This morning, officials with Star Lumber & Supply based in Wichita announced that effective August 11, they would be closing the Hutchinson facility at 1035 E. 30th.
Company President Patrick Goebel told us by phone and also through a news release that this change is part of a transition the company has been going through for some time in the way they operate.
He told us, since the housing market turned down in 2008, Reno County has averaged 55 permits a year which is less than half of the 10 year average and only one third of the peak years. This dramatic shift has forced them to re-evaluate how we serve the Reno County area.
He says they remain very committed to serving their customers in the market. He says they currently deliver into the market from their McCormick facility and in some cases, this will allow for quicker service by removing the need to transfer material.
“The Wichita delivery fleet is outfitted with forklifts for more efficient job site delivery and our commitment to “On-Time-In-Full” has earned us national industry recognition,” said Goebel. We have capabilities of delivering materials to customers throughout central Kansas from our McCormick distribution hub.
In 2011, They began serving the Salina market out of their Manhattan facility and continue to retain a significant amount of that business. Similar to that market, they’ll retain an outside salesperson in the Hutchinson market and work with key customers to make sure they are providing the level of service they need to keep their jobs moving efficiently.
In addition to retaining an outside sales employee in Hutchinson, they’re offering several other employees positions within the company if they’re willing to commute or relocate. They say they will work with the remaining employees to help with their transition.
Star currently employs 12 full time employees at the Hutchinson facility, and told us they will continue to be good corporate citizens continuing to support local charities, participate in Hutchinson Chamber initiatives as well as continue to pay substantial local sales tax through the destination sales tax reporting.
Star has operated a facility in Hutchinson since they purchased Davis Home Center in 1990 and enjoyed a nice building boom in the market through 2008 when the market’s building conditions dramatically slowed and we felt the full effects of the market being over stored with retail building material suppliers.
Jon Davis continued with the company in key leadership positions until retiring in the fall of 2006.
Star Lumber is a family owned and operated company founded in 1939 that employs nearly 300 people throughout Kansas & Oklahoma. Based out of Wichita, they say they consistently rank in the top 50 building materials dealers in the country. They operate facilities in Wichita, Manhattan, Oklahoma City & Lawton Oklahoma. In addition to those locations we have a door assembly plant, a truss and panel manufacturing plant and manage one of the largest flooring installation operations in the country.
While this action following Salina, represents the second consolidation in the last year, they have continued to grow and reinvest over the last 5 years in other areas. We added Manhattan and Edmond Oklahoma. We repositioned our east Wichita store to Greenwich & K-96. Last year, they added Lawton Oklahoma. They are also currently completely refreshing and updating our Maple & West Flooring and PCS show floors. So far in 2012, their year-over-year sales are up over 22% through June 30th despite no improvement in the economy. In the near future they look forward to announcing several exciting growth opportunities we are in the development stages of planning.