Message to Customers
From: Jeff Hamar - President, Galleher LLC

The last ten days have been unlike anything I have experienced in the 34 years I have led Galleher.  These are truly unprecedented times and we will all be challenged in ways we could never have anticipated a month ago.  Let me share with you some thoughts and updates on what we are doing.

My first concern is the health of our employees.  We have communicated often and taken steps to make sure everyone knows how to best prevent infection of the Coronavirus.  We urge you to make sure all of your employees are following the CDC guidelines.  The following link can provide valuable information:  https://www.cdc.gov/coronavirus/2019-ncov/index.html.

The virus began in China late last year.  Since we import significant amounts of product from China, Malaysia, Cambodia and Vietnam – our supply team was active beginning in late January working with our suppliers to understand the situation, prioritize shipments and anticipate needs.  While we have had some supply chain issues, our team has done great work and we see the situation improving dramatically in the weeks ahead.  The factories we source from are all back to work and we have over 100 containers on the water or being shipped soon to meet your needs.  We have placed orders for shipment well into the summer and our expectation is that those orders will be shipped on time. We feel very good about having product available going forward.

Our business, thanks to our more than 5,000 customers, remains good.  Beginning last fall, we saw sales strengthen and the first quarter of 2020 will be considerably better than the same period last year.  Until the Coronavirus hit, we had grand expectations for a very good year based on lower mortgage interest rates, low unemployment levels, strengthening home sales, increased activity in the new home channel and a stronger remodeling market.  We believe those themes are still very relevant, but the virus will clearly impact sales for the next couple of months.  However, by this summer we expect business to come roaring back and we will be ready.

Galleher continues to be fully open for business. Our attorneys have advised us that we qualify as an essential business in the seven counties under the ‘shelter in place’ orders in Northern CA.  Our role in the home construction and home maintenance channel is critical as California works to meet the needs of an enormous shortage of housing units.  All of our facilities in California (21), Arizona (2), Nevada (2) and Utah (1) will remain open for will call and delivery.  We are making modifications for some employees to work remotely, but in no way will this cause our customers to be impacted.  We may change some hours at some of our branches, and we will clearly be emphasizing social distancing in all our interactions.

Many of you know Rick Coates, Clay Covington, me or other key members of our Leadership team.  With well over 200 years of experience, we know that our key strength as a company is the relationship we have with our customers.  Our 350 employees are focused on helping you be more successful.  While these are very uncertain times, they are very different than 2008.  The financial crisis was the result of a systemic breakdown of our entire financial infrastructure – it led to a horrible recession with huge damage to our industry.  This Coronavirus challenge will end, sooner I hope than some people predict.  When the hoarding stops, the news fades, people get back to work and life recovers, we will see a surge in the American economy that will be profound and sustained.  Our goal is to be ready when that happens and to have every customer celebrating the return to good times.  If there is anything we can do to help in the meantime – please let us know.

One last point, we will continue to monitor the situation daily and adjust procedures to ensure service and safety are met as the situation evolves.  We will certainly keep you updated as this unprecedented event unfolds.

Thanks for your business and good luck in the days ahead…

Jeff