Mid-Way Supply, Inc. (“Mid-Way”), a primary supplier of innovative heating, ventilation and air conditioning (HVAC) products to dealers throughout Chicagoland, announced today the several steps it is taking to stay competitive during today’s difficult market conditions while preparing for its future success. Through a careful and methodical process, the company has designed a financial and operational plan for the short and long haul.
“Like most companies serving the construction and housing industries, Mid-Way has faced a number of business and financial challenges,” said Dennis Wierzbicki, chief operating officer of Mid-Way Supply, Inc. “By partnering with a well-respected business consulting firm and securing the support of our lenders, we’re addressing these challenges directly and already seeing benefits.”
Specifically, Mid-Way has developed a plan that encourages attention on the geographic areas where it can provide the highest levels of service, bettering the ability to stock the products dealers and contractors demand the most and improving company finances so Mid-Way can continue to invest in the business. This plan is being executed via several changes:
• Geographic focus: The vast majority (more than 90 percent) of Mid-Way’s sales and accounts are located in the greater Chicagoland area. While the company has maintained an operation in Rockford, Ill. for more than a decade, it has made the strategic decision to exit that market, in early January and focus on Chicagoland. Munch’s Supply Company is assuming responsibility for Mid-Way’s American Standard territory.
• Brand and product focus: Mid-Way will continue to offer the high-value, successful brands that its customers demand, including Trane, Honeywell, Mitsubishi, Reznor, Snappy, Owens Corning’s AttiCat and Aprilaire – among others. However, the company is phasing out certain lines that represent only a small portion of its total sales. For example, with American Standard, which was sold out of the Rockford facility, this brand’s sales were outnumbered by Trane by more than 10:1. The same applies to certain low-demand products including Peerless boilers, radiant in-floor heating and small-duct high-velocity HVAC systems – among others.
• Inventory management: Going forward, Mid-Way is streamlining its inventory management to ensure it has in stock the key products customers expect. For example, the aforementioned in-demand brands will be kept in ready supply. However, the low-demand products the company is phasing out of active circulation not be kept in stock, though Mid-Way will special-order them for a dealer or contractor should their customers have that need.
“Through strategic planning and maintaining rigorous budgeting and expense control measures, we are paving the way for continued success,” explained Mr. Wierzbicki. “We are confident that 2010 will be a productive and profitable year for Mid-Way.”
The company has already contacted dealers and contractors to communicate these changes, as well as the benefits they will bring. In the coming weeks, Mid-Way anticipates announcing exciting developments that will improve the company’s ability to supply a wide variety of end-use customers and contractors.