Graybar posts double-digit growth
Graybar posted 19.7% growth in the first half of 2006 %%MDASSML%% to $2.45 billion %%MDASSML%% compared to the same period last year. The company also reported an operating income increase of 68% over the first half of 2005. Graybar is a distributor of electrical and communications products and related supply-chain management and logistics services.
“Our revenues are up nearly 20%, and we only increased head count 5%, mostly in customer-facing roles,” said Robert A. Reynolds, Jr., chairman, president and chief executive officer of Graybar. “This is truly smart growth, driven by new systems that give us a deeper view of our business and allow us to increase productivity and react faster to market changes.”
According to Reynolds, the growth was completely organic. He credits the company’s dedicated employee-owners, a successful ERP implementation, the expansion of the electrical and telecommunications sectors and an improved corporate accounts program.
“Graybar employees worked incredibly hard during the recent economic downturn, preparing for the opportunities now in front of us,” Reynolds said. “Our SAP system now links our branch, zone and district facilities nationwide, increasing our ability to react faster and anticipate changes in the market.”
Graybar successfully completed its SAP system installation in 2004, allowing the company to provide more functionality to more users in less time and at a lower cost than any other wholesale distributor in the U.S. “This investment is now paying off with unprecedented asset and supply chain management,” said Reynolds. “It allows us to focus our efforts more directly on customer satisfaction and achieving healthy growth.”