Document LK9Ny7dkkRmy3dNNpMwDzXBRd

FILE NAME: Kelly Moore (KM) DATE: 0000 DOC#: KM050 DOCUMENT DESCRIPTION: Industry Sales Literature with BC Notes f LOOKING HACK In April 1916 Kelly-Moore began operations with these co-partners: Iv'illiiili . Moo*: age 2!). graduale of Ihe Georgia School of Technology, majoring in Chemical Engineering and Industriai Management, who had been a Glidden Company industriai paint salesman prior to World W ar II. William H.K.-llv age 6ft, retired general manager of the Glidden Company West Coast factories, who provided experience in paint formulation and production techniques. Tins liii'.liuy Located in.San Carlos, California, a small town 25 miles south of San Francisco, ideally situated to serve the Northern California market. Anil a clear business iilijcclii'c To supply professional quality paints direct to contractors through a network of company-owned branches. KELLY-MO ORE FACILITIES MAIN OFFICE Sus Carlos, California 94070 .. FACTORIES. PAINT 4 DRYWALL PRODUCTS: Dalla, Texat Houtton, Texte Ontario, Calli S u Carlo. Calit - SUSIDIARY Fremo, Calli MANUFACTURING Newark, Calli OPERATIONS: Oxnard. Calli " Van Nuya, Calli MINING OPERATIONS: Ione, Calli Maripota. Calli , Piacervi!), Calli Carila, Nevada " Weeki. Nevada . REDUCTION MILL: Florin, California . SALES BRANCHES ' 'I ' T e rn Divitlon Hetdquartert: CALIFORNIA 4 NEVADA San Frandieo Bey Area .Canne! . Htyward r O iU ud ' ' S u Cario S u Frudaco ' San jota S u ta Rota - Central Californie Fremo ' . . Modello Sacramento................ Stockton ' Walnut Creak ' ' Reoo,Nevada . . . Southern' C a lifo rn ia Fullerton :- . Ontario Riverelda r'.:v'. . ...... Arianna 4 New Mexico Phoenix- : x. r TEXAS OKLAHOMA Dalla -u .... SALES BRANCHES:AbUen*: Amarillo Dalla 1*1 *:. Fort Worth - ..' Houtton (ZI ' . S u Antonio Wlchlta Fall Lawton, Oklahoma HOME IMPROVEMENT CENTERS (Caiii.) San Carlo S u Luit Obltpo Susta Barbara Santa Maria ! I ! i j I J i J i | 1 1 i j } ! ii i ! ii i 1 1 1 1 ij i 1 ! SALES BRANCHES MANUFACTURING AND MINING KM BB 5674 MANAGEMENT COMMITTEE President V. P. Sales V. P. Home Improvement Centers V. P. Production S e cretary Treasurer INDUSTRIAL MINERALS Industrial Minerals Co. Marble Valley Limestone Co, Cal-Mica Co. 1VEMENT .'RS . ;.<' SECRETARY-TREASURER : :.vi>rfrr ";: -V-, r. ,. v,-., -f 'y r M & X' ut X; .:*r -,;ivy - J V .- . I V - : - S . r,..ya`~ : -'?V 1 1... -r ~ -.*.l;y ; \ vrv-i:> ig^grisTT.v-* nation o/ K-M activities. SSSffiS0S r.~ WHERE DO W E GO FROM HERE? Kelly-Moore's near-future expan sion program includes: Construction of a new factory at Hurst, Texas (between Fort Worth and Dallas) to support a network of 24 branches in Tex as, Oklahoma, Arkansas and Northwest Louisiana. Completion of a 24,000 square foot metal working plant in On tario, California, which will con solidate Sprayline, Inc., K-M Taping Tools and K-M Clutch Company at one location. Orderly development of painter markets in the Pacific North west and Rocky Mountain states. Barring an, extended business re cession this program should result in doubling the size of K-M opera tions by 1971 and establish our branches in all the major market areas west of the Mississippi in accordance with our long range plan. This is considered a reason able goal in view of the increasing capability of Kelly-Moore's lean young m anagem ent team and others on the way up. Crr. r;*- KM BB 5 6 7 5 KM BB 5677 THE KELLY-MOORE ORGANIZATION Paco Textures Corp. Cal-Paclfic Truck Lines Management Data Services DrLWall Tape Co. MANAGEMENT COMMITTEE l'rosidenl V. \*. Salus V. I*. Illune lmprovi:mi;iil Cimlurs V. f\ IVm liidiifii Secreta ly-Treasurcr INDUSTRIAL MINERALS Industrial Minerals Co. Mnrblu Valley Limcslunu Co. CnLMica Co. Organization chart illustrates lines o f responsibility and coordination of K-M activities. 24 KM BB 5678 Ornamental slirulis anil /lowering plants ore attractive adjunct to building niaterinls. Car-loading service is o//crcil those IIIC shoppers wlio serve themselves. Willi suggestions from K-M electrical snlesmnn it's ensy to inoilernizc light fixtures. Home improvement prefects usuolly start or finish with paint, enamel or stain. THE HOME IMPROVEMENT CENTER IDEA In 1962 Kelly-Moore embarked on a program to evaluate stores sell ing lumber, building materials, hardware, electrical and plumbing supplies, green plants and patio and garden supplies in addition to paints. Such stores were to be veritable one-stop sources for home maintenance and repair items commonly needed by the homeowner. K-M's reasoning that stores of this type presented an opportunity for stimulating greater paint sales at retail was based on these facts: The shorter work week affords the homeowner more leisure time to work around the house. Costs of professional services continue to rise; Materials are being made easier and more convenient for the do-it-yourselfer to use. It was also believed that while the average retail customer purchased paint perhaps once in two years he would visit a Home Improve ment Center for other supplies more frequently and thus be fa vorably disposed to K-M products when in need of paint. Kelly-Moore purchased three lum- . it . - _ - v-_r -*v KM BB 5680 ber yards from the Pacific Coast Co. in May 1962. These were lo cated in San Luis Obispo, Santa Maria and Santa Barbara. The paint department at each location was then geared up to supply the painting contractors in its area and a K-M territory paint sales man was assigned to develop this wholesale business. Extensive remodeling was re quired to renovate the stores in the K-M image and at Santa Maria a new 10,000 foot building was constructed in 1963 on 4V2 acres with a spur on the Santa Maria Valley Railroad. An impressive amount of space is required in addition to store area, to accom modate the nursery, pre-cut lum ber, fencing, roofing, plywood, concrete products, mouldings, wallboard and countless similar items which cannot be classed as shelf goods, as well as to provide for adequate customer parking. The fourth K-M Home Improve ment Center opened in San Carlos in October 1965. For its nucleus it has a 10,000 foot building with 4,000 feet of mezzanine space which permits the display of un finished furniture and other bulky items as well as those commonly purchased as sets. Several of the-new and larger Kelly-Moore paint stores have been designed to permit expansion and conversion to Home Improve ment Centers in locations where such operations are appropriate. KM BB 5679 KM BB 5681 All K-M IIIC's provide plant y of A convenient o//-slrcet parking. Inviting mezzanine displays include B patio /iirnishings, folding doors, room dividers, tub cnclosiiros. W om en initiate most hom e im provem ent C projects like paneling a ivall or room. IIIC patrons browse for latest ideas in D hardw are, housewares and electrical supplies. 22 KM BB 5682 A K-M Clulcli Company's Ulyllic Slreel plant in Van Nuys produces ilia revolutionary K-Matic centrifugal cinteli, and niacliincs same ports for Gerald Avenue plant, tvlicrc manual Uall-Lok clutches ore merle. D DnII-Lok manual sprocket cinteli. C Machining to close tolerances in our shop. U handing rools of data peeked rnognalic topo for jirocessiug l>y the computer. E Oakland headquarters o/ M anagement Data Services. Inc. integrated service. In 1986 KellyMoore formed a separate company, K-M Truck Lines Inc., which spe cializes in full load shipments at rail rates. Additionally, Cal-Pacific has ter minal warehouses of 80,000 square feet near the City of Commerce district in Los Angeles and 40,000 square feet in San Carlos. K-M CLUTCH COMPANY of Van Nuys, California is the successor to V-Belt Clutch Co., Inc., manu facturers of the patented Ball-lok manual clutch. K-M's interest in this company stemmed from the performance of the clutch which Sprayline found more satisfactory than any other on the market. Kelly-Moore purchased the busi ness in November 1963, and reg istered a sales gain of 41#/o in the first year of operation under ex clusive K-M management. In 1965 K-M Clutch Company ac quired the manufacturing and sales rights to the patented Centri-Disc Clutch, now the K-Matic drive. M ANAGEM ENT D A TA 'SER VICES of Oa'kland, California is a computer service bureau,with a number of commercial clients in the San Francisco Bay area. K-M acquired the firm in November 1964 to serve small and medium size businesses and provide KellyMoore low-cost facilities for its new EDP accounting system. B KM BB 5683 - u14 f Ti LINKS IN THE t CHAIN OF DIVERSIFICATION Could Kelly-Moore, while concen- J trating on the painting contractor market, successfully pursue the i :: .profit possibilities in unrelated .." '.^fields? It could and it did, proving :V-l:V th a t. K-M's unique management yV .g-.teehntques operate equally well in industries other than paints and ~ allied products. . CHEM-GUARD PRODUCTS INC. . o f San Carlos was formed in 1958 '"M -\ and was K-M's first experiment in ^ '.'diversification. Chem-Guard sup- ^'rplies non-toxic wood preservatives --fV (o' the canning and food packing ,, industry to protect their millions of wooden harvesting containers. These preservatives are manufac- t?. ; tured by Kelly-Moore. CAL-PACIFIC TRUCK LINES was formed by Kelly-Moore in 1961 as D licensed P.U.C. carrier upon the ^ y -'acquisition of the assets of Free- ^ v -.'w a y Fast Freight lines of Rich- mond, California. '..T ' During the past five years a fleet L- . of new sleeper-cab, diesel pow ered tractors with 40-foot vans and flat bed trailers has been put . into service between Los Angeles and San Francisco. At each end of the long haul, Cal s'- Pacific operates other fleets of smaller trucks for city pick-up and : delivery, thus providing a fully 35$ ~ KM BB 5 6 8 4 KM BB 5685 Conners pick up truckloads of A Cliain-Cuard's CUN II.A TE Western Wood Seal at K-M Sail Carlos plant to taka advantage of froighl saving. Modern sleeper call tractors arc used D in Col-Pacific's long liaul operations. Cnl-Paci/ic's growing blue and C white fleet consists of both over-tlic-rood and local delivery equipment. Engine overhaul and other IJ maintenance work is performed in Cal-Pacific's Son Carlos shop. zn A Col-Mica plant showing storage silo and rotary drier. It Loading hopper /or rod mill grinding. C Finished mien is conveyed to bagging machines. D Froth /lololion cells separate mica from quartz sand in progressive process. E Oawf-rake classifier (center) separates over-size mica for regrinding. F Open pit mining of schist mien deposit in Mariposa County, California. 19 $1 BASIC INDUSTRIAL MINERALS lines to be the first of its type in the U.S. To provide coordination of the California mining ventures Kelly* Moore acquired the assets of In dustrial Mineral and Chemicals Company of Berkeley in Novem ber 1965. IMACCO's 9 acre plant near Sacramento is ideally situated to classify and grind Marble Valley's limestone. M ore im portantly, IMACCO af I1 fords K-M further diversification 1 into the pottery and ceramics in dustry with air floated clays as well as oil well drilling muds and inert minerals used as carriers for 3 agricultural chemicals applied by crop dusting. IMACCO mines clay and bentonite on leased deposits near lone, California and Weeks, Nevada. I KM BB 5687 BASIC ii INDUSTRIAL i MINERALS 1 Paco Textures Corp. requires such large quantities of limestone and mica as raw materials that Kelly- Moore management decided to en- gage in the basic mining and c ; production of these minerals to ;;i"--maximize the advantages of the - , Paco acquisition. It was further determined that es tablished markets would absorb surplus production of suitable quality, insuring that plant facili ties would be able to operate at "economical levels. I n ' 1954 K*M established Marble .Valley Limestone Company to "quarry limestone by open pit methods in El Dorado County, .'California, and Cal-Mica Company to".mine schist mica in Mariposa .County, California. Both mines are "on leased property with proved resources for long term operation. Prior to starting the Cal-Mica op eration, Kelly-Moore entered into a joint agreement with the U.S. Bureau of Mines at Tuscaloosa, Alabama to run laboratory and pilot plant tests on the feasibility of beneficiating schist mica by froth flotation. This project was very successful and details are in the 1965 U.S. Bureau of Mines report No. 6668. Our Cal-Mica plant was then set up along these KM BB 5688 KM BB 5689 Florin, California reduction mill processes Marble Valley's limestone, producos high grade ceram ic clays, oil well drilling mud and inerts used as enrriors for agricultural spray chemicals. Initial stage of M arble Valley Limestone quarry subsequent to proving up llie deposit near Placcrville, California. Crop dusting a cotton field. Delivering a load of oil well drilling mud. Poller using Jmacco ceramic clay. 101 'l ~i*rWvr KM BB 5690 A Rugged construction requires high quoiily arc welding. D K-M finishing tools speed production. C Precision milling of light-weight, non-corrosive aluminum stock to extrem ely close tolerances at Oxnard plant o/ K-M Toping Tools. D Taping tool in action, applying joint cement and embedding tope in one operation. I performance of its equipment. What is more, Sprayline has de veloped a new product line of airless spray equipment with this pump as the basic element. Com petitive tests have proved it to be considerably more efficient due to its unique design which gives our spray units greater output. The Sprayline air motor has many other industrial uses and because of its broad market po tential it should eventually be Sprayline's major product. Similar considerations led to the purchase of the manufacturing rights and assets of Neeco Tool Co., of Oxnard, Calif., in May 1965. Neeco was engaged in the development of a tool which would fill wallboard joints with joint cement and embed the per forated tape in the cement, all in one operation. Kelly-Moore management liked the concept, bought the company, and changed its name to K-M Taping Tools Inc. K-M Taping Tools Inc., at the time this brochure goes to press, has established distributorships in Aus tralia, Canada, England, South Africa and West Germany in ad dition to regions of the U.S. not covered by Kelly-Moore. KM BB 5691 K-M DRYW ALL FINISHING EQUIPMENT In the course of applying drywall textures several of the larger con tractors developed machines for mixing the dry powder products ti.r.;with water and spray-applying them. As the advantages of these : machines became known other .i ' applicators became buyers. On the W est Coast most of this machine manufacturing was even~ tually done by two concerns. One * ; ' of these was Sprayline Mfg. and Supply Co., a partnership, at Fres no, .California, which Kelly-Moore purchased in April 1963. . ' K-M branches had been selling Sprayline equipment as distribu.tors and a national market was apparently ripe for development. Further, Kelly-Moore management jbA-.'felt that it could build Sprayline iVl into an important business by re- . designing the equipment, providing modem manufacturing facili; ties, applying K-M's fundamental operating policies and utilizing the growing K-M marketing apparatus. Sprayline is now the largest manu facturer of texture spray equip ment in the United States. : NEW PRODUCT LINE Sprayline at present has a patent pending on a new air-operated positive displacem ent m aterial pump which greatly improves the KM BB 5692 KM BB 5693 Sprayline's Fresno plant with various a models o f spray equipment and air compressors p ro d u ced o r ihe painting, dry tvaII, plastering and roof coating trades. Massive metal /arming machines and D pow er shears are required to work the heavy gauge metal used in Sprayline construction. Applying ceiling texture with C Sproyline's /ingcrtip control gun using the new m odel 7712500 machine. Sproylino's new air operated D material pum p gives our spray units greater output. 16 KM BB 5694 Electronic process spurh punches tiny holes A in tope (o release moisture and air hubbies. Large rolls of special paper are slit into D narrow widths while being rewound. C o ile d strip s t e e l t r a v e ls through punch C press, rolh/orming dies and cut-off machine in continuous production of metal corner bead. The K-M Paco Textures fa ctory in Son Carlos. A How material proportioning is programmed B with Paco's electron ic scale. Paco's final assem bly and filling area. Both C dry pow der and ready-mixed p rodu cts ore handled - on adjoining lines. H opper cars on Paco rail spu r unload raw D materials which are conveyed into storage silos. Paco Textures Corp. was formed in 1958 and operated at a profit each year prior to becoming part of Kelly-Moore. By the end of the second year under the K-M banner Paco sales had increased 89/o and manufac turing operations were moved to a new and larger factory on 3Vs acres adjoining the main KellyMoore plant in San Carlos. Because joint cement products are both heavy and bulky, freight costs are a problem in distribution. To eliminate this obstacle to sales K-M factories in Ontario, Cali fornia, Dallas, and Houston, Texas, manufacture Paco-Texture prod ucts for regional sales. Dri-Wall Tape Company is the successor to W. L. Mackey Com pany of Newark, California, owner of U.S. Patent No. 2,667,822 for perforated wall board tape. Designed to bridge the joints be tween sheets of gypsum board, this tape is fabricated from a spe cial non-shrink paper with high w et strength. It is now spark punched in an electronic process with small holes which permit the escape of moisture and air to has ten drying and prevent wrinkling. Metal corner casing, produced by Dri-Wall Tape Co., is necessary to prevent damage to the somewhat crumbly edges of the wall board on com ers where it is exposed to knocks and bumps. KM BB 5695 I K-M IN ! THE DRYWALL j INDUSTRY ! Drywall finishes are closely re- ; lated to paints by function and the fact that both are used by i painters and in sequence. How- ; ever, no single paint manufacturer had produced full product lines of both paints and drywall finishes j until Kelly-Moore seized the op- i portunity in late 1960. j j That was when K-M acquired Paco ; Textures Corp. of Richmond, Cali fornia and W. L. Mackey Co. of Newark, California and thus as- ] '' sumed an important role in the j drywall industry with the produc- : tion of joint cement, perforated j paper tape, metal corner casing ] and wall textures. j JOB RESPONSIBILITY If a painter has trouble'when ap- plying coatings over drywall finish- es, the ability to determine re- j sponsibility is vital to him. This is j generally difficult to pin down 1 when materials from different :! sources are involved. Consequently ' Kelly-Moore customers welcomed ; the Company's entry into this j field, as it gave them the assurance . of undivided responsibility. j Kelly-Moore's commitment to the drywall finishes market was the 1 first in a series of expansion ven- ; tures calculated to broaden the -i scope of its service. . r i E lectronic p ro ce ss sp a rk punches tiny holes A in tape to release m oistu re and air bubbles. Large rolls o f special paper are slit into B narrow widths w hile being rewound. Coiled strip steel travels through punch C press, roll-form ing d ies and cut-off machine in continuous production o f metol corner bead. KM BB 5696 KM BB 5697 The K-M Paco Textures factory in San CnrJos. A ildiv m aterial proportioning is programmed I) with Poco's electronic scale. Paco's final osscmldy oml /tiling nrea. Doth C dry potv<ler anti rendy-mixetl products nro handled on adjoining lines. i/opper cars on Poco rail spur unload raw O materials which are conveyed into storage silos. KM BB 5698 A Houston plant o/ Trilito Corp. B Joint coment production at K-M Dallas Joctory. C K-M Dallas plant /rom llie air. D 22-acre site of future K-M Texas factory. 13 Ontario. California factory built in 19G4 to supply requirem ents of Southern California and Arizona markets includes a brunch stare. MOVING SOUTH While paint is a heavy commodity, with l.c.l. freight constituting 5/o-7a/o of the wholesale price, service to the customer has been Kelly-Moore's compelling reason for locating branch factories in the larger metropolitan areas. Many paint manufacturers consider it practical to ship up to 250 miles from their factories without serious competi tive problems, even further when supply ing ``trade sales" shelf goods to retail dealers and distributors. However, service is vital to the painting contractors who require frequent batches of special colors, often at short notice. OPERATING 1`U R M U L A AT LONG RANGE The larger contractors also need greater quantities of individual paint items than can normally be carried in store stocks. Kelly-Moore's Ontario plant, located 35 miles east of Los Angeles Civic Center, is well placed to serve the fast growing Southern California-Arizona market. De signed for expansion from its present 24,000 sq. ft. manufacturing area, it is situated on 10 acres and is served by a spur of the Southern Pacific Railroad. Pending full scale production in Ontario, vehicles and base paints are shipped from San Carlos in bulk tanks for tinting, pack aging and delivery to K-M Southern Cali fornia and Arizona branches. r: ; the Texas division of Hanna Paint Co. The success of this distant operation has dem onstrated K-M's ability: to market its products in regions where the company is unknown; to utilize headquarters management talent and "know-how" to reduce unit administrative costs; to maintain the close communications necessary to operate a remote manu facturing and sales facility. At the lime of the acquisition no Texas paint company did a strong marketing job to painting contractors utilizing company owned stores. K-M's concept of quality products sold through full-service branch es won quick acceptance. Since the Kelly-Moore operating formula has proved so effective in the Southwest, plans now call for expanding the present 12 branches to a total of 24 in Texas, Oklahoma, Arkansas and Louisiana. The increased production required by this network will be provided by a new fac tory at Hurst, Texas, between Dallas and Fort Worth, where K-M purchased a 21acre site in 1065 on the Rock Island RR and Highway 163. 3 6 9 S a a w>f KM BB 5700 A K-M siore solosmnn explains ilia correct procedure to follow. B Machine liming a special colot. C Custom color rack shows mare than 1,000 selections which can ho mixed at counlor. D Stepping oat to a rewarding painting experience. : Ju. \. | '! ! ! . i i ..j . ' ' KEY TO A GOOD JOB Fortunate is the do-it-you rself painter who is within reach of a Kelly-Moore branch, Here he finds a complete assort ment of product lines, each for mulated for a specific purpose. K-M customers have no need to compromise by using "all-purpose'' paints. J | Surveys indicate that about 60% ; i of the retail customers who dislike a particular brand of paint have iJ ! had unsatisfactory results because of misapplication, i.e. through im- ; proper surface preparation and/or using the wrong type of paint. K-M's broad line and intelligent i clerk recommendations guard against such disappointments. ; No less than eight different kinds ! of paint are stocked in full lines of the same colors, so that flat I wall paints are matched by enam- j els of various degrees of gloss as ; well as by stipple finishes. Exte- rior masonry finishes m atch gloss paints for wood siding and metal in addition to a special flat finish ' for rough-rustic wood. Besides these stock-color items /j there are 1,000 additional colors which may be machine tinted at the time of purchase. KM BB 5701 THE 'T)o -it -y o u r s e l f " TRADE With minimum of fanfare, adver tising or promotion Kelly-Moore branches are doing an enviable amount of retail paint business which is steadily increasing. Sv it: eSral "already have .annual cash S ta le s 'in excess of $250,000.00. >.T-V ^ fr t. j'This affirms the ability of the con- sumer to discover sources for un- usual values as well as the power l-. o l word of mouth advertising. ,.7'K-M .retail prices approximate X those of major brands. Thus a large .'^proportion of retail paint customX * 1* apparently subscribe to our X 'alogan that "Quality is Economy." $ - f *.*- "' I'jf;?;Intelligent sales clerks, multiple product lines, expert color service, ^ f a c t o r y fresh stocks -- all play a T ^ p a r t .i n attracting the "do-it-yourE .^ se lfe r"-to K-M stores. | t*-<-v'. t"'''' W ., X -- : jj^T xo d u ct performance, however, is F \^ 'th i"re a l eye-opener to the handy p>;lman"upoa his introduction to the high*-hiding. heavy-bodied K-M [igfpain'ts^and enamels preferred by ^ ^ p ro fe ssio n a l painters. jf-- K elly-M oore believes that the ^ c o m p e titiv e edge belongs to the '^product that not only lives up to ^ e x p e c ta tio n s , but exceeds them. `galEsse&fc"- Vt?*??V" ' P Mt*;**'1*'- JiX- ! 'it"w.' .< - jx r!'.'.,'j * KM BB 5702 Free standing 10.000 sq. ft. K-M A branch is typical o f com pany stores built since 19G2. Corner location is '/< mile from freeway. Loading dock is at rear of store. Jlender-Bonrd sign provides curb-side B identification and lists current bargains. , Choosing color is usually' the C lady's privilege. Exclusive wall paper patterns are I) studied at leisure. 10 a tUt3 UM THE PROFESSIONAL SIDE Kelly-Moore branch stores are onestop, full-service centers for pro fessional painters. In addition to K-M finishes they stock every sundry and equipment item neces sary to the painting trade. The sundries list is a long one, making up a price book of over a hundred pages; items include lad ders and planks, air compressors, drop cloths, sand blasting and spray machines, wall coverings, brushes and rollers, dry wall joint cement and texture, masking paper and scores of special purpose compounds and tools. From the start, Kelly-Moore chose store locations on major traffic arteries with quick access to free ways. Convenient off street park ing w as preferred to high foot traffic. Contractors are usually pressed for lime when they pull in for supplies. In early K-M days, when the Com pany had only one branch in a given town, no effort was made to follow a uniform exterior store design. However, in the more densely populated areas K-M is now building free-standing stores of between 6,000 and 10,000 square feet that are similar and distinc tive in appearance. KM BB 5704 A Ample b a c k - u p s l o c k s ore required (o m eal h e a v y d e m a n d s b y contractors. B K-M s p r a y equipment end oir compressor r e p a i r service soves valuable lime /or busy c o n tra c to r s. C E a c h K M branch quickly and a c c u r a t o l y matches special colors f o r c o n t r a c t o r custom ers. D Helping the customer on his >voy. g v v> .=3 ` | i : | ' j | ; SELLING THROUGH SERVICE These candid photos of a modern K-M branch reflect the profession al service nature of the business, w hether in San Francisco, Fort W orth or Phoenix. Branch managers and sales repre sentatives are trained to interpret the painting contractor's problems in terms of products and equip ment. E ach branch is prepared to.handtint small batches of special colors up to 25 gallons on a same-day basis; in some locations one man is kept busy at this full time. Such color matching is additional to the smaller quantities that are ma chine tinted for the retail trade. M ajor branches are restocked three times per week; smaller stores twice a week by K-M's own trucks. Most sundries are supplied from K-M central warehouses for quick turnover and fast service. In strategic locations, Kelly-Moore services include the repair and overhaul of spray equipment and air compressors for painting eontractor customers. KM BB 5705 epresentative A professional service. : branch store B twice w e e k l y . a r e arranged C se inspection. ; v ie w s w hile D ? b e in g filled. THE ....... PROFESSIONAL . SIDE KeUy-Moore branch stores are onestop, full-service centers for pro'.'-Tfessional painters. In addition to finishes they stock every. -I sundry and equipment item necesil'rVi'aary to the painting trade. The sundries list is a long one, . making up a price book of over a i.;".' hundred pages; items include lad ders and planks, air compressors, drop cloths, sand blasting and spray machines, wall coverings, brushes and rollers, dry wall joint cement and texture, masking paper and scores of special purpose compounds and tools. From the start, Kelly-Moore chose : store locations on major traffic rlVirfi arteries with quick access to free- ' ways. Convenient off street park'r^lfe;-,ing was preferred to high foot traffic. Contractors are usually ..-- T--" pressed for time when they pull ^B :-:in 'fo r supplies. - * .TV ^ ILln'early K-M days, when the Com`:'5"f"pany'had only one branch in a '-Vi.- given town, no effort was made to follow a uniform exterior store i rif?- desigrilM'However, in the more densely/populated areas K-M is now'building free-standing stores i^'f ^ o f between 6,000 and 10,000 square feet that are similar and distinc' ir % tivc in' appearance.. BB 5706 KM BB 5707 C onlm cors cxc/iongc vieivs ivJiilc orders arc being /died. 8 KM BB 570 'I I I li !1i II! I I i D Point-outs delect vnrinlioiis in working nnd leveling properties. C Standard samples maintained for c o m p a r i s o n villi samples Jrom batches in process. D Viscosity nnd sp ecific g r a v i t y ore checked at controlled temperature. E Drawdowns compnro drying time, hiding nnd gloss. F K-M Son Carlos finished stock ivarchousc. 7 CONTROLLING QUALITY Before a batch can be filled off,. K-M 's control lab checks the sample against a liquid standard as well as physical specifications. Viscosity, specific gravity and drying time specifications must be met. (In the viscosity and specific gravity readings the batch sample is first brought to an arbitrary temperature of 25 C.) In draw-downs of controlled film thickness the new batch is com pared with standard sample for drying, hiding, gloss and hold-out on sealed and unsealed surfaces. Paintouts by experienced person nel detect even m inoi deficiencies in working properties and smooth flow. If necessary the batch is adjusted and all tests repeated and success fully passed before the laboratory releases the product to be filled in the various sizes of containers. BATCHING IT . Making paint for the professional painter is "not a matter of continu ous straight line production. Scores .of product.types in hundreds of ; / : colors are produced in any given ''week.'Sometimes the only common ''/denominator is the solvent which . is added to adjust viscosity. -.This makes paint manufacturing . a batch process. Each batch has its own recipe or formula which accompanies the production order. Ingredients are weighed or m ea sured or metered into the m ix in strict accordance with the quan tities specified on the batch card. At Kelly-Moore. fast-moving prod ucts like wall paints, enamels and exterior paints are made in 1,000 . gallon batches and pumped to gently agitated hold tanks. From ' . here the products are tested, then >>: .tinted and filled or drawn off into 200 gallon portable tubs for hand ^-- tinting'of smaller batches. rfi.K-M's j four-directional overhead .rane moves the tubs from the . hold-tanks to the tinting area and i'; finally to the filling stations quick r.ly and .with most efficient use of siloor a p a . KM BB 5710 Pigment is added (o high A speed dispersion mid a f t e r charging with vehicle. Daicli cards s p e c i f y e x a c t D quantity o f each ingredient. Tinting area has benefit of C ample daylight. There is no practical D substitute for trained e y e in color matching. 200-gafIon paint tubs are E moved adroitly by 4-directional 6 overhead c r a n e . ' - * v . CM K in CG CO Z lf i A O n e o fth o direct-fired closed kettles /or fusion processing of ulkytl resins, Loading is ot floor level; finished resins ore pumped (o filler stnlion. I) Lacquer rmv materials arc iveiglicd or metered inlo subfloor mixers. Reselling products ore Irnusferrcd l>y pumping lo filling platform. C Direct-fired stainless steel reactor ivilli solvent recovery systoni produces synthetic resins for oil-base paint. Interim! cooling 4 coil brakes process at p rescribed time. EFFICIENCY IN QUALITY PRODUCTION One yardstick used to determine the efficiency of a paint manufac turer is the gallons per man-hour turned out by those directly con nected with production. This figure ranges from an aver age of 12 to a high of about 32 (in i> the case of a manufacturing divi sion of a large mail order concern which has the benefit of long range high-volume scheduling). In 1965 Kelly-Moore produced 28.3 gallons per man-hour, a high figure considering K-M's extensive product mix and the number of small special batches made daily. This ability to produce quality finishes at sharply competitive costs has played a big part in Kelly-Moore's progress. Equally important has been the painter-oriented character of the broad K-M product line. Many nationally advertised brands which are quite acceptable to the retail trade are considered unsatisfactory by the professional painter. He insists on application features which insure top speed production as well as quality results. Indepen dent Laboratory. tests prove that K-M quality is at least equal to that of the most specified major brands. ! ; ( i i t i I 1 i i I KM BB 5713 STURDY VEHICLES The manufacture of most surface coatings starts with the produc tion of the varnishes, synthetic resins, latex polymers and treated oils or lacquers which are the film-formers. Alone or in combination these are the vehicles with which pigments are combined to provide opacity, added durability and color. These vehicles also largely determine the quality and working properties of the finished product. Although there are reliable com mercial sources for many such in termediates, Kelly-M oore's R&D laboratories formulate K-M's own vehicles. This insures meeting the specific needs of the markets we serve, and gains the technical ad vantage of in house production. As the photos indicate, most of this resin and lacquer processing equipment is underground. This results in fast floor-level loading of solid ingredients, reaction fuel economy and economical unload ing by pumps to the filtering stations. BB 5714 km BB 5715 I A One of Ilio il)rccl-/ircd closed Kellies for fusion processing o/ alkyil resins, i.ondiitg is at fl o o r level; finished resins ore pumped to filler s to lion. D Lnequer row materials ora weighed or metered into sutifloor mixers. Resulting products are transferred by pumping to filling platform. C D irect-fired stainless steel ronclor ivilh solvent recovery system traduces synthetic resins fo r oil-hose paint, internal cooling coil brakes process at prescribed time. KM BB 5716 THE K-M SAN CARLOS COMPLEX 1966 As it stands today on B acres, KeHy-Moore's San Carlos factory I is among the most modern plants ! in our industry. K-M has completely changed its paint making equipment no less than four times while perfecting the present manufacturing com plex. The competitive advantages of high-quality high-speed produc tion have more than offset the old j equipment sell-off. For example, a roller mill method of producing enamel yields 400 gallons per day per mill. KellyMoore sold its mills of this type in 1960 replacing them with high speed dispersers, w h ich fin ish 1 ,0 0 0 gallon s of en am el in 2 `/t hours. Intricate resins and latex copoly mers are manufactured in K-M engineered reactors. These are the modem paint vehicles that give K-M paints the durability and ap- I plication properties esteemed by the trade. : K-M's San Carlos factory has a single shift capacity of 8.000 gallons of finished paints 4.000 gallons synthetic resins and copolymers 2.000 gallons lacquers and varnishes KM BB 5717 A 14,000 sq. ft. plant purchased in 1956. B K-M Son Carlos factory in 1961 with odditions of tankage, resin and iacquer plants and warehouses. C Entrance to K-M main office, Son Carios. Rx FOR GROWTH By 1956 there were Kelly-Moore branch stores in San Jose, Stockton and Sacramento as well as San Carlos. Annual sales passed 5800,000. More plant capacity was required for further growth. That year the Company optimis tically purchased'a modern 14,000 sq. ft. building on 2 Vs acres in San Carlos as the nucleus of its Northern California manufactur ing facility. When 1961 rolled around, the new plant was servicing four additional branches in San Francisco, Oakland, Hay ward and Carmel. K-M sales reach ed $3,600,000. Synthetic resins and lacquers were being produced in quantity, an automatic pump ing system had been installed to transfer resins, oils and solvents. The production flow moved from the spur track and truck dock in the foreground through the plant to finished-stock warehouses in the background. 3 %%t KM BB 5718 HIGH RISE How Kelly-Moore achieved the dynamic growth charted on this page (in an industry dominated by giants] is the story of our first twenty years. 1C-M SALES expKa-nMsisoanleisntsonnoewwbamll awrkiteht areas and allied industries. SALES COMPARISON PercenUt SofPSaainletsInIndcuresatrsyetrfraodme s1a9l4e6s*b1ase1: K-M sales H i ` Source: Nol/onol Point, Varnish & Lacquer Association, Inc. i KM BB 5720 TAKING STOCK Kelly retired in 1952 at age 73, selling his interest in the busi ness to Moore in accordance with their partnership agree ment. The Company was incor porated at that time; The contemplated network of K-M owned and ope r a t ed branches has become a reality, consisting of 31 full service stores in 1966; Manufacturing facilities have kept pace, with paint factories in San Carlos and Ontario, Cali fornia and Dallas, T exas; I 'I 51 The Company's policy of con centrating on direct sales to the professional painting contractor, through company-owned stores, has been maintained: KeUy-Moore's expansion into other industries allied to paint has broadened the scope of its service; J i ' The production of important i raw materials has been inte I grated with the K-M operation. i j i J \ i HIGH RISE How Kelly-Moore achieved the dynamic growth charted on this page (in an industry dominated by giants) is the story of our first twenty years. KM BB 5721 ...-*;`""Tr-fTrmiiai .he of ; in nd nt, .en int rid II. age 68, retired general manager of the Glidden Company W est Coast factories, who provided experience in paint formulation and production techniques. This factory '-Ii i Located in San Carlos, California, a small town 25 miles south of i San Francisco, ideally situated to j serve the Northern California market. I And a ciear business objective To supply professional quality paints direct to contractors through 3 i a network of company-owned branches. TO SET THE STAGE jt j Paint industry sales are broadly classified as either industrial sales {to manufacturers for product finishes) or trade sales (to retail consumers and painting contrac tors for new construction and maintenance work). In the trade sales category it is estimated that retail consumers }J account for about 70% of the vol ume. The painting contractors' share of market has been declin ! ing due to high labor costs and the *i improvements in paints which \ have made them more practical for amateur use. Kelly-Moore's initial decision to concentrate on contractor sales thus committed the new company to the smallest and most demand ing segment of the trade sales market and the one with the most volatile credit problems. Ii However, at the time K-M was iit formed, no single paint manufac turer among approximately 60 in the area could be said to dominate the contractor m arket in Northern California. Furthermore, while its share of market was decreasing, the painting contractor trade repre sented a large and satisfying po tential to any concern that could capture a m ajor part of it, in view of the post-w ar boom in housing and commercial development that i was in store fo r the W est Coast. KM BB 5722 I KM BB 5723 24 KM BB 5676 ATTACHMENT "A KELLY-MOORE' ASBESTOS-CONTAINING PRODUCTS 1. Bedding Cement 2 . Taping Compound `3. Finishing Compound Quick-Set Joint Compound All Purpose (Triple Duty) .Ready Mix Taping 7.Ready Mix All Purpose g.Ready Mix Topping 9. Wall Texture (.Be.gtrex A ^ 10. Texture Paint //. Splatter Texture fj_. Sand Finish jZ. Ceiling Texture (Bestex D) /*/. Product 225 (paint) /^.Product 235 (paint) /{^.Product 521 (paint) Radiant Heat Fill / $ Bedding Cement I*"). Topping Cement 2jj All Purpose Joint Cement '2J .Triple Duty, Bestex D 2 2 . Bestex A 2.3. Ready Mix Paco No. 4051 Vinyl Ready-Mix Joint Compound 2-T. Paco-Tex Wall Texture No. 556 5 26 Paco Vinyl Joint Compound No.5512 27- paco Decorative Ceiling Texture No. 6373 J.S . paco Quick Set Joint Compound 2 p ]. Paco Finishing Compound No. 5535 S O . Paco Taping Compound No. 552S ^ Paco Ready Mix Topping Compound p r o d o c -hs frun^i 7 - 1 n o t Closer-;bed/ nor j KM O