Sims-Lohman Fine Kitchens and Granite Meeting the Challenge of Transformation and Growth Head-On with Twelve Locations UR Narrative Begins in by Peter J
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www.slipperyrockgazette.net VOLUME 20, ISSUE 236 THE BEACON OF THE STONE INDUSTRY FEBRUARY 2014 Sims-Lohman Fine Kitchens and Granite Meeting the Challenge of Transformation and Growth Head-On with Twelve Locations UR narrative begins in by Peter J. Marcucci the late 1990s, when the Steinman family acquired Photos Courtesy Sims-Lohman and by Larry Hood Moellering Industries, a quality cabinet supplier in Cincinnati, Ohio. Resolute and commit- ted, they did so knowing that the road to success is paved with a myriad of twists, turns and crossroads and is sometimes strewn with the remnants of previous entrepreneurs. Choosing to fast track the journey, Steve Steinman, along with John Beiersdorfer, President of Sims-Lohman, and a cohesive working group of talent, switched on their internal GPS’s, buckled their seat belts, and accelerated the ride by adding acquisition after acquisition to their portfolio of premium companies in the greater Cincinnati, Ohio region to create Sims-Lohman Fine Kitchens and Granite. Spanning four states and employing over 300 people, Sims-Lohman has since dotted that roadmap with eight locations within Ohio, two A trough sink and built-in wine rack are high- in Indiana, one in Kentucky, and their latest lights of this 3cm Magma granite island and acquisition in Pittsburgh, Pennsylvania. All breakfast area. The contemporary cabinets twelve locations are sales showrooms, with company, we adopted that name. Following effective. A lot of companies in the countertop unmistakably define Sims-Lohman as the area’s four being fabrication facilities, strategically this acquisition, we acquired two granite fab- world either made that switch, or they didn’t gold standard and a shop of distinction. arranged, to maximize efficiency. ricators, thereby entering the granite business. stay in the game.” “The Steinmans bought Moellering Industries Adding natural stone to our cabinet business Much of Sims-Lohman focus is geared to The company also serves big box stores Home in 1998 from Tom Moellering,” explained John was quite a challenge for us. In the late 1990s, selling to professionals, so a lot of their clients, Depot and Lowes in some of their markets as Beiersdorfer. “Then, in 2007, after purchas- solid surface countertops, in this market, was according to Beiersdorfer, are custom residen- well as serving the hospitality and commercial ing Sims-Lohman, a design-oriented cabinet the upper end material of choice but sales really tial builders, apartment and single family home sectors such as hotels, restaurants and hospi- fell off as stone became more popular and cost builders, as well as designers and architects. tals. As a cabinet supplier, two customer bases they do not serve are kitchen and bath dealers, In This Issue because in most cases those types of businesses view Sims-Lohman as a competitive threat. Our cover story presents Sims-Lohman, a Also, according to Beiersdorfer, the company thriving shop with locations in Ohio, Indiana, Kentucky and Pennsylvania does not drive retail sales but does, occasional- ly, have retail customers walk into the compa- Rockcrete USA does trench drains- and ny’s twelve showrooms. does them well. They are the go-to solution “All of our showrooms have vignettes to for shops using lots of water for stone display our cabinets and countertops, and our fabrication – Page 40 typical showroom includes a consultation room New contributor and veteran trainer Bob which consists of a big screen TV and com- Murrell provides the info you need to take puters to design kitchen layouts for cabinets. on Hard Surfaces and win – Page 10 This allows us to meet and design with the A maze jib and 3-axis cranes span the many homeowner and offer a grand presentation by Look for our special New for 2014 Review machines and work stations at Sims-Lohman’s on Omni Cubed carts – Page 31 – and Cincinnati location. According to president John showing cabinets and countertops on the big Beiersdorfer, safety is of paramount concern and screen and close the deal. more great advice written by fabricators, this wide shot reflects a well-organized shop. installers and our business consulting pros Continued on page 2 Shop www.braxton-bragg.com for Stone & Tile industry products Visit www.slipperyrockgazette.net for more Stone & Tile industry news | 2 FEBRUARY 2014 SLIPPERY ROCK GAZETTE Left and Below: Sims- Lohman uses a variety of stone equipment through- out its fabrication facili- ties, with a predominance of Park Industries saws and CNC machines, like the Titan in their Este Avenue facility. “Our CNC machines fill our need for fast, day-to-day turnaround times of the many builders and big box stores we service.” Above: The Sims-Lohman Este Avenue, Cincinnati showroom is a tasteful selection of stan- dard and custom granite creations, and is one of twelve showrooms that display their fine line of countertops and cabinets, including MasterBrands, Kemp, and Hidden Creek. These three brands, according to John Beiersdorfer, are the company’s main suppliers of fine cabinetry. Below: A sumptuous pallet of colors to entice the imagination of any designer or homeowner fills the company’s Cincinnati slab showrooms. Sims-Lohman holds an average of three and a half million dollars of slab inventory in its four slab showrooms throughout Ohio, Indiana, Kentucky and Pennsylvania. “When you take out the big box portion of location to our other markets. Our ability to our business, I’d say that 80 percent of our cus- make those deliveries by truck the same day is tomers are buying cabinets with countertops, very critical for that distribution model at this and ultimately what we really try to sell is the time, and we are creating another distribution complete package, whether it is to a remodeler, point in the Cleveland market that will drive custom builder or a multi-family builder. We that territory for us.” really try to cover the whole cabinet and coun- Equipping their four fabrication shops with tertop solution for them so they are not looking mostly Park Industries equipment to support for multiple vendors, and we do it with a very the demand of those operations was, much of efficient and fast turnaround time. Every job is the time, by choice, explained Beiersdorfer, installed in five days or less after templating. adding that a lot of equipment and new team “Our professional clients don’t like to wait members came along with the many purchases two or three weeks to have a countertop fab- of newly acquired companies. ricated, so the process of moving that build “The company we bought in Columbus was cycle along for them is critical. It is also a a fairly big operation and came with two saws, little unique to each market whether we install two CNCs and a line polisher already in play. cabinets or don’t; in some cases we just deliver The acquisition of the fabrication shop in the cabinets to the job site, and their trim car- Cincinnati was a small one and brought with it penters install them. We also typically provide four folks. Two of them are still with us. The sinks and cabinet hardware but usually don’t operation in Columbus was a larger facility go beyond that by providing faucets or fixtures. with about thirty employees, and about two Supplying those things really isn’t in our core thirds of them are still with us. Our people are business. Those decisions are tied to the plumb- our company, and the most important compo- ing company and don’t tie into what we do.” nent of our organization is people, people and Cincinnati is Sims-Lohman’s main hub people. Anyone can buy a building, equipment and, in this case, where the rubber meets the and stone, but it’s the people in your organiza- road. With their Indianapolis and Columbus tion that get the work done. operations about an hour and a half away, Once a month at each of our locations we Cincinnati also services Lexington, Louisville bring our team members together. We are all and Indianapolis, with those being about ninety on the same team and pulling in the same direc- to a hundred and twenty miles away from each tion, and we meet to talk about our performance other. The company is also developing a north- at each location as well as company-wide. We ern hub centered in Cleveland. pay quarterly incentives based on how we are “We deliver cabinets from our Cincinnati hub doing, and then at the end of the year we pay Shop www.braxton-bragg.com for Stone & Tile industry products Visit www.slipperyrockgazette.net for more Stone & Tile industry news | SLIPPERY ROCK GAZETTE FEBRUARY 2014 3 Above & Below: A breakfast bar and prep area sit across from a magnificent array of Sims-Lohman Fine Kitchens and Granite Aristokraft Winstead Maple White cabinets. The 3cm Santana granite countertop, with stove bump-out, flows end to end, adding a touch of elegance to this light-filled residence. profit sharing based upon how well we’ve done before things got tough. The company name that that we are in a very competitive market. The in Indianapolis, and we will certainly be doing financially for that year. We spend a lot of time we now use, Sims-Lohman, was a strong player competition is very fractured out there, and OSHA audits in that location as well as our new with our folks, working with them and listening in Cincinnati, selling cabinets to custom build- we’ve set ourselves apart in this area, and we Pittsburgh location when we get our feet on the to their challenges and concerns, and it is my ers and remodelers, and Moellering Industries are focused on growth and not trying to fight off ground over there.