The Granite Group – Case Study

looking toward the future

Executive Summary

Headquartered in Concord, New Hampshire, The Granite Group is a leading distributor of plumbing, heating, cooling, piping, and water systems, as well as energy products, to contractors and fuel dealers. The Granite Group operates across New England through 68 wholesale branches and a best-in-class online store. The company also operates 17 retail showrooms under the Sink & Spout name, with an expertly trained staff and an extensive array of bath, kitchen, and lighting products.

granite group
  • The Granite Group utilizes ITR Economics’ Executive Vantage Point™ (EVP) programs in its business planning and has been a client for approximately 15 years.
  • The distributor was heavily impacted by the Great Recession in 2008, which halted its growth and caused several problems within the organization.
  • Now, with knowledge of the present and future economic environment, The Granite Group has the information it needs to optimally time its business strategies. Today, the organization knows how to further grow its competitive advantage with our expert insights.
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“Since we signed up with ITR, we really haven't had a really surprising, sustained downturn...

And that's a very good thing. The quality for us is just the ability to feel confident in what is coming down the pike. And that's invaluable for us because it is the great unknown.” – Bill Condron

granite group case study

Challenges

With roots dating back to 1971, The Granite Group was officially formed in 1998 through a merger of two companies. After continuous growth and the completion of a major acquisition, and with its sights on another, The Granite Group was blindsided by the Great Recession in 2008. This led to a difficult time for the company, with layoffs, pay cuts, furloughs, and even branch closings.

Not long after the Great Recession, Bill Condron, CEO of The Granite Group, attended a conference put on by one of its manufacturers. At the event, he heard an ITR Economics speaker highlight our methodology, forecast accuracy, and how ITR Economics long foresaw the Great Recession, which had taken The Granite Group by surprise.

How Product Helped

Because The Granite Group’s sales cycle is relatively short, it was difficult in the past for the company to see far into the future and understand what was coming down the line. Now, with the EVP program, ITR Economics provides The Granite Group with accurate forecasts up to 12 quarters out.

As ITR Economics learned more about The Granite Group, so did the individual economists that work closely with the business. Meanwhile, learning about the data-driven expectations that ITR Economics outlines for The Granite Group motivates the company to try to exceed those expectations.

“If ITR Economics says we are going to grow by 5%, that is the base case...

Now, it's our job to exceed that, and we're going to exceed it by opening new branches or expanding new product offerings, or just hustling to be better at our jobs and exceed our competition. If ITR thinks we can do 5%, we try to do 8%.” – Bill Condron

Results, Return On Investment, And Future Plans

Since becoming an ITR Economics client, The Granite Group finds the EVP program to be an invaluable tool for helping the company see far into the future. Now, The Granite Group is able to make crucial decisions long before its competition, especially when it comes to timing investments, purchasing and managing inventory, and knowing when it is appropriate to take the foot off the gas pedal.

With accurate insight into the future, not only can The Granite Group continue to make informed business decisions, but it is also effectively planning for the coming 2030s economic depression, an event that ITR Economics has been forecasting for many years.

“ITR Economics doesn’t give you the answers to the test, but it does tell you what they’re going to ask on the quiz. And that’s pretty valuable because it helps you know what’s coming. If you can partner with somebody that you think has the insight to give you years of data in advance of what’s coming, it’s really invaluable for our business and I would assume for almost any business.” – Bill Condron