No More Questions

THE 400 employees of Pittsburgh Paints’ supply chain met with CEO Brian Carson last week in a town hall style event originally scheduled for Thursday until a late change had it popping up on calendars two-days early.

Allowing Carson to disappoint far fewer people than originally anticipated.    

Questions for the chief could be posted anonymously on a web site made for such events with likes also recorded anonymously, the questions with the most likes would be addressed by the CEO at the town hall. 

And Carson does not want you to know that he shirked that responsibility!

Carson failed to address any of the 28 questions posted, among the ones receiving the most likes: Will the Cranberry headquarters be closing soon, will Liquid Nails be sold in the next quarter and how can we get the vending machines refilled? 

That last one at-least I thought Carson might answer, because you can make a buck filling vending machines!        

He ignored questions about the recently shuttered plant and distribution center in Delta, British Columbia, a move which cost 100 employees their jobs. Now two weeks later that action has still not been reported internally.

A few questions about bonuses and reorgs and the remaining posts got right to the point, nearly half asking the same question: Why has Pittsburgh management failed to produce any meaningful communications or to annunciate any plan for their brands despite owning the company for more than eight months?  

But Carson’s reticence does not hide Pittsburgh’s shame, Sherwin-Williams CEO Heidi Petz said that Pittsburgh’s status allows a “once a career” opportunity for her brand on a recent webcast with financial analysts.  Without ever mentioning Pittsburgh by name Petz stated that Sherwin was already pilfering both employees and customers, the one bright spot in her otherwise dismal reporting.

At her 5,000 paint stores volume is down, likely in the 5% range though inflation obscures that number somewhat.  Volume through home centers continues to crater with the Consumer Brands division dropping more than four percent in the quarter despite a 6% price increase in effect all three months. That shellacking caused by soft demand in North America according to Petz.

And the worst is yet to come.

Ms. Petz warned the digitally assembled to expect “softer for longer” demand for her paints, a foreboding which applies to more than just architectural coatings.  Sherwin’s coil division and most of the coatings from the company’s Performance Group are applied to steel, aluminum or some other metal.  Materials which effective August 1st carry tariffs as high as 50%, putting that nearly $2 billion division significantly at risk. 

With nearly $1 billion in debt due set to mature this year and almost $2 billion more by the end of 2027, I hope for Heidi’s sake it doesn’t become too soft for too long.  With just $200 million in cash on hand and so clear a trend I’m expecting to see layoffs at Sherwin.

Unless Petz wants to borrow a few dollars from Dan Calkins? 

And Sherwin's problems add to Carson’s laments, his stores are suffering the same macroeconomic fate as Sherwin does plus the Pittsburgh’s current complications . One more thing for Carson not to talk about at the next town hall.

Which leaves me to answer the most pressing question, one Carson can ignore but still there is an answer.

And we all know the answer is no, but I appreciate the shout out!