July, 2005

Shelly Enterprises’

DC Streamlines Operations

By Noelle Creamer

Perkasie, Pa.-based Shelly Enterprises, serving Eastern Pennsylvania with ten locations, is constructing a new central distribution facility in Quakers-town, Pa. This modern distribution center surpasses their current facility not only in size but in convenience, as it allows the company to take delivery by rail instead of truck. The multi-million dollar expansion is an investment in operations for this growing company.

Greg Shelly is the company’s co-owner and the third generation of the Shelly family to run the business. He and cousin Bill Shelly have grown the business to become one of the largest lumber and building supply dealers in Eastern Pennsylvania with annual sales over $100 million and 375 employees. 95% of Shelly’s customers are contractors, with a good mix of small contractors and remodelers in the customer base.

The company was founded in 1923 as a single location lumberyard/hardware store. When Greg and Bill Shelly took over the company in the 1970s, they expanded into prefabrication, opening the company’s first roof and floor truss plant. Today, they sell components widely and rely on customer service to differentiate them from their regional competition.

Greg Shelly says, "Our distribution center in Quakerstown is located at a 28-acre site which was formerly a brick yard. The site features existing steel buildings, all of sound structure, which are being refurbished. This will cost Shelly’s only one third the cost of new construction.” The site also features a 450-foot rail spur, a dozen loading docks, and 80,000 square feet under roof.

The kitchen warehouse and Andersen Windows shop will be the first sections of the business to relocate to the new site this fall. Their departure from Shelly’s Telford, Pa. location frees up space there for expanded wall panel and roof truss lines at that 25-acre site (with additional employees to be added). The company’s door shop will move in later and rail cars will begin running near the end of 2005.

Shelly says, "This is a better location for centralized distribution and will make us more efficient.” He explains that currently, loads from railroad cars are unloaded in Hatfield and trucked to the current distribution center to reload and deliver. "This facility will enable us to skip a step. The loads from the rail cars will go straight into the facility and loads will be packaged. We estimate that we’ll have five or six rail cars come in during a week and will take 15 to 20 trucks off the road.”

Shelly’s received a large grant for this project from the state of Pennsylvania and is appreciated in the region for improving the site, which was an illegal tire dump in the 1990s. Shelly says, "As our distribution center increases rail use for this area of the state, it makes the region more attractive to large industry.” Shelly notes there is a large roofing manufacturer and fertilizer plant that also use the rail service in the area.

Customers will notice improvements at the Sauder and Perkasie locations as they drive in to pick up loads. Shelly says, "Right now, it’s difficult for the smaller contractors and remodelers to get into the yard in the mornings. It’s very busy at both locations. With larger loads out of there, traffic will be better. Our smaller contactor customers are an important part of our business, so this will allow us to serve them better.”

Shelly’s plans to expand their door shop with several new machines and add an additional 15 to 20 employees to their staff over the course of the year. As the building business in the area continues to thrive, Shelly’s is investing in the future with this expansion. With their bigger facility on the rail line, they’ll be moving loads cost effectively and as fast as area builders can use them.