Qualified Remodeler Magazine

APR 2019

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

Issue link: https://qualifiedremodeler.epubxp.com/i/1107022

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Page 12 of 102

Q: Taken together, what is your goal of the acquisitions? Barreira: Geographic expansion is extreme- ly important. We've always felt like we've had great capacity, with the Harvey plants at around 50 percent of their potential pro- duction levels. We've been very strong in our core marketplace in the Northeast, especially where we've had captive distribution with the Harvey branch locations. We've felt for a long time that we could be selling Harvey Products to other distributors outside of our current geographic footprint. SoƁ-Lite gets us into the Midwest where we have growth opportunities, and we also get into the Southeast. We have some very large and strong customers in that market, which is definitely growing faster than the overall window and door marketplace. We think there is opportunity in Texas as well. With Northeast [Building Products], they give us a real workhorse in the sup- plier to Power Home Remodeling (No. 4 on the QR Top 500), who is just a power- house, if you will. They are in Texas. They are in Colorado. They are in Chicago. That is another growth engine for us in terms of a future expansion opportunity from the standpoint of potential future manufactur- ing expansion. Q: For the average remodeling pro, what will these acquisitions mean? Longman: It really shows our commit- ment to the resto- ration and replace- ment marketplace. We really like this part of the busi- ness. It allows us to focus more on gen- eral contractors and end users. And it really helps us keep more of that lock that we've had with our Harvey business originally with contractors in the Northeast. And that continues as we go aƁer more of that restoration space through SoƁ-Lite. The second piece would be that it allows us to have better, more cohesive linear re- lationships with the end users, the home- owners, so that way we can get a really good information feedback to understand where we can get better. And provide more value through that demand chain. If you think about it—the manufacturing, the distribution, the general contractors and the homeowners—what we've tried to do is make sure we can play in any of those spaces. It is allowing us to play in at least three of the four at one time. Q: At one time Harvey was known for its large contractor education events held at Gillette Stadium near Boston. But you've pivoted from those lately. Samson: We've moved from those really large, central events—which oƁen required an hour or more of travel for our contrac- tors—to more local, need-based events. In- stead of having a two-day show at Gillette in March, we might have nine vinyl window training events at our different branches or other central sites around plus three around roofing because that is where we know what contractors need particular geographic ar- eas, and the rest might be on vinyl windows because they need to know how to install or sell those better. I would say that we've taken it to the contractor more, as the economy is getting better and their time has gotten much valuable. But then the other side of it is also just moving it away from a physical show up, park and wait for the class to start to more and more virtual. We actually brought on a very experienced talent management ex- ecutive in the last few months who is really trying to help us step up our training game overall both internally with our own peo- ple—because until we have our own product knowledge and confidence it's hard to give it to our customers—and also rolling it out to our customers. Contractors want small digestible chunks, specific to what they need. That is really where we are going over the next year, having a lot more vir- tual opportunity for customers to learn or put something in front of their homeowner customer as well. We are learning a lot as we grow [with] new geographies and new customer seg- ments. You made a statement at the begin- ning about us being kind of an East Coast company. That is how many still know us, and a lot of our acquisitions are not called Harvey. We've really maintained our local brand because they are so strong in those markets. We are in some different customer segments now, and we are excited to contin- ue growing in 2019 and beyond. Client Engagement Contractor gift idea for customers: logo building blocks Dan Clar of Clar Construction, Inc. has been working on his marketing to help maintain and stimulate more work and referrals from his existing customer base. So as a way to keep his guys productive and paid on the cold mornings up in Vermont, while they wait for the day to become warm enough to work at an unheated project, Clar had them make building blocks. They were made out of scrap hardwoods at their shop. "His plan is that when any of his clients have a new child, they will send them the baby outfit and a set of the blocks in the handmade, custom and branded box they craƁed as well," says QR columnist Shawn McCadden. "How could the client ever forget about Clar Construction aƁer receiving such a thoughtful and unique giƁ?" If you've got a unique marketing idea that you'd like to share with QR readers, please email them to Patrick O'Toole at patrick@solabrands.com. Regulations EPA bans methylene chloride paint removers On March 15, the U.S. Environmental Pro- tection Agency (EPA) prohibited the manu- facture, processing and distribution of meth- ylene chloride in all paint removers because of the acute fatalities that have resulted from exposure to the chemical. In the final rule, EPA said acute exposures to methylene chloride fumes can rapidly cause dizziness, loss of consciousness and death due to nervous system depression. People have IN BRIEF 12 April 2019 QualifiedRemodeler.com

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