W.W. Grainger looking to grow in Janesville
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A package travels down the shipping line past the bulk material area in the distribution center of GHC Specialty Brands on Janesville's east side. GHC was formerly known as Lab Safety Supply but has grown into an operation that now handles operations for multiple brands of catalog suppliers.
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A customer service representative takes a call in the offices of GHC Specialty Brands on Janesville's east side. GHC is the former Lab Safety Supply and now handles products from a much larger variety of brand catalog companies including LSS.
JANESVILLE — Start with a national economic downturn punctuated locally by plant closures and mass layoffs.
Toss in changes to a Janesville company’s business structure, and it’s understandable how rumors ranging from significant layoffs to impending closure got started.
Such talk about the demise of Lab Safety Supply is ridiculous, said Ralph Howard, who came to Janesville in September to lead the hulking distributor on South Wright Road.
“We’re aggressively looking to grow in Janesville,” said Howard, vice president of specialty brands for W.W. Grainger, the Chicago-based company that bought the homegrown Lab Safety Supply in 1992.
Howard has heard the rumors since arriving from the Kohler Co., where he managed operations for Canac Cabinets, the largest frameless cabinet manufacturer in North America.
“There was general angst in the community as people saw what had happened with several other manufacturing operations,” he said. “In addition, the economy has affected everyone, and people start questioning the long-term viability of their company.
“And in our case, integrating the standalone Lab Safety with Grainger created apprehension.”
Howard is a Wisconsin native with an engineering degree from UW-Platteville. He is a graduate of The General Manager Program at Harvard Business School and also has worked for Pella Corp. and Master Lock.
“I’ve gone through business integrations before, and what’s happened here is not unique,” he said of employee apprehension. “It’s a normal human reaction.”
The Janesville company probably always will be referred to as Lab Safety. It’s technical name, however, changed Feb. 1 to GHC Specialty Brands, and Grainger signage will appear in April.
That’s because of the ongoing integration of Lab Safety into other Grainger operations, Howard said.
Local changes
Up until 2001, Lab Safety in Janesville was just that, a distributor of safety and laboratory products.
The facility has since become the distribution, service and support home for brands that range from products for woodworkers to those for tow truck drivers.
Grainger is a broad-line distributor of maintenance, repair and operations products. It’s specialty brands, however, are vertically integrated companies that require extensive knowledge and support that typically differ from each other.
For example, the technical support people for Highsmith know the product line for schools and libraries inside and out. The same can be said about the Ben Meadows team that serves forestry professionals.
“Janesville has become much more than just Lab Safety Supply,” Howard said.
The 320,000-square-foot Janesville facility is split nearly in half between office space and a distribution center laden with forklifts, conveyors and racking systems that reach to the 45-foot ceiling.
Every day, nearly 2,000 incoming products land at one of the 19 docks on the north side of the facility. About 7,000 orders exit the building at the 20 docks on the south side.
In between, the inventory itself—if stacked together—approaches 1 million cubic feet.
Distribution has been a key component of the integration of the Janesville facility into the Grainger network. Last fall, Grainger moved some of the product distribution that had been exclusive to Janesville to facilities in South Carolina and California.
“We discovered that having just one distribution point for all the brands caused us some timing problems with our customers on the coasts and in the Deep South,” Howard said. “No matter how fast you pick, pack and ship, we’re still at the mercy of the carriers, and some customers weren’t getting their orders for three or four days.”
Howard said about 60 percent of the distribution still will be done out of Janesville. But the addition of two centers reduced the size of the local distribution staff by about 50 workers, all of whom either took early retirements, voluntary severance packages or transferred to South Carolina, he said.
Grainger employs about 800 people in Janesville, a number that’s fluctuated mildly in the last few years. About 600 of those are office jobs, with the remainder on the distribution floor.
Howard said gains in customer service, technical support and Grainger corporate positions have mitigated losses on the distribution side. In fact, he said, a favorable economy could add up to 100 office jobs in Janesville in the next three years.
That’s the message Howard has been sharing with employees.
Community connections
“We’ve cranked up the internal communications with our folks,” he said. “We’ve had all-company meetings and detailed our five-year strategic plan for the business.
“That’s maybe something that hasn’t been done here in awhile, and I think it was appreciated.”
Grainger and Lab Safety always have supported their employees, but the companies often have been perceived as flying under the community’s radar.
That will change, Howard said.
The company recently rejoined Forward Janesville, the community’s private economic development organization. It recently awarded scholarships to technical education students at Blackhawk Technical College.
“We will try to do more to connect with Janesville as a community,” Howard said. “That’s something that’s important to me, and it’s a commitment I will make for us to be more visible in the community.
“Janesville is a great market for us. We’ve got a solid, dedicated workforce, and we plan to grow this business here.”
That thrills business leaders such as John Beckord of Forward Janesville.
“It’s important to the community in a lot of ways to have companies with the profile and size of Grainger adopt the attitude and commit to the redevelopment and rebirth of the local economy,” Beckord said. “Grainger wants to be a part of that, and we’re thankful for that.”
GRAINGER BRANDS
W.W. Grainger’s specialty brands serviced and distributed from its Janesville operation include:
-- Lab Safety Supply, serving lab technicians.
-- Highsmith, serving library and school professionals.
-- Gempler’s, serving those who work outdoors.
-- McFeely’s, serving professional woodworkers.
-- AW Direct, serving towing and service vehicle professionals.
-- Ben Meadows, serving forestry professionals.
-- Rand, serving facility and warehouse professionals.
-- Professional Equipment/Construction Book Express, serving inspection, electrical, HVAC, engineering and building professionals.
-- Imperial, serving the fleet trucking industry.
Mar 20, 2010 at 11:46 a.m.
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Thankfully I still have my job,for now, but my husband lost his job and is going to school for HVAC at 54 years old. Hopefully he will find a job when he's done in May. Everyone needs to pray that things get better or we are in for a big surprise here in Janesville, if we don't get anymore good paying jobs.
Mar 20, 2010 at 11:42 a.m.
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snazzyj1977: Easier said than done. If you have a home that won't sell, you can't go find a GOOD paying job elsewhere, and when you have a home and bills to pay, making less money may put you into foreclosure.
Mar 17, 2010 at 5:38 p.m.
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GXuser... what makes you a business expert on who will fill jobs. Any jobs in a city that is consistently loosing them are better than NONE!
We as a city built roads for companies to stay and a few years later they left. Grainger is GREAT for this city at this time. Negativity maybe a large part of your life but not necessarily others. Try being positive once... good things come to positve people.
Mar 17, 2010 at 4:37 p.m.
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The least they could do is tell everyone which departments will be staying and which will not. It's only fair to let the people know, so they can apply for another position within the company or prepare for the worse so they don't lose their homes if they lose their jobs at the last minute. Loyalty and respect works both ways, especially when you have hard working people who have been loyal to the company.
Mar 17, 2010 at 4:26 p.m.
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The 100 jobs that they are talking about are credit collections positions that will mostly be filled by Grainger employee tranfers. They are centralizing this position solely to Janesville, surely to save money on wages. As for the warehouse, I sure wouldn't want to be working in it once the new warehouse they are building in Illinois is finished. Janesville needs manual labor jobs and lots of them, not a couple of open office positions which ironically, the duty of which is to repetitively call people who can't afford pay their bills. Grainger isn't here to help Janesville, they are here to help Grainger. Have hope in this city, yes, but don't let articles like this, which make a huge deal out of absolutely nothing, give you false hope.
Mar 17, 2010 at 3:40 p.m.
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AMEN Snazzy! I've worked at LSS for 22 years. Grainger bought it in 1992-the Hedbergs were great people, unfortunately they are NOT there any longer. I work on the fourth floor and let me tell you it's not easy, but if you do your work efficiently or the best you possibly can you ARE noticed. No longer are the days of coming to work at 7 am and leaving at 3:30 pm. Ralph Howard DID cover the 5 year plan if you paid attention and didn't carry on side conversations you would have heard that. He covered HIS goals for the next 5 years - his goals are to grow the Specialty Brands and any future aquisitions that Grainger may make. Negative thoughts only bring negative results!
Mar 16, 2010 at 3:42 p.m.
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I worked a Saturday to pick products to go to the west and east coast warehouses. The products I picked were speciality brand products. I was told that 30% went to SC and 20% went to LA. We have 50% left in Janesville.
Mar 16, 2010 at 3:18 p.m.
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Oh and LabWorker, I'm agreeing with you. I've also heard the rumors that Lab will be absorbed by the new Chicago DC. The people that are still there know the job market sucks and will stay till the bitter end, the least they could do is be honest. Especially with the Warehouse people, but that is asking a lot. My g/f has worked there for about 6 years, I know she is very nervous.
Mar 16, 2010 at 3:01 p.m.
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I know that. I should've clarified my statement about the 100+ jobs. How many people form Janesville (Current Lab Safety Employees included) will get those jobs. I'm guessing most will be transfers from Lake Forest.
Mar 16, 2010 at 1:16 p.m.
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I think all of these comments are interesting. And views are always going to be on both sides. You'll never know the true facts unless your head of the company.
Mar 16, 2010 at 10:08 a.m.
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badcompany i am glad you can read. I know it said that. what we are saying is what they did not tell you in the paper. they are moving all of the stuff oout of ljanesville and moving it to to the new warehouse. Yeah they maybe adding 100+ jobs but how many are they going to lose in the warehouse. that is what we are saying. I have been at lab for over 15 years.
Mar 16, 2010 at 6 a.m.
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actually it states that 60% is still shipped out of janesville, which is a nice way of saying, they lost 40% of their orders to SC and Cali. If they are building a million sq. ft. building in Illinois, it doesn't make much sense to have two warehouses so close together, does it??
Mar 16, 2010 at 12:22 a.m.
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My mother-in-law has worked at Lab Safety for 20 years. She is a supervisor and was told to apply for the credit department since her department is being eliminated. She did not get the job. What does this tell you? She's finishing out the remaining days of her department, but her future is unknown. So no, they are not necessarily filling the new positions with existing employees.
Mar 15, 2010 at 7:06 p.m.
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chatthat... nowhere was it stated that all inventory will be sent to Minookia, IL. Specialy Brands inventory will still be shippped via Janesville.
Charmed2008... maybe you need to understand how businesses operate; and maybe pull your head out of yours!
Mar 15, 2010 at 5:18 p.m.
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I'm guessing moving the credit department to Janesville (aka bringing 100+ jobs to janesville) won't include hiring outside the company.
Mar 15, 2010 at 4:26 p.m.
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Now I am the one that started this mess. I would like to clear it up! I just said that I applied for the catalog sales job online and not even 24 hrs. later, I got an email saying the position was filled. I have all the qualifications, type 70 wpm, have done catalog sales before, etc., etc. I just thought it was a fast "not hiring" email. That's all and look where it led these posts. SORRY!
Mar 15, 2010 at 4:23 p.m.
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As a current warehouse employee of LSS/Grainger I feel that the Gazette failed to get the whole story. No employees were interviewed. In two years the remainning inventory will be moved to Minookia,IL. What will remain is anyone's guess. Transfers might be offered again, but with the housing market the way it is who can afford to buy your house so you can move. I feel the Gazette story was a public relations job to cool the rumors. Check Grainger's web sight for jobs they are hiring --mostly customer service.
Mar 15, 2010 at 4:15 p.m.
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snazzyj1977 I can understand what you are saying if you know who these people are that are talking about losing their jobs and not having them offered back. It is nice instight to know that this is why some people where laid off, I am sure Lab Safety and Grainger would greatly appreciate you telling everyone this is the "real" reason why they were laid off and not what was stated to them when they were rudely walked out of the building. I thnk maybe you should pull what ever is stuck up your butt out!
Mar 15, 2010 at 4:06 p.m.
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Obviously this article is about the "other" world at Lab Safety, the fourth floor, the office.
Anybody that works(worked) at Lab Safety knows that there are two worlds that are vastly different. The way the office is treated vs. the way the warehouse is treated is vastly different. Talk arbitrarily to someone that works upstairs and then talk to someone that works in the warehouse about the company and you will think they work for two different companies.
This is not Grainger's fault, this happened long before Grainger took the reins. And if they hadn't who knows where Lab would be now. We should feel lucky that they did or else Janesville would have 800 more employees in the unemployment line. The ego of the people in charge, unqualified promotions, and the general dead weight throughout the company is what lead to this.
I just wonder when the other shoe will drop. Once the Million sq. ft. warehouse in Illinois opens I just can't see much use for Janesville. The warehouse part of it at least. I imagine the bright and sunny world of Lab will always be there. And it should. THAT company is great to work for.
Just keep thinking "all us well" and see how that works for you.
Mar 15, 2010 at 3:47 p.m.
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Keepasking...you are misinformed as to the details of the outside sales people, but I'm not going to argue.
Mar 15, 2010 at 2:52 p.m.
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I am a worker at the old lab safety. Yes it WAS a great place to work. It is like any place they all lie. Tell us what they think we want to hear then change it. The town hall meeting we NEVER talked about the 5 year plan. I think the Gazette should came back in 3 years and see how many people are left working in the warehouse. They talked about all them other companies but he never said that they are taking them all out Or did he say that they are building a new warehouse in ILL. And that will take just about all the orders. I do not recall the last time we hit 7000 order. So please come back in 3 years and do your story on how many are left in the warehouse.
Mar 15, 2010 at 1:56 p.m.
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docwMB - Sometimes they call that "thinning the deadwood".
Mar 15, 2010 at 1:35 p.m.
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Been there, Lab has had an outside sales force for over a year. Ralph is a good guy but he can only speak for part of the building. My spouse doesn't report to specialty brands but to some black hole in lake forest. I tend to agree with lierre04. The warehouse has had many buyouts over the past few months and there are many departments that have already been eliminated. More changes are coming. I hope my hubby makes the cut. This was a fluff story...even for the gazette.
Mar 15, 2010 at 1:29 p.m.
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Maybe the people who lost their jobs last February were not pulling their weight; just because you get a job doesn't mean you do not have to perform. You work for them and they do not owe you anything but a paycheck for services renderred. Maybe it was a nice way of saying MOVE ON! There are a lot of quality workers out there that want to work.
Mar 15, 2010 at 1:02 p.m.
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lierre 04 is flat wrong, and he/she doesn't work at LSS/Grainger or he/she would know the company has been wholly owned by Grainger since 1992 -- no "complete buyout" is on the way. Do not buy into the naysayers and "sky is falling" rumor crowd, this is good news for everyone, employees and community.
Mar 15, 2010 at 1:02 p.m.
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Charmed2008....some of them were.
Mar 15, 2010 at 12:41 p.m.
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I would like to know why if they are growing and hiring why the people that lost their jobs last February were not called back for their old jobs? There is a good questions for them!
Mar 15, 2010 at 12:30 p.m.
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lierre04: boy..would I love to know who you are. Sounds like you have a source that other employees dont. Im not sure whether I think you are right..or not. Got more info?????
Mar 15, 2010 at 12:33 a.m.
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Yeah those 600 office jobs are about to be reduced. They are eliminating departments here and the people that currently work there, aren't necessarily getting the jobs in other departments. They're simply shifting people around from plant to plant. In no way, do I see this as an improvement. Yes, they're "merging" but it's only a matter of time before Lab Safety is completely bought out and transfers are brought in from other locations, thus leaving the people of Wisconsin jobless unless they move to another location.
Mar 14, 2010 at 10:24 p.m.
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Thank you for the clarification...it sounded like you were referring to outside sales, which Lab Safety doesn't do (I've worked there for 19 years). Maybe the JobNet posting was an outdated one.
Mar 14, 2010 at 8:37 p.m.
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Customer Service Catalog sales. It was on JobNet. It wasn't even 24 hours later I received an email that said the position was filled. I even attached my resume. I have experience, wasn't even given a chance for an interview. I think that sucks!
Mar 14, 2010 at 7:19 p.m.
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What kind of a "catalog sales" position did you apply for?
Mar 14, 2010 at 4:34 p.m.
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Nice to see a new company in Janesville. I applied here and got turned down for catalog sales. I have experience in that, but they had a lot of applicants.
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