Carter-Waters pleased by acquisition of JM Specialty

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The purchase of JM Specialty Sales Co. by the Carter-Waters Corporation appears to be a major step forward for the Kansas City firm. |ret||ret||tab|

Carter-Waters president and owner Jeff Hanes is unstinting in his enthusiasm for the results six months after the Jan. 1 sale. "It's always a pleasure to be able to acquire a company that works," he said.|ret||ret||tab|

JM Specialty Sales, a major local supplier of construction materials to contractors, was founded in 1984 by Jerry Miller and his wife Karen Wolfe-Miller. |ret||ret||tab|

Hanes said Carter-Waters has made other acquisitions, but those involved buying "broken companies" that took years to turn around and required heavy investment in people and systems. The Millers, however, "had a company that performed very well."|ret||ret||tab|

Jerry and Karen developed a very strong, very good small business, and they did some things we didn't do and we did some things they didn't do."|ret||ret||tab|

The addition of JM should add about 5 percent to the company's annual revenues of about $45 million, Hanes said.|ret||ret||tab|

Carter-Waters, in business for 78 years, supplies contractors' materials more than 300 product lines and 5,000 line items in Kansas and southern Missouri. The company has four locations in Kansas City, as well as in St. Louis, Columbia, Wichita and Olathe, Kan., and now Springfield. The firm also fabricates steel and rebar and manufactures Department of Transportation state-approved concrete curing compounds.|ret||ret||tab|

"Distribution of product is our primary focus," Hanes said, the principle products being generally concrete-related, waterproofing, curing and sealing compounds, concrete saws, concrete vibrators, machinery to finish the concrete, masonry, insulation, taping and Exterior Insulation Finish Systems. |ret||ret||tab|

Operations manager Steve Burrell added, "It's not just concrete any more. Masonry items some insulation and some related taping products for that. And flashings, fire caulk and fire systems." |ret||ret||tab|

Sales Manager Steve Church said, "Ninety percent of our business is commercial. We have a few walk-in mom 'n pop things, fix their pool, recoat their pool ... we sell products for that."|ret||ret||tab|

Hanes said he relies heavily on Church and Burrell, both of whom were with JM. "Jerry had a wonderful group of people here," he said. "It's been very nice to bring together the two organizations. Whenever you get larger, the biggest battle is, Do you take care of your customer?' And it appears the customers are satisfied. They continue to come."|ret||ret||tab|

The company faces some challenges in the new location, Hanes said, "We had had internal issues because neither our old location nor Jerry's location is big enough for us. We're just packed in here."|ret||ret||tab|

Customer service is especially critical in supplying contractors, Hanes said. "You don't get a lot of new customers, so retaining customers is the key, and satisfying them. To acquire a customer who is of any significant volume takes a long time, and there is a buying pattern and a buying habit that's in place with those customers. Jerry knew em, Jerry was local. They were gonna buy with Jerry Repeat customers are the core of your customer base."|ret||ret||tab|

Keeping up with advancing technology in the construction industry is another challenge, Hanes said.|ret||ret||tab|

Burrell, with 19 years in the masonry and concrete block supply business, said, "There's stuff changing every day. Polymers, new epoxies, for example. Twenty years ago nobody knew what epoxy was, and now that's big-time stuff."|ret||ret||tab|

Church added, "We pride ourselves on our knowledge of the products. (Customers) call us when they need to know about them, so it's not just selling it. You've got to back it up with knowledge."|ret||ret||tab|

Another major task with the acquisition is reconciling the products of the two firms," Hanes said. "The mix of products between what Jerry Miller had and the mix of products that we had ... there has to be some rationalization of that mix. You can't carry six manufacturers who all do the same thing. You have to begin to work your way through those and squeeze them down to the lines that are both competitive and have quality."|ret||ret||tab|

Hanes summed up the company's role in the construction field. "What a general contractor has to deal with (is) multiple subcontractors; and some of the products each of those subs are providing. They buy direct, be it reinforcing steel or electrical boxes and connections, or HVAC air conditioning or plumbing or concrete-related, and so the contractor's really faced with such a broad range, as are the architect and engineer. Then, by default, we have to become their support. ... That's the utility we provide. First and foremost is knowledgeable people, second is product lines, third, then, is depth of inventory and stock, and then delivery, access. It's not much different than any wholesale distributor of products."|ret||ret||tab|

He added that Springfield and southwest Missouri have been a great base for Carter-Waters. The company purchased a small local distributor, Mo-Ark, in 1998 and the JM Specialty acquisition further strengthens its area presence.[[In-content Ad]]