PM Profile: Kohler Co. Plans ‘Offensive Game Strategy’
by Bob Miodonski
January 12, 2010
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| David Kohler, president of Kohler Co. (Photo courtesy of Kohler Co.) |
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Emphasis in 2010 on new products, technology and conservation.
Plumbing & Mechanical recently
interviewed David Kohler about where Kohler Co.
and the plumbing industry are headed in 2010. Kohler was named president of
Kohler Co. in April 2009.
As president, he oversees Kohler Co.’s
Kitchen & Bath Group, Global Power Group, Interiors Group and Technical
Services. Among his previous titles were executive vice president and group president
of Kitchen & Bath.
The U.S. EPA in October named Kohler Co. a WaterSense Partner of the Year. The
company also won the award in 2008.
PM: Where do
you see the greatest areas of growth for plumbing contractors in 2010?
DK:
Remodeling, replacement and repair will come back first. New construction will
see an increase in overall business, but it will be a long, protracted
recovery. It’s going to take time. Lending has tightened up and people are
working off debt.
PM: What
can contractors expect from Kohler in 2010?
David
Kohler: We’ll continue to play an offensive game strategy. In
2010, we’ll do the things that have been our hallmark: new products and
industry-leading technology. We’ll have a very aggressive schedule of new
product development not matched by other
companies. An important part of our strategy is to continue to inspire the
industry with ideas, which creates excitement in the industry and consumer demand
for our products. We want to do good things that will benefit Kohler and those
trades that have supported us as well.
We’ve been leaders in water
conservation and will continue to do a lot of work through our
SaveWaterAmerica.com awareness campaign. We’re going to local markets in a
guerilla sense to get consumers to replace toilets with more efficient models,
and we’ll continue to participate in key events that promote green
construction.
PM: What
can contractors do to educate their
customers about the performance of water-efficient products?
DK: Water efficiency doesn’t have to come with
sacrifice. Consumers can get leading design and performance. In showering, we
can deliver an enhanced experience without high water consumption. A steam
shower is another great example of a shower experience that doesn’t require
much water.
Contractors should be as knowledgeable as they can be about products in EPA’s
WaterSense program. It can help them make product selections and they can
educate consumers about what simple things they can do to save water. These
include high-efficiency toilets and showerheads that use 1.5 gallons per
minute.
PM:
Can water efficiency and consumer choice co-exist in green
bathrooms?
DK:
The economic downturn combined with an interest in climate change and
sustainability has made consumers more conscientious. They are making choices
of products that are practical, more affordable and good for the environment.
They also want to live a little with the product choices they
make.
PM: How
is Kohler changing the ways it connects with contractors?
DK: We’re
still doing the training and education we’ve always done in local markets.
We’re also trying to deliver more value over the Web. Kohler.com/pro is a
resource for professionals to enhance their business. We’re using the Internet
more to do business and to do more online training for the trades about
water conservation and sustainability as well as the role of technology.
Electronics permeate all products in the home, including sensor faucets,
whirlpools and showering.
PM:
How has Kohler fared during the downturn?
DK:
Our company is faring very well in this economic climate both domestically and
internationally with our diversification in Kitchen and Bath, Global Power
Group, Interiors and Hospitality. Geographically, we have a presence in Asia
and Europe as well as the United States. All our businesses have gained market
share over the last 24 months.
A big priority has been to manage our profitability and cost
structure. At the same time, we’re increasing our advertising, spending capital
in the right areas of our business and investing in the future. In 2009, we
exceeded our plan for the year, which is quite positive.
PM: How different will the
bath-and-kitchen market be coming out of the recession than it was going into
it?
DK: Americans still care deeply about their
homes. Activity will pick up, although remodeling jobs are coming down in size
and we’ll see some new homes decrease in size. People don’t see the payback as
much as they did, but they still care about design and amenities. They want to
enhance their homes. They’re not looking for stripped-down commodities. They’re
seeking more for their money. Consumers want high-quality products that will
last a long time.
PM: What other
trends should plumbing contractors look for in the bath-and-kitchen
market?
DK:
The lead issue is important. As a company, we will be fully converted to
no-lead products. A portion of our products have been converted and going
forward we will convert the remaining portion.
PM: If you had one message to give to contractors, what
would it be?
DK: I’d like contractors to know how
deeply committed Kohler Co. is to this industry. We’re fully invested in this
industry to drive business and improve the industry. We also respect the role
of the
contractor and that role will continue to increase. Demographic trends will serve
contractors well, more so than the DIY segment, and represent a great
opportunity for professional contractors. I’d like their support to build this
business.
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