{"id":14606,"date":"2024-02-07T07:46:41","date_gmt":"2024-02-06T20:46:41","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=14606"},"modified":"2024-10-21T20:19:59","modified_gmt":"2024-10-21T10:19:59","slug":"metcash-bets-on-frame-truss-to-beef-up-hardware-expansion","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/metcash-bets-on-frame-truss-to-beef-up-hardware-expansion\/","title":{"rendered":"Metcash Bets on Frame &#038; Truss To Beef Up Hardware Expansion"},"content":{"rendered":"\n<p>Australia&#8217;s second-largest hardware retailer is muscling in on the timber frame and truss market after Metcash acquired Alpine Truss, one of the country&#8217;s largest manufacturers, as part of a $558m mega buyout of Superior Foods and South Australia-based Bianco Construction Supplies.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.afr.com\/chanticleer\/inside-metcash-s-600m-bet-on-the-little-guy-20240205-p5f2fq\">The latest acquisition now elevates Metcash,<\/a> as it competes with Coles, Woolworths and Wesfarmers\u2019s Bunnings chain to create a conglomerate across food, liquor and hardware &#8211; as part of greater network expansion.<\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/metcash-targets-hardware-scale-up-as-aussies-flock-to-stores\/\" rel=\"noreferrer noopener\">It comes after Wood Central reported in December that Metcash<\/a>, through its Independent Hardware Division (IHG), was expanding its footprint in timber supplies and hardware to compete with Bunnings.<\/p>\n\n\n\n<p>The push comes at a time when Bunnings,\u00a0<a href=\"https:\/\/www.bing.com\/search?q=what+percentage+of+the+hardware+market+does+bunnigns+have+in+australia&amp;qs=n&amp;form=QBRE&amp;sp=-1&amp;ghc=1&amp;lq=0&amp;pq=what+percentage+of+the+hardware+market+does+bunnigns+have+in+austral&amp;sc=11-68&amp;sk=&amp;cvid=47425A8335D547A980AFDB051E7B23D3&amp;ghsh=0&amp;ghacc=0&amp;ghpl=\" target=\"_blank\" rel=\"noreferrer noopener\"><em>\u00a0which has a more than 50% total market share of the Australian hardware and DIY market<\/em><\/a>, has invested heavily in the frame and truss to capture an even greater share of the commercial &#8220;wholesale&#8221; market.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"9HRqnmHMSVw\"><iframe loading=\"lazy\" title=\"About Us\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/9HRqnmHMSVw?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Metcash is Australia\u2019s largest independent retailer across Food, Liquor and Hardware \u2013 footage from\u00a0<a href=\"https:\/\/www.youtube.com\/@metcash4446\" target=\"_blank\" rel=\"noreferrer noopener\">@metcash4446<\/a>.<\/em><\/figcaption><\/figure>\n\n\n\n<p>Bunnings makes up 50% of Wesfarmers&#8217; $45.6 billion revenue, with a new 5-year plan implemented earlier this year as part of a push to grow its commercial business to offset fluctuations in the retail market.<\/p>\n\n\n\n<p>According to Metcash Group CEO Doug Jones, the acquisitions were strategically aligned, synergistic and financially compelling, with Metcash expecting them to create cost savings of $19 million annually.<\/p>\n\n\n\n<p>&#8220;The acquisitions unlock substantial shareholder value and build on our track record of disciplined and accretive capital allocation,&#8221; he said overnight, adding that &#8220;they also deliver further diversification and resilience to the group and provide Metcash with an even stronger growth trajectory.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"686\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-1024x686.png\" alt=\"image 7\" class=\"wp-image-14607\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-1024x686.png 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-300x201.png 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-768x514.png 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-696x466.png 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-1068x715.png 1068w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-627x420.png 627w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7-600x402.png 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2024\/02\/image-7.png 1320w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Inside Metcash&#8217;s Huntingwood Distribution Centre in NSW, the Independent Hardware Group operates logistics across 1500 retail hardware stores. (Photo Credit: Metcash)<\/figcaption><\/figure>\n\n\n\n<p>The Bianco Construction Supplies ($82 million) and Alpine Truss ($64 million) bolster the business&#8217;s growing footprint in the timber-based building supplies market.\u00a0<\/p>\n\n\n\n<p>Already, Metcash operates 1500 brick-and-mortar stores under its Mitre 10, Home Timber &amp; Hardware and Total Tools brands and is circulating a buyout of HBT and its 940 &#8220;proudly independent&#8221; retail stores nationwide.<\/p>\n\n\n\n<p>Hardware is an opportunity for Metcash, providing the conglomerate with a hedge against food (through IGA, Foodland and now Superior Food) and liquor (including Celebrations, IGA liquor and Bottle-O).<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Bunnings targets market for small to medium builders by expanding its frame and truss plants around Australia <a href=\"https:\/\/t.co\/e9VzuJjjjd\">https:\/\/t.co\/e9VzuJjjjd<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/bunnings?src=hash&amp;ref_src=twsrc%5Etfw\">#bunnings<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/hardware?src=hash&amp;ref_src=twsrc%5Etfw\">#hardware<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/homeimprovement?src=hash&amp;ref_src=twsrc%5Etfw\">#homeimprovement<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/retailer?src=hash&amp;ref_src=twsrc%5Etfw\">#retailer<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/hardwarestore?src=hash&amp;ref_src=twsrc%5Etfw\">#hardwarestore<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/supplychain?src=hash&amp;ref_src=twsrc%5Etfw\">#supplychain<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/timber?src=hash&amp;ref_src=twsrc%5Etfw\">#timber<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/frame?src=hash&amp;ref_src=twsrc%5Etfw\">#frame<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/truss?src=hash&amp;ref_src=twsrc%5Etfw\">#truss<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/manufacturing?src=hash&amp;ref_src=twsrc%5Etfw\">#manufacturing<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/housing?src=hash&amp;ref_src=twsrc%5Etfw\">#housing<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/builder?src=hash&amp;ref_src=twsrc%5Etfw\">#builder<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/construction?src=hash&amp;ref_src=twsrc%5Etfw\">#construction<\/a> <a href=\"https:\/\/t.co\/MGPSORyVfX\">pic.twitter.com\/MGPSORyVfX<\/a><\/p>&mdash; HardwareNewsNetwork (@HNN_Australia) <a href=\"https:\/\/twitter.com\/HNN_Australia\/status\/1520398896282804224?ref_src=twsrc%5Etfw\">April 30, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/bunnings-75m-move-to-shake-up-australias-truss-frame-supply\/\" rel=\"noreferrer noopener\"><em>In September,<\/em><\/a>&nbsp;Wood Central reported that Bunnings &#8211; Metcash&#8217;s greatest rival in the Australian timber supplies market, was investing up to $75 million in developing &#8220;mega&#8221; timber fabrication facilities in Victoria, NSW and QLD, which will see it become Australia&#8217;s largest truss manufacturer.<\/p>\n\n\n\n<p>The new facilities will use robots to assemble and nail-plate the A-frame trusses,&nbsp;<a target=\"_blank\" href=\"http:\/\/www.industryedge.com.au\/\" rel=\"noreferrer noopener\"><em>which IndustryEdge Managing Director Tim Woods&nbsp;<\/em><\/a>said represents a &#8220;massive rationalisation&#8221; in the residential construction industry.<\/p>\n\n\n\n<p>&#8220;The largest participants in the market are making the next logical step, and it could be that some of their thinking is getting ahead of a global trend toward entire houses being built inside factories,&#8221; Mr Woods said.<\/p>\n\n\n\n<p>Alpine Truss manufactures and supplies roof trusses, wall frames, and flooring systems to buildings across Victoria and NSW. Bianco Construction Supplies has a network of stores supplying door frames, doors, fasteners and sawn timber from 8 stores across South Australia and the NT.<\/p>\n\n\n\n<p>According to Mr Jones, both align  \u201calign completely\u201d and are \u201chighly complementary\u201d to Metcash\u2019s broader hardware strategy, which includes broader customer offerings, higher market share and greater network expansion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australia&#8217;s second-largest hardware retailer is muscling in on the timber frame and truss market after Metcash acquired Alpine Truss, one of the country&#8217;s largest manufacturers, as part of a $558m mega buyout of Superior Foods and South Australia-based Bianco Construction Supplies. The latest acquisition now elevates Metcash, as it competes with Coles, Woolworths and Wesfarmers\u2019s [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":14608,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[50,37,47,46,85,49,83,43,56,40],"tags":[],"ppma_author":[70],"class_list":{"0":"post-14606","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-australia","8":"category-building-and-construction","9":"category-commercial","10":"category-industry","11":"category-new-south-wales","12":"category-residential","13":"category-south-australia","14":"category-structural-wood-products","15":"category-victoria","16":"category-wood-products"},"authors":[{"term_id":70,"user_id":2,"is_guest":0,"slug":"jason","display_name":"Jason Ross","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/14606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=14606"}],"version-history":[{"count":1,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/14606\/revisions"}],"predecessor-version":[{"id":14609,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/14606\/revisions\/14609"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/14608"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=14606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=14606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=14606"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=14606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}