteran of the pipe, valve and fitting industry, is pVf and economic analyst for ThE WhOLESALER. David Scott, CEO, Newdell Company bought in 2000 by Newdell, and production was moved to italy. a substantial reversal to the upside allowed the Newdell owners to return manufacturing to the U.S. in 2006, locating in Houston. a new manufacturing and warehousing facility has just recently been completed. Smith’s production rate has now reached 20,000 valves a month and is growing rapidly. Newdell will be celebrating its 10th anniversary. its two key executives’ “All of our products are sold through distribution. We have found the distribution community to be loyal and supportive of our efforts.” biographies spell out the expertise that they bring to this fast-growing venture. the following q&a with David Scott, a highly respected personal valve industry associate of long-standing explores Newdell, the contemporary valve industry, and the future of the pvf sector during these turbulent times. Beschloss: David, let me start by congratulating you on founding Newdell as an instrument by which to implement your vaunted valve industry talents, which you manifested so elegantly at Zidell Enterprises. What prompted your initiation of this new venture at the turn of the century. Scott: the Zidell family made the decision to sell the valve group in the late 1990s. chuck Hulbert and i had been fairly successful at growing Zidell valve corporation under the auspices of a family business. However once the company became one of many companies within a private equity group our mutual skill sets were probably not what they needed in order to run the business successfully for the future. Hence we ventured out on our own to form the Newdell /Diamond Gear companies. Beschloss: In Smith and pk Valves, you certainly have under your wing two highly-recognized brandnames. Outside of Ladish Valves, which you own separately, and Diamond Gear, of which you are the exclusive North American representative, are there other lines available to you? Scott: Smith, pk, Ladish, Diamond Gear and air torque are our only prod(Turn to Strong product ... page 42.) WE’LL LEAP ANY BARRIER TO ENSURE YOUR SUCCESS. To win customer loyalty in the highly competitive seamless and welded pipe, fittings and flange market, you have to perform under pressure. That’s why you should depend on Summit Stainless, the best kept secret in the PVF market. We have the supply you need, with extensive stainless steel inventory in our eight service centers nationwide.You can also count on us to provide same-day service to your customers without ever selling direct to them. Which will save you time and fuel. Protect your profits: call Summit Stainless at 800.742.7605. Corporate Headquarters: 2001 Elizabeth Street North Brunswick, NJ 08902 PH: 800.742.7605 • 732.297.9505 FX: 732.422.1370 www.summitstainless.com ROUND • SQUARE & HEX • ANGLE • FLAT • STRUCTURALS • TREAD PLATE ORNAMENTAL TUBING • WELDED & SEAMLESS PIPE • PIPE FITTINGS & FLANGES YOU CAN NOW BUY FROM SUMMIT STAINLESS STEEL ONLINE! TO FIND OUT MORE VISIT US AT: www.summitstainless.com/ecommerce See contact information on page 70 42 • •THE WHOLESALER® — FEBRUARY 2009 BESCHLOSS BEAT Strong product lines, loyalty to channel make Newdell serious player in PVF sector (Continued from page 40.) uct lines. Being a small company we have decided not to handle any competing product lines and to focus our efforts on penetrating the market with these core products. Beschloss: Since Newdell is obviously a valve specialist, with manufacturing and marketing activities throughout the U.S. and Canada, would you classify Newdell as a manufacturer and master distributor of your branded products, as well as a marketer of AirTorque and Diamond Gear? Scott: Smith, Ladish and Diamond Gear represent products for which we maintain design, manufacturing, quality, marketing and trademark control. obviously for these three products lines we are seen as the manufacture. We represent pk valve exclusively in the western hemisphere, so in this territory our customers view us as the manufacture. the same can be said for the air torque product line with the exception that our exclusive marketing rights extend only to North america. Beschloss: Could you describe your inside/outside sales organization, and the extent of its interaction with distributors nationally? Scott: all of our products are sold through distribution. We have found the distribution community to be loyal and supportive of our efforts. today we have five outside sales people, 10 inside sales people, and two project quotations personal. Beschloss: Those of us who remember the predominance of Smith Valve, especially in the qtr-turn arena, are thrilled by the comeback that prestigious brandname is making. Could you bring us upto-date as to the success of your efforts? Scott: We purchased the Smith product line in 2000 from Grinnell. Grinnell had done a very good job of maintaining the quality of the product and hence the brand name remained strong. However, the Smith valve line was a very small cHarLES E. HULBErt serves as vice president of the Newdell company. also a graduate of oregon State University, chuck received his J.D. degree from the University of oregon Law School in 1977. He worked primarily in real estate and bankruptcy law before joining Zidell in 1983. While at Zidell, Hulbert filled numerous roles and was responsible for the development and construction of two new facilities with a combined area of more than 300,000 square feet. at the Newdell company, Hulbert oversees major projects around the globe and is responsible for sales and marketing in canada. piece within Grinnell and i believe the Grinnell management struggled with funding allocations amongst other profitable departments. When we bought the Smith valve line the production volume “Our long term goal is to continue to gain market share via the distribution community.” was about 3,000 pieces per month. today we are producing about 25,000 pieces per month and our sales continues to grow. However, we recognize we are a very small player in the api 602 forged Steel valve market, but our domestic production provides some niche positions that work to our advantage. obviously the owners have dreams of returning the Smith product line to its former stature but today these are only dreams and we have much work in front of us before this will happen. Beschloss: Would you please amplify your sales/marketing coordination in promoting Ladish Valves, as well as the pk valve line and Diamond Gear? Scott: Ladish valves and Diamond Gear are operated separately from Newdell. Ladish valves, managed by Bill DiStefano, manufactures and sells exclusively Ladish product and is located in a separate facility from Newdell and Diamond Gear. Diamond Gear, managed by kevin Hansen, focuses all of its efforts on manual quarter and multi-turn gear boxes as well as the airtoque product line. Newdell markets and sells the Smith and pk valve product lines. Beschloss: have your efforts and successes been mainly focused in the Greater houston area and the Southwest in general? Are plans underfoot to expand your intensive coverage nationally? Scott: We have been most successful in the Southern and Eastern U.S. and in Western canada. We have a real need for distribution in the Western U.S. and in Eastern canada. Beschloss: having experienced the deep pVf recession of the early 1980s, are you concerned that our sector’s intense momentum could be endangered in 2009? Scott: i believe that 2009 will be more difficult for those of us in the oil related sectors than what we have experienced over the last few years. Momentum will slow as major projects are placed on hold or cancelled. Beschloss: Based on your expert knowledge regarding the pVf sector, especially the valve component, are you optimistic about the future of the product lines which you are manufacturing and/or marketing? Scott: i am certainly optimistic for our product lines. i believe that we offer the market high quality products and first rate services at fair prices. if i have any areas of concern they have to do with overall market demand prospectively and the high concentration of low price chinese product that seems to be flooding the market. Beschloss: Are you being benefited by the substantial decrease in costs of components and raw materials? Does the cost/selling price relationship which you anticipate allow you a reasonable profit as we approach the major part of the 2009 business year? Scott: it is true that the raw material markets have cooled down and that the prices of scrap and some materials have dropped from their peaks, but i don’t think these reductions in raw materials will result in big decreases in valve prices. there are simply too many other costs associated with delivering finished valves to market that play significant rolls; and even if our costs do go down, the user community is quite deft at making sure we pass any cost savings along. Beschloss: To put Newdell’s future in proper perspective, what are you and your Company’s long-term objectives within the framework of the pVf sector? Scott: obviously we would like to win a few more strong positions within the distribution community. We have many good competitors and fighting for a strong distribution position is something all manufactures strive to do. our long term goal is to continue to gain market share via the distribution community. Hopefully our continued efforts to bring safe, quality products and services to market at fair prices will allow us to grow our core business. ■ Uponor sets factory training appLE vaLLEY, MiNN. — Dates for Uponor’s factory training in apple valley are now available and ready for registration. With the addition of two new trainers and easy online registration, professionals in the Hvac, hydronic heating and cooling, plumbing and fire safety industries have even more reason to take advantage of this valuable, educational learning tool. Headed by training manager Mary Beth Manninen, the Uponor factory training program is now better than ever, with the addition of industry veteran Wes Sisco as senior trainer and Hvac, hydronic and plumbing professional Steve Swanson as customer trainer. Sisco and Swanson will collaborate with current customer trainer, Josh Schwaller, to offer a unique combination of solid technical information, hands-on workshop opportunities and plenty of entertainment for factory training attendees. the Uponor factory training program currently offers the following courses: • radiant Solutions — fundamentals Workshop develops an understanding of the key elements of radiant floor heating systems, including delivery fundamentals, installation techniques, zoning, balancing and heat loss. • radiant Solutions — fundamentals Workshop with aDS includes all the information above as well as education on the advanced Design Suite™software. • radiant Solutions — controls Workshop focuses exclusively on controls, zoning and wiring. • aqUaSafE® fire Safety Systems Workshop details system components, design and installation techniques for the Uponor multipurpose plumbing and fire sprinkler system. Uponor Factory Training Schedule (March through June 2009) • March 9-11 — radiant Solutions - fundamentals Workshop • March 17 — aqUaSafE fire Safety Systems Workshop • March 19-21 — radiant Solutions fundamentals Workshop • March 23-25 — radiant Solutions controls Workshop • March 30-april 1 — radiant Solutions - fundamentals Workshop • april 6-8 — radiant Solutions fundamentals Workshop • april 23-25 — radiant Solutions controls Workshop • april 28 — aqUaSafE fire Safety Systems Workshop • May 5-8 — radiant Solutions - fundamentals Workshop with aDS • May 12 — aqUaSafE fire Safety Systems Workshop • May 18-20 — radiant Solutions controls Workshop • June 11-13 – radiant Solutions fundamentals Workshop • June 25-27 — radiant Solutions controls Workshop • June 30 — aqUaSafE fire Safety Systems Workshop. for additional information about all Uponor training programs or to register online, visit www.uponor-usa.com/training. for questions regarding training registration, contact Jodi Staub, training and technical products specialist, at 800/321-4739, ext. 5333. for information about customer visits and events, contact katie Moser, customer events and training specialist, at 800/321-4739, ext. 4207. ™ Built to be the Best www.bradfordwhite.com 800.523.2931 ©2009, Bradford White Corporation. All rights reserved. See contact information on page 70 ## " $! &# ! ! $ % $! " & 46 • • THE WHOLESALER® — FEBRUARY 2009 INVENTORY COUNTS The price is wrong!! BY JASON BADER Inventory management specialist L ast week i was working with a client in florida. it was a typical business review; i visited several different departments and listened to their questions and concerns. When i sat down with the payables department, i encountered one of the most common challenges in distribution — making sure that we have the current pricing from our suppliers in the software system. i am sure that the editors are shaking their heads and thinking, “You are reaching on this one, Bader.” for those of us who have spent time working for a distributor, this seemingly simple task can be a formidable challenge. i have seen distributors that are months behind on price changes. Even missing a week can cause a great deal of time lost in mistakes and reconciliation. in this article, i will point out some of the consequences of letting this task slide. i will also give you some suggestions on how to stay ahead of the game. as i mentioned earlier, this problem reared its ugly head in the accounts payable department. this individual was forced to spend an inordinate amount of time tracking down discrepancies. the invoices she was receiving from the suppliers did not match the pricing on their internal purchase orders. rather than just blindly pay the invoice, she would be forced to track down the buyer and verify that the pricing was correct. Given that the company was cutting purchase orders to this supplier on a daily basis, the amount of reconciliation was getting out of hand. Now we have two departments spending resources on this problem. first, we added labor dollars in the payables department. they must stop the flow of work and point out the discrepancy. then the buyer must get involved to determine what the correct pricing should be. More often than not, this requires communication with the supplier. Since most buyers don’t have a lot of extra time on their hands, the discrepancy usually winds up in the “get to it when i can” pile. We have just added labor hours to the purchasing department. the resolution of discrepancies between purchasing and payables is rarely a oneday turnaround. Unfortunately, corrections can often take days, or even weeks, depending on the volume. When a payables team is unable to process an invoice in a timely manner, we often lose the opportunity to take advantage of early payment discounts offered by the supplier. if you have read my article on the perils of skipping cash discounts, you will realize that our internal problems have just cost the company a ton of money. Even worse, we probably had the ability to pay early. as you may have guessed, failing to update vendor pricing can have adverse effects on sales and profitability. When do we get the opportunity to go back to our customers and ask for a retroactive price increase? Many of our salespeople See contact information on page 70 sell from cost up. they look at the gross margin percentage, because that is how compensation is typically determined, and price is based on an acceptable margin. Unfortunately, the products they just sold have a new replacement cost. if the bump was high enough, their margin could be chopped in half. those of us who have been around a while have seen this happen time and time again. obviously, we need to put more emphasis on getting the pricing in the system prior to any scheduled increase. the main reason that we tend to slack (Turn to Bader, page 49.) See contact information on page 70 For reliability... buy Kohler OEM genuine parts from Tapco. Tapco is the largest independent supplier of Kohler OEM genuine replacement parts for the plumbing industry, with over 5000 parts available. Tapco acknowledges Kohler FAX orders promptly by return FAX, complete with your prices. No extra charge for same day shipment of Kohler orders received by noon eastern time. Tapco P. O. Box 2812 Pittsburgh, PA 15230 412-782-4300 See contact information on page 70 • 49 THE WHOLESALER® — FEBRUARY 2009• Bader (Continued from page 46.) off in this department is due to the amount of labor associated with the task. Imagine manually updating the pricing on a line with 1,000 Skus. Not only do we have to update the list price but we also have to make sure that our net cost is calculated correctly. Our discounts from list may have changed. All of these things have to be reviewed and then entered. What is the acceptable number of mistakes on 1,000 Skus? I am sure that we are going to have a few of those. All that time spent, and we still have the potential for some costly mistakes. In order to alleviate some of this headache, I want you to start importing your price adjustments electronically. Most modern distribution software has this feature. The most common method of import is from a spreadsheet program like Excel. In most applications, you map columns from the spreadsheet to fields in your item database. It is important to ask the supplier for multiple columns of information. The basic columns should be: manufacturer part number, general description, shipping weight, upc code, list price, our discount multiplier and our net cost. Even if you do not use bar coding in your operation, the upc will often become the common link between your database and their spreadsheet. It is fairly common for our part numbers to differ from the manufacturer’s part numbers. You may also want to add additional columns that make sense in your database: size, color, master carton and cubic volume are some examples. I am sure that there are several more. Once you have determined the columns you require, make it a standard for all suppliers. Give them a document explaining which columns to use and why you now require electronic price updates. You will be surprised at how many suppliers will have no trouble meeting your request. We just haven’t taken the time to ask. Make sure you ask for the electronic document in Excel. I am not here to make Microsoft any wealthier. Excel has become a standard that most people can work with. I have seen vendors send price lists in .pdf format. This defeats the purpose. You cannot easily import this type of electronic document. As for the vendors who seem to have some trouble with your request, you need to review the relationship. Are they a critical part of your business? INVENTORY COUNTS Sometimes we need to help them along the technology path. Even if your sales rep has no clue how to accomplish this task, more than likely their controller can help. Be relentless. I have often considered charging suppliers for the labor associated with updating prices manually. You may not get them to pay, but it would show them that you are serious. I would be remiss in not mentioning another option when it comes to updating pricing. In some industries, there are services that accumulate database information from suppliers. These services translate the vendor information into your specified import format. You will obviously have to maintain your own discounts. If this sounds appealing, check with your trade association or software provider to see whether there is something available out there. In order to tackle this challenge, my company appointed a pricing guru. It was one of the best decisions we ever made. Not only did this person manage all incoming price updates but he also set up all external pricing via a matrix. Most software has extensive pricing and costing functions, yet we rarely tap into the potential. You can typically pre-load a price increase and then let the system know what date the new prices become effective. This may seem like a trivial problem to some, but each year it costs our companies thousands of dollars in wasted labor and missed margin opportunities. We need to make vendor price updates a priority before we spend a whole lot of resources correcting the discrepancies. Good luck. ■ Jason Bader is the managing partner of The Distribution Team. The Distribution Team specializes in providing inventory management training, business operations consulting and technology utilization to the wholesale distribution industry. Bader brings more than 20 years of experience working in the distribution field. He can be reached by calling 503/282-2333, at jason@distributionteam.com, or at www.thedistributionteam.com. LARGEST INVENTORY in the USA of 14" to 36" Stainless Fittings, Flanges and Pipe A403 WPW and A403 WPWX Robert-James Sales ships over 80% of all stainless orders the same day. Your #1 source for stainless steel pipe, flanges and fittings since 1972. Robert James Sales, Inc. See contact information on page 70 Call 800-666-0088 www.rjsales.com 50 • Clearflow dielectric waterway fittings... ® • THE WHOLESALER® — FEBRUARY 2009 TECHNOLOGY TODAY Terry’s top tech tips to turbocharge your business in 2009 “So many fail because they don’t get started. They don’t go. They don’t overcome inertia. They don’t begin.” — W. Clement Stone t is time for a new beginning — in many ways. This marks the end of not only another year, but of an era for many. The u.S. has elected a new president with a new vision and a different way of doing business. Whether you like Barack Obama or not, this is a great time to begin anew. Here are some tools and rules for your business that can help you as you embark on a new year. I Contact management system (CMS) Trust the proven performance of the original You can't afford piping system failures caused by galvanic cell corrosion at the joints. Clearfow dielectric fittings prevent this type of corrosion by separating dissimilar metals in the waterway, such as cooper and steel, eliminating the local galvanic cell. Our proven Clearflow fittings combine a high temperature, thermoplastic copolymer liner with an electroplated, A53 schedule 40 steel casing to provide years of dependable service. • Prevent joint corrosion by separating dissimilar metals in the waterway • Metal-to-metal joint design maintains external electrical continuity • Recommended for use in hydronic systems • IAPMO/UPC and SBCCI PST & ESI listed • Readily available in a wide range of sizes & connections To protect your piping system from galvanic local cell corrosion, choose the fitting the industry has counted on for more than 20 years... Clearflow dielectric waterway fittings. You can’t afford not to. This is the most important element for any sales-oriented entrepreneur. You need to have a system that collects and processes names. Your success in life will largely be determined by the number of people who know you in a favorable way. A living, vibrant system that reminds you of people, their wants, their desires, their important information (birthday, anniversaries, loved ones, etc.) is vital. There are many good systems available including AcT!, Outlook, Entourage, Goldmine and others. Many today are favoring online approaches so that you can access the data from anywhere, you get regular updates without installing anything on your computer and you have a team backing you up. I use the combination of Google Docs and Gmail to maintain a good system of interactivity. Zoho and Salesforce.com and a host of others are available. Start by carefully analyzing what you need in your unique situation. Then examine what is available and match those needs. Whatever you decide, start with what you want to do to service your customers and bring new customers into your sphere of influence. Nurture that system and massage it daily to squeeze the maximum benefit from your investment. Communications tools 1-800-544-6344 www.elster-perfection.com This ties closely with your cMS. Once you have the names, addresses, phone, email and other vital information about contacts, you need to connect with them. Find easy, fluid ways to connect. Also, you don’t want your connection to only be with one tool: You want to have a variety of ways to connect. These include a strong cellphone/smartphone that allows you to connect through voice, e-mail, texting and even audio and video. communication preferences change through the years. Long ago, voice comSee contact information on page 70 BY TERRY BROCK Technology/marketing specialist munication was available only at the office (no cellphones existed). Then email emerged as a quick, easy way to stay in touch. Today, instant messaging (IM) is vital, with a strong emphasis on social networking, with sites such as Twitter, LinkedIn, FaceBook, MySpace and others growing in popularity. Find the preferred communication method of your customers and prospects and embrace that. Lead the way, showing them how to connect. Audio and video are big today and getting bigger in the marketplace. You need to have proficient knowledge of these and how to use them to your benefit. They give you the ability to connect in a more human way. Text is not natural. Audio and video are much more natural and provide a fuller dimension of the human experience. As you embrace these and learn how to use them, you’ll stand out in a more favorable way. Learn how to use audio (it really is easy) and video (with the right equipment, it is very easy) to connect with people. In many cases you’ll be the first Leverage the tools to help people. Always focus on how you can help prospects to become customers and help customers to become raving fans. to send that audio or video e-mail. Remember that not so long ago you didn’t know how to send an e-mail, now it is very easy for you to do. Make creating and sending audio and video just as easy — learn how to do it, practice it a couple of times, and you’ll move your connection to a new level. Office efficiency and productivity Once you have your cMS and solid ways to connect with people, you need to make sure that your back office is running smoothly, like a well-oiled machine. Have the tools in place to process information to serve your customers easily for you and quickly for them. Money loves speed. Today, the fastest with the right answer is often the winner. The Japanese phrase, Youi-Shuutou, means to be very careful and thoroughly prepared. This is what you want in your office. Think through likely scenarios that may occur. Have systems in place for your achievement. Yes, this takes some serious thinking coupled with hard work. But when you can effortlessly (Turn to Brock ... page 66.) • 51 THE WHOLESALER® — FEBRUARY 2009• SHOWROOM STYLE Stress reduction in these tough economic times! I am hoping that most of you read the December 2008 issue of The Wholesaler, which contained a lot of helpful suggestions for you to consider implementing in 2009. My showroom column was titled “Make 2009 your best year ever,” and numerous people responded to me with positive feedback. One e-mail was from the legendary Hall of Famer Jack Hester, president of F.W. 23.2% for men). Much of the book was taken from a 50-year statistical government study. If you want to look at a positive attitude “scientifically,” just remember that thoughts become feelings and feelings become behavior. I’ve said that the most profound #1 tip in today’s time management and stress reduction is that “You will never, ever, ever, get caught up.” So why stress? “You will never, ever, ever, get caught up” ... does not mean that you should take an attitude of “I don’t care.” Webb, which was shared in the Letters section of this issue. Also in the December issue were two Industry News pieces, one on page 14, titled “Showroom educator, columnist offers webinar, teleclass educational seminars,” and the other on page 67, “Industry consultant opens doors to booming hotel biz.” There is plenty of help available from me in these tough economic times. Trust me, many people are holding their own, doing well and many flourishing in their business. 2009 showroom columns - I want your input! Managing stress in tough economic times Almost 95% of the people I ask at my seminars have serious issues regarding not enough time to get everything done and having too much stress. We are all in the same boat! The first and most important thing in proper time and stress management is a positive attitude. Attitude is everything! Even if you don’t buy into positive attitudes or being optimistic, a recent best selling book, Learned Optimism by Larry Seligman said that optimistic people live longer (24.1% for women and Stress - America’s invisible killer In the last 15 years, we have learned more about the mind than any other time in the last 200 years. For 100 years, it has been known that stress can put a hole in the stomach commonly called an ulcer. Today, they are linking stress to heart attacks, cancer and other diseases. It is nice to see in recent years that society has acknowledge that stress is real and gone out of denial. Today, mainstream news and media is writing about it. For example, The Parade Magazine, which is circulated by an insert to almost every major Sunday newspaper in the u.S. a few years ago had a 16-page article which included 10 ways to overcome stress. Proven stress reduction technique A proven stress reduction technique has been used in Western Europe and the Scandinavian countries for 100 years. It is taught and used here in the u.S. in businesses and by many people. The technique that I am going to give you will: • Reduce stress • Often remove migraine headaches Quality, Choices. Service, Solutions. Supplying Venting Products with a Competitive Edge With solutions for every venting need, Simpson Dura-Vent saves time and money. Simpson Dura-Vent, the competitive advantage for a successful business. One supplier; Complete Venting Solutions. ProTech Division Simpson Dura-Vent is a division of Simpson Manufacturing Company. NYSE:SSD. Made in the USA. 800-835-4429 www.duravent.com See contact information on page 70 and back pain • Will give you in 10 to 15 minutes — three to four hours of perceived sleep. (I am telling you upfront; do not use this in lieu of sleep.) This technique of “visualization” is used in sports. Example: Michael Jordan and Magic Johnson have used this process to perfect their basketball shots. This was discussed in Michael Jordan’s best-selling book. We have 65 million people in the u.S. that have some form of sleep disorders. While melatonin, a natural product, is good, the process that I am teaching you in the sleeping position will put you to sleep. This process is used extensively by doctors in Western Europe to solve sleep depravation in patients. The 10-15 minute stress reduction process please start by being in the sitting position in a quiet location. With you eyes closed, see the colors of the rainbow in order. Red, orange, yellow, green, blue, purple and violet. Memorizing the colors of the rainbow in order is the hardest part of the process. I would recommend using colored objects like a red (an apple), orange (an orange), yellow (a banana), and so forth. Then you will go into your favorite nature (Turn to Less stress... page 66.) Simpson Dura-Vent What are the obstacles, challenges and problems that keep you from producing better results for you and your company? This is your showroom column! In 2009, I want to address the needs, issues and topics that are most important to you. Send me e-mails topschor@dynamicresultsinc.com. When you send in your request, please advise me if you want your name and company held confidential, I will 100% do so. If you have very specific questions to you or your company only, I will answer it personally. For your participation, I will send you a copy of my book, Pillars of Success, which has many chapters from some of the greatest visionaries of our times, such as Alexander Haig Jr, former Secretary of State, pat Summitt, winningest coach in NcAA basketball history, and more. I wanted you to ponder what that statement means to you. Statisically, the great majority of the people who read it and thought it out, reduced their daily stress 50% or more. Several people responded asked me to give further explanation. It means that most things you do every day will be repeated the next day and so forth — getting dressed in the morning, eating, grocery shopping, making telephone calls, and other repetitive daily tasks at the office. Remember, prioritize, use time management tips but, most of all, take one day at a time! “You will never, ever, ever, get caught up” means that you can only do what is what is humanly possible in one day and yes, prioritizing and time management is imperative. It does not mean that you should take an attitude of “I don’t care.” BY PETER SCHOR Showroom specialist 52 • 2009 Purchasing Decision-makers Survey •THE WHOLESALER® — FEBRUARY 2009 Ninth annual survey Wholesalers still like the personal touch of reps as main info source A fter nine years of publishing the annual purchasing Decision Makers Survey, we at The Wholesaler are gratified to note that factory and independent manufacturers’ reps and trade magazines are still the main “go to” sources when wholesaler purchasing executives wish to make buys. continuing a year-to-year trend, a wide majority of respondents selected those two categories as their top sources of information on new products, lines and brands — despite maturing media such as the internet and cD-ROM catalogs. This year’s numbers are statistically the same as last year’s results. This means that even though the internet is everywhere at the touch of an iphone — and that manufacturers, for the most part, publish their entire catalogs on their websites — wholesaler personnel still prefer the personal contact of vendors’ representatives and trade publications’ combination of news and information to looking elsewhere. This year’s survey revealed some other interesting findings as well: • A new category is annual sales volume. Although we don’t publish specific individual wholesaler dollar figures, the numbers provide a good idea of the breadth and scope of the wholesalers that responded. • When gauging suppliers’ performance, wholesalers rely on the Manufacturer and factory reps: 75% Trade magazines: 63% Internet: 35% Trade shows: 33% Printed catalogs: 27% Mfr. websites: 22% Direct mail: 21% Trade publication websites: 8% What are your firm’s top sources of information about new products, lines and brands? Other: 4% The internet grew somewhat in popularity, but overall manufacturers’ reps still appeal the most to wholesalers. Trade magazines lost some ground but still are a solid choice. More than 35: 7% 21 — 35: 3% 11 — 20: 6% 5 — 10: 11% Including headquarters, what number of stocking locations does your company operate? 2 — 4: 25% What range best describes your company’s annual sales volume? $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Less than $3 million: 27% $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $3 million to $9.9 million: 21% $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $10 million to $19.9 million: 16% CD-ROM catalogs: 1% One location: 42% tried-and-true three methods of better margins, increased sales and inventory reductions. Oddly enough, more wholesalers said they don’t measure performance; this either means time- and personnel-strapped companies don’t have the resources, or suppliers have improved performance to such a degree that wholesalers are satisfied overall. • curiously, more wholesalers during the last two year increased their number of vendors while more deceased the number. This seeming contradiction stems from the result that very few saw no change; most wholesalers actively grew or cut their vendor pools. • The number of brands per line wholesalers carried during the past two years held steady for the second year in a row, and whole- salers plan to pick up or drop about the same number of lines during the next two years. • The demographics of respondents have remained steady in their proportions, although the numbers are smaller for the most part. The percentage of wholesalers stocking power tools held steady, but with the other numbers lower, it indicates more wholesalers stock power tools. • Fewer wholesalers report buying from master distributors. • The proportion of stockinglocation numbers stayed virtually the same. • Roughly the same number of wholesalers are members of buying/marketing groups. • purchases from overseas manufacturers has remained the same. The survey continues, in an easy-to-read graphic format, on pages 54 and 57. We sincerely wish to thank all of those who participated. This survey provides valuable insight into the methods behind purchasing decisions of industry wholesalers. ■ The numbers of stocking locations operated by wholesalers remained fairly steady. $$$$$$$$$$$$$$$$$$$ $20 million to $49.9 million: 10% $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $50 million plus: 16% New for this year, this category provides an overall look at sales volumes. During the past 2 years, did your company increase or decrease its number of vendors? Increased: 61% Decreased: 38% This year, does your company intend to increase or decrease its number of vendors? Increase: 28% Decrease: 22% No change: 48% During the past two years there was activity in this category. Survey continues on page 54 > ince 1956 the employees of Mueller Steam Specialty have been dedicated to the manufacture of high quality products delivered on time and with superior customer service. Our core line of rugged strainers is available in a wide range of types and materials. Whether you require basket strainers, Y strainers, “ Tee” type strainers, duplex strainers, or even temporary strainers, Mueller will deliver your order from stock or custom engineer and manufacture it to your requirements. In addition to its strainer line, Mueller offers a full line of check valves, butterfly valves, pump protection and specialty products for a variety of industries and applications. Choose Mueller Steam Specialty for your next project. S www.muellersteam.com See contact information on page 70 54 • 2009 Purchasing Decision-makers Survey •THE WHOLESALER® — FEBRUARY 2009 Continued from page 52. Other: 14% Automated purchasing and supply chain processes: 20% How are you looking to cut purchasing costs? Is your company a member of a buying/marketing group? • Yes: 47% • No: 53% Simple requests: 23% Does your company buy stock Yes: 55% from master No: 44% distributors? Reducing purchasing overhead activities: 28% If yes, what are the benefits of membership in a buying/marketing group? Reducing SKUs: 31% Aggressively pursuing volume leverage with suppliers across locations: 41% Far fewer wholesalers plan to automate their processes, and pursuing volume leverage has fallen from favor, but more are reducing SKUs to cut purchasing costs. During the past 2 years, have you increased or decreased the number of brands per line that you carry? During the next 2 years, do you plan to increase or decrease the number of brands per line that you carry? Decrease 21% Increase 28% Unchanged Increased 38% 42% 20% Decreased No change 50% 42% Better prices 27% Networking 20% Market intelligence 14% Mgmt. education 7% Technical information 3% Sales leads 10% Other Increased sales: 30% Operational cost reductions: 26% Other: 15% Labor savings: 11% We don’t measure it: 21% Compared with U.S. and Canadian-made SKUs, during the past 2 years your purchases of foreign-made SKUs have: Decreased 7% Availability: 13% Increased: 45% A surprise here — after several years of decline in vendor managed inventory to the point where it had nearly disappeared, this year VMI made a big comeback with its use increasing ninefold. Have you experienced more frequent price increases during the last 2 years? Yes: 94% No: 5% A new category this year, and the numbers reflect overall economic conditions. Price: 39% Quality: 8% Remained about the same: 39% ✔ No: 81% Do you see manufacturers becoming more aggressive in their pricing and programs? Yes: 61% No: 38% On which basis do you gauge suppliers’ performance? This year, fewer respondents focused on increased sales as a measure of performance, perhaps a reflection of overall reduced economic activity. Do you have vendor managed inventory for some lines? ✔ Yes: 18% 1-25% — 26% 26-50% — 30% 51-75% — 34% 76-100% — 8% The figures for this category are an almost exact repeat of last year’s results. Of those respondents in buying groups, few do the bulk of their buying through the group. Inventory reductions: 32% Weekly: 55% Monthly: 36% Quarterly: 9% Annually: 3% Far fewer wholesalers reported buying stock from master distributors, however, among those who do, more than half still buy weekly from M/Ds. If yes, what percentage of your buys are done through buying group vendors? Far fewer respondents increased the number of brands they carry, but more appear set to hold steady during the next two years. Better margins: 46% If so, how often? If they have increased, what were the main reasons? Design features: 4% Other: 5% About the same number of respondents increased their purchases of foreign-made SKUs as last year. Also, they cited nearly the same main reasons for buying from overseas. In your company, who is authorized to make general inventory purchasing decisions? Counter managers 7% Other 40% Branch managers 53% Ass’t branch managers 9% As in all past surveys, branch managers by far take the most responsibility for purchasing decisions. Survey continues on page 57 > See contact information on page 70 We bring the industry online & directly to your business A l w a ys d y n a mi c a n d up dated on a co nsistent, m o n t h l y b a s i s , as a v i s i t o r t o t h e si t e yo u ’ l l h a ve a cc e ss t o an e n t i r e u n i ve r se o f i n f o rm at i o n perti nent to yo ur jo b! C o n t e n t i n c l u d es : • Ar t i c l e s p o st e d o n l i n e • E x t e n s i v e a rc h i v e s • D a ily ne ws b log • R S S F e ed s • I n d u st r y l i n k s • Prod ucts and mo re! The Wholesaler has combined proven reader and advertiser loyalty with a powerful reach. Now we extend that reach via a new and improved online presence on the Web! Log on to www.thewholesaler.com 2009 Purchasing Decision-makers Survey THE WHOLESALER® — FEBRUARY 2009• Continued from page 54. Do you make more brand recommendations to customers than two years ago? Industrial PVF: 34% Plumbing: 61% Hydronic heating: 32% HVAC equipment: 39% HVAC parts: 39% Which categories of products does your company stock? Refrigeration: 18% 37% Yes 6% No 48% About the same Respondents made about the same number of brand recommendations this year as last; results were nearly identical. Power tools: 29% Percentages are down for almost all product categories, although the ratios remain about the same with the exception of power tools. Respondents carry the same percentage of power tools as last year, which indicates that wholesalers stocked more tools in relation to other products. This might be a growth market. HAYWARD, MINN. — Several companies from Albert Lea, Minn., were instrumental in the successful completion of a recent new-home construction project for an episode of the ABc television Larson Contracting, based in Albert Lea, Minn., built this eight-room, 3,200square-foot home for Dirk and Susan DeVries in just one week. show “Extreme Makeover: Home Edition,” which aired on December 7. The builder, Larson contracting, was asked by the show’s producers to head the monumental task of building the eight-room, 3,200-square-foot home of Dirk and Susan Devries in Hayward Township, Minn., in just one week. Jim & Dude’s, who had worked with Larson on design/build projects for roughly 10 years, was chosen to install the plumbing and HvAc, which they did without charge. In preparation, Jim & Dude’s requested product donations from its various suppliers and, according to coowner Dennis Bergstrom, most of these vendors happily contributed. To meet the domestic hot water needs of the new three-and-a-half-bath home, Electric cooperative Freeborn-Mower cooperative Services donated a domestic water heating system. This included a Does your company engage in centralized purchasing? • Exclusively: 28% • For certain lines: 39% • Not at all: 28% After significant changes in last year’s figures, this category remained fairly stable in this year’s results. Our sincere thanks to all the purchasing decision-makers who responded to our 2009 questionnaire! Other: 30% Hayward-area companies play key roles in TV show • 57 INDUSTRY NEWS 105-gallon, Rheem Marathon electric water heater, which features a lifetime limited tank warranty. The Rheem Marathon has a non-metallic permaGuard seamless polybutylene inner tank and a filament-wound fiberglass outer tank. As a result, the Marathon is impervious to rust and corrosion and warranted not to leak for as long as the Devries own their home. Roughing in the plumbing and HvAc for the family’s new home began on the third day of the weeklong project, merely one day after the demolition of the old structure. With only seven hours scheduled for all plumbing and HvAc work, Jim & Dude’s installed the water heating system and the rest of the plumbing in time for the inspectors, who arrived at nightfall. “Seven hours to do everything is relatively intense, but everyone had their jobs, and we broke into teams,” said Bergstrom. “It was quite an organized chaos with probably 80 to 100 people working on the house at any given time.” Approximately 25 of those people were plumbers, while another 20 were HvAc technicians. “This was an amazing project for the family and our community,” noted Dawn Jenson of Freeborn-Mower. “So many people came forward to volunteer their time, talents and home-building materials. We were so proud to be a part of such a wonderful, successful, oncein-a-lifetime event.” REP RAP Blanco appointed Pan American Sales & Marketing, a Sunrise, Fla.-based firm, its sales representative for Florida east of the Appalachicola River, excluding Tallahassee, and for puerto Rico, Bermuda and the caribbean. Todd Talbot has joined Mega Western Sales as a principal partner. Talbot has spent his entire 26-year career in the building products industry, starting in 1982 as a sales representative for Hoyt Water Heater company. In 1988, he began his 19-year career with Masco corporation, where he last served as president of Brasscraft, Alsons and cobra products. He is a former board member and president of the plumbing Manufacturers Institute and also served on the board of the vendor member division of ASA. He will be focused specifically on Mega’s operations in northern california, with responsibilities for all sales related duties with all factories. Tasman Sinkware North America has chosen Summit Sales Inc., headquartered in Olathe, kan., to represent the Oliveri line of kitchen sinks in kansas, Missouri and southern Illinois. Summit Sales was founded in 1980, has 11 employees and is headed by Bill Davenport. Summit sells a complete line of bath and plumbing products to wholesalers. Wales-Darby Inc., one of A.O. For more information, www.rheem.com. visit Domestic hot water for the 3 1/2-bath home are via a 105-gallon Rheem Marathon electric water heater donated by electric cooperative FreebornMower Cooperative Services and here installed by techs from plumbing contractor Jim & Dude’s. Smith’s leading representatives in the Metro New York/Long Island/New Jersey area, recently opened an energyefficiency showroom at their Islandia, N.Y., location. Designed as a multipurpose facility, the Wales-Darby Energy Room provides a setting dedicated to the display of functional HvAc/plumbing products and systems that present real, energy-efficient and eco-conscious alternatives to standard efficiency options. Wales-Darby represents the entire line of A.O. Smith residential and commercial water heaters and high-efficiency copper tube boilers. The Wales-Darby Energy Room will function as an education center and serve as a site for training opportunities provided by outside trade organizations and associations. ■ 58 • • THE WHOLESALER® — FEBRUARY 2009 TALKIN’ RADIANT One homeowner’s tale I tell you this tale because when products are not properly sized, they usually become product problems and your problems — even though neither the product nor you are to blame. A homeowner had an old steam boiler, and when he looked into having it replaced, a dozen contractors visited him. That’s what he said — a dozen con- If the boiler is too large, it will short-cycle and waste fuel. If it’s too small, it will run for a long time, heat the house unevenly and waste fuel. You have to size it right to make it work; to do that, you have to carefully measure the radiators and to look closely at the piping. tractors. He may have been exaggerating, but even if it was a half-dozen, I still think that’s a lot, don’t you? I mean, how many people would you invite to quote on a big-ticket item such as a steam boiler. If you weren’t in the business, that is. Would you call three? I think I’d call three. Most people would. But suppose all three contractors showed up and looked around and that each came up with a different size for that replacement boiler? I’m not talking about slightly different; I’m talking wildly different. If that happened to you, would you call a fourth guy, just to be sure? Would you figure that if two of the four were close in their sizing, then that must be the correct size? Sound good to you? But what if the fourth guy came up with a different number from the other three guys? Would you call a fifth guy? And a sixth? What if a dozen contractors each came up with a different size for that boiler? That’s what happened here. One guy looks at the old boiler’s label and quotes on a new boiler, based on the size of the old boiler, even though things in the house have changed over the years. Another guy does a rule-of-thumb heat loss of the house, figuring so many Btu per square foot of floor space. He says he’s been doing it this way for years. A few of the contractors measure the radiators, which is the right way to go when it comes to replacing a steam boiler, but each come up with a differentsized boiler for the same radiation load. The homeowner stands back and watches all of this, and he wonders what to do. Then he does what most people do nowadays — some internet research. If you’re like me, this will probably nag at you. I think that when a homeowner calls a so-called heating professional for a new boiler, that pro should be fully confident, compelling and thoroughly capable of explaining all the whys of what he’s proposing. Once he’s spoken, the homeowner should nod his head and feel comfortable. That’s what I think. Open clogged pipes with SHOCK ACTION! The WATER RAM clears sinks, tubs, toilets and drains fast. Compressed air creates a shock wave that breaks up stoppage. Effective around elbows and bends; bypasses vents. Safe – there’s no pressure buildup. AS SIMPLE AS 1 PUMP UP 2 INSERT IN DRAIN 3 SNAP TRIGGER For more information, visit www.drainbrain.com/ram or call 800-245-6200. See contact information on page 70 Wholesaler – General Pipe Cleaners Typhoon 1/3 pg Ad – August 2007 Insertion BY DAN HOLOHAN Wet head But that’s often not the case, especially when it comes to the old stuff. That’s really a shame. I don’t think professionals should send homeowners running to the internet, but this homeowner was getting a dozen different opinions, so what was he to do? He found his way to HeatingHelp. com and sent me an e-mail. He told me about his radiators and that they all had enclosures around them. He learned from lurking on our bulletin board and by reading the technical sections of the site that a steam boiler’s ability to produce steam has to match the system’s ability to condense steam. If the boiler is too large, it will short-cycle and waste fuel. If it’s too small, it will run for a long time, heat the house unevenly and waste fuel. You have to size it right to make it work; to do that, you have to carefully measure the radiators and to look closely at the piping. Once he learned this, and since all the contractors were coming up with different sizes for the radiators, the homeowner bought a book that shows the true ratings of old radiators. He measured for himself, and the boiler size he came up with was much smaller than what any of the contractors were proposing. This made him nervous; that’s why he e-mailed me. What did I think about all of this? I asked him a few questions. He told me that most of the contractors were very concerned with the enclosures around the radiators. They told the homeowner that enclosures cut down on the heat, and that they would have to figure that into the size of the boiler. This may or may not be true. It all depends on the type of enclosure. Some enclosures actually increase a radiator’s output by creating a chimney effect for the air as it warms itself on the hot metal and rises. There are charts that show this effect; they’re easy to find on the Internet, but they can be confusing. The chart I’m looking at right now, for instance, shows a freestanding, castiron radiator with a simple shelf over its top. The caption under that drawing reads, “Add 20%.” What that means is if you want that radiator to put out the same amount of heat as it would if the shelf were not there, you would have to increase the size of the radiator by 20%. Look at this other radiator: It has a different sort of enclosure, the kind you’ll see all the time in old houses. This enclosure has a solid, hinged top and a metal front grill with about a million tiny holes. It’s a classic. The chart tells me that I would have to add 30% to the size of that enclosed radiator to get the same amount of heat that I would get • 59 THE WHOLESALER® — FEBRUARY 2009• TALKIN’ RADIANT from an unenclosed radiator. But all of this concerns the person who installed the radiators, who is now dead. He did a heat loss on the house back in the day, figured on using enclosures so the children wouldn’t get fried and then sized the radiators accordingly. He would have added the extra square footage of EDR to the radiator back then to compensate for what the enclosure was blocking in the way of convection. His work is done, and he has gone on to his reward. The trouble here is that the contractors who are currently alive and visiting this homeowner are adding 30% to the size of the boiler they’re proposing, all because of the radiator enclosures. That’s going to recommend a boiler that’s far larger than the actual connected load; that boiler would short-cycle and waste fuel. When the homeowner got educated about all this, some of the contractors argued with him. What the heck did he know? He’s a mere homeowner. They’ve been doing it this way for years. They’re not going to take orders from this jerk. I asked the homeowner if the rooms have been warm up to this point; he said that they have. That’s a good question to ask, don’t you think? His answer told me that the radiators were the right size for the rooms they were in, even though ly house. Oh, my. Hey, Mr. Wholesaler! That new boiler you sold me is using more fuel than the old one. The homeowner is screaming. You need to call the factory and tell them they got a big problem. And what are you going to do to me?■ Dan Holohan began his love affair with heating systems in 1970 by going to work for a New York-based manufactur- ers representative that was deeply involved in the steam and hot-water heating business. He studied hard, prowled many basements and attics with seasoned old-timers, and paid close attention to what they had to say. Today, Holohan operates the popular website, www.HeatingHelp.com. He has written hundreds of columns for a number of trade magazines, as well as 15 books on subjects ranging from steam and hot Here’s the wackiest part. This homeowner finally decided what size the boiler should be. He told the contractors to base their quote on that size. Some backed off right away. They weren’t going to let the homeowner do the sizing, even if he agreed to take the responsibility. they were inside enclosures. So what would be the point of increasing the new boiler’s size by 30%? He hadn’t needed that additional load during all these cold winters gone by. So why should he suddenly need it now, especially at a time when we’re trying to make America’s heating systems more efficient? Here’s the wackiest part. This homeowner finally decided what size the boiler should be. He told the contractors to base their quote on that size. Some backed off right away. They weren’t going to let the homeowner do the sizing, even if he agreed to take the responsibility. Other contractors told the homeowner that if he went with a boiler of that size, a size they considered too small, then he would also have to have a boiler-feed pump, which happens to be nearly as large as the boiler itself. This is in a single-family house. Imagine needing a boiler-feed pump in a single-fami- See contact information on page 70 water heating, to teaching technicians. His degree is in Sociology, which Holohan believes is the perfect preparation for a career in heating. Holohan has taught over 200,000 people at his seminars. He is well known for his entertaining, anecdotal style of speaking. Holohan lives on Long Island with his wife, The Lovely Marianne. They have four incredible daughters, all out in the world and doing wonderful things. 60 • • THE WHOLESALER® — FEBRUARY 2009 PRODUCT NEWS Pressure vacuum breakers Pipe coilers Automatic coiling machine coils and straps flexible plastic pipe up to 180mm dia. Great for large-diameter pipe coiling; fully automating a process that normally uses high labor levels to strap the coil and remove it from the coiling machine, automating the process from the point the pipe leaves the extrusion line to the removal of the completed coil. coil packaging, quality and durability are all at a superior level and coiling speeds increase significantly. Pipe Coil Technology Limited. www.pipecoil.co.uk Grommet coil enclosure This grommet coil enclosure was designed for Series 204 and 304 solenoid valve lines. The housing features flexible production option for a group of long-lasting valves that can operate under maximized pressure ratings. The 204 and 304 Series is a family of direct-acting solenoid valves for air and liquid (including light oil) applications. The class F grommet enclosure is part of a conventional coil construction that includes a taped, wrapped coil and 2-wire 18" leads. Rated to withstand 155ºc, a standard 100% continuous Duty Rating. Parker Fluid Control Division. www.parker.com Auger bits New lines of Ship Auger and Auger bits are designed for plumbers or any trade requiring deep hole drilling in wood. constructed of high carbon steel and feature a new cutting head design with a pvB 4A series of pressure vacuum breakers features a unique modular check valve design. part of a new backflow preventer family that includes Dc 4A double check assemblies and Rp 4A reduced pressure principle assemblies. Built around a self-contained “captured spring” check module that is easily removable for maintenance or replacement. Allows for more compact body design that reduces costs. Interchangeable in the same sizes between all three valves in the 4A Series family to simplify repair operations and help contractors reduce parts inventory. Apollo Valves. www.apollovalves.com Touch-free faucet Pipe wrench The Aerada™ 1200 Series cS gooseneck faucet complements the existing line of Aerada 1200 series cS faucets; use capacitive sensing technology to provide optimal hands-free operation. particularly useful in healthcare and laboratory applications where quick access to handwashing and water is essential; instinctively detects a user’s presence from any angle of approach. All mechanical and electrical components are concealed in a waterresistant housing. ADA compliant; can also help earn a LEED Water Efficiency credit with its water-conserving 1.5-gpm laminar flow. Automatically shuts off after a user’s hands leave the sensor area. Bradley Corp. The HAWk wrench features fast ratcheting action for single-handed adjusting and tightening of pipes and fittings up to 2" diameter; springloaded jaw that automatically adjusts to work on different pipe sizes; patented three-point jaw design that provides an extra-strong grip for increased torque; a trigger on the handle quickly disengages the tool from the workpiece; and a valve shut-off key is also molded into the handle. Available in 3 sizes: 10", 14" and 18". General Tools & Instruments. www.generaltools.com New faucet finish The Bayview faucet collection now includes a pvD brushed nickel finish that provides a durable luster on each fixture Solvent cements All of this company’s WELD-ON products are now made of environmentally responsible low-vOc formulations. By the end of March 2009, all WELD-ON solvent cements, primers and cleaners will meet the most stringent vOc emission limits in the u.S.: Rule 1168/316A, established by ScAqMD. WELD-ON solvent cements, primers and cleaners join pvc, cpvc and ABS pipe, valves and fittings in most applications. IPS Corp. www.ipscorp.com Plastic butterfly valves These butterfly valves can replace metal valves in a variety of industrial piping systems. Designed for long-term performance and flexibility, BYB Series industrial butterfly valves feature a rugged, one-piece plastic body that can stand up to high flow rates and elevated stress conditions. Lever-operated BYB valves are available in 2"-8" pvc, cpvc, ppL and pvDF bodies with cpvc, ppL and pvDF discs. The 14"-24" sizes are available in the same body and disc materials and feature a high torque gear box. Options include gear boxes on the smaller sizes, stainless steel lugs on all sizes, and electric or pneumatic actuation. Hayward Flow Control Systems, a division of Hayward Industrial Products. www.haywardflowcontrol.com www.bradleycorp.com Sophisticated faucets Tahi kitchen and bath fittings are sophisticated, modern and fashion forward to compliment the luxurious Satinjet Tahi Fuel cylinder options special heat treatment process to provide optimal life when encountering nails during cutting. Edge stays sharper longer and reduces the need to be sharpened, leading to increased productivity and reduced downtime. The bit flutes are polished, then coated with an industrial non-stick material to ensure faster chip ejection and reduce clogging when drilling deep holes. Bits come standard with a 7/16" power groove quick-change shank; available in a variety of diameters in 6" and 181/2" lengths. Milwaukee Electric Tool. Max power propylene is now available in the familiar yellow Fat Boy fuel cylinders that meet the environmental demands of today’s consumers. patent-pending Green key® device, when inserted into an empty cylinder, releases all remaining fumes, effectively depressurizing the cylinder so it can be recycled by the consumer's local steel recycler. contain 20% more fuel than standard 14.1-oz cylinders, providing users with longer run times. BernzOmatic. via a plating process whereby a molecularly bonded layer of a decorative metal is applied to the faucet, producing an armor-like finish that is very durable and possess exceptional resistance to corrosion, tarnishing and scratching. Included in the line are single-handle kitchen faucets; kitchen pull-out faucets; lav, tub and shower faucets; towel bars, towel rings, toilet paper holders and robe hooks. ceramic valve delivers consistent performance and a lifetime of trouble-free operation, even in harsh hard water environments. Premier Faucet. Shower System. Sleek geometric look balances urban flair with minimalist design. Among the options are kitchen and bath faucets or mixers, 3-hole wall and basin mounted faucets, a shower mixer and shower mixer with diverter, and a bath spout. ultra-flat polished chrome surface is laser etched with hot and cold indicators. Methven. www.milwaukeetool.com www.bernzomatic.com www.premierfaucet.com www.methven.biz • 61 THE WHOLESALER® — FEBRUARY 2009• PRODUCT NEWS Solar collector The new vitosol 100-F flat plate solar collector is an economy option to flat plate and vacuum tube solar collectors. Features rugged, high-quality aluminum frame construction, impact-resistant solar glass, excellent solar energy harvest with a selectively coated copper absorber. Outstanding price/ performance ratio. in a wide range of solar thermal applications and is ideal for solar domestic hot water or pool heating systems. Now OG-100 certified by the Solar Rating and certification corporation; qualifies for available u.S. state and federal incentive programs. Viessmann. Freeze unit generates pipe plugs for easy repairs The SF-2500 SuperFreeze™ pipe freezing unit quickly and easily isolates sections of copper or steel pipe with ice plugs, eliminating complete system shut-downs and draining. Forms ice plugs in as little as 5 min in steel pipes up to 2" and copper tubing up to 21/2". One or two plugs can be formed with a single unit at the same time. Operates automatically once freeze heads attach to the pipes and the unit is turned on. continues to run during repairs, ensuring the ice plugs do not melt. Flexible rubber hoses connect the freeze heads to the unit; makes them easier to handle and allows quicker coiling and storage in its rugged stainless steel carrying case. Does not use any hazardous refrigerants, carbon dioxide or nitrogen. RIDGID. www.ridgid.com www.viessmann.com Reflective insulation GR-8 Duct Reflective Insulation for the HvAc market addresses new code requirements that demand a thermal resistance of R-8 around HvAc ducts. Safe, flexible and easy to install; class 1/class A in accordance with ASTM E84 and uL 723 fire test standards. polyesterbased thermal insulating core sandwiched between 2 highly reflective aluminum facings can achieve an R-8 around ducts using a minimal amount of space. Easy to work; will not cause skin irritation. Reflects up to 96% of radiant heat transfer, reducing heat loss from duct work, increasing overall energy efficienc. TVM Building Products. www.americanstandardair.com Adjustable speed drive HVACR sealant q9 adjustable speed drive is designed for commercial variable torque applications such as fans and pumps for vAv Sytems, cooling towers and pump systems. Offered in 460v, 1 to 100 Hp and 230v, 1 to 60 Hp. user friendly; has an overload rating of 100% continuous and 110% for 1 minute. Damper permissive control prevents drive from running when dampers are closed. Low output disable function forces the drive to zero speed if it operates at the lower limit fre- Expansion valve kit The universal TR6 kit includes a full range of thermostatic expansion valves packaged in a plastic carrying case. contains quency for a user-defined time span. Toshiba International. www.toshiba.com/ind HVAC flushing solvent either 4 valves (for R-22) or 3 valves (R410A), giving contractors an immediate solution to any system upgrade. can increase the efficiency of older A/c units and heat pumps up to 15%, and significantly reduce energy costs by as much as 40% without more expensive 13 SEER or higher equipment. Temperature and pressure sensors open or close the diaphragm as needed; precisely measures refrigerant flow to maintain a 90% refrigerant gas saturation level in the coil. Danfoss. The Opk-300EZ/E EZ-Ject™ A/c leak detection kit is ideal for small to medium size systems. contains everything necessary for the job: the OpTIMAx™ 3000 cordless, rechargeable LED leak detection flashlight that is 15 times brighter than regular LED lights. Inspection range is 20 ft or more and a bulb life of 50,000 hours. Also included are the EZ-Ject™ dye injector assembly, hose assembly with check valve and low-loss fitting, two 0.5 oz EZ-Ject universal/pOE dye cartridges, 8 oz spray bottle of GLO-AWAY™ dye cleaner, Ac and Dc battery chargers and fluorescence-enhancing glasses. Spectronics. The pro-Flush™ HvAc flushing solvent is formulated for R-410a retrofits, refrigerant conversions and compressor burnouts. kit includes a reusable tank with pressure-relief safety valve; a hose; one can of pro-Flush; and an injector trigger nozzle for accurate, single-hand operation. Reduces costs since only the 16-oz refillable cans need to be purchased. Solvents are non-vOc, conform to EpA SNAp standards and are nonhazmat. compatible with cFc and HFc refrigerants and compressor oils. DiversiTech Corporation. www.envisioneering.danfoss.com www.spectroline.com www.diversitech.com HVAC test instruments www.tif.com Super Seal Total™ is a 4-in-1 product that combines a moisture eliminator, acid preventer, uv leak detector and micro leak sealer for the prevention, a n d detection of common c o m mercial and residential Ac/R system corrosion and leak problems. Total 1 for systems up to 1.5 tons and Total 2 for systems 5 tons or more come in a vacuum-packed can with a charging hose and is injected into the Lp service port of an operating system. Cliplight. www.cliplight.com/hvacr www.tvmi.com New family of HvAc system performance test instruments with infrared capabilities includes: thermocouple thermometers (p/N 3310/3320), a psychrometer (p/N 3110), anemometer (p/N 3220) and differential pressure meter (p/N 3420, infrared probe not included). Enable technicians to target non-contact surfaces and quickly take accurate differential temperature, pressure and airflow readings. Technicians can also store Min/Max and AvG readings with these tools. Large, easy-toread LcD display and rugged design for easy grip and hold. TIF, an SPx brand. Hybrid heating system The Heritage® 20 heat pump is the newest member of the Heritage Hybrid™ comfort system with AccuLink™. up to 20-SEER efficiency, uses R-410a refrigerant, has 2stage cooling. When paired with a Freedom® 80 or 95 communicating furnace, offers a new continuous comfortR mode for more precise comfort and humidity control. AccuLink digitally enables the heat pump to be automatically and properly configured to the indoor components. Easy to install; no “kits” to adapt the controls. Only 2 wires run from the outdoor unit to the indoor unit. American Standard Heating & Air Conditioning. Leak detection kit 62 • • THE WHOLESALER® — FEBRUARY 2009 PRODUCT NEWS Bathtub replacement kit speeds rennovations Distinctive faucets The value Series addition to this company’s line of RO faucets is available in 5 distinctive styles to coordinate with any décor. Features include: plated zinc alloy outer body; lead-free plastic water passages; lead-free brass gooseneck spout that swivels 360°; 36" pre-installed 1/4" inlet tubing; standard high-polished chrome-plated finish; and optional satin nickel and antique bronze finishes available. Tomlinson Industries. www.tomlinsonind.com Slip fit tub spout The new Swanstone Bathtub Replacement Shower kit (Bk-326072) offers customers a way to redesign baths without elaborate, time-consuming renovations. customers can purchase the Swanstone bathtub replacement kit at their best price as a single item, with freight pre-paid. The kit contains a shower floor, bench seat, 2 soap dishes, recessed shampoo shelf and shower wall kit with installation materials. The kit replaces a standard 32"x60" bathtub. Each kit is compression molded, ensuring superior durability. Available in 29 colors; meets a variety of standards and ratings, including class 1A fire rating. The Swan Corporation. The new Tug Spout provides a convenient, secure method for installing slip fit spouts. Fits the stub out tightly to the wall, eliminating the need for unsightly caulk. Tightening action helps compress O-ring seal at stub out for leak free installation. Installs directly onto 1/2" copper stub out with only a #2 phillips screwdriver. complimentary Dry Seal pipe collar included in every package. Tightens flush to the wall and requires no caulk to finish around the spout. Sioux Chief. www.siouxchief.com Mesh abrasive cloth vISI-GRIT is a super-bright fluorescent yellow, waterproof open mesh abrasive cloth. Highly visible and easy to locate in dim areas. use it for cleaning metal or www.theswancorp.com Mixing valves Showermaster® 7600 thermostatic mixing valves are designed for shower and bath applications in healthcare, educational, penal, industrial, recreational and other commercial/institutional applications. provide dependable control of water temperature for showers or baths. Highly responsive copper encapsulated thermostat. compensates for supply temperature and pressure fluctuations. Built-in shutoff, single-handle operation. Integral checkstops on hot and cold inlets. Leonard Valve Company. www.leonardvalve.com Redsigned electric water heater Oil detecting sump pump Commercial electric water heaters This line of commercial electric water heaters has been redesigned; includes the new Gold Series, Gold xi and custom xi models. Innovative features provide enhanced performance and reliability. The Gold Series DRE incorporates several new features, including the addition of Goldenrod® elements as a standard feature; resists scale build-up of up to 5 times that of a standard element for longer and more dependable element life in a variety of water conditions. Redesigned control access door allows easier access to all interior components and elements. Specific attention was placed on improving access to the bottom elements, which had been difficult to reach. A.O. Smith Water Products. New “Oil Detective” sump systems are job-ready and detect/alert for the presence of oil in various applications. System comes complete with cast iron or cast iron/stainless steel pump, controller, audible alarms, visual display lights, preset on/off, 20' piggyback switch cord and uL approved switch. Flows up to 65 GpM @5' (1/3hp) up to a high head 1/2hp (50 GpM @20'). Blue Angel Pumps. The Sandblaster® cSB series units are available with a surface mount thermostat (cSB-S) or an immersion mount thermostat (cSB-I) and are used for standard commercial applications. The Sandblaster® cSB and the Statesman™ SSE series units are for heavy-duty commercial applications. 24k gold plated elements standard. The SSE’s heavyduty incoloy elements provide top protection against oxidation, scaling. corrosion-resistant tanks have commercial quality glass lining, heavy-duty anode rods. State Water Heaters. www.blueangelpumps.com Compact root cutter Economical Metro-Rooter® holds 75 ft of 5/8" Flexicore® wire rope center cable; handles roots and other tough stoppages www.stateind.com Internationally styled faucets The Avanti collection blends European design elements with california individualism. Only available to wholesalers, www.hotwater.com New butterfly valve series plastic pipe or fittings and most hard surfaces. Open mesh resists clogging and can be used wet or dry. Doublesided abrasive can be rinsed with water and reused. Made of tough and effective 180-grit aluminum oxide particle abrasive. UTILITY. Three new butterfly valves have been added to the propress product line. The new valves are semi-lug bodies with EpDM liners, stainless steel disc and stem, with a 10-position handle; available in 21/2", 3" and 4" sizes. The valve addition compliments the existing 550 bronze and copper propress fittings offered in the line. compatible with propress Adapter Flanges used in copper joining systems for heating and potable water applications. Viega. in 3" through 6" lines. Or switch to 100 ft of 1/2" cable for smaller jobs. Light and compact, its narrow profile facilitates handling in tight places, on stairs and loading onto trucks. Features a folddown handle, truck-loading wheel, and tough, lightweight frame on 10" semipneumatic wheels for easy transport. General Pipe Cleaners, a division of General Wire Spring Co. the collection features 4 new international families of products: kenzo, Lago, Aria and Isola. Represents an avant-garde, functional, energetic, sophisticated, fun and memeorable style. All of the new Avanti products feature the European valving system, which meets the strictest noise standards to ensure quiet and effective performance in multi-family or commercial settings. Black & Decker Hardware and Home Improvement Group. www.utilitychemicals.com www.viega.net www.drainbrain.com www.bdhhi.com 2• • THE WHOLESALER® — MARCH 2007 Manufacturer Spotlight US Strainer Co. sells exclusively to distributors A Master Distributor of Pipeline Strainers Sales to Distributors Only Stocking all major brands including Hayward, Mueller, Titan, Spence, SSI and others! Products Include: • Y-Strainers • Basket Strainers • Duplex Strainers • UL- and FM-Approved Strainers • Custom Screens • We stock Bronze, Iron, Cast Steel, Stainless and now Alloy 20 • Grooved-End Strainers Services We Offer: • We ship 95% of your orders the same day, including special screens! • Credit Cards Accepted • No Minimum Order • Blind Shipments Using Your Packing List All New, No Surplus, Factory Pricing We make screens for anyone’s strainers! Contact us… We have what you’re looking for in stock! We will ship today! 1431 East Algonquin Rd., Arlington Heights, IL 60005 847-434-0766 fax: 847-434-0686 Toll-free: 866-440-1894 Please visit our website: www.usstrainer.com e-mail: info@usstrainer.com See contact information on page Circle 000 on Reader Reply Card70 64 • •THE WHOLESALER® — FEBRUARY 2009 MOVING UP CONGRATS! Blue Angel Pumps appointed Drew Dempsey West coast regional sales manager. He will oversee the rep agencies, training and new product placement to lead growth and expansion in that region. Dempsey originally joined the company as a sales associate. Bradford White promoted Robert G. McKenney to regional sales manager, overseeing the company’s sales efforts throughout the Mid-Atlantic region. During his seven years with the company, he has held positions of increasing responsibility including product analyst, assistant regional sales manager and district sales manager. California Faucets made the following announcements: • Frederick Desborough was named vice president-commercial business. Desborough joined the company in 2000 as chief operating officer, with more than 30 years experience in the plumb- ing industry. He began his career in the U.K. as a plumbing and heating engineer and systems design engineer. • Noah Taft was promoted to senior vice president-marketing & sales. He joined the company in 2002 as director of marketing and quickly rose to director of marketing & sales and then vice president-marketing & sales. In addition to his marketing and sales achievements, Taft refined the company’s marketing materials, tactically enhanced the website and played a crucial role in developing the Virtual Faucet creator®, a revolutionary online customization tool. Chicago Tube & Iron Co. welcomed Mike Ralph to the Indianapolis Division as the outside sales representative for Kentucky. He had spent 10 years working for Quality containment co. as an assistant plant manager and an estimator. Eastway Supplies Inc. named Scott Plinke director of its PVF Division. He served as inside district sales manager for Michigan, Delaware and Maryland wtih Integrity Supplies Inc. from 19921996 before joining Eastway’s residential sales team. He later handled commercial/industrial sales at Eastway. Ronald C. Katz, executive chairman of Elkay Manufacturing Company, announced that Timothy Jahnke, Elkay’s president and cEo, has been elected to serve on the Board of Directors. Jahnke joined Elkay in December 2007 and under his leadership, Elkay has inititated plant modernization, the deployment of cutting edge technology and the development of innovative, high-quality products. “Even in these challenging economic times, Mr. Jahnke has made significant contributions to our organization and demonstrates exceptional skill in leading Elkay in the right direction for the future,” said Katz. Prior to joining Elkay, Jahnke had a successful career with Newell Rubbermaid, where he had an exceptional 21-year track record of accomplishments as the president and group See contact information on page 70 executive of several consumer business units, as the top human resource executive and as a corporate officer. Engineered Software announced several personnel appointments: • Michael Blondin was named chief operating officer. Blondin will focus on developing new service and product offerings, new market development and organizational refocusing. He will also be responsible for the sales and marketing management direction. Blondin has more than 10 years of business and management experience. • Christy Bermensolo is now vice president-engineering. Bermensolo will lead the growing team of engineers on staff. She has more than 10 years of engineering experience, including more than two years within the engineering department. • Former vice president-engineering Ray Hardee will now operate solely as the company’s chief executive officer. Fire-Lite Alarms has expanded its U.S. sales force with the hiring of two new representatives: • 65 THE WHOLESALER® — FEBRUARY 2009• MOVING UP • Dan Lajoie will serve as sales manager for the northern Mid-Atlantic region, including Maryland, Delaware, New Jersey and Pennsylvania. lajoie previously worked with ADI and Honeywell Security Group’s sales team. • Leon Parks will cover the Northwest, comprised of Alaska, Washington, Idaho, Montana, North and South Dakota, oregon, Utah, colorado, Wyoming and Nebraska. Parks had managed the sales, installation and operations of Smith Fire Systems and Mountain Alarm for nearly 10 years. William O’Keefe was appointed Haws’ corporate marketing manager. o’Keefe will take responsibility for all aspects of market definition, customer acquisition, new product launch support, marketing communications and evaluation of both traditional and electronic media. He has more than 12 years experience in a corporate sales and marketing environment. Heat Transfer Products named Rod Hyatt to the newly created post of solar product manager. He brings 16 years of solar product experience, including the launch of two highly successful start-ups in the field: Sun Hydronics and In Hot Water. He has been involved in the sale, installation and coordination of hundreds of solar hot water and power systems in the West. InSinkErator® announced the following honors: • Michael Keleman, senior environmental engineer, was honored with the Wylie W. Mitchell Award for his presentation at the American Society of Sanitary Engineering annual meeting in orlando, Fla., November 19-23. Each year, the Wylie W. Mitchell Award is presented to the individual speaker presenting the most outstanding paper at the E.J. Zimmer technical seminar, held during the organization’s annual meeting. Keleman, an environmental specialist, spoke to ASSE delegates about the role food waste disposers play in a holistic approach to food waste management and how these widely used kitchen appliances are surprisingly overlooked and misunderstood. He provided research and technical information to support the fact that disposers are an environmentally responsible alternative to transporting food waste to landfills. • InSinkErator president Jerry Ryder hosted a surprise reception to honor Dave Weiner, cEo of Marketing Support Inc., an integrated marketing agency, for 50 years of service to the company. Weiner has worked with InSinkErator and its various business groups on advertising and public relations programs since 1958. Ryder said that Weiner’s contribution has been essential to InSinkErator’s success: “Dave has been a valuable business partner and friend of InSinkErator for a very long time. We honor his many contributions to our success as well as his enduring loyalty.” Weiner recalled establishing MSI in 1961 with InSinkErator as its first and only client. Marcone Supply president and coo Jim Souers was named a member of the St. louis chapter of the Ronald McDonald House charities board of directors. Souers was chosen out of 30 or so other applicants to serve on the board in 2009. “I am humbled to have been chosen. Ronald McDonald House charities is an organization that I believe in and am honored to be a part of,” Souers said. Marcone Supply has helped to support RMHc by getting involved in their dinner auctions and sporting events and by preparing and serving meals to the families staying at Ronald McDonald Houses across the country. George T. Sanders promoted sales manager Derek Bell to vice president-sales and marketing. Bell will also be a member of the company’s board of directors. He joined GTS in 1992, serving in various positions before he became sales manager. His role of supervising inside and outside sales personnel, quotations and purchasing departments will now be expanded to include broadening the company’s sales base, profitability and profile. After an extensive search, Uponor Corporation’s board of directors has appointed cFo and deputy cEo Jyri Luomakoski president and cEo of the Uponor Group and its parent company. luomakoski has acted as cEo on an interim basis since october 27. He has served Uponor since 1996 and, for more than four years, has been responsible for the company’s municipal business in North and South America as well as in the United Kingdom and Ireland. Jari Paasikivi, chairman of the board said, “Jyri’s international management experience spans over a period of 20 years. He has served Uponor during the past two cEos, and has gained versatile experience from the company’s business during its different phases. luomakoski has a broad network of contacts in the different stakeholder groups of the company, and he has firm support within the board, as well as among his colleagues, which allows him a good platform to bring the company forward during these challenging times.” Vormittag Associates Inc. appointed Joseph DeBella director of IBM Independent Software Vendor Alliance. DeBella will lead VAI’s expanding international sales efforts and drive new software and services through IBM as a VAI channel partner in the highly competi- tive mid-market Enterprise Resource Planning space. DeBella has more than 30 years of business-to-business international information technology consulting experience. While at IBM, he served in various executive positions. Wolseley North America appointed Frank Durham business manager, overseeing the power sector of the industrial business group. Durham’s new position furthers the company’s expansion into the power sector of the North American industrial market. Durham began his career with Ferguson in 2006, as a branch manager in Evansville, Ind. He was most recently a business development manager for the central region. “I am excited about the opportunity to work in the hottest industrial market segment in North America,” said Durham. “My goal is to work with customers at all levels — power producers, engineers, procurement and construction firms, as well as fabricators and contractors — to provide industrial business and product solutions.” ■ OBITUARY Jim Seamon, manufacturers’ rep 1932-2009 NEW AlBANy, IND. — A manufacturers’ Gerber from $280,000 in business to rep from the late 1960s until retirement in over $5 million in his area. Seamon 2002, Jim Seamon covered Kentucky and leaves that statement along with many Indiana. He is remembered as others. Wayne/Blue Angel “one of the good guys” throughpump has been with this out the states he covered. founder of Seamon & Seamon kept his rep firm in Associates, operating today as multiple trades while being recSeamon Sales Associates Inc., ognized with numerous sales for more than 40 years. performance awards. Plumbing Seamon was a charter memwholesale was first but Seamon ber of AIM/R and promoted all had great success with active PHccs in Indiana and Belknap, S&T, HWI and other Kentucky. He enjoyed golf with hardware outlets during his his buddies and his family. He career. He took what was Jim Seamon will be missed but not forgotten. See contact information on page 70 66 • •THE WHOLESALER® — FEBRUARY 2009 COLUMNS Less stress, more serenity in ’09 (Continued from page 51.) scene in your mind. This is someplace in your life, where you felt safe and relaxed. It may be last week on vacation on the beaches of hawaii or when you were five years old and fishing with your dad or mom. The more clearly you see the objects and colors, the more relaxed you will get and the more value you will get from the exercise. See the palm trees swaying and the blue ocean waves. For perfectionists, do not make the scene perfect. Spend time in your favorite nature scene. Next in the process, you will leave the nature scene and you will go thru the reverse of the colors of the rainbow — violet, purple, blue, green, yellow, orange, and red. Remember to see the colors (objects) for it is where the deep; value is located. The visualization process should take between 10 and 15 minutes. Yes, it will take practice to get the real value from this process. It took me personally three times to get the process working. Today, I do the process in eight to 10 minutes and my wife, Samantha, will tell you that I am locked into only requiring five to six hours of sleep — whether working or on vacation. My many industry and personal friends would say that I am mostly a “high energy” person. The same stress reduction technique process can be used effectively when we have major “upsets.” Another great technique of reducing a high level of stress it taking three very deep and quick breathes of air. This will dissolve stress levels down a few notches. Both visualization and breathing techniques are found in numerous books at your favorite bookstore. My favorite tips from volumes of stress reduction information My personal top four tips on the war against stress reduction: • Stop worrying about situations you can’t control. do we get any intrinsic value what so ever? Like frequent flyer airline miles? • At the end of each business day, acknowledge three wins in writing (short) so you have closure. Even if it might be the day from hell! • Written goals. You can’t hit the target if you can’t see it. Failing to plan is planning to fail. Written goals in all areas of your life will cut down on your stress. Remember: “You will never ever ever get caught up!” Life is a journey, not a destination! Enjoy and have fun along the journey of your work and personal lives! Out of 200 different things you can do to reduce stress, here are my favorites from the volumes of great information: • prioritize each day events • prepare for meetings in advance • Say no to excessive commitments • program leisure time • Tidiness will make you feel in control • have fun and learn to laugh This technique of “visualization” is used in sports. Example: Michael Jordan and Magic Johnson have used this process to perfect their basketball shots. • Find time for prayer and reflection • develop good listening skills • Accept fair criticism. • Concentrate on valued relationships • Keep your life balanced in all aspects. ■ Peter Schor, president of Dynamic Results Inc., is an educator, motivational speaker, consultant, coach and writer Count trucks when dealing with contractors (Continued from page 8.) where they keep common, fast-moving products. They are probably using a computer system for their accounting and billing. What they want from their wholesaler: • Credit • Reliable access to the parts they use • Fair pricing • A catalog for their trucks ...Your objective will be to become the primary, and almost exclusive, supplier to the good service contractors in your market. • MSdS documents for their trucks • Tech support as they run into really difficult situations • product training for their techs • Business training for the owner • Support for their software (some will need pricing data to load into their computer software to allow quotations) • Some will use their wholesaler’s web site to order parts early or late in the day • Stockroom and possibly truck replenishment support. Ten-truck service contractors At 10 trucks they have enough going that they use robust computer systems, have marketing programs, have some full-time office staff and operate like a real business. Their computer systems will be more sophisticated and include: dispatching, buying, accounting, billing, flat-rate pricing and productivity tracking. What they want from their wholesaler: • Credit — on some big jobs they may need special exceptions but probably don’t deserve extended credit on all jobs • Reliable access to the parts they use • preferred pricing • A catalog for their trucks • MSdS documents for their trucks • Tech support as they run into really difficult situations. • Customized product training • Business training • Support for their software (some will need pricing data to load into their computer software to allow quotations) • Some will use their wholesaler’s web site to order parts early or late in the day • Stockroom and possibly truck replenishment support • Consignment inventory (try to avoid this if you can but some contractors are demanding it) • Service truck management (replenishment and billing) software support. Of course the service contractor’s profile and needs vary widely, but you can create profiles for your market and your customers to help your team to better understand service contractors. With this understanding, your objective will be to become the primary, and almost exclusive, supplier to the good service contractors in your market. If your company’s strategic focus does not include service contractors, this might not be the proper course for you. As always, any strategic refocusing must be approached carefully and thoughtfully. As I have said before, new markets or types of customers always seem to involve paying your dues. I think the battle for the service contractor will be won by the wholesalers who can provide those customers with the items on these lists. You earn the right to be the service contractor’s primary, almost exclusive, supplier by showing him that: • You have what he needs now • You have what he will need as he grows • You will provide products and services that will help him to grow. ■ For information about service contractor support tools, e-mail me at rich@go-spi.com Rich Schmitt is president of Schmitt Consulting Group Inc., a management consulting firm focused on improving the profitability of distribution and manufacturing clients. www.go-scg.com Rich is also the co-owner of Schmitt ProfitTools Inc. (SPI), a business producing print, CD-ROM, web and palm-based catalogs as well as pricing management and analysis software for wholesalers. www.go-spi.com in our industry and many diverse others. For the past 17 years, he has conducted 100 educational programs yearly, including 34 industry conventions. Schor has great expertise in the field of showrooms and has won many industry awards. He also works with manufacturers in the field of sales, marketing and public relations. Schor can be reached at 1491 Ivy Arbor, Lincoln, CA 95648, phone 916/408-5346, fax 916/408-5899, by e-mailing pschor@dynamicresultsinc.com or on his website www .dynamicresultsonline.com. Brock (Continued from page 50.) implement practical, positive solutions for your customers and prospects it will all be worth it. Tools I like include a scanner (I’m using two, the NeatReceipts sheet-fed scanner and a desktop scanner from hp for more automated scanning). Turn paper into useful information by having it available when needed. I also use the Mophie for my iphone to add a boost to battery power (about eight extra hours). A digital voice recorder (dvR) gives me the ability to grab thoughts and ideas quickly, as well as to capture phrases from the languages I’m studying. There are many tools you can use. In fact, I’m preparing a special report for my coaching program that will detail these and many other useful tools that will help generate more sales and productivity. drop me an e-mail for more information. Leverage the tools to help people. Always focus on how you can help prospects to become customers and help customers to become raving fans. This strategy will work in a New Year and any time in the future. Bonus Tip: I just discovered a great tool for listening on my iphone and ipod. It is called BudFits. It makes listening more comfortable and helps keep your earbuds in place when you are active and mobile. This device is covered more in-depth on my website in video (You’ll love it!) at www.terrybrock.com/2008/12/budfits, where you will see exactly how it works. If you use an ipod for learning, education or enjoying music, you need to check these out — $8.95 retail for the pair, and they make great gifts! It is a time for renewal. Make this a time to get started again in your business and your personal life. Make the commitment to get the necessary knowledge and resources that will propel you to the goals you want to achieve. Make 2009 the year for your success -whatever the outside world is doing. ■ Terry Brock is a marketing coach who helps business owners market more effectively, leveraging technology. He shows busy professionals how to squeeze more out of their busy days using the right rules and tools. Brock can be reached at 407/363-0505, by e-mail at terry@terrybrock.com or through his website at www.terrybrock.com. • 67 THE WHOLESALER® — FEBRUARY 2009• MGS, ALNO form strategic marketing, sales partnership BOSTON — ALNO and MgS recently announced a new, strategic sales and marketing partnership. MgS faucets — composed of 100% solid stainless steel — are now one of the preferred fixtures for ALNO kitchen environments. MgS will provide a variety of their modern and minimalist faucets and fixtures to showrooms. “Each MgS product is crafted with the utmost attention to detail and precision, incorporating the finest stainless steel materials in the world,” said MgS uSA president Eric goldman. “They work well with ALNO cabinetry because of their progressive design and European craftsmanship. Each part is seamless and smooth. After the mechanical fabrication, the final touch is given by expert ALNO uSA Beschloss (Continued from page 70.) not nearly as dilapidated as the media makes it out to be. The World Economic Forum ranks the u.S. among the world’s best in this category. We could go on — but the point has been made. America has had a severe setback in the past year. But this nation is posed and resilient enough to get back on track, once we get over the hump in 2009. ■ Morris R. Beschloss, a 52-year veteran of the pipe, valve and fitting industry, is PvF and economc analyst for THe WHoLeSALeR. polishers who hand finish every single part to an impeccable shine or soft luster of natural brushed stainless steel.” The companies will support each other through co-marketing and event sponsorships. MgS products will be included in ALNO’s multi-unit project specifications and bids and both companies will feature each other’s products in trade show displays. For details, visit www.alnousa.com/pr or www.mgsdesigns.com. CLASSIFIED ADS Anco leads with great safety record ELKhART, INd. — Anco products Inc. has not had a single recordable accident since May 5, 2007 — that’s more than 600 days and 215,483 hours worked. Even more impressive is Anco’s record for no lost time accidents, which stands at 1,233 days as of January 1, 2009 — that’s more than three years and 588,233 hours worked! There was a time when Anco products Inc. was notorious in Elkhart for plant fires, as well as for accidents. Within the last three years, however, Anco has worked hard to foster a culture of safety. According to Anco compliance manager Leah Thwing, “Many new initiatives have added to the success of our safety program. Our world class manufacturing practices, 6S empowerment initiatives and a corporate led STEpS (Striving Towards Excellence and professionalism in Safety) program all stress safety, quality and productivity.” The involvement of Anco products employees has helped develop the new culture of safety and continuous improvement. Anco credits a majority of their drastic safety improvements to Lean and 6S initiatives, increased supervisor level accountability and empowered employees, who are involved in many improvement processes. Anco looks to continue with these initiatives that have helped their performance. “A lot of our manufacturing processes are inherently dangerous, so we are really excited about the improvement in our safety record,” said Anco president and CEO Andy McCleery. “We are proud of our employees, and we are focused on finding ways to get even better in 2009.” Additional information is available at www.ancoproductsinc.com or by calling 800/837-ANCO. INDUSTRY NEWS PROFESSIONAL SERVICES (More classified ads on page 68.) INVOICING SERVICE Smart Invoicing Services Group provides a fully automated document delivery service of invoices, monthly statements and past due letters; all sent first class at "presort" rates 10 to 20% less than standard mail. Alternatively, documents can be faxed or emailed to your customers who accept them in this manner! • Let us do the work for YOU! • No more stuffing envelopes • No more trips to the post office • No more address labels • No more hassle! All of this while REDUCING your current cost outlay for document delivery and saving valuable manpower expenses! Call today for a quote or simply email us at info@smartinvoicing.com. www.smartinvoicing.com office (913) 362-8994 fax (913) 362-0609 WANT TO BUY WANTED TO BUY Manufacturer seeks acquisition of commercial plumbing products manufacturer. Respond to: TMB Publishing 02-01 1838 Techny Court Northbrook IL 60062 EMPLOYMENT OPPORTUNITIES GENERAL MANAGER SALES MANAGER Long-established, very profitable plumbing distributor. Multiple location chain in northeastern Ohio. Company is pursuing aggressive expansion program. Individual must have strong operating management background and solid executive credentials. Candidates should view this as a long-term position. Attractive compensation package. seniorexecsrch@yahoo.com A strong, successful Midwest HVAC company has an immediate opening for a Sales Manager. This successful candidate must have a minimum of 5 years experience. Must have a proven track record in developing new markets, managing existing accounts and generating sales revenue. TMB Publishing 02-03 1838 Techny Ct. Northbrook, IL 60062 WANTED TO BUY We are a growing plumbing supply company on the east cost looking to continue our expansion mode. If you are a plumbing supply company with annual sales of 5 million or more and are interested in selling, we are interested in meeting you. Contact us via email at: flhfinancial@aol.com ANY WHOLESALERS WILLING TO SELL??? SALES REPS NEEDED 50 year old Fastener Manufacturer and Distributor serving the HVAC and Plumbing Marketplace looking for sales representation in the following states: Florida, Georgia, North/South Carolina, Virginia, Maryland, Delaware, New York City, and Long Island. Commission is 7.5% We have much more than fasteners to offer in line We are a plumbing wholesale company on the West Coast looking to expand. If you are a wholesale company and are interested in selling we are interested in meeting with you. TMB Publishing 02-02 1838 Techny Ct. Northbrook, IL 60062 TMB Publishing 02-04 1838 Techny Ct. Northbrook, IL 60062 REPS DISTRIBUTORS WANTED SEEKING DISTRIBUTORS Universal Specialties, a supplier of plumbing and hardware products to facilities which have a maintenance staff, is seeking to expand its markets in the following states: CO, UT, WA, OR, & AZ. We offer various plans, including direct sales or stocking and non-stocking distributors, which are great business opportunities. Let us hear from you at univplumbing@aol.com. Check out our website at universalspecialties.com. Responsibilities and Qualifications: • Must have business and management skills to manage Residential and Service Operations • Must have understanding of Financial Statements and the ability to create, monitor and manage budgets • Must complete demand forecasting requirements, prepare and submit monthly “field reports” • Complete knowledge of HVAC terminology, ratings, and meanings • Directs staffing, training and performance evaluations to develop and control sales programs • Excellent interpersonal verbal/written communication skills, possess assertive/ aggressive skills to exceed sales goals • Will be meeting with clients, assisting sales by managing relationships and negotiating and closing deals • Monitor and evaluate the activities and products of the competition — Travel required in local area — Drug free work environment — Pre-Employment drug screening and background investigations required. — EEO Employer Please forward your resume with salary requirements to: hvacohiovally@yahoo.com " )(*!- ( # ,%+$ ))(&&+(' ADVERTISERS! A display advertisement in The Wholesaler is your best ad buy! See page 69 and contact your advertising sales representative now! 68 • •THE WHOLESALER® — FEBRUARY 2009 CLASSIFIED ADS EMPLOYMENT OPPORTUNITIES REGIONAL SALES MANAGER SVF Flow Controls, Inc. a leading ball valve manufacturer headquartered in Santa Fe Springs, California is seeking TWO talented, career-minded Regional Sales Managers, one for the Midwestern states and one for the Western states. Responsibilities: Continued growth in the territory by management of an existing distribution channel, calling on specifying engineering firms, end users and large OEM accounts. Key responsibilities include: • Liaison between the customer, distributor and SVF home office. • Identify new opportunities and aggressive pursuit plans to win the business. • Train distributors. • Pursue business in new markets/industries. • Accompany distributors on sales calls. • Guide the efforts of the region toward achieving/exceeding revenue goals. • Identity potential new product opportunities. • Integrate activities in a team oriented environment. Requirements and qualifications: • Bachelors Degree. (Engineering or Business background preferred) • 8 + years in a similar technical environment with a minimum of 5 years managing distributors. • Verifiable track record of above plan performance. • Able to operate a computer and appropriate associated software including Microsoft office and customer management databases. • Be a team player. • TQM/ISO/Six Sigma exposure desirable. • Qualified to work in the US. • Travel will vary between 40% to 60%. Please submit resumé with salary requirements to Margie Mueller: mmueller@svf.net. EOE WESTERN REGIONAL SALES MANAGER A leading manufacturer of plumbing fixtures is looking for a Western Regional Sales Manager. Candidate would oversee and support the sales efforts of independent manufacturer sales representative organizations as well as be required to make sales calls independently throughout the territory. Candidate must reside in the territory and plan on 75% of time spent on the road making sales calls. Candidate’s call pattern would include daily sales calls on end users, architects, mechanical engineers, construction managers, general contractors, mechanical contractors and plumbing wholesalers. Candidate should feel comfortable consistently negotiating 6-figure sales. Compensation is base plus commission. 3 years of plumbing industry related sales experience required. Interested candidates should submit a resumé and salary history to jptr44@yahoo.com TERRITORY SALES MANAGER-VARIOUS REGIONS A growing, successful radiant heating company is looking for a territory sales manager with a strong radiant/hydronic heating background for various regions. The right candidate is success-driven, self-motivated, organized with high interpersonal skills and experience in sales and managing accounts. Please send cover letter and resumé to radiantHR@aol.com (Classified ads begin on page 67.) SALESPEOPLE WANTED Move to beautiful Arkansas and have fun selling. Sanders Supply is growing and looking for a hvac outside salesperson and looking for a plumbing salesperson. Please e-mail resume to: ed.sanderssupply1@sbcglobal.net REPS WANTED PROFESSIONAL MANUFACTURE AGENTS WANTED!!!! Does representing one of the most recognized, world class basic manufactures, having your own exclusive territory and a six-figure commission earning potential appeal to you? With over 40 years of experience, we are looking for independent agents to grow our successful plumbing wholesale and water well distribution channels in North America. Since 1968, WaterGroup has manufactured and distributed water conditioning and pump products across the US and Canada. Our commitment to providing our customers with quality, leading-edge products, backed by unparalleled service and support, has earned us our reputation as the leader in the industry. WaterGroup provides a complete line of residential and commercial products including: MIDWEST REGIONAL SALES MANAGER Opportunity available with a fifty year old, leading manufacturing company in the plumbing, mechanical and waterworks industries. The position requires a minimum of 3-5 years of experience in plumbing related sales. Candidate should reside in the central or mountain time zone. Water Softeners Whole House Water Filters Point of Use Cartridge Filters Reverse Osmosis Drinking Water Units Ultraviolet Disinfection Systems Water Well Pumps Sump / Wastewater Pumps Visit www.watergroup.com for additional information. Excellent benefit package. Send resumé and salary requirements to: e mail cholt@mcpind.com fax 951-549-8280 For immediate consideration, email your agent resume to: melanie.stevens@watergroup.com or call 847-430-1434. REPS WANTED INVENTORY LIQUIDATORS MANUFACTURER REPS WANTED Manufacturer is seeking professional manufacturer reps within the plumbing wholesale, hospitality and retail markets to represent a new brand of grab bars and decorative bath hardware. This is a great opportunity to join an established manufacturer in creating and vselling a new brand of grab bars and bath accessories in the North American market. Many territories are still available! Please contact: tomhalbert@comcast.net 616-881-6953 REPS WANTED INVENTORY LIQUIDATION Cash paid for your inventory. Plumbing, AC, furnace, appliances and/or??? Call Sam 925-256-8700 or email: aeco1971@yahoo.com. The Wholesaler classified advertisements are your marketplace for buying and selling, finding employees or finding a new postition! Importer and Distributor of fine quality plumbing and HVAC products. Seeking professional representatives in several US territories. Products include Gas Valves, Gas Connections, PEX Fittings and Valves, Quarter Turn Supply Stops, Copper Water Heater Connectors, Braided Stainless Steel Supply Lines, Stainless Steel Water Heater/Softener Connectors, Sump Pumps and Grab Bars. Please fax or email resumé and line card to: 562-946-0886 laraydoyle@crown-ind.com Major Manufacturer of ABS and Cast Iron Pipe and Fittings is in search of professional representatives in protected U.S. territories. Products include Cast Iron Pipe and Fittings, ABS Pipe and fittings, plumbing repair tool, and other related products. Call David Vazquez at (909) 465-0033 or fax your resumés to (909) 465-9600. POWER ON DEMAND • 69 THE WHOLESALER® — FEBRUARY 2009• CLASSIFIED ADS SUPPLIERS JUST FAUCETS AS SEEN ON WILD CHICAGO • ALL BRANDS • ☞ TOILET TANK LIDS BACK TO THE 1920’s ☞ —BRING SAMPLE PARTS— • FAUCET PARTS • TOILET PARTS • VISIT OUR SHOWROOM Mon - Fri: 9:00-5:30 • Saturday: 9:30-3:00 Showroom: 1-847-255-0421 • 1-800-331-0421 Fax:1-847-255-7850 540 S. Arthur Ave. Arlington Heights, IL 60005 www.justfaucets.com Managing Editor James Schaible www.thewholesaler.com Associate Editor Publisher Editorial Director John Mesenbrink Tom M. Brown Jr. Mary Jo Martin Administrative Assistant Production Manager PVF & Economic Analyst Morris R. Beschloss Debbie Newberg cate c. Brown Editorial Offices: 1838 Techny court, Northbrook, Il 60062 Phone: 847/564-1127, Fax: 847/564-1264, e-mail: editor@thewholesaler.com Direct subscription inquiries to: cynthia lewis, creative Data Services; 519 E. Briarcliff Road, Bolingbrook, Il 60440; clewis@cds1976.com; Phone: 630-739-0900 ext 203, Fax: 630-739-7648 Sales Offices Midwest, Southeast, E. Canada David Schulte 1838 Techny court Northbrook, Il 60062 847/564-1127 Fax: 847/564-1264 East (Indiana; W. Mich.) Brad Burnside 1838 Techny court Northbrook, Il 60062 847/564-1127 Fax: 847/564-1264 West, Texas Diane Spangler P.o. Box 9802 Fountain Valley, cA 92728 714/839-6700 Fax:714/839-6777 dave@tmbpublishing.com brad@tmbpublishing.com diane@tmbpublishing.com Classified ad sales Jenny Stringer: 847-564-1127 ® TMB Publications, Inc. Tom M. Brown Jr., President The Wholesaler (publication number USPS 351-650 ISSN 0032-1680) is a trademark of TMB Publications, Inc. The ® Wholesaler is published monthly by TMB Publications, Inc., 1838 Techny Ct. Northbrook, IL 60062; tel. 847/564-1127; fax 847/564-1264. Copyright 2009 by TMB Publications, Inc. All rights reserved under the United States, International and PanAmerican Copyright Conventions. No part of this publication may be reproduced, stored or transmitted in any form or by any means, mechanical,®photocopying, electronic recording or otherwise, without the prior written permission of TMB Publications, Inc. The Wholesaler is delivered free of charge to qualified subscribers in the U.S. and Canada. Others: U.S., U.S. Poss. and Canada, $100/yr.; two-year annual subscription rate U.S. and Canada, $155; other countries, $200/yr. or $300 for two year (U.S. funds) plus $20 surface postage. Single copies, $15. Second class postage paid at Northbrook, IL and additional mailing offices. POSTMASTER: Send address changes to The Wholesaler, Creative Data Services, 519 E. Briarcliff Road, Bolingbrook, IL 60440. clewis@cds1976.com Publications mail agreement No. 41499518: Return undeliverable Canadian adresses to PO Box 503, RPO West Beaver Creek, Richmond Hill ON L4B 4R6 70 • • THE WHOLESALER® — FEBRUARY 2009 VIEWPOINT Heartfelt gratitude from the publisher BY TOM M. BROWN JR. Publisher A s we closed out on a successful year in December 2008, I couldn’t help but to be humbled and very thankful to you — our loyal readers and advertisers — for your continued support of TMB Publishing. It is because of your support that The Wholesaler has been placed into the #1 position for ad sales for 2008 in the PHcP industry, including all of the distribution, contractor and engineering publications. This good fortune is due in large part to the tireless efforts of our staff, who share my commitment to this industry as our foremost responsibility. our sales team, consisting of Dave Schulte, Brad Burnside and Diane Spangler, strive to be customer-service driven and are easy to work with. All three are dedicated to listening to our customers in order to better serve their needs by providing personalized service that is unmatched in this industry. Editorial director Mary Jo Martin and managing editor Jim Schaible — whose sole interest as editors of The Wholesaler is to provide timely, accurate and valuable information to our specific readership — have tirelessly spearheaded our efforts in bringing the magazine to its top position within the industry. As publisher, I couldn’t ask for a better editorial director, as Mary Jo’s ability to bring readers and manufacturers together is in a class of its own. Helping her in this task are the efforts of our highly respected columnists, each of whom are truly experts in their respective fields. People like Morrie Beschloss, Dan Holohan, Rich Schmitt, Peter Schor, Jason Bader and Terry Brock only come by once in a lifetime and we are extremely lucky to have them on this journey with us. Morrie’s experience as a 50+ year veteran of the PVF industry and spearhead of a major PVF conglomerate lends him editorial interpretations on industry trends and world events that are extremely valuable to our readers, not to mention insightful and prescient. Dan Holohan — the most recent addition to our team — has been a blessing to The Wholesaler. our collaboration with him has allowed us to stay on task and focused solely on providing strong, independent editorial coverage, which will ensure the magazine’s continued high readership and market coverage. on behalf of everyone at TMB Publishing and The Wholesaler, thank you for the overwhelming support you have shown us in 2008. We look forward to serving you all in the years to come. ■ Tom M. Brown is publisher of THe WHOLeSALeR. He can be reached at 847/564-1127. Despite gloom, U.S. is poised to lead the world again BY MORRIS R. BESCHLOSS PVF and economic analyst A fter months of communicating all aspects of the everdeepening recession, I thought it appropriate to accentuate the positives of this greatest nation on Earth. Quantitatively speaking, the U.S. has it all over secondplace Japan (which has one-third of America’s $14-trillion gross domestic product of goods and services). china and Germany are batting for third place with each having a $3.5-trillion gross domestic product. Even America’s industrial sector, long ago given up for lost, generated $1.7 trillion in 2006. Japan, with $950 billion and china with $780 billion, battled for the runner-up spot in generating industrial goods. At the same time, the U.S. rose to the top in exports last year, coming close to $2 trillion annualized. When it comes to industrial machinery, aerospace, pharmaceuticals, oil and gas extraction equipment, military, hardware and communications equipment, America is still the envy of the world. Even in energy production, Uncle Sam ranks sixth in the world. And don’t forget agriculture, in which the U.S. leads the globe in worldwide exports. Despite an overdose of self-criticism, American workers’ productivity growth has averaged 2% a year since 1995, putting American labor, supported by superior technology, near the top of the global heap. Even our national infrastructure of roads, bridges, railroads, ports, dams etc., is (Turn forward to Beschloss, page 67.) ADVERTISERS INDEX / CONTACT INFORMATION Acorn . . . . . . . . . . . . . . . . . . . . . . . . 34 www.acornaqua.com Airgas Specialty Products . . . . . . . . 30 www.airgas.com Anderson Metals . . . . . . . . . . . . . . . . 6 www.andersonmetals.com Bavco. . . . . . . . . . . . . . . . . . . . . . . . 32 www.bavco.com Bradford White . . . . . . . . . . . . . . . . 43 www.bradfordwhite.com Brasscraft . . . . . . . . . . . . . . . . . . . . 15 www.brasscraft.com cash Acme. . . . . . . . . . . . . . . . . . . . 11 www.cashacme.com c & c Industries . . . . . . . . . . . . . . . 17 www.candcvalve.com cD Sales . . . . . . . . . . . . . . . . . . . . . 35 www.centraldistributionsales.com ceco-commercial Enameling . . . . . 30 www.cecosinks.com central components . . . . . . . . . . . . 55 www.centralcomponents.com core Pipe . . . . . . . . . . . . . . . . . . . . . . 9 www.corepipe.com DDI Systems . . . . . . . . . . . . . . . . . . 37 www.ddisys.com Elster Perfection . . . . . . . . . . . . . . . 50 www.perfectioncorp.com Entran . . . . . . . . . . . . . . . . . . . . . . . 16 www.entraniisettlement.com Forgings, Flanges and Fittings, llc. . . . . . . . . . . . . 28 www.fffinc.net General Pipe cleaners, a div. of General Wire Spring . . . . . . 2, 58 www.drainbrain.com Global Stainless Supply . . . . . . . . . 29 www.globalstainlesssupply.com Heatinghelp.com . . . . . . . . . . . . . . . 59 www.heatinghelp.com John Guest co. . . . . . . . . . . . . . . . . 47 www.johnguest.com J & M Industries . . . . . . . . . . . . . . . 18 www.smartinvoicing.com JMF . . . . . . . . . . . . . . . . . . . . . . . . . 14 www.jmfcompany.com Kessler . . . . . . . . . . . . . . . . . . . . . . . 71 www.ksdusa.com la-co. . . . . . . . . . . . . . . . . . . . . . . . 20 www.laco.com laars . . . . . . . . . . . . . . . . . . . . . . . . 24 www.laars.com lavelle . . . . . . . . . . . . . . . . . . . . . . . 65 www.lavelle.com legend Valve. . . . . . . . . . . . . . . . . . 13 www.legendvalve.com Matco Norca . . . . . . . . . . . . . . . . . . . 3 www.matco-norca.com Mueller Steam . . . . . . . . . . . . . . . . . 53 www.muellersteam.com Navien . . . . . . . . . . . . . . . . . . . . . . . 51 www.navienamerica.com North American Safety Valve . . . . . 33 www.nasvi.com Qc Valve . . . . . . . . . . . . . . . . . . . . . 10 www.qcvalve.com Robert-James Sales . . . . . . . . . . . . . 49 www.rjsales.com Schmitt Profitools . . . . . . . . . . . . . . . 8 www.go-spi.com Service Metal Products . . . . . . . . . . 21 www.servicemetals.net Sharpe Valve . . . . . . . . . . . . . . . . . . . 2 www.sharpevalves.com Simpson Dura-Vent . . . . . . . . . . . . . 51 www.duravent.com Smith cooper . . . . . . . . . . . . . . . . . . 5 www.smithcooper.com Stanley VIRAX . . . . . . . . . . . . . . . . 19 www.stanleyvirax.com Summit Stainless Steel . . . . . . . . . . 61 www.summitstainless.com Ta chen Intl corp.. . . . . . . . . . . . . . 72 www.tachen.com Taco . . . . . . . . . . . . . . . . . . . . . . . . . 23 www.taco-hvac.com Tapco. . . . . . . . . . . . . . . 26, 27, 48, 56 www.tapcogenuinepartscenter.com Tyco Fire Suppression & Building Products . . . . . . . . . . 22 www.tyco-fire.com US Strainer . . . . . . . . . . . . . . . . . . . 55 www.usstrainer.com Valfit . . . . . . . . . . . . . . . . . . . . . . . . 38 www.valfit.com Viega . . . . . . . . . . . . . . . . . . . . . . . . 31 www.viega.com Wal-Rich . . . . . . . . . . . . . . . . . . . . . 64 www.wal-rich.com Warren Alloy Valve & Fitting co. . . 7 www.warrenalloy.com Webstone . . . . . . . . . . . . . . . . . . . . . . 6 www.webstonevalves.com Weldbend. . . . . . . . . . . . . . . . . . 44, 45 www.weldbend.com Westbrook Mfg.. . . . . . . . . . . . . . . . 39 www.westbrookmfg.com See contact information on page 70 See contact information on page 70