Page 6 - May-June 2024 REPORTER - web optimized

MESSAGE FROM THE PRESIDENT

THE BATTLE FOR THE PRO

CUSTOMER

TREVOR SMALL
LBMAO President

he lumber and building materials retail market took an customers – home builders, contractors, remodellers and others
Tunexpected turn recently and while it happened in the who work on larger more complex projects and need large
United States, it has potential ramifications on what will happen amounts of materials.
in Ontario in the coming years. Home Depot is coming for the What will this SRS Distribution purchase mean for Ontario
pro customers. The Home Depot has made a large play for LBM dealers? It will take Home Depot a while to get this deal
pro customers in the US with their $18 billion purchase of SRS settled. They are just beginning to put together the details to
Distribution. figure out ways to find better, faster, and cheaper ways to service
For those who may not be familiar with SRS Distribution they the pro customer. But be sure they are working on it.
are a Texas based specialty distributor of roofing materials (and Today’s contractors and professional customers are asking for
more) with multiple brands across 47 states with 760 locations. things that at one time seemed unattainable. They want access
SRS operates 46 different banners including American Roofing to invoices, billing and quotes at a time that is convenient for
Supply, Arrowhead Building Supply, Advanced Building Products, them. That may be at 11 pm on a Tuesday night or at 6 am on a
JB Wholesale, and Wimsatt Building Materials. According to Ted Sunday morning. The status quo is no longer acceptable.
Decker, Home Depot CEO, “SRS has built a robust and successful Will the Home Depot’s new pro focus work? There are no
platform that will accelerate our growth with the residential guarantees – particularly in the building materials product sales
professional customer while presenting future opportunities and distribution field. Pro focused building centres need to make
with the specialty trade pro.” sure that they are focused.
We know that the Home Depot has been actively looking to I recently came across a quote from a former Home Depot
grow their pro business on both sides of the border for some CEO Frank Blake, who was charged with realigning Home Depot
time. Professional customers/contractors represent just 10% focus during the housing market collapse of 2008. He said, “You
of their customer base but account for almost 50% of their try to do fewer things better, rather than a lot of things ok.” He
revenues. They have been working on loyalty programs to grow also said, “now is a good time to focus on what we need to focus
the pro side of their business and this acquisition may just be a on – our core retail company.”
stepping stone to further announcements or purchases. They Dealers, salespeople, manufacturers – we all could use this
currently have a sizable share of the DIY market with their 182 advice. Focus on what you do well and excel at that.
stores in Canada. Home Depot Canada sales were approximately
12 billion for the year ended in 2022, with close to 20% of the
home construction and improvement market. We know that
Home Depot is getting ready to open a fulfillment distribution
centre near Pearson airport in Toronto which is targeted at pro

6 LBMAO Reporter - May-June 2024 www.lbmao.on.ca