By: Deborah Johnson Wood
Despite the downturn in the residential construction market, Hager Group, a wholesale distributor of lumber and building materials based in Grand Rapids, is diversifying its product offerings, acquiring other lumber businesses, and adding employees. To achieve all that, the 79-year-old company has set a course to centralize operations and create a national headquarters at its 1545 Marquette SW location.
"Up until recently we've been a very decentralized organization," says Gary Vitale, president. "We had five locations in Michigan, northern Ohio, and northern Indiana, all structured for internal growth. We're now structuring so we can look at making an acquisition or two."
Even though Vitale expects annual revenue to remain flat at $80 million, he says the company views the housing slump as an opportunity for expansion. They invested nearly $1 million to renovate a vacant lumberyard in Hudson, MI so they can move a recent acquisition, Townsend Lumber in Clayton, MI, to Hudson. The move will enable the company to ramp up its production of specialty lumber components for companies that make crates and pallets.
Hager has diversified its offerings even further with the launch of a commercial/architectural division focused on getting new building products into the hands of architects who will use them.
They've also created a new purchasing department, hired customer service representatives, and are bringing aboard a credit manager. In addition, Vitale expects to hire four more people for full-time positions.
Source: Gary Vitale, Hager Group; Brian Burch, Lambert, Edwards & Associates
Deborah Johnson Wood is development news editor for Rapid Growth. She can be contacted at [email protected].
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