SAN FRANCISCO—In an environment that is experiencing changing demographics, a shrinking workforce and reduced spending, the conventional wisdom is that brick-and-mortar retail building supply companies should be shying away from the big-box format, opting instead for smaller formats with leaner inventories. Central Valley, a Bay Area-based building supply company, is taking a more aggressive stance by partnering with Simpson Strong-Tie, an engineered structural connectors company. The agreement between Central Valley and Simpson Strong-Tie vastly expands Central Valley's offering of Simpson products, giving builders more choices in commercial and residential products.

“It's exciting to see the level of commitment to inventory and product training that Central Valley has invested in to provide their customers and employees with the best experience possible,” said Simpson Strong-Tie sales manager Mike Wright.

Central Valley sees the market for construction-related materials growing 8.8% in 2017, with construction faring better than the general economy. With such growth, builders are looking to increase installation speed and decrease costs, says Steve Patterson, CEO of Central Valley.

“The Bay Area has experienced an unprecedented expansion in its population in the last five years. With the addition of over 90,000 people in a year, housing needs are outpacing capacity,” Patterson tells GlobeSt.com. “Our industry is being tasked to deliver value engineered products that allow for easier installation, higher loads and a lower installed cost. Products as simple as post caps, that used to require bolt connections and drilling, now can accommodate a range of sizes and be installed with screws for faster installation.”

As retailers right-size footprints and inventory levels, Central Valley is staying on strategy. As customers have more power through choice, enhancing the customer's choice and experience creates differentiation, according to Patterson. Scaling a building business in this environment requires not only having the right products and technology, but also creating a multicultural environment reflective of its customer base.

“Each Central Valley store is uniquely different, offering products tailored to the customers in that specific market, with service in the language of that customer,” Patterson says. “Our product strategy allows for even more builders to engage with Central Valley and get the products they need for their projects. More isn't always better, but when you can carry only the products that customers want and have the most comprehensive offering at the same time, that's a successful strategy for a pro shop.”

Founded in 1955, Central Valley currently has sales of more than $100 million and operates six full-service locations throughout Northern California. With more than 38 acres of inventory and 55 delivery vehicles, the company also offers lumber, hardware and custom milling.

“Materials technology is one of the areas in which we are looking to differentiate ourselves. Case in point is our FLOOR LOC offering that is value engineered to make subfloor installation faster, greener, safer and easier, as the adhesive is pre-applied to the I-joists,” Patterson tells GlobeSt.com. “It nicely positions us for both construction and modular manufacturing customers.”

Instant Insights /

Retailer Eschews Current Scaled Down Paradigm

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