CONKLIN — “We’ve only been in our new headquarters building about four weeks,” says Frank A. Meier, Jr., president and CEO of Meier Supply Company, Inc. on Feb. 7. “We needed to add another 20,000 [square] feet to our [former] headquarters and distribution center in Johnson City, and the addition would have used up our […]
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The other impetus to move was Meier’s memory of the 2006 and 2011 floods. The 2006 flood was “devastating … It cost the company $1 million at a time when we had no flood insurance … The flood hit in July during our busiest season, but thanks to our employees and our suppliers who expedited delivery and extended payment terms we were back up in a week … That flood, which was supposed to occur once every 500 years, got us thinking about moving … The flood of 2011 convinced us,” says Meier.
Meier Supply — founded in 1957 by Meier’s grandfather and father who bought the refrigeration division of W. A. Case, Inc. in Johnson City — is a wholesale distributor to the refrigerant, heating, and air-conditioning industries. The company furnishes supplies and equipment as well as training from its 17 locations throughout New York and Pennsylvania. Meier Supply represents leading industry brand names such as Ruud, Mitsubishi, and DuPont.
Frank A. Meier, Jr. joined the company in 1975, when “my father convinced me to give up my carpet-installation business. At the time, Meier [Supply] had seven employees, and we did $1 million in [annual] revenue,” notes Meier. By 1995, when Meier, Jr. assumed the presidency, the company posted sales of $11 million. In 2008, sales had grown to $25 million and “… the company’s 2012 revenues were over $50 million … We project 8.5 percent growth in 2013 … The company currently employ 156 … [of whom] 71 are in Central New York … The new headquarters and distribution center, which was formerly the Dick’s Sporting Goods distribution center, has 90,000 square feet with 30-foot high ceilings and our 16 branches [each] average 10,000 square feet … [Because of our growth], we now stock over 15,000 items … The company’s goal is to own all of the real estate, although we typically start new branches by entering into a short-term lease before deciding to buy,” Meier explains.
Despite two floods in five years, Meier Supply’s sales grow unabated, “… except for a blip after the first flood”, says the company CEO. “From my start at the company until the early 90s, our growth was largely due to acquisitions. Since then, the growth has been organic as we look for opportunities … which usually come through our networking with vendors and customers …Right now, we’re stretched about four hours [in each direction] from our distribution center … Further growth will require adding another distribution center, which is a major move … The fastest part of our business growth today is HVAC, which has grown from zero to 40 percent of our business in [just] 20 years.”
Frank A. Meier, Jr., 58, is not the only Meier working at the company. His brother Michael, 53, who is the vice president and chief operating officer, and his first cousin Dale Norton, 48, who is the corporate secretary/treasurer and vice-president of sales, also represent the third family generation to run the business. “My two sons, Frank and Anthony, and my brother’s daughters, Nicole and Trisha also work at Meier [Supply], representing the fourth generation,” says Frank A. Meier, Jr.
Meier attributes the company’s successful growth to a number of factors, including the conversion of family stock to an employee-stock-option plan (ESOP) in 1992. “At that time, some family members were looking to divest their shares in the business,” he says. “The company purchased their shares and divided them among the employees … For us it worked out great; there was only one year the company stock didn’t appreciate,” he says of the ESOP conversion. “Today, the employees own 65 percent of the company with the Meier and Norton families owning the balance. Our goal is to reach 100 percent [employee ownership] … The ESOP really helps us to attract talent at the company, and it’s a great retention tool,” declares Meier.
“A big part of our success is the training we provide our customers,” he adds. Meier Supply opened a Mitsubishi-approved Training Center (MATC) in late 2010, one of only six in the country to introduce and explain new and greener products to the industry. MATC is part of Meier University, set up in 2008 to provide ongoing training to the HVAC industry. In the first four months of 2013, Meier University has scheduled seminars in Syracuse; Williamsport, Pa.; Binghamton; Allentown, Pa.; Albany, Rochester, and Conklin, according to the company Web site. “We have a full-time, technical trainer … He travels regularly and works with our customers,” says Meier.
Meier Supply is not only focused on customer training but also on employee training. “We formed the Meier Core Development Group, comprised of 16 highly talented, aggressive, and motivated people across our company. We meet two or three times a year for special training sessions at which we focus on personal development, communication [skills], negotiating, marketing, and sales,” avers Meier.
While focused on the financial success of the company that bears his family name, Frank A. Meier, Jr. is also focused on the question of succession. “We are working with [Paul] Fusco, who heads up the ESOP practice at [the law firm] Boylan Code, LLP located in Rochester, on the question of an ESOP succession … Transitioning from the third to fourth generation with an ESOP is complicated,” says Meier.
Meier has been active in national industry organizations and is a member of the Key Wholesale Group. “This group is made up of 23 of the best, independent distributors in the country … [We] work … together to provide a united front [to compete] against national accounts … [because] we buy our products in bulk … None of the members competes, since we serve different franchised areas,” says Meier.
Meier Supply works with M&T Bank for its banking needs, Coughlin & Gerhart, LLP. for legal advice, and Johnson, Lauder & Savidge, LLP for accounting services.
Contact Poltenson at npoltenson@tgbbj.com