Changing Pains: Dietrich Consolidates Businesses and More

Worthington Industries, the parent company to Deitrich Metal Framing, is implementing a consolidation plan at five of its Dietrich Metal Framing locations impacting approximately 165 employees.

“[This] action is a result of our focus on asset utilization to ensure that our businesses are maximizing profitability,” says John P. McConnell, chairman and chief executive officer of Worthington Industries. “Although the consolidation will reduce Dietrich’s footprint, we have chosen locations in close proximity to other Dietrich facilities to maintain our customer service. We continue to have the largest reach to markets through our national distribution network.”

The company expects the consolidation plan to result in $9 million in annual savings and be fully implemented by the end of the year. One-time restructuring charges, estimated to be $15 million in the aggregate for the five facilities, will be incurred over the next few quarters until the plan is completed.

The facilities included in the consolidation plan are: East Chicago, Ind.; Rock Hill, S.C.; Phoenix, Ariz.; Wildwood, Fla.; and the downsizing of operations in Montreal, Canada. The Rock Hill facility also houses a Worthington steel processing operation which will continue to operate. Annual net sales generated by these operations total approximately $125 million and the majority of those sales are expected to be handled by nearby Dietrich locations.

A New Face
Dietrich is also facing another change: a new company president.

John Roberts has been named president of Dietrich Metal Framing; he had been the company’s vice president of sales and marketing, a position he had held since June.

“John has demonstrated leadership beyond his sales and marketing role,” McConnell says. “He comes into this role at an important time and I have confidence in his ability to return Dietrich to being a profitable, strong contributor to our company. John has gained the trust of our customers in his four months with us and he has been a critical part of the Dietrich management team.”

Roberts was U.S. director of sales for Owens Corning, focusing on residential and commercial insulation products. Prior to that, he held the positions of director of sales and marketing of Owens Corning’s Siding Systems business and regional general manager for the Great Lakes Region for Owens Corning, and in sales and management capacities for Domtar Gypsum and Georgia Pacific. He is a graduate of the State University of New York at Buffalo with a bachelor’s degree in economics.

Todd Muirhead is being named vice president of sales and marketing for Dietrich. As a 15-year sales veteran for Dietrich, Muirhead has served in a variety of capacities in sales and marketing, most recently as regional sales manager for the southeast region.

“Todd will be an excellent leader in our sales and marketing efforts,” Roberts says. “He has tremendous experience with our customers, and he will join me in executing a strategy that leverages our industry leadership and delivers on our promise of quality and customer service.”

Giving A Makeover
Even in the midst of consolidation and appointing a new president, Dietrich Metal Framing leant a helping hand to the Akana family of Kalihi, Hawaii, a family that recently benefited from the hit TV show Extreme Makeover: Home Edition, which aired Sunday, September 30, 2007. The home featured metal wall and floor framing materials from Dietrich Metal Framing.

The project in Kalihi, Hawaii, is the show’s largest build to date and features two 6,000-square foot structures, one is the Akana family’s new residence and the other is a community center.

 “We think it is important for us to be involved in special projects like this one for the Akana family,” says McConnell. “The Hawaii market, where more than 70 percent of houses are framed in steel, has long appreciated the benefits of using steel framing because it’s impervious to termites, doesn’t promote the growth of mold or mildew and is non-combustible. We are proud of our involvement with the show and in providing a safer and stronger house and community center in Hawaii.”

Dietrich’s donation included traditional metal wall framing, header material and TradeReady® Floor Systems which include TradeReady® Joists and TradeReady® Rim Joists.

Brookfield Homes Hawaii asked Dietrich to participate in the project. Dietrich customer Coastal Construction provided the crews to panelize and install the metal framing.

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