Edwin Anderson’s heating and cooling distribution centers deliver more than just a piece of equipment to dealers. Amanda Barber reports.

Since its inception in 1969, Nashville-based M&A Supply focused on selling sheet metal and HVAC equipment. In 1990, Edwin Anderson, chairman, founder, and CEO of M&A Supply, started looking for ways to grow his business. The answer came in the form of an offer from American Standard, the leading US manufacturer of heating and cooling units, to be the primary distributor of its equipment.

Prior to the collaboration with American Standard, M&A Supply’s revenues were in the $10 million range. In 2006, M&A reported revenues of nearly $75 million. Anderson said in the past his company was quick to take on other lines, such as roofing products and vinyl siding, to diversify, but joining forces with American Standard meant leaving those behind.

“M&A Supply’s product history was related to the sheet metal and heating and air conditioning business,” said Anderson. “We sold our aluminum rain goods division in 2006 because it had become secondary to heating and cooling equipment and parts. Selling that division was in our best interests, even though it was a
moneymaker, so we could focus entirely on heating and cooling equipment.”

Edwin Anderson

Before 1969, Anderson worked for a manufacturer of sheet metal products pertaining to heating and air conditioning and sold those products to companies much like the one he started. When he founded M&A Supply, he used his expertise to develop a team to sell insulation, registers and grilles, and all of the accessory items that deal with the installation of HVAC equipment. Over time, the company developed the technical expertise Anderson didn’t have, making the partnership with American Standard possible.

The package
M&A Supply is not simply another HVAC distributor. The company’s history and expertise in HVAC equipment provided an opportunity for Anderson to position his company as a full-service distributor. “We devote all of our energies now to setting up American Standard dealers to move equipment and sell parts,” said Anderson. “We’re not simply about selling a box. We’re about partnering with a dealer who wants to improve his bottom line.”
M&A Supply offers its dealers up front and ongoing technical training, marketing guidance, and business advice all in an effort to increase American Standard’s marketshare and increase the dealer’s credibility. Anderson compares selling an American Standard product to selling an automobile. The dealer needs to be prepared to handle and, if necessary, hand the customer off to one of M&A’s technical team members without breaking stride.

“We offer a full package,” said Anderson. “It’s not simply a condenser or packaged heat pump we sell to a dealer. We’re about our dealers becoming a better company this year than last year. In turn, that helps M&A and American Standard become better companies.”

American Standard tracks how many HVAC units are sold in the US, and the two companies work together to devise ways to attract more dealers and help their current dealers grow. Once a new dealer is approached, M&A’s six-person technical team goes to the dealership, assesses its strengths and weaknesses, and offers assistance. The technical team’s leader, Joel Lunsford, coordinates the training sessions and fields problem phone calls from dealers.

“We have meeting rooms in our 12 distribution facilities to bring in dealers and talk about specific products,” said Anderson. “Those are typically one-day sessions where the team comes in and talks about any of the American Standard products. Joel coordinates all of those, and, when necessary, sends his team directly to the dealer for an on-site training session.”

The process
In 1990, M&A’s growth peaked. Prior to that year, other manufacturers approached Anderson to sell their equipment, but he didn’t feel he had the staff to support their visions. When American Standard approached him, he had been looking for a way to jump-start his company’s growth. Now M&A exclusively carries the American Standard brand.

“I don’t believe you can successfully give justice to two separate brands of equipment,” said Anderson. “American Standard looked at our background, and even though we didn’t sell its equipment prior to 1990, we were familiar with the industry.”

After signing the agreement, M&A contacted dealers who had previously purchased equipment, such as ductwork and sheet metal items, to evolve the business relationships. In addition, the company’s infrastructure was ready to take on any challenges involved in streamlining its operations. The company’s corporate center is the hub of all activity and it is where all of the purchasing, accounting, and inventory management is handled.

“That takes a lot of the stress away from the distribution centers so they only have to worry about taking care of the customer,” Anderson said.

For the past four years, M&A’s growth has been in the double-digits, between 10% and 12% annually. Steady growth and an innovative technical team ensured the same concepts Anderson had when he founded the company in 1969 have remained. “Every year we’ve been open, even our first year in 1969, we have earned a profit,” said Anderson. “Customers can buy wherever they want to. We have to earn their trust in business and do what’s honest, and my employees believe that as well.”