News

Alexander Lumber makes consolidation moves

The pro dealer will close 5 locations and merge operations in Illinois.

BY HBSDealer Staff

Alexander Lumber Co., the 128-year-old pro dealer based in Aurora, Ill., announced that it will be closing 5 lumber yards in the state.

The locations slated for closing in rural Central and Western Illinois include operations in Canton, Lincoln, Monmouth, Rushville, and Taylorville

Additionally, the pro dealer plans to merge its Bloomington location into its Le Roy location to serve the greater Bloomington-Normal market. Alexander Lumber will also fold its Gilman location into its Watseka and Fairbury locations to serve Iroquois and Livingston counties, as well as nearby Kankakee, Ill.

In a prepared statement, Alexander Lumber said, “After conducting extensive market research – the dealer’s leadership decided that major metro and mid-sized markets should be the company’s core focus. It also became clear that trying to balance small, rural markets did not fit this strategy and “exhausted precious resources.”

“This is not a decision we make lightly,” said Watt Alexander, chairman of the Alexander Lumber Board of Directors.

“After a comprehensive strategic review of our business, we’ve decided to double down on specific markets we believe offer the strongest opportunity for future growth in a difficult fiscal and economic environment,” Watt explained.

With the closures of these locations, Alexander Lumber’s executive team will use its additional resources to forge a stronger brand presence in its remaining markets and continue to build market share, the company said.

“We intend to focus on our core pro builder customer in the Chicago and other mid-sized markets, especially those in Wisconsin, Iowa, and other surrounding states, should any opportunities arise. These are the markets where we have been consistently successful and that allow us to operate to our strengths,” said Russ Kathrein, president and CEO of Alexander Lumber.

Prior to closings, Alexander operated 12 locations, including 2 truss plants, in Illinois, Wisconsin, and Iowa.

“I am excited about the robust growth plans for Alexander Lumber as we move forward. Our new strategic direction allows us to align our resources with the greatest opportunities, while still serving our remaining Central Illinois markets,” says Kathrein.

Regarding what lies ahead for Alexander, Kathrein said, “Manufacturing components and creating innovative, new services to increase our competitive edge serving the pro contractor markets form the key part of our agenda. The consolidation also allows us to focus our future acquisition plans on select businesses that align with our core objectives in both existing and new markets.”

Alexander plans to hold liquidation sales from mid-January through the end of February.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How likely is your company to adjust its employee health care plan next year?