Mike Miazga 2015-05-08 02:06:11
CALIFORNIA: WATERSENSE NOT GOOD ENOUGH FOR DROUGHT In reaction to California’s severe drought, Governor Edmund G. Brown Jr. Recently directed the first-ever statewide mandatory water reduction in Executive Order B-29-15. In order to comply with the order, the California Energy Commission has enacted water efficiency standards that go beyond WaterSense. According to the CEC, the new standards for kitchen and bathroom faucets, urinals and toilets will reduce California water use by more than 100 billion gallons of water per year once the current stock of products is turned over. As of Jan. 1, 2016 all toilets, urinals and faucets available for purchase in the state — both for homes and businesses — will be required to meet the new efficiency standards. The emergency regulation also prevents stockpiling of older, less-efficient models by retailers. The details for each appliance are as follows: • Toilets and urinals, except those designed for prisons or mental health facilities: Toilets shall not consume more than 1.28 gpf and shall have a waste extraction score of no fewer than 350 grams. Urinals shall not consume more than 0.125 gpf. (These facilities have specially designed toilets and urinals to address security and health issues.) • Residential lavatory faucets shall not exceed a 1.2-gpm flow rate. • Kitchen faucets shall not exceed a 1.8-gpm flow rate and may have the capability to increase to 2.2 gpm momentarily for filling pots and pans. • Public lavatory faucets shall not exceed a 0.5- gpm flow rate. However, the CEC’s emergency regulation does not require users to replace inefficient plumbing fixtures. To encourage the replacement of the older products, the CEC is working on a rebate program to make the purchase of more efficient appliances more affordable. “While Plumbing Manufacturers International appreciates and applauds Governor Brown’s executive order, as the need for water savings in California has never been greater, we are concerned the Order calls for products with maximum flow rates far below approved WaterSense levels and — in the case of 1.2-gpm residential lavatory faucets — products that do not widely exist,” said Barbara C.Higgens, CEO and executive director of PMI. “The compliance deadline of January 2016 is unrealistic in view of the time required for product development, testing and certification, and will be difficult, if not impossible to achieve.” ASA Director of Government Affairs Dan Hilton added: “By the governor’s own admission, California currently has more than 45 million faucets, 30 million toilets and one million urinals. The state consumes more than 443 billion gallons of water a year by flushing toilets and urinals and running faucets. We are concerned the small businesses that sell and manufacture these essential products may be disproportionally impacted by this, while millions of Californians and visitors to the state will continue to flush their toilets, wash their dishes and take their showers, otherwise known as living their lives. Let there be no mistaking one simple fact: removing waste requires water, ignoring that is unsanitary, inefficient and consequential.” —Nadia Askar WINWHOLESALE ACQUIRES SECURITY SUPPLY Dayton, Ohio-based WinWholesale has acquired Security Supply, of Selkirk, N.Y. The transaction closed April 13. Terms of the purchase were not disclosed. Security Supply has 12 locations serving the lower Mid-Hudson Valley, north through the Adirondack region of New York, western Massachusetts and eastern Vermont. The company will continue to do business as Security Plumbing & Heating Supply. With the acquisition, WinWholesale now has more than 570 locations in 45 states. Kim Willey has been named president of Security Supply; other current key managers will assume senior positions at the company. These senior-level managers will be offered substantial equity in the respective companies at some point in the future. “A key component of our growth strategy is to acquire successful wholesaling companies that strengthen our presence in key markets and fit well within our targeted industries,” WinWholesale President Jack Johnston said. “Security Supply is a profitable company with a solid management team.” “Being part of one of the national leaders in wholesale distribution will further strengthen our presence in our market and propel our future growth,” Willey said. In other WinWholesale news, the company recently named its vendors of the year for 2014 in their respective product categories. Winners include: Victaulic (Fire), Unitary Products Group (HVAC), Uponor (Hydronic), NIBCO (Industrial), A. O. Smith (Plumbing), Liberty Pumps (Pump), Milwaukee Tool (Tools) and Advance Drainage Systems (Waterworks). WinWholesale also named its companies of the year for its various industry segments. SheltonWinnelson (Conn.) Was named Plumbing Company of the Year. Albuquerque Winair (N.M.) was named HVAC Company of the Year. Baltimore Windustrial earned Industrial Company of the Year honors, while Midland (Texas) Winpump was named Niche Industry Company of the Year and Bend (Ore.) Winsupply was named Turf Irrigation Company of the Year. YTD PROFIT BEFORE TAXES REPORTED EVEN OR DOWN BY HALF OF ASA PVF DISTRIBUTORS From ASA’s Monthly Pulse Report, association member wholesaler-distributors reported a median sales growth of 10.7% for the month ending March 31, 2015, compared to the same month last year. Calendar year-to-date, all respondents reported a median sales increase of 7.6%; however, respondents in the industrial PVF segment reported only a 2.1% increase. The median increase for the trailing 12 months is 7.3% for all respondents. Overall, the median increase in inventories was 4.5% for March 2015 vs. 2014. The median threemonth average days sales outstanding increased to 45.5 days for PHCP respondents but decreased to 44 and 45 days, respectively, for PVF and PHCP & PVF respondents. 66.3% of all participating members reported having more full-time-equivalent employees compared to a year ago. 47.5% of PHCP respondents and 75% of PVF respondents reported their company’s gross margin percentages for the month are up compared to the same in 2014. YTD profit before taxes are reported up for 67.5% of PHCP respondents as well as for 50% of PVF respondents compared to one year ago. STANDARD PLUMBING SUPPLY HOSTS PRODUCT SHOW Sandy, Utah-based Standard Plumbing Supply recently held its 15th annual product show. The event attracted record attendance, featured 170 vendor booths and a “Wild West” theme. Dickey’s Barbecue catered the event and more than 2,500 meals were severed in the dining area. Standard customers came from as far away as San Jose, Calif., Mesa, Ariz., and Pendleton, Ore. Customers also played a variety of games and door prizes were distributed. “Many manufacturers and vendors mentioned to us this is their favorite show to attend and our customers look forward to it every year,” Standard’s Diane Magario said. OBITUARY JOE FRISTIK Rheem Corporate Vice President, Marketing and National Accounts Joe Fristik recently passed away. Fristik joined Rheem in August of 2011 after being in the sales and marketing industry for more than 30 years. Fristik previously served as group publisher, market leader at Penton Media, where BNP Media Plumbing Group’s Bob Miodonski and Bill Boyadjis worked with him. He is survived by his wife, Debra, and their three children, Joseph, Kelsey and Jared. MORSCO HOLDS OBITUARY MANAGER’S MEETING IN DALLAS More than 165 Morsco managers gathered at the Dallas Marriott City Center for the annual Morsco Mangers Meeting. During the meeting, two employees received awards for their distinguished service. Express Pipe & Supply co-founder Greg Boiko is the recipient of Express Pipe’s first Founders Award of Excellence, given to an individual who demonstrates the qualities of an owner. He was a unanimous choice for the award. “We created this award to recognize individuals who not only go above and beyond to understand all facets of the company, but treat Express as if it were their own company,” Express Pipe & Supply President Ron Bohannon said. “This award is a testament to the dedication Greg demonstrates to Express through his work.” Morrison Supply Vice President and Chief Operating Officer Kevin Moore is the recipient of the Morrison Hawk Award, given to an individual who demonstrates extraordinary mentoring to others within Morrison. Moore is a 24-year Morrison veteran. “Kevin has made a tremendous impact on our organization and continues to be a true leader and mentor for the whole organization,” Morrison Supply Co. President Stan Allen said. MCJUNKIN RED MAN SIGNS KEY INTEGRATED SUPPLY AGREEMENT MRC Global recently announced McJunkin Red Man Corp., its U.S. subsidiary, has been awarded a three-year integrated supply agreement with California Resources Corp., the largest combined oil and gas producer in California. The agreement covers all project requirements, maintenance, repair and operations supplies and the managing of all materials located at the largest oil and gas warehouse facility in the San Joaquin Basin. With assets located exclusively in California, California Resources Corp. is the state’s largest producer of oil and gas on a gross-operated basis with about 2.3 million net acres covering California’s four major oil and gas basins. The company’s Elk Hills field is one of the largest oil and gas fields in the U.S., and supplies more than 40% of California’s gas production and 5% of the state’s oil production. By integrating the two companies’ efforts, MRC noted it will effectively manage the warehousing operations with experienced and knowledgeable MRC employees onsite at the customer’s facility. The agreement will require full systems integration, logistics management and the replenishment of multiple remote inventory locations throughout the field. PLUMB SUPPLY ACQUIRES RIBACK SUPPLY Des Moines, Iowa-based Plumb Supply Co., recently announced the purchase of Columbia, Mo.-based Riback Supply Co., a wholesale distributor selling residential and commercial plumbing and HVAC supplies. The deal is expected to close in the second quarter of 2015. Riback Supply has 17 Missouri locations and one in Kansas. “The combined strength of our two companies will help assure our future, provide solid careers for all our employees and enhance the service and products we offer our customers,” Plumb Supply President Scott Anshutz said. Plumb Supply and Riback Supply both are family-owned businesses. Riback was established in 1934 and Plumb in 1946. Plumb Supply noted both companies share core values of honesty, integrity and trust, as well as a commitment to providing customers with knowledgeable service, innovative products and timely delivery. “Combining our resources with those of Riback will provide us with additional size and resources to strengthen our business,” Anshutz said. Riback will continue to operate under the same name in its markets. Customers and vendors will see no immediate change in how the company operates, but long-term, Plumb Supply noted, the company will be strengthened by a shared partnership of knowledge and increased market presence. ROTUNDA CAPITAL ACQUIRES MUNCH’S SUPPLY CO. Rotunda Capital Partners, a lower-middlemarket private equity investment firm, has acquired a majority stake in Munch’s Supply Co., an HVAC distributor and third-generation family business operating in Chicago and northwest Indiana. Munch’s operates out of seven branches and distributes heating and cooling supplies from more than 350,000 sq. ft. Of warehouse space. Financial terms of the investment were not disclosed. Munch’s CEO Robert Munch, as well as the rest of the management team, will remain at the helm of the company. “As we evaluated our options for growing the company, it became clear Rotunda was an ideal partner for us to assist our company in the next stage of expansion,” Munch said. “The firm brings tremendous expertise in the distribution space and we’ve outlined a strategy together that will allow us to aggressively expand to new regions while continuing to invest in our core Chicago market.” Livingstone served as the exclusive financial advisor to Munch’s Supply. PENTAIR ACQUIRES NUHEAT Pentair recently announced it has acquired Nuheat, a manufacturer of electric floor-heating systems. Pentair said that by combining Nuheat’s state-of-the-art customized products and tailored expertise with its Thermal Building Solutions’ broad range of Raychem heat-tracing systems for pipe freeze, snow melting and deicing applications, it will be able to provide distributors, installers and end users with a complete and differentiated portfolio of floor heating and winter safety solutions. HARDI DISTRIBUTORS REPORT 5.6% REVENUE INCREASE IN FEBRUARY Heating, Air-conditioning and Refrigeration Distributors International released its monthly TRENDS report, showing average sales for HARDI distributor members increased 5.6% in February 2015 after a modest 2.3% gain in January. The annualized growth was between 6 and 7% throughout 2014. It is currently close to that range, with the growth rate for the past 12 months just shy at 5.8%. “The acceleration in February halted some of the downward momentum that had been building in the internal trends,” said Danielle Marceau, HARDI’s senior economist. “Annual member sales should be able to maintain at a fairly consistent pace.” The Days Sales Outstanding, a measure of how quickly customers pay their bills, began its normal seasonal ascent, approaching 50 days.
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