Wholesale & Distribution International - Spring 2017 - 23
M&M SUPPLY CO.
nues were at $35 million. "In '07, when we took off, we grew to
$51 million," he recalls.
By 2014, M&M reached revenues of $80 million, but saw a
slowdown in 2015. Although many regional and national competitors lost money, "We held firm," he recalls, admitting that
the company was not so lucky in 2016.
"It was impossible to make money," he recalls, noting that
M&M saw its profits decline by almost 50 percent and let go 20
employees. However, he kept the cuts to people it had to remove.
"We cut the fat but we never got into the muscle," he recalls,
noting that the company survived the year with a lean team.
"We retained [approximately 108] very good employees."
A few key customers also continued to be profitable even
when oil prices dropped in 2015 and 2016. "That kept us going,"
he says, noting that M&M expects to see growth this year.
"I'm hoping to see [revenue] numbers somewhere in the $55
million range," he says, noting that the company will cope with
an increase in commodity prices, particularly steel.
"It's a difficult thing to pass on to the end-user," he says, noting that the industry also will be impacted by tariffs placed on
imported goods. "We're going to see a lot less import material
in the United States."
M&M recently added a new, 25,000-square-foot distribution
facility in Oklahoma City. Every day, two of its large vehicles
travel from the facility to its northern and southern stores to
keep them stocked.
"It's allowed us to bring a lot of freight-allowed items in, so
we save money on freight," Trachtenberg says. "We're doing
large power buys to achieve better pricing."
This has helped M&M bulk up and maintain large inventories
of Balon Valves, Kimray Valves and Domestic Fittings. "Typically, when the market increases, deliveries become a challenge to
many domestic suppliers," he says.
"It's paid off very well for us," Trachtenberg says. "We're not
having delivery issues and our competitors are. In fact, competitors call, wanting to buy from us."
M&M also plans to open a new store in a location that its
partners have identified as "a new geographic hot spot,"
Trachtenberg says, noting that the company is confident it can
draw people in. "We've already started the due diligence on acquiring the buildings."
The company also expects to grow beyond buildings. "I want
to grow our partnerships with our best customers," Trachtenberg says. "I'd also like to develop the industrial markets a little
more so we are insulated, if oil drops again."
M&M Supply is proud to be a member of Affiliated Distributors, an international buying group whose collective sales exceed $4 billion. q
Spring 2017 www.wdimagazine.com