Best of Both Worlds
With the transition of every location over to the same computer system, the former EBS locations were finally brought into the fold of Hammond Lumber.
“There was almost an excitement to getting onto the same computer system and really becoming one team,” Colson says. “None of the 21 stores are exactly the same but there’s also some nuance between, whether you call them green [for EBS] or red [for Hammond] or legacy and the new stores. The interesting part is all of the newer employees are really excited to put that behind us and just be Hammond.”
With every location on the same system, new operating policies and procedures were put in place to ensure each location had the quality customers associated with Hammond. It also meant that things the EBS locations had relied on for years were no longer available. This friction meant that branch managers started requesting more information and pushing back on policy changes. Where some companies might push back and attempt to force a corporate monoculture, Hammond listened and was able to implement feedback so branches had the tools they needed to succeed.
The goal was to combine the best of both Hammond and EBS policies. For example, branch managers were eager for a sales report by product line. This type of granular feedback was implemented quickly to give each location the best tools for success.
“In the end, what we’re really looking to do is bring the best of both to the top,” Colson says.
Some of the changes reversed long-held customer behaviors but Hammond listened and things were restored to how they used to be. For example, EBS customers were originally trained to drive through the warehouse first, pick products, and then get written up at the end, while the Hammond tradition was to go into the store first. A few tweaks to the Hammond method allowed the customers to continue operating the way they always had.
The company’s practice of actively listening hasn’t gone unnoticed by customers. Kevin French, executive vice president of Landry French Construction, has been buying from Hammond for more than 20 years. “I would say it’s the personal connection. … Their salespeople stop by our offices regularly, stop by our jobsites on a regular basis.”
For French, the EBS acquisition was good news. As a builder throughout the state of Maine receiving daily deliveries from Hammond, he found the company’s expanded presence to be an advantage.
Looking Ahead
With the EBS merger in the background, Mike is looking ahead. Because the company has several acquisitions under its belt, Hammond has developed a reputation as the go-to company to sell your yard to if you’re looking to exit the business. Mike has fielded a number of calls from owners looking to sell, but maintains a policy of responsible growth.
“This company is in my blood,” Hammond says. “I enjoy the scaling of the business. … I want to concentrate on Maine. Without throwing out my playbook, we assess each day, day by day. It’s a balance of growing in a reasonable manner.”
Mike has only been CEO of Hammond for three years, but the company’s next CEO could already be waiting in the wings. His daughter, Sadie Hammond, joined the inside sales team only a few months ago. The small business Skip Hammond started in 1953 has grown steadily over the years to dwarf its competitors. Through measured acquisition and growth, Hammond Lumber now spans the entire state of Maine. Who knows what it will look like once the next generation takes over?
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| Safety First |
In July, the Northeastern Lumber Manufacturers Association gave Hammond four 2018 awards for outstanding safety performance at the company’s sawmill and planer mill in Belgrade. Mills in the New England states, New York, and Pennsylvania are eligible for the awards. Hammond won first place in Division 2 (representing mills with 25,000 to 50,000 annual worker hours) for the combined operations of its Belgrade mills. The dealer also won first place in Division 1 (representing mills with less than 25,000 annual worker hours) for planer-mill safety, first place in Division 2 for sawmill safety, and received a certificate for achieving an accident-free year in both mills. According to safety director Bruce Pelletier, there hasn’t been a lost-time accident in the sawmill or the planer mill since 2004 and 2001, respectively. The company established a safety committee in 1985, which meets each month, to identify and correct potential safety hazards. |
