About HD Supply White Cap Construction Supply
HD Supply White Cap (www.whitecap.com) is the nation’s leading distributor of specialty hardware, tools and materials for large and medium-sized contractors. The company’s extensive inventory, combined with will call, site delivery and direct ship options, enables it to deliver the products customers need when and where they need them. White Cap is a line of business of HD Supply (www.hdsupply.com) one of the largest industrial distribution companies in North America (December 7, 2012 Information Source: CLICK HERE)
November 28-29 was the annual HD White Cap Construction Supply Supplier’s Summit. The event was Key Noted by both Joe DeAngelo and John Stegeman.
“Joe DeAngelo serves as chief executive officer for HD Supply. As the leader of HD Supply, he is responsible for guiding the company’s initiatives in the wholesale distribution market to serve builders, contractors, government entities, industrial businesses and maintenance professionals.
Joe joined The Home Depot in April 2004 as senior vice president of the company’s Pro Business and Tool Rental. He previously served as executive vice president of Stanley Works, where he was responsible for its tools group and corporate-wide functions, including marketing, technology, operations and distribution” (December 7, 2012 Information Source: CLICK HERE ).
Joe’s presentation focused on our “need to be well”. He covered several key issues related to teamwork, commitment, and leadership. However he really hit home with his comments about our need to be well. To take care of those things which are necessary for our physical and mental health. He reminded us that we perform best when not only our health but also the personal and professional aspects of our life are well.
Joe also shared some background about HD Supply. Sales in 2011 reached $7 Billion generated from their various supply houses that now have reached 640 locations. Their 14,000 associates currently offer over one million different products for the electrical, plumbing, facility maintenance, and construction markets.
“John Stegeman is president of HD Supply White Cap, the industry-leading distributor of specialty hardware, tools and materials for large and medium-sized contractors. Stegeman was most recently president and CEO of Ferguson Enterprises, headquartered in Newport News, Va. from 2005 to 2009” (December 7, 2012 Information Source: CLICK HERE ).
John’s key note address focused on relationships. Critical for the success of White Cap are relationships with suppliers, employees, and customers. John also used several examples where these relationships proved to be the difference between success and failure.
John then moved into the part of his presentation that focused on how the industry has contracted this year by 4% while White Cap has grown by 22%. His point was that White Cap must be doing something right and that suppliers should look to White Cap as their main distribution provider.
White Cap is expanding into the Northeast. They opened a store in Boston and a store is planned for New Jersey (close to NYC). Each of their regions is to grow by 6 stores during 2013. Three locations are to be in their current market and three are to be in new geographic areas that are not currently served.
All of this set the stage for the several seminars that took place the following day. Those seminars included:
- Third annual catalog that will have two releases in 2013
- The Spring and Fall additions give suppliers a second opportunity to add new items plus WC sees a boost in sales during the 90 days after the release of a catalog.
- New Web site that will be launched in early 2013 where customers can make purchases online.
- Totally new program through Oracle
- Expanded issues of the monthly Trader plus more market specific supplements
- New design of the stores with a specific style of product displays to be used in showing vendor’s products (It looks like the vendor banners that are on the fences of many White Cap locations will be coming down…the new focus will be on White Cap)
NOTE: I am not sure of White Cap’s source of information regarding the contraction of the construction market by 4%. Looking at recent government statistics (see below) the housing market once again seems to be rising (based on building permits) to a seasonally adjusted annual rate of 866,000 units as compared to last year’s numbers of 667,000. This represents an increase of over 28%. Actual housing starts as compared to 2011 show an even bigger growth percentage for 2012.
In overall construction, the U. S. Census Bureau sites that construction spending is estimated to be running at a seasonally adjusted rate of $851.6 billion for 2012 as compared to 2011 figures of $790.3 billion. These figures point to a $61.3 billion growth or 7.75%.
The sources for this information our outlined below.
“The U.S. Census Bureau of the Department of Commerce announced today that construction spending during September 2012 was estimated at a seasonally adjusted annual rate of $851.6 billion, 0.6 percent (±2.1%)* above the revised August estimate of $846.2 billion. The September figure is 7.8 percent (±2.1%) above the September 2011 estimate of $790.3 billion.
During the first 9 months of this year, construction spending amounted to $624.8 billion, 8.9 percent (±1.3%) above the $573.7 billion for the same period in 2011” (Information Source from, U. S. Census Bureau News, November 1, 2012: CLICK HERE).
NEW RESIDENTIAL CONSTRUCTION IN OCTOBER 2012
The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for October 2012:
Privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 866,000. This is 2.7 percent (±0.8%) below the revised September rate of 890,000, but is 29.8 percent (±1.8%) above the October 2011 estimate of 667,000. Single-family authorizations in October were at a rate of 562,000; this is 2.2 percent (±0.8%) above the revised September figure of 550,000. Authorizations of units in buildings with five units or more were at a rate of 280,000 in October.
Privately-owned housing starts in October were at a seasonally adjusted annual rate of 894,000. This is 3.6 percent (±13.1%)* above the revised September estimate of 863,000 and is 41.9 percent (±15.9%) above the October 2011 rate of 630,000. Single-family housing starts in October were at a rate of 594,000; this is 0.2 percent (±10.3%)* below the revised September figure of 595,000. The October rate for units in buildings with five units or more was 285,000.
Privately-owned housing completions in October were at a seasonally adjusted annual rate of 772,000. This is 14.5 percent (±15.6%)* above the revised September estimate of 674,000 and is 33.6 percent (±17.3%) above the October 2011 rate of 578,000. Single-family housing completions in October were at a rate of 542,000; this is 3.4 percent (±11.9%)* above the revised September rate. (Retrieved December 7, 2012, U.S. Census Bureau News Joint Release U.S. Department of Housing and Urban Development:CLICK HERE).