Building supply distribution giant Norandex revealed more details today regarding its restructuring plan that involves the closing of 36 branches--a quarter of its facilities--nationwide. Those details include plans to move into larger facilities in two markets, remodel showrooms, and boost staff sizes in certain markets.
"Norandex is committed to expanding the products and services we offer our customers to help them be more successful," company president and CEO Brian Chambers said in a news release. "Just in the last year alone, we have expanded into the residential roofing business with over 90 locations now stocking asphalt and/or metal roofing; enhanced our line of cladding products including several new brands of vinyl siding, FRC, and our proprietary Everlast composite cladding product; and, strengthened our top position as a preferred window distributor adding proprietary brands and new lines of energy efficient models."
Company spokesman Mike Horgan said the restructuring marks another step in Norandex becoming a part of Saint-Gobain, the French construction giant whose North American holdings also include CertainTeed. He said the company is transforming itself from a vertically integrated vinyl siding supplier to a full-line distributor of leading exterior products and brands.
Some of the 36 branches being closed are being consolidated into nearby operations, while with others Norandex will be leaving a market, Horgan told ProSales on Monday. It didn't reveal publicly the markets it was leaving, but today's news release said Norandex will be operating in 32 states while a news release issued in January said Norandex serves 39 states.
In some markets, Norandex plans to grow. It said today it will be moving to larger facilities in Newport News, Va., and Oklahoma City, Okla. The press release also said Norandex will remodel showrooms, focus on markets where it sees key growth opportunities, and increase the number of sales people in certain markets.
"Making these types of investments requires a continuous evaluation of our branch footprint and organizational structure," said Chambers. "We are implementing a restructuring plan that includes both divestitures and major investments to expand our product offering and improve our service levels in markets we believe are poised for growth and strengthen our position for future expansion."
Norandex is one of the largest distributors of exterior siding, roofing, windows and doors in the United States. The company's core offerings also include a wide assortment of metal products, manufactured stone, columns, railings and other exterior accessories.
Saint-Gobain doesn't release results for its individual companies. Last month, it reported that its sales in North America grew 10.3% in the third quarter from the year-earlier period to reach 1.44 billion Euros ($2.02 billion). But exchange-rate differences and some structural changes accounted for most of those gains. On a comparable structure basis, sales climbed 9.5%, it said, and when currency changes are figured in as well, sales actually declined 1.5% from a year earlier.